Posted by Mike Massie on April 20, 2010
“The way to succeed is to double your error rate.”
Thomas J. Watson
Definitely worth a read...
Recently, I’ve been reading “Mindset: The New Psychology of Success” 
by Stanford psychology professor and researcher Dr. Carol Dweck.
I’d recommend it for anyone – it’s a clear and well-supported explanation of why your mindset has so much to do with success.
And since I started reading it, it has stirred some serious introspection regarding my own personal outlook on the challenges and failures in my life.
Take, for instance, my early experiences in starting and running a martial art school.
I thought it would be easy to open a school and get students – all I had to do was find a place to teach, run an ad in the paper, and I’d be sitting pretty with a classroom full of students.
I was wrong.
In fact, I failed three times before I finally started my first successful school… a story I detail in the first chapters of my martial arts business manual, Small Dojo Big Profits.
Surprised I’d be so open and public about my early failures?
Well, I am going to go out on a limb here and say I believe that’s one of the big problems in our industry…
That no one wants to admit:
- Their failures -
- When they’ve been wrong -
- When they’ve made mistakes -
- The times when they gave up and called it quits -
Well, I think I’ve mentioned before that I have not had an easy life. Oh, I have been blessed in many ways, but for the most part my life has consisted of a lot of struggles interspersed with some bright spots along the way.
I think it’s because of this that I’ve spent so much time studying people who have overcome adversity.
And, in the course of my observations I’ve noticed there’s a common thread in all stories about people who succeed in the face of great difficulty and disappointment…
The truth is, most people who achieve success fail much more often than they succeed. Or, as someone once put it, they “fail their way to success.”
But in our industry, there is a pervasive negative attitude regarding failure, and I believe it stems from a more deep-seated attitude toward weakness.
Martial artists aren’t supposed to show weakness. They’re not supposed to be “weak”.
Right?
I mean, we eat our own. Just let someone show weakness or be perceived as being weak, and I guarantee you that the jackals will be circling for the kill in no time flat.
So, martial artists get very good at hiding what they perceive to be their “weaknesses”.
And that leads me back to how “known” martial arts figures don’t want anyone to know that they’ve failed or made mistakes.
Maybe it goes back to the old image of the “master” or sensei being an all-knowing figure who is always right.
But, even though we want to believe in that image, we all know it’s just an illusion.
One that gets in the way of learning and growth.
The reason it’s such an issue, is because it leaves no room for error… and therefore, none for experimentation and growth as an industry.
Admit it – it’s darned hard to go out on a limb, when you know what public failure could mean. Ridicule, back-stabbing, and being shunned by the martial arts community.
It happens, you know it and I know it. We’ve all seen it.
But, the important thing to remember is that everyone fails… especially those who are willing to take risks.
And risks are part and parcel of being in business for yourself. It’s actually quite elemental to being an entrepreneur.
Look up “entrepreneur” in the dictionary, and here’s what you’ll find:
en?tre?pre?neur – a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk.
So, what’s the takeaway from this?
First, that there are two ways to look at failure.
- One way is that failure is something to avoid at all costs.
- The other is that every failure is one step closer to success.
The second takeaway is that failure is only a sign of weakness when it can’t be admitted or discussed.
But when it’s out the in open, analyzed, examined, and learned from, it becomes the cornerstone that success is built upon.
Posted by Mike Massie on February 2, 2010
“But I Can’t Do That In My School Because Of…”
Your services are likely worth much more than you think they are. So long as you set your prices lower than your value, you will never experience the true potential of your success.
Last week I sent out an email that listed actual enrollment numbers for three members of the Martial Art School Alliance website.
These are three instructors who are kicking tail despite the down economy. And, one of them actually lives in an area where the unemployment level is 15%.
It just goes to show you can succeed in this economy, and that most of the things we think are holding us back from being successful are internal and self-imposed.
Which bring me to today’s topic…
What To Charge, What To Charge
Earlier today, I received the following question from a reader regarding that email:
“Even with their below average facilities, do you recommend them charging $99 a month?”
People quote me on that $99 a month figure all the time (and the 10% of your gross for marketing – it’s a guideline, people, not an unbreakable rule) and I have to remind them that was the absolute lowest I thought a school should charge…
Back in 2003.
Seven years later, your cost of doing business has increased significantly. You need to be charging at least 20 – 30 % more today than you were seven years ago. That is, you should if you want to have something left over after overhead, taxes, inflation, and the sinking value of the dollar are done with your revenues.
They Are Doing What With What?
For the record, two of those guys have nice schools. Jim is the one teaching out of a warehouse facility, and he is doing phenomenal at it due to having the right mindset and being an awesome teacher and coach. (And actually, I kind of like his school… it takes me back to when I first started training. Who needs heat and AC, anyway?)
But here’s the kicker – all three of these guys charge about $150 a month average in tuition.
Now, I know for some of you out there this isn’t a shocker. You’re already charging that much or more.
But for many of you, you’re thinking that’s an impossible figure to charge your students for lessons.
Some of you are outraged, thinking these guys are ripping their students off (baloney – every one of them is worth that and more). Others of you think they must have something you don’t in order to demand those rates. Still others of you are wondering if I’m even telling the truth.
And that’s why you’re always broke.
You Can Lead A Horse To Water…
I’ve argued and argued this point for years. Well, I’m finally sick of arguing and fighting with instructors about how much to charge.
For those of you who are willing to believe your value merits charging a premium for your services, outstanding. You deserve to be successful and well-respected. Just keep adding value to your services and bringing value to your communities and you’ll continue to be rewarded for it.
But for those of you who don’t want to believe you can charge a premium for your services, for whatever reason, that’s fine by me as well. You can stay broke, while instructors who know their value will have nicer schools, better equipment, higher salaries, and a better quality of living.
Not because they have something you don’t.
No, it’s because they have the proper mindset for success.
Until next time,
Michael D. Massie
P.S.: I am inundated with requests for “free” advice these days. I am simply too busy to give away my valuable time and knowledge for free, as it’s a disservice to my paying clients.
Remember, if you are a MASAI member you can almost always get your questions answered at no additional cost in the member forums. However, if you need to correspond with me by phone or email for help with a pressing business issue, please visit the MASAI online store and order phone or email coaching with me.
Thanks for your understanding!
Posted by Mike Massie on April 1, 2009
“The question isn’t who is going to let me; it’s who is going to stop me.”
- Ayn Rand
I’m not really into Ayn Rand (although I agree with many of her views, and I sure enjoyed the heck out of playing BioShock), but I think that quote sums up the attitude that all successful entrepreneurs have.
Wrestler Dustin Carter doesn't let fear stand in his way. George Tiedemann/SI
Business owners who are successful over the long term see risk as part and parcel of the game; there’s no such thing as “risk avoidance”, and only “risk reduction” exists in their vocabulary.
And yet I often hear from people who are starting businesses, and their mindset is so focused on fear of failure that I know they’re not cut out for owning a business.
Think about it… if you were training a fighter, and all they talked about and thought about was avoiding getting their tail kicked, would you start booking fights for them?
Of course not, because you know that fighters have to be focused on their ideal outcome, which is tearing the person across the ring apart.
I can remember fights where I got the snot knocked out of me by guys that my coach told me I should be able to beat. But, the problem wasn’t my skill level; it was my mindset. In each case, I had psyched myself out before the match had even begun.
A fighter has to be confident that they’re the one who is going to be doing all the damage; if they’re focused on “not getting hurt”, then they’ll become paralyzed by fear… and that’s a dangerous place to be in when you’re sharing the canvas with someone who is serious about hurting you.
“In battle, if you you make your opponent flinch, you have already won.”
- Miyamoto Musashi
Being in business requires a similar frame of mind. You have to set out accepting that it is not going to be easy. You have to appreciate the fact that the business environment is tough, and that you will experience setbacks.
“Fright often occurs, caused by the unexpected.”
- Miyamoto Musashi
Yet, when you also accept that those setbacks will only be temporary, and that each one brings you one step closer to your goal, you’ll be prepared emotionally and mentally when things go south…
And, you’ll bounce back from those situations much quicker than the person who starts pulling their hair and asking, “why me?” every time they experience a setback in their business.
“Why you?” A better question to ask would be, “why not you?” because it expresses the pragmatic sort of thinking that allows every successful entrepreneur to rise, time and again, to any given challenge.
Posted by Mike Massie on January 29, 2009
Fear makes you do stupid things.
I think all martial artists know that it’s a basic sparring strategy to get your opponent to act out of fear instead of logic. And, that’s because fear causes you to hesitate, to freeze up, to second guess your gut.
Fear makes you dumber than you really are.
“Fear makes for a really crappy growth strategy.” – Amy C. Cosper, Editor-in-Chief, Entrepreneur
So, why is it that we’re being told we need to fear the current economic situation?
Could it possibly be because the media needs something to talk about, now that the election is over?
Could it be because a fearful populace is easier to herd and control?
Could it simply be because the people who are supposed to know what’s really going on suddenly discovered that they don’t have a clue how markets work?
I don’t have the answers to those questions, and frankly I don’t think anyone will except in hindsight 20 years from now. However, what I do know is that Ms. Cosper is exactly right in her assessment of how fear stunts your business growth.
There are plenty of opportunities in the market right now for martial art school owners. Here are some examples to get you thinking about how you can turn the current situation into your favor:
- After-School and Summer Karate: In more and more families both parents are having to work outside the home to make it. That makes after-school and summer day camp martial arts programs a potential gold-mine for school owners this year.
- Now Is A Great Time To Purchase Your Building: As Terry Bryan has been pointing out in his newsletter recently, if you’re financially stable now would be a great time to look into buying a commercial location for your school. Interest rates are low and property values have plummeted – there may be no better time in the next 20 years to move on acquiring commercial property.
- Lease Ending Soon? Then It’s Time To Renegotiate Terms Or Find a Better Location! Trust me, your landlord is sweating bullets right now about keeping tenants. If you’re not in a position to buy a building for your school, you might still be able to negotiate better terms on your lease if it’s about to expire. And if not, consider looking for a more desirable location now that the leasing market is at a low.
Remember, those with entrepreneurial DNA are always thinking about the upside of down, and are constantly seeking ways to turn every situation to their advantage.
Maintain this mindset, and your business might not just weather the storm – you may very well see your martial arts business grow in areas you never anticipated.
“Opportunities multiply as they are seized.” – Sun Tzu
Posted by Mike Massie on July 21, 2008
Today, Gary writes in to ask:
Q: “Hello Mr Massie,
I know in your book you mention not charging less than $99/month, and I agree with you. However, the city I currently live in, and the city I hope to move back to within the next year and a half are filled with Martial art schools that charge $45-$70 a month for unlimited # of classes.
I know that I’m a good teacher. I know that the products that I choose to teach are great. But can I charge double or in some cases more than double and expect to succeed?”
A: Thanks for the question, Gary.
First off, what your competition charges has no correlation whatsoever to what your services are worth.
In my town, my closest competitor charges $70 a month, the next closest charges $30 a month, and several other programs charge in the $50 range.
I charge $109 a month base tuition. I have the most successful school in town.
It’s all about mindset – charge what you truly believe you’re worth, feel good about it, and you’ll get what you expect.
Here’s an easy-to-understand example to get you in the right mindset about this:
A physician in private practice usually charges anywhere from $70 – $150 for an office visit.
But, in many places now, you can go down the street to the local clinic and get see a doctor for about $20 – $40.
So, why don’t the private practice guys charge less so they can compete with the low-cost clinics?
Because they understand two things:
1. Who their clientèle are.
2. And what their services are worth.
Look at any other service industry and you’ll easily be able to find a similar example.
Bottom line… charge what you’re worth.
