Karate Business Plan

Karate Business Plan

City Dojo (a karate academy) has been an integral part of the community since 1964. Since 1975, City Dojo (a karate school) has been operated by the Shihan (head instructor). The city has experienced many changes as well as the Martial Arts Industry.

There are approximately five million Americans who currently practice Martial Arts. Although the boom years in the 1960s are over, the industry continues to see steady growth.

City Dojo’s location and the surrounding area, which has over 250,000 potential members, have been an ideal place for Martial Arts training. There is a lot of competition. The dojo is in a critical moment of its existence. Currently the City Dojo is operated on a part-time basis (for the love of the art) offering little, if any income for its owner. To identify potential, the following business plan (the first for City Dojo) was developed. The Martial Arts market offers tremendous opportunities and the dojo is well-positioned to thrive in it.

The following plan will illustrate how the dojo can grow from its current breakeven point of 65 members to 200 (80% of capacity), in just three years. Based on an expanded membership, sales would grow from $65,000 in 2001 to $198,000 year-end 2004. The business plan suggests the dojo can generate considerable cashflow, if the business is operated on a full-time basis, offering its owner and any investor a healthy income.

For this growth to occur, the dojo will need a $20,000 loan, which must be repaid over eight year periods. This loan will be secured by the collateral of the house that is owned by the owner.

1.1 Objectives

  1. Remodel and update dojo by year end 2002.
  2. Increase paid membership to 200 by year-end 2004 (equivalent to 80% of dojo capacity).
  3. By year-end 2004, reduce membership turnover by 30% (measured as the number of students who have taken belt testing from blue to white).
  4. Develop a cashflow that allows for an investment build-up to support future expansion.

1.2 Mission

City Dojo was set up to give people a place to learn karate, have a lot of fun and also to make a commitment towards learning. The students will leave the dojo with a lasting memory.

1.3 Keys for Success

  • Create a unique, modern, clean and safe dojo environment.
  • Implementation, tracking and monitoring of a budget or business plan.
  • Establishing a strong Board of Advisors that will be able to assist with business and karate issues.

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