Posted by Mike Massie on March 5, 2010
Facing Down Hard Times In Your School?
If you're facing hard times in your martial art school, you're not alone. Here are some tips to help you make it through until things improve.
Facing down hard times? You’re not alone. I’ve heard from more than a few school owners who are feeling the crunch during this recession.
Here are some tips for those of you who may be struggling to keep your school open in the down economy.
The Mental Side – Survival Strategies
First off, focus on the positives – it’s the only way you’ll get through. Just keep doing that – your attitude is what will bring people into your school.
People are attracted to upbeat personalities. If you’re happy and energetic, it will really make you stand out and people will be drawn to it. Remember, your energy drives your school.
The Financial Side – Making It Through
First off, cut back on everything EXCEPT your marketing budget. Anything you don’t need to operate or survive should be cut from your budget.
However, it is imperative that you step-up your marketing activities, rather than slow them down. Those school owners that I coach who are growing in this economy are not doing so because they are lucky, located in “good” areas, or because they are martial arts superstars…
They are growing because they spend 80% of their work hours outside of class on their marketing – and they do this consistently, every single month.
Even so, you still need to make sure you’re spending your marketing dollars wisely. So, go through your marketing expenditures with a fine-tooth comb. If any marketing method is costing you more than it’s bringing in, cancel it and shift those funds to something that is actually giving you a good return on your investment.
A good rule of thumb here is that every dollar you spend on marketing should return $1 in revenue during the same marketing cycle (in out industry, 30 days).
However, I like to get $2 back on every dollar I spend within a 30-day time frame. You need those fast profits and high rates of return on your marketing dollars, because a martial arts school relies on cash flow for survival. So, your every marketing promotion should bring back a return of 200% within 30 days of running it.
Focus your efforts and resources only on those promotions that meet that criteria. And if you’re broke, focus on low-cost and high-return marketing activities like online marketing and door-to-door flier distribution. They take more time to implement, but they’re cheap and effective when done properly.
Keep Your Head In The Game
Finally, be present! If you check out on your school and students because things are not going so well, guess what? They’ll sense it and you’ll only be making the situation worse.
Remain fully invested in your students, regardless of what happens. Loyalty breeds loyalty, and you’ll be surprised at how many of them will be cheering for you and will stick with you, even if things don’t work out…
The Longview – What If Things Don’t Work Out?
“A mistake is a future benefit, the full value of which is yet to be realized.”
- Edwin Land, inventor of the Polaroid camera
First off, it’s not the end of the world if you have to go back to teaching part-time. So, don’t be ashamed of finding a part-time teaching location, ending your lease, and moving your classes somewhere without all the overhead and high rent.
Also, know when to call it quits on having a full-time location. Is it worth it to force yourself into major debt or bankruptcy, just so you don’t feel like a failure?
Well, guess what? All entrepreneurs fail at some point in their careers as business owners. It’s part and parcel for the game. Don’t feel bad if things don’t work out this time around. Just roll with it, regroup, and the next time around you’ll be wiser for your experience.
Remember, there’s ALWAYS another opportunity waiting just around the corner. The past is just a memory, and come tomorrow today will be the past.
You will recover and you will be able to start over again. So, stay positive and just keep looking for those opportunities as you move forward.
Posted by Mike Massie on December 9, 2009
A Fall Enrollment Season Like No Other?
If the recession has gotten you to tighten your belt, perhaps you should consider sticking to those habits once things improve
It looks like consumer confidence may be picking up, based on what I’ve been hearing from school owners around the country.
After a relatively flat October, enrollments increased sharply in November and the upswing is continuing into December… all factors that point to this being a highly unusual fall season for many schools around the nation.
However, it also could indicate that consumers are feeling more confident about the economy and are becoming more willing to spend money on luxury services again, in spite of the holiday season.
And, although the consumer confidence index has only seen a slight uptick since September (although it has increased dramatically after it hit near record lows earlier this year), it bears mentioning that at least in our industry there are plenty of schools that are going great guns despite the recession.
(Note: My take on this is that people are looking for something to take their minds off everything going on in the world, and activities like martial arts and fitness classes are a great way for them to do so. So, make sure your ads are focused on how fun and enjoyable your programs are – many people are more than willing to pay for escapism during difficult times. – MM)
If You’ve Tightened Your Belt A Notch Or Two, Don’t Start Loosening It Yet…
What this all means to those who have survived this recession is that you’ve developed some really good business habits in order to keep your martial arts businesses going.
That means you’ve been…
- Creating and following a marketing plan each month that includes multiple marketing methods, instead of cutting back on marketing to save money (this is so backwards, I can’t believe it when people tell me they’re planning to cut back on marketing to save money – that’s like saying you’re going to quit your job to cut back on your fuel bill)…
- Doing online marketing on a daily basis (blogging, articles, press releases, etc.)…
- Keeping your overhead costs as low as possible without sacrificing customer service or comfort…
- And, working your hardest to keep the students you have through showing them that they are valued members of your school!
Good Business Practices Should Be Adhered To In Every Economy
The fact is, the economy goes through regular cycles of highs and lows. Remember when the dot-com bubble burst back in 2000? How about the unusually harsh recession in the early eighties?
Knowing this, it only makes sense to stick to sound financial practices in your school during both strong financial times and lean.
So once this recession blows over, don’t do what most school owners will do and start to coast… or worse yet, to bog your business down with excess spending and overhead bloat. Instead, stick to those good habits so they become second nature… and then sock that extra money you make during the “good times” away so you are ready for the next low period.
By doing so, you’ll be protecting your business against any future economic dips… and at the same time you’ll be maximizing your profits while decreasing your liabilities.
Sounds like the smart way to go to me.
Until next time,
Posted by Mike Massie on September 23, 2009
A person's level of success is often a direct correlation to their internal state
Your job (as it relates to your students) is making people feel good.
I know that some of you would disagree…
But your ability to encourage referrals and retain students is a direct result of how good you are at making people feel good.
The problem is, you can’t give someone something you don’t already have.
So, if you go into work feeling miserable – that’s what you’re giving your students.
It’s easy to dismiss this as trite psycho-babble…
And believe me, I know how hard it is to be Mr. Chipper when your inquiries and enrollments are down and you feel like you’re bleeding money everywhere.
“…your ability to ENCOURAGE REFERRALS and RETAIN STUDENTS is a direct result of how good you are at MAKING PEOPLE FEEL GOOD.”
But, choosing unhappiness is a self-fulfilling prophecy. If you CHOOSE to focus on the negatives, pretty soon NEGATIVES are ALL you see.
Your internal world cannot be out of synch with your external world for long… and the other half of that equation is that the mind controls the body (thoughts control actions).
Thus, your mind soon starts to synch your actions with your thoughts and feelings. When those thoughts and feelings are negative, here’s what happens:
- You start gravitating toward negative people (and attracting them in droves).
- You start to self-sabotage (often, you can’t see this, but other people do).
- You second-guess things.
- You damage relationships.
- You give a less-than-your-best effort at work (teaching class).
…and so on.
This isn’t some feel-good-secret-law-of-attraction-mumbo-jumbo. It’s natural law, the way God wrote the rules to the universe.
“For as he thinketh in his heart, so is he…”
“A man reaps what he sows.”
“According to your faith will it be done to you…”
It’s inescapable… so instead of fighting universal law, abide by the rules in place and use them to your advantage.
Here’s how:
- Give 100% to your students – they deserve it.
- Be that person you’ve always looked up to and admired – deep inside, you are that person.
- Focus on the positives – it’s the only way you’ll get through challenges with your sanity intact.
- Focus first on how you can help others – your attitude is what will bring people in. People are attracted to that which makes them feel good. If you’re happy and energetic, it will really make you stand out as an instructor and people will be drawn to that.
At all times keep in mind that your job is MAKING PEOPLE FEEL GOOD.
As a prerequisite, you have to CHOOSE to feel GOOD.
Flip that internal switch, turn a corner, transform your business, and change your life.
Posted by Mike Massie on September 9, 2009
He Who Procrastinates, Will Ruminate When It’s Too Late…
You can just make those calls tomorrow, right? WRONG!
“I’ll get to it tomorrow.”
“I have plenty of time.”
“So-and-so will take care of it.”
“I’ll get around to it.”
Ever catch yourself saying these things?
Or better yet…
Ever catch yourself doing these things?
Don’t expect any sympathy from me… because I’ve heard all the excuses:
- “I work all day and then run my school at night.” You and about 20,000 other school owners. Get over it.
- “I didn’t know how.” Ever hear of a book, a website, an audio, or a phone? We live in the information age, my friend. Self-education is as easy as doing a Google search…
- “I had a million things on my mind.” Welcome to running a business.
- “I was too tired to do it.” Really? You were too tired to make money? Here’s some advice then – sell your school and go get a government job. That way, you can sit around and do nothing all day while you waste someone else’s money.
Harsh? Not in the least.
You see, procrastination is a lot more insidious than we typically think. The reason is that it becomes a habit, a pattern, a way to cop out when we’re faced with things we don’t want to do.
Not only that… it’s self-destructive as well.
Your Procrastination Gives Your Competition More Time To Hose You
Guess what? When you procrastinate, you’re playing defense for the other team…
That’s right – you’re keeping yourself from reaching your goals and making headway against the competition…
And in some cases, clearing the field so the other team can score…
All by being a big, fat, lazy procrastinator.
Yeah, you heard me…
L-A-Z-Y… lazy!
Because if you think about it, procrastination is nothing more than when we allow ourselves to justify our own laziness.
So… Do It Now!
One of my all-time favorite success sayings is from Brian Tracy, and it’s dead-simple:
“Do it now! Do it now! Do it now!”
Anytime I want to put off something until tomorrow, I can hear Brian’s words in my head.
And then, my internal drill instructor kicks in, I kick my butt in gear, and I get the task at hand done.
Why is this so important?
Because, you have NO idea what the competition is planning!
One instance of hesitation, and BAM! They get the jump on you.
In times past, I’ve known very talented martial artists who have gotten their tails kicked in business by less-talented martial arts school owners… all because they were too darned lazy to do things when they should have.
Now, you could argue that the more talented martial artist “deserves” to be successful more than the other school owner. I mean, being as he or she is a better martial artist, has more experience, their students do well in competition… I could go on and on.
But from a business perspective, many times it’s the guy who runs the belt factory down the street who deserves it more…
Why? Because he’s doing the work required to get new students!
The Universal Law Governing Work And Reward
It’s the way the universe works… and it’s a universal law that’s repeated over and over again in Scripture. “You reap what you sow.” “Observe the ant…” “…the work of a man’s hand comes back to him.” I could go on and on.
Of course, everyone wants to blame someone else, right?
But the thing is (and this is what I tell my friends and clients) the buck stops with you!
It’s YOUR SCHOOL, YOUR TAIL on the LINE, and YOUR SUCCESS or FAILURE at STAKE!
If you do the work at the opportune time, you get the reward for doing so.
Simple.
Procrastination = Lost Opportunities
The same thing goes for implementing new ideas…
Some folks are going to look at the SDBBP and go, “Yeah, that looks cool – but I’m going to wait and let someone else take the risk of trying it first…”
Well, let me tell you something -
By the time you do that, your competitor down the street may have already locked in your town…
And by then it will be too late.
Until next time,
Michael Massie, National Director of Operations
The Self Defense Black Belt Program™
http://selfdefenseblackbelt.com/
Posted by Mike Massie on September 3, 2009
There’s Nothing More Frustrating Than…
Hey, it's not an interruption... it's a paycheck
When you need support on a piece of software, and can’t get in touch with anyone by email or by phone. Especially by phone.
Even my webhosts will take the odd support phone call now and then, and even though I know that I may get a snarky attitude from the support team (save that for another post) I’m willing to put up with a little attitude in exchange for prompt assistance.
But when you can’t contact anyone – that’s bad news. And that’s what happened to me today when a piece of software I installed to run my new SDBBP site went on the fritz.
So, I frantically started looking for another software solution. And guess what? I got the CEO of another company on the phone within five minutes of finding their site online. Now, to some that may just mean that the company is small.
But to me, it tells me they care about their customers and prospects. And that, my friends, makes all the difference in the world.
So, Why Don’t You Answer Your Phones?
With today’s technology, there’s simply no excuse for not answering your phones at your martial arts school all day long. Almost everyone carries a phone in their pocket everywhere they go. Call forwarding allows you to route calls from your school phone to your cell phone, and some VOIP services even allow you to have your calls ring to two phones at once.
So why wouldn’t you answer your phone?
Maybe you think it’s okay to let those calls hit your voice mail during the day. I’ve done it myself. But, one thing I’ve witnessed time and again is that the early bird gets the worm. Whomever the caller talks to first will usually set the appointment.
And here’s another thing… many people HATE voice mail. Those people don’t leave messages.
Ever.
So if someone like that hits your voice mail box, that’s a customer lost.
The Opportunity Cost of Missed Calls
Opportunity cost is an important concept in economics. Don’t worry about the fancy definition; just understand that every opportunity missed costs you something. The real question is whether what you gained instead worth passing up that opportunity.
In the case of missing phone calls, generally speaking the answer is a big fat NO…
Let’s look at it one way, in the money it cost to generate a single phone call to your school. This can be anywhere from $20 to $100 dollars, depending on how good your advertisement and marketing is, and how much it costs to run it (Note: If you want to drive the cost of advertising down, improve your marketing so the cost per lead is lower).
So, from that perspective, every lost call costs you an average of $60. That hurts, but not so much.
And That’s Just The Tip Of The Iceberg
Unfortunately, that’s not really all you’ve lost. Let’s say that for every ten people you talk to, you set 6 appointments, and out of those five show up. And let’s say four out of those five enroll, and the average student sticks around a year or more. At $150 a month tuition, each student is worth $1,800 minimum.
So, if you’re enrolling 40% of the people you actually get on the phone, each missed call is costing you approximately $720 in lost tuition… or $780 if you add in the cost-per-lead.
That’s an expensive habit, my friend. Makes me want to forward my phones to my cell AND my home.
So, here’s a way you can increase your income dramatically this very month – START ANSWERING YOUR PHONES from 8 AM until 9 PM, and return all phone calls the very same day, and within the hour if possible.
And About That Software Vendor…
Incidentally, they finally got back to me five-and-a-half hours later. Said the problem should be resolved within the hour. That was an hour and 45 minutes ago.
Needless to say, I am going with the other vendor, ASAP.
Until next time,
Michael D. Massie
Adult Curriculum: http://selfdefenseblackbelt.com/ (currently down for maintenance) 
Social Network for Martial Arts Instructors: http://www.masainetwork.com/
Business Manual: http://www.small-dojo-big-profits.com/
Resources: http://www.starting-a-martial-arts-school.com/
