Mile  High Maverick

Good show, bad show.

I love the “Disney Culture.”   One of the things they pointed out during the leadership training classes that I took at Disney University was how focused they are on a theater culture.   Much of their terminology focuses around theater terms.  For instance “on-stage” & “off-stage.”   An awareness of when you are in front of the audience (customers or in Disney speak “guests,”) and when you are not visible to customers.

One of the exercises that they gave us was to tour the property and look for examples of “good show” and “bad show.”  They tell one story of a desk clerk at one of the hotels pointing out to “Michael” (then CEO Michael Eisner) his “bad show” by not wearing his Disney name badge during one tour in Orlando.

Anyway, on that note I had the opportunity shortly following Quantum Leap to travel to Tulsa for a couple of days then on to Cleveland.  I had several opportunities to witness the on-going saga of airline industry “bad show.”  I flew to Tulsa on Sunday then Jodi joined me on Monday.  She had several tales of rudeness by the United Airlines employees.  One that I witnesses was that after “gate checking” the stroller for my 11 month old son they proceeded to rip both handles to shreds.  Now, it’s a very expensive stroller and she was understandably upset since they wouldn’t let her take it on board.   When she approached the United Attendants in Tulsa one lady basically told her it was Jodi’s problem, tough luck and turned her back on her.  The next attendant explained somewhat less rudely that there was nothing they would do and frankly it should be expected.  No apologies or even apologies and explanation.

Next, I flew from Tulsa to Cleveland by way of Chicago.  Upon arriving in Chicago our plane sat on the runway for 10-15 minutes waiting for a late flight to leave.  Then my gate checked back was last off, I was last off the plane, and then proceeded to screen to find my connecting flight.  The first screen wasn’t working.  Next I waited for an employee to send me to another terminal.  Finally, I saw a screen working that sent me back to another gate.  After the debacle I approached another American Employee who proceeded to spent 10 minutes blaming me for missing the flight that closed a few minutes after I finally got off my incoming flight.   It was an interesting conversation where the American Airline employee spent several minutes explaining how everyone else made the flight.  Why it was obvious where the gate was.  That the previous flight had arrived on-time (even though it sat on the runway for 10-15 minutes) ete., etc.   Rather than looking for a solution I had to sit through an explanation about why missing the flight was my fault.

Anyway, it’s no wonder the airline industry is in bad shape.   Cheap fares are one thing, but really with that kind of treatment who wants to travel?

Anyway, once in resigned to spending the night in Chicago I end up at the Hyatt Regency and walked over the the “Muvico” Theater next door.   Now, they have an interesting business model that I hadn’t really encountered before (and, I go to lots of movies.)   They had a separate entrance for their “premier section.”  The admission was approximately double.   For that you received a reserved seat.  Bigger more comfortable seats.  A lobby with a full sit down restaurant and bar complete with flat screen TV’s.  The concession stand included a much wider (and, more expensive) selection including a full range of bottled bear, full menu ranging from $10-$20 such as the $11 cheese burger that I bought.

Start to finish it was approximately double what I typically would have spent at the movies.  Combined with a somewhat better seating experience and better food.   For participants in that option they ended up with double or more the normal revenue for a better experience.  Now, don’t miss the point that the actual “product” was the same for everyone.  In this case it was the fairly mediocre movie “12 rounds.”  Whether in the cheap seats (first time I thought of the rest of the theater in those terms.) or the premier section the actual movie was the same.  It was the experience around the movie that changed (seating, reserved seats, improved concessions, options otherwise not available, etc.)  Now, in my case given the option to spend what amounted to $40 for the movie and concessions versus what would have been about $20 I chose to spend double without a second thought.  Clearly I may not be typical but if only 15-20% of their patrons were willing to do that it adds a lot of additional revenue with VERY LITTLE marginal cost for the movie theater.

It’s an important lesson.   Many are like me where they’re willing to spend more for the enhanced experience.  It certainly applies to your martial arts school.

I’ve heard the lament that owners want to treat everyone equally and are unwilling to have “upgrade” programs or enhanced opportunities.  Well, frankly that’s a huge mistake.   Some, perhaps most do not want the more expensive option and will be perfectly happy to take whatever the lowest program is that you offer.  Others will automatically take whatever the highest level it is that you offer.  Many more if given enough value difference will choose the highest price option.

In the case of our Mile High Karate schools when given the choice of Master Club at $259 a month and Leadership at $359 per month, we’re finding 75-90% choose the more expensive option.   A smaller percentage but still significant number of students are willing to spend a lot more than that for the highest level program if given adequate justification.

At a certain point each and every school owner should really ask themselves a few questions:

First.        Am I really serious about running a professional school?
Second.        Am I willing to do the work to accomplish that objective?
Third.        What am I doing to hold myself back from being truly successful?

Unfortunately, we seem to be inundated with school owners who want to just take the “majic pill” and suddenly be successful and wealthy with no other labor or learning.   The question is are you willing to expand your thinking, focus on your potential opportunity, and do the work necessary.

On a lovely weekend in Denver we had a room full of the “top 1%’ers” who traveled to Denver to gain a “slight edge.”   Many don’t understand but a key difference between winners and losers in the believe in the “slight edge.”   You’ve heard it said that one good idea pays for the event and the time and effort to travel to an event.  I heard a member recently way they didn’t agree with that (a member from the U.K..)

Maybe the “one good idea” thought needs a little clarification.  If for example as many school owners did, you received one idea that added an average of 2 new students to your school each month for the next 12 months.  Now, assuming that each student you enroll spends an average of only $3,000 with your school then that one idea is worth 2 X 12 X $3,000 or $72,000.00.   Now if you spent $3,000 traveling to an event, registering for the event, and in staff time attending an event then you received 2,400% Return on Investment.  Now, just imagine if it was two good ideas!   Maybe add 2 additional enrollments per month and increase value from $3,000 to $4,000?  Well, that ends up being $96,000.00 + $120,0000 or $216,000.00 additional per year if you were averaging 10 enrollments a month before attending (added 2 enrollments on average per month and added $1,000 additional value for the 10 enrollments a month that you were already bringing in.)  Now on the $3,000 total expense that’s a 7,200% return on investment (try that in an era where savings, CD’s, T-Bills garner less than 3% annually!)

Never underestimate the value of the “small edge” or of one good idea.

One participant from the last Extreme Success Academy (who traveled with 5 people all the way from Holland) explained to me that one idea I gave them at that event added $500,000 to their revenue in the six months since the event!   Now, if it cost them $10,000 to attend that event then it’s still 10,000% annual return on their investment.   A single GOOD idea can indeed be worth many multiples of your investment.  Frankly if you just learned enough at a live event to add 5 or 6 new students a year or improve income per student by 5-10% then it’s well worth the cost and time.

By the way.  If you missed the Quantum Leap you made a HUGE mistake.  Here’s just a sampling of feedback from the event.  Make sure you are registered now for the upcoming Extreme Success Academy in September 2009 – San Antonio, Texas.

Master Oliver and Toby,

I wanted to take the chance to Thank you for putting on one awesome event this past weekend. We actually just got home a few hours ago from after one fantastic weekend. First with Quantum Leap and then the Peak Performer meeting. The information that we obtained from these events is absolutely priceless.

You both really know how to inspire Martial Artists and Entrepreneurs. The guests that you had present all had such valuable information. There was enough value in each of the speakers to totally pay back for the price of the admission and more!

I am totally ecstatic about being involved with NAPMA and knowing both of you. You have really inspired me to take my school to the next level and shown me the tools necessary to do so. Something that not even one year ago I didn’t have that kind of chance. I would have been stuck in the same spot now as I was then if I hadn’t accepted a friends advice and joined NAPMA.

Thank-you once again for being the visionaries that this industry so badly needs! I look forward to working with both of you over many years to come.

Jeff Burroughs
Hamilton, Ont
Canada
———–
I went to the Quantum Leap this weekend because I am struggling to stay in business. I came home with enough information to create a quick  infusion of students. I believe I received a more than fair return for my expense. Probably x 100.

Presenters gave excellent presentations. All of them went the extra mile to share marketing ideas to help everyone weather the current  economic stress. I was impressed with their sincerity to help every one’s business to thrive.

Everyone stressed the two key words: Imple Mentation!

I believe Stephen Oliver, Toby Milroy, and the rest of the NAPMA staff
were sincerely trying to help everyone to go home with something that
would create profit quickly and establish a sustainable business.

Thanks guys!
Ed Guerena

Oh, and my favorite.  Excuse the language it is coming from Peyton Quinn:

Your man Toby is something, high energy, but never “pushy” at all, a born marketer with superior and yet fluid and authentic communication skills. In my old software company hiring the right people and not hiring the ‘wrong people’ was a very, very key element in the firm’s success. Personnel are all a service-oriented company really comes down to in terms of its ultimate performance,

Your Organization is definitely not a piece of shit
I think you may have gathered that I am pretty frank in my professional communications.

If I think something is a piece of shit, or exploitive then I generally will say so. I am thus sure it will ‘delight you to no end’  that I have concluded that your stewardship of NAPMA is most definitely not a pile of shit.

The speakers were quite substantive. To chose just one example, I wish I had known everything that was so very well presented about ‘real estate investment’ last Saturday, ….it is just that I really wish I had those informational tools 25 years ago!

Just as I am not really in the ‘martial arts industry’ with RMCAT, I see that you are not truly in that industry either. In the simplest sense, I would say you were in the industry specific, marketing specialist business.

Many school owners have asked me about what my feeling is on ‘this or that industry organization’ that is trying to get them to pay “x” amount of dollars to join their ‘program’.

I tell them that it is my feeling that IF the program is “style name specific” based, like for example: BJJ, KRAV MAGA, or even the Divine School of the Monkey Fist of Steel etc, THEN these people are very likely and primarily intending to profiteer off of the school owner alone using the transitory celebrity of their “style’s name recognition”.

There is thus no substance or support or value to what these “style of current celebrity” people are selling for the school owner. Even20the sellers of these systems (though they may fool themselves through vanity and narcissism at times) know that the celebrity of their “style” will die out soon just as all the others did in the past.

They thus do not make any effort to set up any real or meaningful long-term support for their members. It is a ‘ take the money up front and run deal’ for them. Perhaps with some side cash made in getting, or even demanding, that their members later pay for additional “advanced” qualifying training classes in their “unique and proprietary system”.

You sir, I can see are not one of these creatures. You’re a ‘good huckster’ in one sense, but to me that term really just comes down to being another, perhaps ‘less dignified word’ for being an experienced and effective marketer. Most importantly though, what you are selling with your Mile High Karate franchises I am coming to believe is unique in this industry and that is has true and very significant value.

If a school owner is in the right demographic area and he or she has the personality and drive that I feel is demanded to engage the things they must do in order to really actualize your system of marketing (and especially if they have already hit the plateau at say 250 students or so) then they would very likely (I am begging to feel) benefit greatly by joining Mile High Karate. In perhaps three or four months they might even recover their entire franchise fee.

Peyton Quinn.

Starting this month, NAPMA introduces “The Four Keys to your Future.” In an unprecedented, yearlong series of feature articles, you will learn how to benefit from the new era of the martial arts industry that is upon us.

During each quarter of the year, Martial Arts Professional will focus on one of the four key concepts that will guide you toward a future of amazing growth in enrollments, retention, renewals and student quality.

This month, the series begins with the first of the Four Keys: developing an exit strategy for your career and/or business. Quite simply, you must know where you’re going, if you expect to reach the finish line.

The other Four Keys to your Future are:
2.    Building equity in your business.
3.    Implementing total school systemization, without re-inventing the wheel.
4.    Utilizing economies-of-scale methods to operate at lower cost.

Think of each Key as your means to open another door to your future. It’s a progression of steps—from developing an end goal for your career/business—to building value in your business—to implementing systemization and economies-of-scale methods, to transform the average martial arts school into a highly desirable, marketable asset that will dramatically boost your personal wealth when you sell it.

For many years, and now as NAPMA CEO, Stephen Oliver has brought a sharper clarity to what the future of the martial arts industry will be, and what current instructors and school owners and those who will open schools must do to be a part of that future. His Mile High Karate franchise system is already bringing that future to an ever-growing group of school owners who want the best a martial arts business has to offer.

He has repeatedly stated that, first and foremost, you are faced with a fundamental decision: to hold fast to the school model of the past or join those who are already benefiting from the new model, and create a thriving martial arts business for yourself.

Although there will always be room for hobbyists and volunteer and part-time instructors (and they should be congratulated for what they do), cultural and economic forces are coming to a head. Industry leaders and more and more school owners are finally realizing that a martial arts school is an outstanding business opportunity—one that has been largely unnoticed for decades. This has led to the development of a serious business model that is increasingly becoming the norm.

The pioneers of the new era are those school owners who have already made the transition from part-time and/or mediocre-performing schools to high-grossing businesses. The much higher student quality they’ve achieved (as well as skyrocketing revenues) proves that the “selling out” concept is also old history. Many traditionalists (including this month’s Success Story, Charles Dudley, on page XX) have been able to develop synergistic business models that accommodate both the traditions of their arts and the highest goals of business.

As the martial arts industry transitions to this new era, there are no real impediments to move from where you are today to where you want to be—except, frankly, those in your head. That is why NAPMA has committed so many pages in Martial Arts Professional during the next year—to clear your head, change your mindset and focus your energies on your future, where the success you’ve always deserved is waiting for you.

I must admit that, like many of you I find metaphors in the martial arts that are constantly teaching lessons in every day life and business. It is even more interesting when your life and business is the martial arts.
For example: many of the techniques that are taught In many martial arts schools could never be used in a real life altercation. Of course the benefits that come with improved eye hand coordination, balance, focus, discipline and the beauty of our sacred arts far out-way the value of being able to hurt someone with a technique in real day to day application for your students. But the fact remains many techniques will not work, for real, against an opponent who is a real threat.
I always think of the cool clever defense against a lapel grab that works great as long as the attacker does not let go of the lapel.
I make this distinction regularly with my students. The guy who is not smart enough to let go of the lapel is not a threat to anyone. There is a phrase that describes when a trained fighter has an altercation with some so inept. You can’t call self-defense or even a fight.  It is called beating them up. We so do not learn in our school how to beat up people who have no business fighting. We learn to defeat the champion.
Or, if your fighting skills were only developed to the point where you could handily beat your best student how would that work against the champion? You know that you can keep your hands down and throw all kinds of flashy techniques against them and they will land. And, if you end up off balance, it’s okay; they are not fast enough to make you pay for it.
But what happens if you have to fight the champ?
If you knew you were going to fight the champion of the world on national TV, how different would your training and techniques be? Or, if you were training to be a commando who will be dropped into Afghanistan and the techniques may have to save your life what would you do differently?  Well I’ll give a short list of things you would probably do differently if you are smart. 1. The first thing you would do is seek out the best master/coach with the most effective techniques, and knowledge of preparation. You have No more time to spend working ok techniques that only work on the unqualified. That master and you would devise a plan for preparing you for the challenge.
2. You would take on the smartest regimen of conditioning,
3.skill training,
4. diet,
5. mental conditioning,
6.and rest.
7. You would prepare with people who are as good or better than you and will make you pay for mistakes.
8.You would put together a custom game plan for the specific opponent if possible, with contingencies.
9. Having a systematic method of preparation and execution of a tested effective strategy can not only improve your chances of winning but they can serve a source of confidence when things don’t go perfectly right away.

What does this have to do with life and business? Well if running your school is the metaphorical fight then the economic climate since the mid nineties has been the proverbial easy fight. There has been a population with unparalleled expendable income, that is more fitness and personal development oriented than ever. And, the prominence of martial arts in the mainstream media have made for pretty smooth sailing for some schools in this country, where a national martial arts day holiday is recognized by nearly every state.
Maybe your reputation or your location was bringing people in at an acceptable rate. Maybe half hearted marketing effort yielded results that satisfied you. This is the equivalent of throwing techniques that only works on easy fighters, who have never trained in anything.
Maybe in the past keeping students was easier with a clientele that was less cynical and frugal than the families who these days that have to justify every dollar spent. Having not focused on retention in the past has been like dropping you hands while fighting an inexperienced opponent. You can get away with it as long as you are not fighting someone good. A really tough fighter will hit you if you have your hands down and he will be hard to hit back. The tougher fighter requires harder training because the stakes are high, this guy could really hurt you.

Well ladies and gentlemen the economy these days is giving us the tough fight.
And one of the key take home personal development lessons in achieving black belt is learning to prepare for the test.
We are going to being tested by the economy people. We need to get prepared.
Reviewing my list of preparation strategies for beating the champ.
. 1. The first thing you would do is seek out the best master/coach with the most effective techniques, and knowledge of preparation. (joining NAPMA is the best start. The current staff of NAPMA and contributor comprise the most impressive and experienced group of martial arts professionals ever, and we are constantly improving with an endless thirst for higher education).
2. You would take on the smartest regimen of conditioning (working more hours, and improving your ability to stay focused on the challenge at hand),
3. skill training (education and application on a consistent basis of the core operational methods that have been proven to work under real world circumstances in your school),
4.diet (the quality and quantity of media and educational materials you consume will directly impact your success),
5.mental conditioning (maintaining a winning mindset and refusing to allow any negative mental energy to break your stride is as important to the martial arts entrepreneur as it is the for a fighter),
6. rest (burning out because time has not been devoted to recharging your batteries, makes all of the above impossible to achieve at a high enough level to beat the tough fighter.
7. You would prepare with people who are as good or better than you and will make you pay for mistakes. (Master mind groups are essential for maintaining the cutting edge. In fighting and in life, you will never be pushed and challenged by your students)
8.You would put together a custom game plan for the specific opponent if possible, with contingencies (You use different strategies for different types of opponents in the ring based on commonly held knowledge from experience, and same applies to the systematic approaches to the various systems in your school be it sales, enrollment or testing.)
9. Having a systematic method of preparation and execution of a tested effective strategy can not only improve your chances of winning but they can serve a source of confidence when things don’t go perfectly right away. (Your ability to succeed comes into question in a fight and in your business. Absolute certainty returns when are reminded that your methods are sound and have yielded consistent successes in the past.
Yes the economy has become the tough fighter, but each of you has what I takes to, not just survive but to dominate. The simple yin yang principles mean that every thing negative that happens, is matched with an equal and opposite positive reaction.  This also means that each of the difficulties presented by the tough fighter/ economy, can be overcome with the same principles that we teach our students.

.

From:    Stephen Oliver

…. Only ONE person may get the opportunity to be in business with us, on an exclusive
basis, with multiple income streams…operating multiple schools…and partnering with
us on developing your area…

If you might have interest, you need to read this letter and respond immediately – or risk
being locked out permanently just because someone else acted more decisively.  This is
your complimentary invitation to join Jeff Smith, the other Mile High Karate Regional
Developers, and myself… for a private webinar, on-line to learn more about whether this
is a good fit for you.

In cities around the world, Mile High Karate Regional Developers are ramping
up regions for themselves in partnership with  Mile High Karate. .. running training sessions
for school owners, their staff, and their Black Belts… meeting with local martial arts school
owners to introduce them to Mile High Karate,  and literally operating a “close” to our
Mile High Karate franchise business in partnership with myself, Jeff Smith, and our other
regional developers.

If YOU are looking for a truly UNIQUE opportunity to earn a significant living running
Multiple Martial Arts Schools… with possibly thousands of students, hundreds of Black Belts,
and 10, 15, even 25 or more schools under your direction then this is for you….

If YOU would enjoy and take pride in earning your significant income helping Martial
Arts School owners and their staff in your area discover how to earn a truly significant income
themselves teaching more students for higher prices, while providing much higher value…

If YOU would like a business that you literally can run from your cell-phone or lap-top from
the Beach (or, as I do from the mountains) without having to be in a school until 9 or 10 pm
every night and weekend…

If YOU would like a business that can also promote you and help you become a STAR
in our industry….

If YOU would like to be in a position to own many commercial real estate properties
with the mortgages being paid by the Martial Arts Schools you are helping to grow….

If YOU understand the wisdom ob building a business with automatically renewing income
that’s stable and on-going…

If YOU would like to truly build a business with EQUITY – that’s sellable and valuable if you
decide to retire, or need to or want to move on at any point…

If YOU recognize the value of association with me, Jeff Smith, NAPMA, and our other staff
and regional developers…

….. Right now there is NO Regional Developer in your area and there is an opening in
your home area.  This may be just the right opportunity for you and this might be the most
important letter you ever received from us.

NOTE:  We only accept and appoint one individual in each geographic area.   If this interests
it is important to respond immediately. (Obviously we DO accept the first qualified in tan area,
so waiting can mean being permanently locked out, as it already has for quite a few
Martial Arts School Owners.

What is a Mile High Karate “Regional Developer?”

A Region Developer (Also Known as “Master Franchise”) is an individual (or, organization)
who aquires the exclusive rights to a geographic area (typically a city such as Seattle, Portland,
Boston and surrounding areas.

The Regional Developer works in partnership with us (Mile High Karate) to develop
martial arts school in their area.

Who Should be interested in this
(and, who should not?)

If you are happy running one school and are happy with working six days a week, mostly
evenings then Regional Development may not be for you (individual Mile High Karate franchise
may be for you.)

However, if you are looking for “What’s next.”   If you would like to develop an income stream that
doesn’t depend upon you day by day marketing, sales, and teaching ability then this may be for you.
If you’d like to develop a business that truly has “Equity” – that’s salable in case you want to retire,
are unable to work, or just want to move on to other endeavors then this may be for you.   If you’d
like to develop a business with “residual income” that will keep paying you as you work from your
lap-top on the beach then this may be for you.

How’s this different from opening Multiple Schools?

Well really being a Master Franchise (or, Regional Developer) has all of the benefits without
the risks and headaches.

You’ll have multiple schools.  Potentially thousands of students and hundreds of Black Belts ….
All without:

1. Without using your own money to open the schools….

2. Without hiring a bunch of employees to run the schools..

3. Without the down-side risk if the location doesn’t make money…

All of the schools underneath you (other than the ones you decide to own yourself) will be
run by independent – owner-operators, who hire and supervise the employees, take the risks,
and make the investment to open their school.

How do I make money from being a Regional Developer??
As a regional developer you have multiple streams of income.*

1. Initial Franchise Fees.
These fees run from a low of $22,500 (for early conversions) to $39,900.
As a regional developer you receive 1/2 of all initial franchise fees.

For instance:
10 schools @ $22,500 each (at ?) = $112,500
30 schools @ $39,900 each (at ?) = $597,000

2. Royalties.   Each school pays a small royalty to be a part of the system.
Each month they pay 9% of which you keep ?.
So you make 4-4.5% of the gross from each school under you.

For instance:
10 Schools at $30,000 a month each = $12,000+ per month
30 schools at $40,000 a month each = $48,000+ per month.

3. “Building  Successful Kids” and “Mile High Success Skills” We have an exciting
new program that all students are registered into upon enrollment.  Regional Developers
receive $10 per month PER FAMILY for this program (and, individual schools receive $10
per family.)  This is an exciting tool for success skills, upgrade preparation, reactivation,
and referrals which also adds income to you for each student enrolled.

For instance:
10 schools with 100 families each = $10,000 per month.
30 schools with 250 families each = $75,000 per month

How does a regional developer develop schools?

There’s three primary ways that we’ll work together on:

1. “Conversions” – converting existing martial arts schools to the Mile High Karate
system.   You can look in your area to figure out how many schools are in your city
or region.  A portion of them would love to band together with us to build a better
business and have incredibly strong support systems.  We’ll show you how and
help every step of the way.

2. “Internal Development”  Until now the schools often lost staff because they had
no where for them to move up – so they moved out.   All schools also have families
who wouldn’t consider being an employee (because of the pay or position) but would
love to own a school working with you and an international support team.

3. “Franchise Broker Networks”  We work with 100’s (close to 1,000) Franchise
Brokers throughout North America.  Franchising has never been stronger because
of powerful demographic trends.  Once you have a presence in your area many new
school owners will likely come from these sources.

But Wait There’s More!!!

There are two “bonus” incomes that automatically occur when you are the
Regional Developer in your area:

Add Jet Fuel To Your Existing School (s:)

Would you like to know the SECRET that many of us in the “teaching business” for school
owners have known for yours?

Here’s the Secret!!!

The secret is…. The teacher always learns more than the student.

This is true.. Just by you receiving our training, certification, conducting regional
training meetings and Masterminding with other owner-operators and their staff
in your area you skill as a school owner will go to a higher level beyond your
wildest imagination.

You Might Wonder Why Have We Developed This Program?

Reason #1  BECAUSE WE CAN.   We have built and arrived at a solid and comprehensive
collection of new member and new school conversion tools, support systems, and training
methods to successfully support Regional Developers….our Franchise structure nationally
lends itself to local community presence… Plus we have the resources and infrastructure
to properly support Regional Developers.

Reason #2  BECAUSE OUR SCHOOLS WORK BEST WITH REGIONAL AND LOCAL
SUPPPORT.  Both Jeff Smith and myself have run multiple schools for over 25 years.
We’ve found the “Synergy” that happens by having a lot of schools in one are  is invaluable.

Reason #3  BECAUSE WE ARE ABLE TO CREATE SUCH A TERRIFIC OPPORTUNITY.
This is a TERRIFIC business for the right person who is really into training and developing
School Owners, Staff and Black Belts.   Simply put this allows us to “share the wealth” and
put people into this business in a sensible way.

Reason #4.  TO BE OF GREATER SERVICE TO OUR SCHOOL OWNERS, STAFF, and
STUDENTS.   Having trained regional developers spread around the country improves
the results that everyone gets in running their schools and improves the quality of service
we can provide to students.

Reason #5.   FOR “SELFISH” BUSINESS AND PERSONAL REASONS.  With Regional
Developers we have “boots on the ground” to aquire new schools and new students
that we could not have otherwise.

Back to reason #3, the one that really matters to you:  The opportunity to own a local
“clone” of our very successful, magnificently systemized business will occure for fewer
than 60 people in North America – and for only one person in your community.

How You Can Become The ONE (& Only One) Official Mile High Karate Regional
Developer in Your Area.

First of all, at this point, all you need to decide now is:  MAYBE – until you have an
opportunity to see a full “show ‘n tell” of everything, what the numbers are, the works on
DVD that we will send you if you qualify.

We are interested in quality, capable, self-motivated, entrepreneurial martial artists
committed and involved (not your money.)   In order to find out all of the details and
whether this is right for you all we need you to do is submit a brief Application (enclosed)
just to demonstrate you are qualified and serious about this opportunity.

One visit our website and view our live webinar –  those who meet the criteria will:

1. Be sent a DVD presentation that presents the entire opportunity.

2. You’ll be scheduled to have a brief phone conversation with our Director of Franchise
Development Rob Tucker, Director of Instruction (and, former World Kickboxing
Champion) Jeff Smith, and myself.

3. If you desire to move forward, you’ll schedule a time to come for a no obligation
“Discovery Day”

There’s Enormous Risk in Waiting

If you are late, one of the other members in your area will possess this exclusive opportunity.
And you will be locked out.  Probably forever.

What to do next?

Visit our site and view our webinar:  http://www.MileHighRegion.com

If not accepted, you’ll receive a polite decline, or notice of a waiting list option if someone
from your area has gotten in before you have.

Dedicated to helping you grow in the martial arts business..

Stephen Oliver, MBA
8th Degree Black Belt.
CEO – National Association of Professional Martial Artists (NAPMA)
CEO/Founder – Mile High Karate

P.S.  Obviously you will have questions.  Just about all of them will be answered when you watch
the webinar at http://www.MileHighRegion.com

The remaining can be answered with your follow-up call with Rob Tucker, myself, and Jeff Smith
and during the  Private “Discovery Day.”

*specifics in the franchise agreement to be discussed prior to making a decision. Not intended to
be an “earnings claim” specifics spelled out in Franchise Disclosure Documents and results
vary by individual.
———————————
What do I do NEXT?
Log into the Mile High Karate Webinar:
http://www.MileHighRegion.com

Join us for a special Webinar to build a significant Multi-School operation in your region:

http://milehighfranchise.com/webinar-rd-reg.html

Mile High Maverick.

As I write this it’s been a hectic few weeks.  Tomorrow I’m off to Salt Lake City for the day.  Head off first thing in the morning.  Four meetings back to back, and back on the plan at 7 pm to head back to Denver.  I’m sure it’s going to be productive, we’ve just added 6 new locations in Utah and many more to come.  This week it’s been the Maximum Impact members teleconference (I hope you never miss one!) two Mile High Karate Regional Developers Calls, our national (international, actually) Mile High Karate school owners call.

In the mean time I’m just coming off of a week of training new Mile High Karate schools for a week (23 in attendance for the past week)   This week Toby Milroy, myself and the rest of the NAPMA staff and contributors are working 24/7 on details for Quantum Leap … sure to be your best event ever (you better be registered by now!  www.NAPMAQuantumLeap.com) and, Rob Tucker, Jeff Smith and I are working diligently on filling up our newest regions with schools:  Miami, New Zealand, LA, Utah, and many others.

Geeeeeez, I’m exhausted just thinking about the past couple of weeks.

In the mean time I’ve talked to about 10 coaching clients.  A few of them were “whining” about the economy in the 4th Quarter of 2008.  After I slapped them around a little guess what?  Record results for January 2009!  (Record GOOD by the way!)   Most of your results is dependent upon how you are looking at the world, not what’s really happening by the way.

A couple of asides.

I invite you to join me on Facebook, to keep up daily with our various activities:

http://www.facebook.com/people/Stephen-Oliver/820497518

Look also for our new “Social Networking” site being released this month on www.MartialArtsProfessional.com

If you haven’t noticed we’ve completely updated and redesigned Martial Arts Professional Magazine with many more enhancements to come.

Toby Milroy has also recorded a series of “webinars” to help you deal with the 2009 Recession.  It’s a 6 part series.  Make sure you go through all of them.  See www.NAPMA.com for the links (or, www.MartialArtsProfessional.com)

Anyway,  let’s move on to something more valuable for immediate implementation for you.

There’s lots of crazy ideas floating around our industry.  I watch several of the major “Martial Arts Business” discussion board and am typically amused to watch the “blind leading the deaf and dumb”

Hopefully you don’t fall victim to “Masterminding with Failures.”  Or, to repeat my often quoted line from Sales Master Tom Hopkins:  “Never Take Advice from Someone more screwed up that you are.”

Anyway on misconception is about how much income and revenue a relatively small martial arts school can generate.  (2,000 square foot more or less.)  I did the following projection for my Mile High Karate school owner training… and thought I’d share it with you:

Same Enrollment Numbers - GROSS Revenue Triples.   Most of the difference is
Net Profits.

The above comparism does not factor in:
Larger Downpayment.
Size of PIF’s.
Accelerated Tuition on Upgrades.
Successful Kids extending past enrollment period.
Therefore the difference on school 2 is higher than shown.

Now, without becoming too “academic” I’ve got to tell you I’d much rather to TRIPLE the revenue from the same volume, wouldn’t you??

I was thinking about all of this during our training week last week.  Interacting with real school owners like yourself thriving or barely surviving looking to me for a “life raft.”  During my time running the most elite (and, more expensive) coaching program in the industry I had two experiences that repeated themselves over and over and therefore are seared into my memory.

Experience 1.  “Typical” of school owners that I worked with that started at $12,000 to $18,000 a month in gross revenue.  In all most all cases in somewhere between three and twelve months I was able to turn these schools into schools grossing between $27,000 and $52,000 (double sometimes triple or more.)

The formula was easy.  By the way it did NOT include turning coaching clients into “sales masters” or, even marketing gurus.  In most cases it’s was subtle tweaks some simple and some rather sophisticated and difficult to do without the one on one personalization possible.

What are a few of the keys?

Well obviously from above one of them is in fixing pricing structure.   Typically we’d add a larger down payment on enrollments and renewals.  Increase the monthly tuition on enrollment and add in additional levels of “upgrades” with an appropriate price bump.  Typically the “transition” is good for an extra $50,000 to $150,000 in 60 or 90 days (enough to pay for the coaching for 4 to 15 years!)    I always promised coaching clients a 10 to 1 return on their investment (for each $1,000 invested that they’d get back $10,000) in reality they often dramatically exceeded that return.  Our franchisee schools obviously can do better than that (we figure they need a 10% improvement to cover the expense of the program – after that it’s pure and sometimes massive – profits.)

Another “tweak” was typically fixing the intro-enrollment-upgrade process.  Most schools have big holes through that process and are sloppy about “pre-framing” the long-term student relationship.  Fixing those holes can often make a dramatic change in results.

By the way.  In the above Profit and Loss projection there are a few assumptions that are useful to point out and to explain in the context of massive improved NET PROFITS of coaching clients and Mile High Karate franchise schools.   First, most schools tend to overspend on rent, over spend on “head count” ie pay too many people, and under spend on quality people.  Finally, just about everyone under spends on their marketing efforts and fails to properly track their results.

What should be your benchmarks?

Rent no more than 12-15% of the gross.
Total payroll (including yourself) 25-30% of the gross (I target 25%)

Marketing expenditures 15% of the gross.

And, note my projection of $277 average revenue per student.  Obviously a little arbitrary designed to help a round number (300) active students become a $1,000,000 a year school.  In all most all cases coaching clients as described above ended up at $200+ per month average per student (therefore 300 active AT LEAST $60,000 a month.)  My target for Mile High Karate schools is $300 a month and soon to be higher.

Experience 2 from Coaching.   The clients I took under $8,000 a month (and, frankly those over who made no progress) had a couple of things in common:

First.     A very low self-esteem about the value of their instruction and of being a member of their school.

Second.   A tendency to “Question Everything” and therefore not implement proper strategies or “pick and choose” and therefore end up with a hodge-podge of stuff.

Third.  A “good excuse” about why their school, style, city, state, etc. was “different” than the successful schools and why it was not possible for them.

The question for you is whether you’ll be the take massive action, follow the plan to the letter, and make no excuses type…. Or not?

Before we go I want to remind you of a couple of things:

1.    Know your numbers.  If you aren’t keeping track of what’s happening then it’s pretty much impossible to improve.   I’ve enclosed again the template forms for monthly and yearly stats tracking.  More complete forms (including Word and Excel files that are editable) are at your NAPMA Member Site.

2.    If you are in the $12,000 to $20,000 a month range and would like some personal hand-holding to get your school going.  Send me a note with your 2008 Stats and we’ll discuss ways to get your school really rockin in 2009!

A couple of Recession Warnings (again and again.)

In a tough market you really MUST accelerate your educational process.  Open and read (listen to, and watch) each piece of your NAPMA membership materials.  Visit your member website weekly to find new videos or audios to watch/listen to.   Attend all of the live events (100% participation in Quantum Leap and Extreme Success Academy.)  Consider participation in Coaching ($12,000 a month and up only please,) Inner Circle ($25,000 a month and up only) or Peak Performers.

Above all don’t cut back on your own education, the education of your staff, or your marketing efforts to gain new students.

Expand your thinking!

A common problem amount school owners is continually “majoring in minors” to quote Zig or someone similar.   I’ve spoken with many friends who regularly network with Billionaires rather than millionaires.  Their feedback on those individuals?  Incredibly expansive belief in what’s possible and an total ability to avoid getting bogged down in the irrelevant or in low value activities.

I see our industry hamstrung constantly by school owners who get bogged down in irrelevancy and fail to focus on the big picture.

Back in 1983 when I opened 5 schools in 18 months and grew to 1,500 active students and a $1,000,000+ operation there may have been a number of factors that contributed to the ability to accomplish it.  However, I’m convinced that the most important factor was that I believed that it could be done and I believed that I could do it.

Don’t get me wrong.

The Business Plan was essential.  The many 1,000’s of hours studying all aspects of our industry was indispensible.  The mentorship of Jhoon Rhee, Jeff Smith, Nick Cokinos, Ned Muffley and others was priceless.  However, all of this would have been for nothing without my personally believing that it was both doable and that I was personally capable of accomplishing the goal.

What made that belief possible?

I’m sure the biggest factor was in actually having seen a model with my own eyes.  The Jhoon Rhee Institute was my model for what I wanted to accomplish.   Jhoon Rhee recently said at the Extreme Success Academy:  “Steve accomplished in 18 months what it took me 20 years to accomplish, I wasn’t jealous at all.”

Well that may be true from one perspective but on the other hand if he had not invested the 20 years then I may never have believed it possible.    Without his 20 years building a multi-million dollar organization I wouldn’t have had the model for success that I had to leap frog off of.  So did it take me 18 months or Jhoon Rhee and I 21.5 years?

From my perspective the answer is obvious.  The 21.5 years is conservative. It misses the years that Nick Cokinos spent with Arthur Murray and Art Linkletter’s “Linkletter-Totten Dance Studio” to develop systems that translated to martial arts schools.  It also misses Chuck Norris and others developing systems borrowed and modeled by Jhoon Rhee and our staff.

Another factor to my early success may have been youthful cockiness and insatiable greed (as depicted by some of my detractors – especially in Colorado in the 80’s and 90’s.)  In reality my vision was more about thousands of students with deep impact on each and every one more than any personal financial motivation directly.  The youthful cockiness that many perceived then (or, now without the “youthfulness” attached) came for from a realization that most in our industry (and, in ALL industries) have not a clue what it takes to run their business as a business nor much interest in modeling success rather than complaining about someone else’s success.  Unfortunately most in our industry (hopefully not you) look for an excuse to excuse their own failures rather than asking for help and joining with a winning system.  They make up crazy names for people who are doing what they should be doing to protect their own ego and self esteem.  They call successful schools “McDojo’s” or “Belt Factories” then complain about “store-front dojo’s.”

Maybe it’s because they haven’t had my experience.  I might have thought the same thing coming from the “blood and guts” era in Oklahoma & Texas.  Luckily for me I traveled to them moved to DC and regularly had my ass kicked by fighters much more accomplished than myself who were also make a tremendous living teaching others the

Hopefully you notice that your “Martial Arts Professional Magazine” this month has a completely new look and feel.  This is the first improvement and, certainly not the last for 2009!

First.   As you probably know Martial Arts Professional is a publication supported and created by the “NATIONAL ASSOCIATION OF PROFESSIONAL MARTIAL ARTISTS” (aka NAPMA) to support the international martial arts community.  It currently goes to every commercial school in the United States 10 X per year as well to all NAPMA members internationally (to 26 different countries.)

What’s Martial Arts Professional Magazine’s purpose?

“Martial Arts Professional Magazine is the premier resource for those professional martial arts school owners and operators who are serious about growing their business through a visual and editorial repository of resourceful, innovative, hands-on and first-person experiences.”

Second.  The new look and feel as well as evolving editorial content and expanded content is designed to continue to move the magazine to higher and higher levels of professional development for school owners.   Some martial arts enthusiasts will find it moving away from their athletic interests.  However, professional school owners who are continually improving their school, expanding their student quality, and improving their personal income from their business operations will find Martial Arts Professional Magazine increasingly valuable for their on-going development.

This evolution includes increasingly valuable business, marketing, sales, and customer service content from a wide range of contributors.  You’ve certainly noticed contributions ranging from the TOP school owners in the world to business gurus such as Dan Kennedy and Jay Abraham, and success teachers ranging from Brian Tracy, Zig Ziglar, Tony Robbins and many others.  This trend will continue.   We’re also increasingly sharing school owner “success stories” including specific implementation ideas about what has helped them grow their schools.

Third.  Dramatically expanded value through more and more “web-enabled” support and content.   You’ll increasingly find valuable content at www.MartialArtsProfessional.com.

What’s available online?

1.    Each month you’ll find the complete Martial Arts Professional Magazine content viewable on-line.   Whether your issue was grabbed by a staff member (a frequent occurrence we hear) or lost before being completely digested you can read the entire issue on-line.

2.    More and more content is available on-line.   You’ll find additional columns that we don’t have space to include in the printed edition included online.

3.    Meet other Professional School Owners online.  Just this month we’ve released the “Martial Arts Professional Magazine” community where you can share, find friends, network, and find great ideas from others around the world.

4.    My “Business Blog,”  you’ve find observations and comments on the state of our industry at my on-line Blog that you’ll find at www.MartialArtsProfessional.com

5.    Periodic access to free “NAPMA Webinars” such as Part 1 and Part 2 of Veteran School Owner and NAPMA Chief Operations Officer Toby Milroy’s “Recession Self Defense for Martial Arts Schools” available now online.

Finally, we welcome your feedback and suggestions.   We make every effort to share some controversial ideas and occasionally stir up heated discussion.  Please send us your letter with suggestions, ideas, and counter-points to any topic or article.

Thank you!

Stephen Oliver.
CEO and Publisher Martial Arts Professional Magazine.

I ended up watching a replay of the celebration at the Lincoln memorial last night.  It included a wide range of entertainers from Stevie Wonder to U2 to Garth Brooks. It was a wonderfully positive, non-partisan celebration of the on-going peaceful transition of power in a spectacularly successful democracy..

It was also appropriately a celebration of the time line of Lincoln to Dr. King to Obama and the next step in eliminating racial barriers to success for those of character and accomplishment.

Personally I am both hopeful and fearful of the cult of personality which surrounds this new President.

Hopeful that a new bi-partisan era may unfold.   Hopeful that many campaign promises will quickly be forgotten and that the new President will be able to control the extremes in his own party and will be able to quickly more forward to continue successes of the past (many) and to correct the failures.

Fearful that we will be entering (continuing) an unfolding of an era of big government and misplaced confidence in the power of government to solve individual and market problems.

Our biggest risk is that we’ll end up in an era where more people receive money and benefits from our government than pay into that government.   When the majority seen to benefit but not contribute then we truly enter a time of great peril.  We must never forget that those who truly contribute productively must not only be protected but supported unfettered in their entrepreneurship.

Ultimately I hope that we don’t forget Ronald Reagan:
“In this present crisis, government is not the solution to our problem, government is the problem.:

I’m frankly amused by the many folks popping up to be “Experts” in our industry.

Here’s a piece I put together a while ago with my thoughts on that.