MASuccess by MASuccess

official publication of the martial arts industry association MA SUCCESS FEBRUARY 2016

BANKING ON SUCCESS Columbia, South Carolina’s Michael Bank The ABC s Of Recruiting New Students

From An Industry-Leading Master

5 Every School Owner Should Make Financial Self-Defense Moves

Students Will Enjoy Sparring

If You Change The Way You Teach It

The 2016 School Improvement Plan Series

16 Your School This Year Action Steps To Elevate

How Can You Outshine Your

Competitors

Cover_FEB_2016.indd 1

• $5.99 US www.MASUCCESS.com

FEBRUARY 2016

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January 2016

GOAL SET

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January 2016

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January 2016

“

GOAL SET

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January 2016

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GOAL SET

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CONTENTS

FEBRUARY

2016

FEATURES BANKING ON SUCCESS By age 30, Columbia, South Carolina’s savvy Michael Bank was debtfree, owned two homes outright and ran a thriving karate school housed in a building he bought. Today, at 32, Bank is living a lifestyle that has put him on easy street. “I give much credit to what I learned in the Martial Arts Industry Association and the way my mentor helped put me on the path to achieve my goals,” he says. BY

TER RY

L .

W IL SON

THE ABCS OF RECRUITING NEW STUDENTS FROM AN INDUSTRYLEADING MASTER Master Rondy McKee owns one of the world’s largest and finest ma tial arts schools, White Tiger Martial Arts in Cary, North Carolina. She enrolls dozen of new students per month consistently. Here, she shares her genuine genius for getting new students in the door.

GL EN N

MO SES

5 FINANCIAL SELF-DEFENSE MOVES EVERY SCHOOL-OWNER SHOULD MAKE Your school is running like a well-oiled machine. You teach great classes, the phone is ringing off the hook and your mat is filled with ager students. But, after years of hard work and sacrifi e to achieve this success, could financial disas er be lurking around the corner?

R IC H

B RU GGER

MASUCCESS

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CONTENTS

COLUMNS

BY BARRY VAN OVER

5 Things Every Staff Member Should Know

YOU MESSED UP! NOW WHAT? BY KATHY OLEVSKY

THE KICK YOU NEVER SAW COMING! Using Video Cameras in Your Studio

THE LEGAL LANDSCAPE BY PHILIP E. GOSS, JR., ESQ.

Scanning Rather Than Retaining Original Documents

How Can You Outshine Your Competitors?

BY CHRISTOPHER RAPPOLD

BY BETH A. BLOCK

TURNING POINT BY HERB BORKLAND

MASTERFUL RETENTION Students Will Enjoy Sparring If You Change the Way You Teach It!

BY DAVE KOVAR

Glenn Keeney: The First Drill in His First Karate Class

IN THE CLASSROOM The 2016 School Improvement Plan: 16 Action Steps to Elevate Your School This Year. Part 1

MAXIM OF THE MONTH

GROWING YOUR SCHOOL

INSPIRATION OVATION BY KAREN EDEN

Hot Cheetos

“SUCCESS I S NOT FI NAL; FAI LURE I S NOT FATAL: I T I S THE COURAGE TO CONTI NUE THAT COUNTS. ” — WI N S T O N C H U R C H I L L , B R I T I S H P R I ME MI N I S T E R

CONSULTANT’S CORNER

B Y M A I A C O N S U LTA N T J A S O N F L A M E

5 Proven Ways to Consistently Draw New Students!

DEPARTMENTS

FROM THE DIRECTOR’S DESK 21

IN THE KNOW

THE MAIA REPORT

HEAR FROM YOUR PEERS

MARKETING RESOURCE

PRODUCT SPOTLIGHT

FEBRUARY 2016

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FROM THE DIRECTOR’S DESK

ARE MY CLIENTS AS IMPORTANT AS A CELL PHONE? BY FRANK SILVERMAN

MAIA EXECUTIVE DIRECTOR

“I STATED THIS ONE INDISPUTABLE FACT TO MY TEAM MEMBERS: ‘IF I TEXT, EMAIL OR TAKE A CALL DURING A CONVERSATION WITH YOU, I’M SENDING YOU A SIMPLE MESSAGE. NO MATTER WHAT WE ARE TALKING ABOUT, IT’S NOT AS IMPORTANT AS MY CALL, TEXT OR EMAIL.’”

very now and then, I wonder how we survived before the iPad, smart phone and all the other current technology that makes life easier for us on a day-to-day basis. Recently, during an out-of-town trip, I was at a school watching an instructor teach a private lesson. His actions started me thinking about the marvels of technology. In one hand, he held a focus target and, in the other hand, he held a cell phone. I will admit that it was nothing short of entertaining watching how well he used both. Imagine this scene. “Kick higher, harder! High five and ni e focus,” the instructor says, all while he’s using the other hand to send a text. At one point, I assume he sent a bad or incorrect text, because he answered a call and it sounded like this. “Spin, more hip … No, I didn’t mean to text that. Higher! Stop yelling and I’ll resend the info! Kick low …” Crazy, right? But all too true! As I watched in disbelief, I could only think to myself, “What’s wrong with this person?”

It was perfect timing for me to witness this act. I have been on a four-month goal-setting mission, which I’ve shared with all of my office staff. My goal is to not use my cell phone when I am engaged in meetings with business people. I stated this one indisputable fact to my team members: “If I text, email or take a call during a conversation with you, I’m sending you a simple message. No matter what we are talking about, it’s not as important as my call, text message or email.” Now, there may be times when it is prudent to take a call. For example, I should take a call that’s an emergency. But I should not respond to a text from my buddy in Atlanta telling me the Hawks will be the best basketball team in the East. Seems obvious, but somehow being connected has permeated peoples’ common sense. I wanted to tell the instructor in the above incident how ridiculous his private lesson looked. My wife’s doctor even did it while my wife gave birth to our daughters! Think about it: we can do without the phones while engaged in business. I was just in New Orleans on vacation and ate every meal out for five days, in a otal of 15 different restaurants. Not once did I see a server take a call or send a message while I was in the restaurant. I was actually watching for it because our obsession with cell phones has been on my mind for quite a while. Is it possible that an airline pilot doesn’t use his or her phone for hours on a flight? How about the l wyer in a trial or the lawn-maintenance person mowing lawns? For the record, I’m attached to my cell phone way more than the average person. I get cold sweats if I don’t have it in my hands. I check it all the time. And short of my goal of not taking calls, emails or text message while in meetings, you’d be hard-pressed to see me without my phone in my hand or in my pocket. But, there is a proper time and place for it. If you’re reading this and you are on the phone during class time, you’re hurting your business. Whether you’re an instructor, the owner or program director, don’t let the convenience of technology cause you to offer poor service or give your clients the impression they are not your top priority. Okay, I’ll get off my soapbox now and move on o a phone call. But only after I return a text from my buddy in Atlanta. e

m Contact Frank Silverman at fsilverman@masuccess.com.

MASUCCESS

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COLUMNISTS

FROM THE DIRECTOR’S DESK

IN THE KNOW

F R A N K S I LV E R M A N I S T H E E X E C U T I V E

ASHLEY LUGRAND IS THE MARKETING

Director of the Martial Arts Industry Association,

manager of the Martial Arts Industry Association,

and the owner & operator of 11 martial arts

based in Oklahoma City, OK. You can contact her at

schools in Orlando, Florida. He’s also the author

alugrand@masuccess.com.

of Business Is Business: Passion and Profit in the Martial Arts Industry. Contact him at fsilverman@masuccess.com.

GROWING YOUR SCHOOL THE MAIA REPORT

BARRY VAN OVER IS PRESIDENT OF Premier Martial Arts International, one of the

KYLE YOUNG IS THE DIVISION

world’s largest licensing programs for martial

manager of the Martial Arts Industry Association.

art studios, and Premier Management Group,

He is a practitioner of Brazilian Jiu Jitsu and

a mentoring and consulting program. He can

is passionate about helping school owners

be reached at (877) 613-4900 or email him at

achieve their goals. He can be reached at

barry@premier4success.com.

kyoung@masuccess.com.

IN THE CLASSROOM

TURNING POINT

DAVE KOVAR OWNS AND OPERATES A

HERB BORKLAND WAS ONE OF

chain of successful martial art schools. Additionally,

Jhoon Rhee’s original white belts at America’s

he operates Pro-Mac (Professional Martial Arts

fi st taekwondo school and, later, a closed-door

College), dedicated to helping martial artists

student of Chinese “soft” styles pioneer Robert

become professionals in Business Management,

W. Smith. For three years, starting on ESPN, he

Mat Mastery, Sales Mastery, Wealth Management

hosted the weekly Black Belts TV show. He did the

and Cutting-Edge Classroom Concepts. In 2010,

screenplay for Cynthia Rothrock’s HBO-featured

he was the recipient of the Martial Arts Industry

Honor and Glory and is an Inside Kung-Fu Hall of

Association’s Lifetime Achievement Award. Contact

Fame martial arts writer. He can be reached at

him at dave.kovar@kovars.com or check out his

herbork@comcast.net.

blog at kovarsblog.kovarsystems.com.

YOU MESSED UP! NOW WHAT?

CONSULTANT’S CORNER

KATHY OLEVSKY AND HER HUSBAND,

JASON FLAME IS A MARTIAL ARTS

Rob, own and operate Karate International in

Industry Association International Consultant

North Carolina. Kathy is the managing partner

and is the owner of Tang Soo Do University

in their fiv -school operation. She’s an 8th-

with three successful southern California

degree black belt with 32 full-time years of

locations. He can be reached at (805) 657-1775

teaching and operating martial arts schools. She

or jflame@masu cess.com

can be reached for questions or comments at kathy.olevsky@raleighkarate.com.

MASUCCESS

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STAFF MASTERFUL RETENTION CHRISTOPHER RAPPOLD IS THE founder of a successful martial arts organization,

MASUCCESS IS PUBLISHED BY

VOL. 16, NO. 02

FEBRUARY 2016

Personal Best Karate, headquartered in Norton, Image by Chris Split Photography

MA. He’s a fiv -time world karate champion

MANAGING EDITOR

and is currently the executive director of

John Corcoran

the world-renowned Team Paul Mitchell, a championship team supported by sport-karate’s longest-running sponsorship. Rappold is the author of the new landmark MAIA program, Retention-Based Sparring. He can be reached at founder@personalbestkarate.com.

EXECUTIVE DIRECTOR MARTIAL ARTS INDUSTRY ASSOCIATION

Frank Silverman MAIA DIVISION MANAGER

Kyle Young MAIA MARKETING MANAGER

Ashley Lugrand

THE KICK YOU NEVER SAW COMING! BETH BLOCK, A 4TH-DEGREE BLACK belt in karate, is the president of Block Insurance in Orlando, FL. Block has protected businesses

M A I A I N T E R N AT I O N A L C O N S U LTA N T S

Jason Flame Tony Founrnier Mike Metzger

Adam Parman Shane Tassoul

that serve children for the past 24 years. She is

ADVERTISING DIRECTOR

the writer of Martial Arts Minute, a weekly

Jan Szijarto

risk-management newsletter. You can reach her at (800) 225-0863 or beth@blockinsurance.net.

GRAPHIC DESIGN

Brad Bilbrey COLUMNISTS & CONTRIBUTORS

THE LEGAL LANDSCAPE PHILIP E. GOSS, JR., ESQ. IS A member of the Florida and several Federal Bar Associations. Phil welcomes any e-mail comments or questions at PhilGosslaw@gmail.com and will attempt to respond personally, time permitting.

Brannon Beliso Herb Borkland Beth A. Block Rich Brugger Karen Eden Jason Flame Antonio Fournier Philip E. Goss, Jr., Esq. Dave Kovar Teri Lee Ashley Lugrand

Mike Metzger Glenn Moses Kathy Olevsky Adam Parman Christopher Rappold Frank Silverman Shane Tassoul Barry Van Over Terry L. Wilson Kyle Young

INSPIRATION OVATION KAREN EDEN IS A 5TH-DEGREE master of tang soo do. She’s a broadcast journalist

CORRESPONDENTS

Stefan Billen (GERMANY)

for NBC and PBS. Karen is also a published

Herb Borkland (VA) Karen Eden (CO) Mark Junday (UNITED KINGDOM) Perry William Kelly

book author and magazine columnist who has

(CANADA)

who has appeared nationally on CNN, FOX and Animal Planet as well as on local affili es

written for or been featured in every major martial arts magazine globally. Contact her at

PUBLISHER

KarenEden@centurylink.net.

David Wahl

Andre Lima (CA) Fari Salievski (AUSTRALIA) Scott Shaw (CA) Lee Wedlake (FL) Terry L. Wilson (CA) Keith D. Yates (TX)

MAIA LLC, 1000 Century Blvd., Oklahoma City, OK 73110; (866) 626-6226. Return postage must accompany all manuscripts and photographs submitted to MASUCCESS, if they are to be returned, and no responsibility can be assumed for unsolicited materials. All rights for letters submitted to this magazine will be treated as unconditionally assigned for publication and copyright purposes and as subject to the editorial staff’s right to edit and to comment editorially. MAIA, its owners, directors, officers, employees, subsidiaries, successors and assigns are not responsible in any manner for any injury that may occur by reading and/or following the instructions herein. As publisher, MAIA makes no endorsements, representations, guarantees or warranties concerning the products and or services presented or advertised herein. We expressly disclaim any and all liability arising from or relating to the manufacture, sale, distribution, use, misuse or other act of any party in regard to such products and/or services. MASUCCESS is a trademark of the MAIA. © 2016 MAIA LLC. All rights reserved. Reproduction in whole or in part without permission is prohibited. The mission of MAIA is to grow, promote and protect the martial arts industry, and to provide benefits to its members to help them become more successful.

FEBRUARY 2016

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New programs can increase retention and expand your student base.

A c a i a w

• •

Kick off the n w year by adding a new program to your school. Contact a MAIA Representative to find out how to add one of these enriching programs to your school’s schedule. 1000 Century Blvd. Oklahoma City, OK 73110

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(866) 626-6226 | WWW.MASUCCESS.COM

Delivering

what matters!

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As a trusted provider of martial arts schools insurance, K&K is committed to helping you succeed by offering quality coverage and services designed for your organization. K&K’s expertise is respected throughout the industry; we are your solution for affordable insurance coverage. It’s easy to work with K&K—visit our website now for more information. • Apply and buy online • Competitive rates and coverage

K&K Insurance Group, Inc. is a licensed insurance producer in all states (TX license #13924); operating in CA, NY and MI as K&K Insurance Agency (CA license #0334819)

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IN THE KNOW

WORDS OF WISDOM BY ASHLEY LUGRAND MAIA MARKETING MANAGER

“IS THE A

CUSTOMER

BUSINESS STRATEGY OF .

”

— MICHAEL LEBOEUF

MARTIAL ARTS TRIVIA 1

Which director, screenwriter, author and actor received MAIA’s fi st Lifetime Achievement Award in 2002?

3 Finish this Aristotle quote: “We

Which modern martial art originated in Japan and takes its name from a phrase meaning “gentle way”?

4 Name the weapon pictured

are what we repeatedly do. Excellence then, is not an act … ”

1) Tom Laughlin. 2) Judo. 3) … but a habit.” 4) bokken.

MASUCCESS

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IN THE KNOW

YOU ASKED DO YOU SET LIMITS ON YOUR CLASS SIZE? STATS SPEAK

No, I do not set limits on my class size. I run four classes at the same time on different floo s. Each floor onsists of one belt rank. If I have a class that’s a little too big or too small, I can move a few students and combine two belt ranks together. I can also move a few instructors around to cover the class that’s too big. I do have a few popular class times that are just too big. I’m considering setting limits in the future, but so far I have not.” — T E R I L E E , S U N N Y V A L E M A R T I A L A R T S A C A D E M Y, S U N N Y V A L E , C A

Being that my average school is 2,500 square feet, I like to try to keep classes to no more than 25 per class. Even if you have enough instructors, the parents can have a perception that class sizes are too large.” — MIKE METZGER, CHAMPIONSHIP MARTIAL ARTS, ORLANDO, FL

THE BIGGEST DEMOGRAPHIC ON SOCIAL MEDIA, WITH A COUNT OF 35.3 MILLION, ARE MEN AND WOMEN AGES 25-34. IF YOU’RE TRYING TO GROW YOUR ADULT CLASSES, CONSIDER INVESTING IN SOCIAL-MEDIA MARKETING. SOURCE: D I G I TA L I N F O R MAT I O N WO R L D . C O M

We set limits on class sizes based upon the square footage of mat space and creating the safest conditions possible. We allow 25 square feet per child student and 35 for adults.” — BRANNON BELISO, ONE MARTIAL ARTS, SAN FRANCISCO, CA

Rather than setting limits on class sizes, we make it our goal to have more instructors on the floor or larger classes.” — J A S O N F L A M E , T A N G S O O D O U N I V E R S I T Y, M O O R P A R K , C A

FEBRUARY 2016

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How our clients get the world's most advanced martial arts school website...for FREE.

Limited Time Offer!

Setup Fee $599

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HEAR FROM YOUR PEERS

Does your school practice sparring? Yes – 93.7% No – 6.3%

Are your students allowed to wear protective equipment not purchased through your school? Yes – 50.5% No – 25.9% Sometimes – 23.7%

Purple 2.8% Blue 5.5% 16

Green 19.7%

Yellow 22.8%

Orange 13%

White 35%

On average, at what rank do students begin sparring with other students? MASUCCESS

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HEAR FROM YOUR PEERS

Which of the following best describes the highest level of sparring your students reach? Full contact sparring 26.5%

Partial or controlled contact sparring 70.5%

Headgear – 83.4% Face Shield – 18.5%

Which of the following protective equipment is required while sparring at your school?

Mouth Guard – 89.5%

Chest Protector 35.7%

Gloves – 88.3% Cup – 82.8% No contact sparring 3.1%

Other

Approximately how often does your school practice sparring?

(including elbow

Daily – 11.7%

46.5%

pads, forearm, or foot gear)

Monthly – 23.1% Shin Protectors 48.3%

Weekly – 64%

Rarely or never 1.2% All information collected through the Century Martial Arts Research Group. FEBRUARY 2016

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WEâ&#x20AC;&#x2122;RE SEEKING WRITERS MASUCCESS is looking for freelance writers to join our dynamic team of U.S. correspondents. We pay some of the best rates in the industry and all payments are upon acceptance. Writers should have some knowledge of the martial arts school business. When responding, please feel free to pitch

your story ideas (no more than 4 paragraphs including the type of photos/images that you can supply to accompany your idea). We prefer email responses. Do NOT send any completed manuscripts. We do NOT have time to read completed articles and they typically do not fit our s andards or edito-

rial format. Please email your reply or story pitch to John Corcoran, Managing Editor, at jcorcoran@masuccess.com

WEâ&#x20AC;&#x2122;RE SEEKING STORY LEADS MASUCCESS is seeking reader tips and leads to find suc essful school owners in the U.S. and Canada. If you know of a highly successful single- or multi-school owner who you

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believe can teach our readers the tricks of the trade, please submit his or her name, a brief description of his or her degree of success and his or her contact information. We will

follow up on all legitimate leads. Please email your leads to John Corcoran, Managing Editor, at jcorcoran@masuccess.com.

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PRODUCT SPOTLIGHT

ATTACHABLE SHIN GUARD CenturyÂŽ

www.CenturyMartialArts.com

The innovative Attachable Shin Guard can be worn with Centuryâ&#x20AC;&#x2122;s Student Hi-Top Sparring Boots for a secure fit during t aining and additional ankle coverage. The shin guards lock onto the boots via hook-andloop tabs. Simply press the self-adhering tabs (included) onto the outside of the tongue of each boot. The shin guards have corresponding hook-and-loop tabs on the ankles that connect them to the boots.

The Attachable Shin Guards are made out of the same dipped foam as the boots and are available in red, black, and white, and in child, youth, and adult sizes. Hi-Top Sparring Boots are sold separately.

a For more information on these and other Century products, call a helpful Century sales representative at (800) 626-2787 or visit www.CenturyMartialArts.com. FEBRUARY 2016

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PRODUCT SPOTLIGHT

FREEDOM SERIES BO STAFFS AND NUNCHAKU Century®

www.CenturyMartialArts.com

Fourth of July fi eworks are still a long ways away, but it’s not too early to light up your performance or training routine with Freedom Series weapons from Century.

The brightly-colored Freedom Series Bo Staff omes in red or blue for a patriotic pop. Tapered staffs are made from white wax wood, a durable, light material great for performing in competitions. The bo staffs are available in lengths ranging from 4.5 feet to 6 feet. The Freedom Series offers corded nunchaku for midlevel martial artists, as well as ball-bearing nunchaku with a chain for experienced practitioners. Both nunchaku are available in vibrant red or blue colors. Made from white wood lotus, Freedom Series nunchaku have a 12” length and 1” diameter.

a For more information on these and other Century products, call a helpful Century sales representative at (800) 626-2787 or visit www.CenturyMartialArts.com.

MASUCCESS

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PRODUCT SPOTLIGHT

COBRA-DEFENSE BUSINESS SYSTEM Cobra-Defense

www.SelfDefenseCertified. om

MAIA’S KICKNFIT PROGRAM Martial Arts Industry Association www.masuccess.com

Are You Ready to Help Kids Become KickNFit?

KickNFit Kids is a 30-minute circuit-training workout that combines yoga and kickboxing drills with high-intensity martial-arts-movie-style moves, for an exercise plan that promotes weight loss and cardio health. The KickNFit Kids program was specifically c eated to burn fat and build healthy muscle by targeting every muscle group in a comprehensive workout. This program includes everything you need to successfully run the KickNFit Kids program in your school.

Entrepreneur Magazine writes, “Self-Defense is Big Business” and we couldn’t agree more. While there’s no shortage of self-defense programs, Cobra-Defense is the only one designed from the ground up as a self-defense business system for your martial arts/fitness school Cobra-Defense was created by a seasoned lawenforcement officer and is now practiced in over 22 countries worldwide. With the Cobra-Defense Business System, you will learn the step-by-step proven process to create a six-figu e income and create a steady stream of adult students into your facility. BENEFITS/FEATURES: U COBRA WILL TEACH YOU HOW TO GET STUDENTS EAGER TO PAY $125 $175 A MONTH FOR SELF-DEFENSE AND CAPTURE THAT EVER ELUSIVE ADULT MARKET.

U COBRA WILL TEACH YOU HOW TO BECOME THE “GO-TO PERSON” FOR MEDIA STORIES WHEN A VIOLENT CRIME OCCURS IN YOUR AREA.

U COBRA WILL TEACH YOU HOW TO REACH THE 80 PERCENT OF THE POPULATION IN YOUR AREA WHO WANT TO LEARN SELF-DEFENSE. (NOTE: THE MARKET FOR MARTIAL ARTS IS ONLY 1.5 PERCENT)

a You can join today at www.SelfDefenseCertified.com. Don’t just take it from us. Visit www.SelfDefenseProfessional.com to read real testimonials from instructors all over the world.

BENEFITS/FEATURES: U INSTRUCTIONAL TRAINING VIDEOS U COMPLETE MARKETING PLAN WITH ADVERTISING PIECES U EASY-TO-FOLLOW OUTLINES FOR EACH CLASS U MEAL PLANS THAT ENCOURAGE LONG-TERM HEALTHY HABITS U ONLINE ADVERTISING AND EXCLUSIVE TERRITORY RIGHTS

a For more information on this and other innovative Martial Arts Industry Association (MAIA) products and services, call a helpful MAIA sales representative at (866) 626-6226 or visit www.masuccess.com.

FEBRUARY 2016

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THE MAIA REPORT

BEFORE YOU DEVALUE YOUR MEMBERSHIPS

Let’s inject some quick math into the conversation based on a 100 student scenario. With 100 students and a 95 percent retention rate, you’re losing fiv students per month, which means you need to enroll at least five ne students every month to maintain your current level. Of course, with 100 students, you are doing many things right, and assuming you have space, you’re looking to grow. To get 124 students in a 12 month period, you need to pick up about 91 students over the course of the year his month, I wanted to take some time (assuming your retention holds as you grow). Therefore, on average you BY KYLE YOUNG to share some thoughts on social media, need to enroll eight new students per month. Assuming you close at 50 MAIA DIVISION MANAGER paid trials, school growth and most percent, you need to bring in 16 prospects. Other than online marketing, importantly, student value. what are you doing to bring in leads? When is your next tournament or “PEOPLE Student Value. Some argue against the REMEMBER validity of the metric. Others would tell you it’s school talk? Have you followed through on your bring-a-buddy promoHOW YOU MAKE the most vital and telling stat of them all. So, tion? If you truly want to grow, you have to work to become known. THEM FEEL. THE how do you calculate student value? Take your Don’t bank on winning the social media lottery. You control your destiny. If your student value is $90, we can help. Getting more students CUSTOMER gross revenue and divide it by the number of doesn’t help your student value. In fact, paid trials likely hurt your EXPERIENCE students you have. That is your student value. student value because instead of signing up a new student at $129 ON THE MAT, per month, you’ve giving away six weeks for $67. How then, do you THE WAY For example, if you gross $9,000 per month and have 100 students, your student value convert the mom who paid $67 for 6 weeks to pay $129 per month for PARENTS SEE is $90 (per month). 12 months? I’m not saying paid trials don’t work. They clearly help drive YOU CONDUCT Grossing $9,000 may be good for you. Howpeople to martial arts schools. What I am saying is that they are only YOURSELF, AND ever, based on the real value of martial arts, a a fraction of the marketing you should be doing and more importantly, THE RESULTS there are many other vital pieces of your operation that should be conTHEY SEE IN school grossing $9,000 with 100 students is THEIR KIDS underperforming. So, you begin to search for tinually worked on. If you’re working in a 1,500 square foot school and a way to fix that and in alks Facebook: the WILL DETERMINE you have 100 students, how great will the experience be if you suddenly YOUR SUCCESS.” most powerful marketing engine the world have 40-50 paid trials walk through the door? has ever known. People willingly share inforPeople remember how you make them feel. The customer experience mation to fill out their p ofiles and onnect with people and businesses on the mat, the way parents see you conduct yourself, and the results across the globe. And now, a publicly-traded Facebook is driven by they see in their kids will determine your success. Instead of focusing on shareholder interests in profits, so th y must monetize their platform. how many paid trials you are going to have this month, focus on realistic Enter Martial Arts marketing. Now, with the click of a few buttons results of converting prospects, and even more on retention and stuand a credit card, you can offer a demographically, geographically optident value. Give me a school with 80 students and a $150 student value mized deal too good to pass up. Brilliant! But buyer beware. Much like over a school with 150 students and $70 student value. There’s plenty the “magic diet pills” and other products that offer quick success, Face- of the latter. And that’s why MAIA is here. We can help you optimize book trial memberships may drive numbers to your doors, but is that your school operations and make you more profi able with the students the solution? Ask yourself why you have to drive so many people to your you have. We can help you grow your student count, but remember, it’s doors each month. If your retention rate is under 95 percent, there are cheaper to keep one than it is to replace them. Join us this year at the things you need to do to keep people in your school. Otherwise, you’re 15th annual Martial Arts SuperShow for three days of action-packed just filing cus omers in the front door, only to have them leave out the martial arts business and on-the-mat training. We exist because of you, back. Also, of the paid trials you receive, how many are you actually able and we exist to serve you. Looking forward to seeing you July 5-7, 2016 to convert? at the MGM in Las Vegas. e Let’s face it. Social media is an overused term and that type of marketing can take you only so far. It has a place and a tremendous m Kyle Young is the Martial Arts Industry Association Division value, but as a stand-alone strategy for growing your business, it’s not Manager and can be reached at kyoung@masuccess.com. enough. The truth is there is no magic bullet to grow your school. It

takes hours of hard work, persistence, discipline and focus to produce consistent results.

MASUCCESS

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MARKETING RESOURCE

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MASUCCESS

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Educational Funding Company has experienced tremendous growth both internally and externally being in the business of martial arts billing and consultancy since 1967. We have expanded our capacity to create superlative, customized solutions for our customers based on our deep industry experience and technical expertise. At EFC we use our knowledge, experience and passion to achieve exceptional levels of customer service for our clients. While we have always maintained an innate understanding of business improvements, applied superior methodologies in revenue generation, and built supportive relationships with our customers, it was clear we werenâ&#x20AC;&#x2122;t the same EFC we were when we first opened our doors nearly 48 years ago. We decided it was time to update our brand, to reflect our growth and our accomplishments. Certain elements of our brand remain consistent, reflecting continued commitment to our core values of supporting client success and delivering efficient, reliable solutions for them to grow. Our brand enhancement is more than just a logo makeoverâ&#x20AC;&#x201D;it is a reflection of our companyâ&#x20AC;&#x2122;s renewed commitment to being a strategic partner to our clients. The new look captures our forward momentum in the industry. And its bold presence echoes our focus and determination to remain the logical choice for our partners and clients.

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Educational Funding Company offers full-service billing, liberating you from the hassle of collecting payments. It provides awesome Account Management through a team of Billing Specialists, who take care of your finances, and experienced Client Success Specialists, who coach owners and managers of schools, helping them achieve their financial goals. EFC’s full-service billing also includes free software for qualified clients from its partner, InFocus Technologies. EFC’s new logo indicates our dynamic, growth-oriented outlook. (The swish in the middle represents a growth curve.)

InFocus technologies offerings include: • InFocus 2.0 software, which will allow you to manage your school with a never-before efficiency. • Upd8mysite.com, allowing you to purchase a custom designed, search engine-optimized website. • Search engine optimization (SEO) for your web site enabling it to generate leads. • Social media expertise through inbound marketing to generate leads. The new bull’s eye logo for InFocus represents your school’s next target.

Under this new logo, MPower International Association will be expanding its offerings to include: • A brand new marketplace, with a network of experienced Industry Coaches, who will provide consultancy to clients and help them increase their income. • A stream of marketing content (articles, audio interviews, videos) on a weekly basis, focusing on ideas to help your school grow. • Networking opportunities. MPIA will organize meets and conferences regularly, allowing members to learn and network. The new logo is bright and clean, representing our exciting mantra of creativity and growth.

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www.efcmartialartsbilling.com www.efcmpc.com - www.efcinfocus.com Section 1.indd 29

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Banking On Success

FEATURED STORY

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FEATURED STORY

B y age 30 , Columbi a, South Carolina’ s sav v y Michael Ban k w as debt - free, owned two homes outright and ran a thrivi ng k arate school housed in a bu ilding he bou ght. Today, at 32 , Ban k i s livi ng a lifestyle that has put him on easy street. “I give much credit to what I learned in the Martial Arts Industry Association and the way my mentor helped put me on the path to achieve my goals,” h e says.

By Terry L. Wilson FEBRUARY 2016

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FEATURED STORY

“I Want to Be a Ninja Turtle!” For nearly 50 years, kids of every generation have been influen ed by martial arts movies and TV shows. Starting with Bruce Lee as Kato in the 1967-68 TV series The Green Hornet, through the Kung Fu Craze of the 1970s up to the present Kung Fu Panda megahit, an endless stream of real and pop-culture superstars have sent millions of martial arts enthusiasts flooding in o our schools. For a young Michael Bank, it was the Teenage Mutant Ninja Turtles that forged an ironclad desire in him to be just like them when he grew up. “When I was about fiv , the Ninja Turtles came out and I wanted to be Michelangelo just because he was the fun-loving goofy one. But later on, I switched to Donatello because he was the smart one, and I thought I wanted to be a smart one,” says Bank. Donatello would be proud of Bank because he proved himself to not only be the smart one, but also resourceful, diligent and steadfast in everything he did. In fact, as you’ll read, Michael Bank’s character, drive and ambition made him a “classic overachiever,” in every sense of the word, who has succeeded at every quest in his life.

a 0 0 0 , 3 tor, 1 t $ en u o sm b i a h g in bers e g ra um , h e av e n AIA s a h th n M w l wit ar i o o d h c sse st ye s ir ’s e f r k s n mp k’ a “B as i Ban f w o He end 32

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FEATURED STORY

0. 1 20 r e e b m t th .” e ec e. A nth D n iev mo i IA ach 0 a A 0 M ld 0 , d e cou $27 n i jo he ing e h aid rag n e n, s ve h a w a , s h t n Parm ros o g m m s i a dh d A ble u o d

The Journey Begins

“It took me about five ears to convince my mom to put me into a karate class,” recalls Bank. “I had some anger-management issues as a child, so my mom was afraid that if I got into karate, I’d go around beating people up.” Bank was the type of person who believed in standing up for himself and his principles. He was a strong kid and a good wrestler. So, bullies beware. When someone picked on him, he settled the dispute physically. When he turned 10, a co-worker of Bank’s mother convinced her that karate would be a good thing for her son. So, she greenlighted her son’s entry into martial arts training in what would eventually become a lifelong journey as a successful teacher and school owner. He fi st trained in shaolin kempo karate in Charleston, SC and, later, in American sport karate in Columbia. Straight out of high school, Bank joined the Air National Guard, where he became a hand-to-hand combat instructor for Security Forces, the military police of the Air Force. A graduate of the University of South Carolina (USC), Bank has degrees in business, criminal justice and sports coaching. Bank managed to complete his degrees from USC while working on full-time active duty. He was also the chief instructor at a local martial arts school where he taught American sport karate.

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FEATURED STORY

0 0 0 l 5, a 3 t $ frug se u bo very hou a y my d a e m g t in off a h r g ve livin aid oug e. I a p , I b ur l] ed o d s e o nu n ter o l h a c siv c nti a y l s e r e s s y co on r o a f a m t m .” t I t m e ye foo 2, a u 1 s one b tha pl 0 e a , 2 r h u w “[In ont aved a co -squa ich got d a m r. I s en, ,200 it, wh ut it e . Th a 4 ed b n , n g k t , ma truc ome nova takin r d h e e n r a am y und l e dre plet m co

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FEATURED STORY

Failure Was Not an Option In 2006, Bank came back from his military deployment (see sidebar story, “Giving the Drill Instructor a Self-Defense Lesson”) and bought the school that he’d been teaching at in Columbia during college. This turned out to be a “good-news, bad-news” kind of deal. Indeed, Bank owned his fi st school. But, after the ink had dried on the contract, he learned that he had inherited a large number of contracts that were in default along with a stack of unpaid bills. True to his tenacious character, he overcame those obstacles and, four years later, moved into a bigger and better location. “I had the opportunity to buy a 5,000-square-foot building in a great area in an owner-finan ed situation, which was about the only way I could afford it at the time,” Bank explains. “So, at 25, I bought a huge building with a huge mortgage. Subsequently, I put myself in a position where I couldn’t look back.” Since failure was not an option for a man of Bank’s ingenuity, he dug in and began the task of building Capital Karate. Owning a successful school was something he’d dreamed of since he was a kid sitting in front of the TV cheering on his Ninja Turtle idols. It isn’t as if Bank didn’t have money in the bank or the wherewithal to write a big check and spend like a sailor on leave. But he had a plan, and that plan was to invest wisely and not to spend foolishly. “I had money saved up from when I was in the military and also had a college fund that my family left me. But I never touched that fund because I went to the University of South Carolina on a full academic scholarship,” Bank says. “So, all the money I got from the military went into my pocket. I’ve always been a saver and I decided to live like the rest of my friends who made almost no money.” Then, when Bank saw an opportunity to let his money make more money for him, he wasn’t afraid to act on his instincts. “In 2007, I bought my fi st house,” he says. “I used a good bit of the money I’d saved from being in the military to put a lot down on that house.” As a rule, during sound economic times purchasing a house is almost always a good investment. Bank found a way to make it a sure-fi e moneymaker. “One of the karate guys here in town who was a friend of mine told me that I should get two roommates and let them pay my mortgage. I thought that was a good idea so I got two roommates,” he says.

Bank applied their rent money to his mortgage along with his own monthly payments, which allowed him to pay off the house in just two years! Keep in mind, too, that the unexpected financial crisis hit hard in 2008, when some major U.S. banks failed and almost sunk the American economy. Bank ended up owning a house during a period when millions of other houses across the country were falling into foreclosure!

Taking His Dream to the Next Level with MAIA Although Bank was a skilled black belt, he admits that he was a white belt when it came to running his own business. “As far as building up my studio, initially I knew some of the basics, but nothing like what I learned after joining MAIA, [The Martial Arts Industry Association]” says Bank. “In 2010, I was looking at bringing on my fi st full-time employee and I knew that was going to be a huge stretch on my budget.” Bank’s school was averaging about $13,000 a month when he joined MAIA in December 2010. He was impressed with the numbers his mentor, Adam Parman, said he could achieve, but it seemed too good to be true. So, he drove to Atlanta to see for himself by visiting Parman’s school. “Mr. Parman spent about four hours with me. He opened up his QuickBooks, showing me exactly how much the school was doing. It made me realize that this was actually something that can be done,” Bank explains. At the end of Bank’s fi st year in MAIA, he doubled his gross, averaging $27,000 a month. “Then, the next year, I averaged about $35,000, but I continued living in a very frugal manner,” he says. “I saved that money and paid off my house and truck. Then, a ouple years later, I bought my dream home, a 4,200-square-foot foreclosure. I completely renovated it, which was a massive undertaking, but it got done.” Owning his dream home was one more goal off his buc et list, however, being the very frugal individual that he is, Bank wanted to find a ay to avoid a huge mortgage payment by finding a ay to pay his house off arly.

FEBRUARY 2016

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FEATURED STORY

Birthday Parties Put The Icing On The End-Of-Year Cake! Everybody loves a birthday party, and Michael Bank proves that by very possibly hosting more birthday parties for his students at his school than anyone in the business. “We have two to three birthday parties every single weekend, about 100 a year,” Bank says. “That’s definitely been a big help for maintaining a high profile in my community. The amazing thing is that I have done zero marketing for my birthday parties.” Bank’s first birthday party came about because one of his student’s parents asked him to put one on for their son. Bank agreed but admits he was a bit stymied as to what to do next. “I jumped into it, and just about every single person that came to that birthday party scheduled a birthday with me over the next year!” Always looking for an opportunity to make a good idea even better, Bank found a way to put more icing on his cake. “After doing a few parties, I realized that somebody always forgets something — plastic forks, napkins, paper plates, the knife to cut the cake. They even forgot the candles!” he says. “So, I decided provide everything. I even created my own invitations. I wanted to control what they looked like and brand my school at the same time. It got to the point where we provided everything but the kid and the cake.” Bank’s birthday party fee is a flat rate of $250 for up to 30 kids and the party is specifically tailored into segments. The first half hour is what Bank calls “wear-out time,” where the participants run, do flying sidekicks, etc. Then Bank sits the kids down and explains the two rules of expected behavior. Next, they recite a birthday creed Bank created, followed by the cake-and-candle ceremony, presents, and padded-sword fights. All the parents are invited to participate. “I like to end the party with a karate class,” Bank explains. “So, as the parents are coming in, they see a formal karate class in progress and not just a bunch of kids going bonkers.” 36

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“I kept busting my tail with everything I’d learned from MAIA and, consequently, actually paid this [second] house off a ouple of days before my 30th birthday,” Bank says, proudly. “A couple days later, a thought came to me. Somebody who bought a house the day that I was born would [normally] just now be paying it off. And here I am at 30 years old with two homes fully paid for. It’s almost hard for me to believe the position I was able to get myself in because of that.”

Making A Good Deal Even Better! Luck sometimes plays a part in Bank’s success, but it’s his uncanny business savvy that sets him apart from his competitors. Take, for example, what he’s done with his Capital Karate school after purchasing the property. “I have a back room that I really wasn’t using. I tried renting it to a daycare business, but that didn’t work,” Bank says. “Next, I rented it to another karate club, which ended after a couple of years. Then, I rented it to a gymnastic group. They’ve been there for about four years and that’s working very well.” Many school owners today make additional revenue renting out unused space, but Bank pulled off something unique that has morphed in o cyber gold. “I also negotiated to have a cell phone tower built on the back of my property,” he says. “Some guy in a Mercedes pulled up and asked me if I owned the property. He wanted to put a cell phone tower there.” Bank weighed the upside and downside of having a cell-phone tower on his property. The advantage is the extra income of a whopping $100,000 paid for the lease annually! The disadvantage is their appearance. Cell-phone towers are ugly and can be an unsightly eyesore on a property. The upside won. “So, I get a nice income from that and I also disguised the tower as a flag pol . I have a 50foot American flag that we fly om it on July 4th and Veterans Day.”

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FEATURED STORY

Bank explains that every few months, he’ll get a call from someone offering him $100,000 to buy that tower lease on his property. He’s thus far rejected all offers. Bank believes the value of that lease could be worth perhaps a million dollars somewhere in the future.

The seminar covers a myriad of topics that include setting goals at home, school and with their family. Bank has the students, along with their parents, fill out a Goal-Setting Worksheet. “Then, I surprise the parents by telling them that they also have to set a goal and I have them go through the goal-setting

Financial Success Begins with Student Value “I Work Because I Want to”

process,” he explains. “So, I tell the kids that their parents are going to hold them accountable for the goals they’ve set and you have to help your parents stay accountable for theirs.” At the end of the evening, Bank invites the parents to help their child come up with a bad habit that may prevent them from accomplishing their goal. “They write that bad habit on the board and, when they break the board, it symbolizes them breaking that habit.” Bank explains that, although he does get a sign-up or two the evening of the event, usually within six months several more come back in and enroll. “I can point out a handful of students today that started with me when I did the seminar three or four years ago. They are now advanced students,” says Bank.

“The most important lesson I learned was to understand the concept of average student value,” Bank points out. “Basically, to make more money per student, you do not necessarily need to have more students. When I realized it was very feasible to have an average student value of $160 to $200 per month, back when I was only charging $99 a month for karate, it blew my mind!” he admits. Bank says MAIA gave him the confiden e to raise his rates because he now knew how to show and explain the value of his lessons to parents. “Then, I realized all the additional income generators and sources that we have. But I didn’t know how to promote the different programs that not only brought more students in the door, but also were an additional source of income for the school,” explains Bank. “For example, our Bring-A-Buddy and Break-A-Board Night is actually a goal-setting seminar. We talk to them about how to achieve personal goals and tell them that their goal at the end of the day is to break a board.” The Bring-A-Buddy venue is cost-free. All the students need to do is bring a friend, and Bank has specially-designed passes he gives to his students for them to give to their friends.

At press time in late 2015, Michael Bank, still young at age 32, expects his school’s gross revenues to exceed $500,000, with more to come this year. “Every time I go to a MAIA Conference, I realize that there is more to learn and that I can still grow and maximize my business,” he says. “I have three full-time employees and three part-timers working for me. I go to work these days because I want to, not because I have to.” e m Terry Wilson is an Emmy Award-winning TV show host/producer and lifetime martial artist. He may be reached at tleewilson@gmail.com. To learn more about how hundreds of other successful school owners, both large and small, operate, visit the Martial Arts Industry Association’s website at www.masuccess.com. Through this constantly-enhanced website, members can access a massive amount of useful information on just about any topic from A to Z.

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GIVING THE DRILL INSTRUCTOR A SELF-DEFENSE LESSON! Even in the military, Michael Bank wasn’t shy about exerting his strong-willed nature. In fact, his entrée to military self-defense is the stuff movies are made from. Check out this riveting anecdote. In basic training, Bank’s martial arts skills caught the attention of his tough-as-nails Drill Instructor, but not in a good way. “They were teaching gun defense, where someone was trying to grab the gun from your holster. I sat there watching him [the DI] teach it and, at the end, he asked if there were any questions,” recalls Bank. “I raised my hand and said, ‘Sir, that’s not gonna’ work.’” In character with his position, the instructor responded like a scene from the movie Full Metal Jacket, jamming the brim of his hat against Bank’s nose, screaming, “Would you like to show me a better way, Trainee?!” Undaunted, Bank replied that he would! He proceeded to grab the instructor’s pistol, and when the DI attempted to control the weapon, he couldn’t! As you can imagine, being one-upped by a subordinate in front of all the trainees made him ballistic! “So now, he starts trying to wrestle with me. Well, I was captain of my high-school wrestling team, so I started tossing him around like a rag doll,” recalls Bank, with more than one chuckle between sentences. “Then he pulled his mace out on me. I put him in a wristlock and pointed the mace at him, so he dropped that and went for his knife! I chopped it out of his hand. Then he called for his partner to draw down on me, so I kicked him into his partner and took off running!” Bank says he was eventually cursed out for 30-minutes for his infractions. But then, the next thing he knew he was certified as an expert in military hand-to-hand combat! “It was a lot of fun being a hand-to-hand-combat instructor, but it made me realize that there was something wrong with the way that I learned to teach coming from a very traditional style,” he says. “I was accustomed to having years to train someone and not just a one-hour class every couple months.” Bank revised his teaching methods to fit the need and training schedule he was given. “I joined the Guard before September 11, so I was activated a lot over the next six years,” he says. “I was working with a Special Forces Unit called The Ravens, as security for the group. I was assigned to a plane and anywhere that plane went I went, too. So, whenever we hit an unsecured area, I was the first one off, and the last one on the plane.” At age 22, Staff Sergeant Bank, a former Eagle Scout, had up to 30 people under his command, and on missions he was responsible for the safety of 200 people.

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Kenclean Plus

Athletic Surface Disinfectant Cleaner A concentrated “hospital use” disinfectant formulated to be used in more athletic sites than any other disinfectant product. Kenclean Plus can be used to clean and disinfect mats, floors, walls, training tables, protective headgear and even athletic shoe soles. It’s effective for locker rooms, exercise rooms and equipment, bathrooms, whirlpools and much more. See label for additional uses. Cost effective concentrate: two ounces makes one gallon of cleaner/ disinfectant with a clean, pleasant smell! In today’s environment of drug resistant bacteria, super staph, viruses and fungi, you have to do all you can to protect your students and staff.

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COLUMN

GROWING YOUR SCHOOL

5 Things Every Staff Member Should Know

ith any business, there are basic skills, tasks and knowledge that every member of your team should be efficient . The following are some of the basics that you should want each member of your team to know, no matter what their job descriptions and positions are BY BARRY within your studio. VAN OVER 1. Your business motto, mission statement or core values are. If you want to effectively “SUCCESS IS have your staff membe s help you meet your BUILT ON THE business goals, create your business mission SHOULDERS OF statement and operate under your set of stanA TEAM. LET’S dards or values, you must share and train your BE SURE OUR team on this information. Otherwise, you’ll TEAM HAS THE lose that owner/staff ohesion that’s needed RIGHT TOOLS for any business to grow or survive. You and TO TAKE YOUR your team will never be on the same page and BUSINESS never make decisions that lead to the end goal. TO ITS FULL 2. Your retention rate and your desired POTENTIAL.” rate. Owners, managers, instructors, program directors, and anyone who works at the school should know your retention rate. That’s the percentage of students you keep each month. It’s the measuring stick of how good you are doing at providing your customers with the above-mentioned motto or mission of your business. Your staff has otal influen e on your customer’s experience. It is the experience that justifies, or ails to justify, the customer’s cost, not only in money but in their most valuable asset — their time. I suggest reviewing this rate with the whole team at the beginning of each month. This will allow you to reflect on the p evious month. You’ll know who quit, and with careful analysis, you’ll see if there was something within your team’s influen e that could have kept them. 3. How to run your point of sale (POS) system. This seems like common sense. You should be able to trust whoever works for you to handle your transactions. Whether it’s a pair of gloves, private lessons or a membership, your whole staff needs o know how to make transactions in your POS system. Nothing is more frustrating for a patron than trying to make a purchase only to have a staff me ber that can’t help and has to find someone els . This will make your business seem unprofessional and amateurish.

4. How to fill out an agreement Depending on how professional and systematic your membership sales are, you may want to consider whether everyone is capable of running your new-member or upgrade-sales processes. However, every member should know how fill out an agreement. This will come into play when someone simply needs to renew a membership or if you are holding a successful mass-intro or mass-upgrade event that calls for many people signing up at the same time. Be sure to hold proper training with new staff and, if ne essary, a 90-day review of the membership process to ensure quality control. 5. That you care. Now, this point is not some mushy-gushy, get-intouch-with-your-inner-self stuff. What I mean is, your staff needs o know you have their backs and that you care about them. You want them to know you are interested in what their goals are, personally and professionally. People’s work experience is better, and their satisfaction, production and results are always greater when they know they are valued and appreciated. Periodically, check with your staff individually and see how things are with their life outside of your business. Staff membe s who are disengaged, have personal distractions or are fearful of their boss are employees who are not giving you their best performance. Now, you can’t control people’s personal situations, decisions or actions, but you can guide them and try to understand who they are outside your studio. Letting your staff know you enuinely care is all based on your communication. Every six months, hold a private meeting with each employee. Get caught up on where he or she is in pursuit of his or her personal goals and see how you can help. You’ll be surprised what you learn about your team. If there’s a need for a course correction on your part, this is a time you can find ou . These are the five things very staff member should kno . Reflect on your business and staff and see if the e are areas where you can improve and items you can perhaps add to this list. Success is built on the shoulders of a team. Be sure your team has the right tools to take your business to its full potential. e

fi m Barry Van Over can be reached at (877) 613-4900 or email him at barry@premier4success.com.

“C ©

MASUCCESS

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COLUMN

The 2016 School Improvement Plan: IN THE CLASSROOM

16 Action Steps to Elevate Your School This Year, Part 1

BY DAVE KOVAR

“CULTIVATE THE BELIEF THAT YOUR BEST YEARS OF BUSINESS ARE STILL IN FRONT OF YOU AND THAT YOU WILL MAKE 2016 A GREAT YEAR. DO NOT UNDERESTIMATE THE IMPORTANCE OF THIS FIRST STEP. WITHOUT IT, THE REST OF THE STEPS WILL HAVE LITTLE VALUE.”

ver the next four months, I’ll be presenting a detailed 16-step school improvement plan for 2016. Follow the steps, implement them into your business and watch your school grow! Let’s get started. Step #1: Cultivate the belief that your best years of business are still in front of you and that you will make 2016 a great year. Do not underestimate the importance of this fi st step. Without it, the rest of the steps will have little value. Step #2: Tighten up on your timemanagement skills. It’s important to learn to become both effective and efficient with your ti . Being “effective” means doing the right thing. Being “efficie ” means doing things right. For example, you can be very efficient at writin cards to inactive students, but if you’re doing it when the school is full of students and parents, you are not being very effective. We have found that breaking your time down into three categories is extremely helpful in developing a high level of effectiveness and efficie y. They are: Prep Time, Primetime and Premium Time. Prep Time. This is categorized as any downtime when no classes are being taught. For a martial arts school, this generally means any time before 3:00 in the afternoon. Primetime. Primetime is categorized as any time the classes are in session. Primetime is usually between the hours of 3:30 p.m. and 9:00 p.m. at most martial arts schools.

Premium Time. This is categorized as any time that you are at or near capacity. In most martial arts schools, premium time occurs between the hours of 5:00 p.m. and 7:30 p.m. What to cover in each of these three time zones. Prep Time is probably the most underused, underdeveloped time zone in our business. Many professional martial arts instructors don’t even open their schools until 2:30 or 3:00 p.m. They arrive just in time to quickly vacuum the floo s, straighten out the reception area and turn on the open sign. Then they often end up having to cram all the Prep Time activities into Primetime. This makes for less effective classes as well as poorly executed business practices. The most successful schools in the country make great use of Prep Time. A brief sample of Prep Time activities includes: cleaning and repairing the school; confirming appointment ; checking inventory; setting up and handling renewal conferences; writing notes to students (both active and inactive); training staff; and, most importantly, recruiting new students. Maximizing your Prep Time allows you to make better use of Primetime and Premium Time. Step #3: Get rid of junk you no longer use. When we are in places that are very familiar to us, we tend to overlook things, and it’s very common to hold onto things that we no longer use. Items ranging from paperwork to old gear can pile up over time and clutter our environment so gradually that we may not even notice. Although it can be hard to let go, each time you get rid of something that you never use, your school looks better. Removing larger unneeded items can even make your school look bigger. Rule of thumb: If you haven’t touched it in a year, throw it out, give it away or recycle it. Once you get past the fear that you may “need” it someday, getting rid of obsolete stuff imp oves the appearance of your school. Further, you’ll feel more relaxed working in a less-cluttered environment. Next month: Steps #4 – #7. e m You can contact Master Dave Kovar at dave.kovar@kovars.com.

MASUCCESS

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TRULY INTEGRATED

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FEATURED STORY

The s Of

Recruiting

New Students From An Industry-

Leading Master Master Rondy McKee owns one of the worldâ&#x20AC;&#x2122;s largest and finest martial arts schools, White Tiger Martial Arts in Cary, North Carolina. She enrolls dozen of new students per month consistently. Here, she shares her genuine genius for getting new students in the door. By Glenn Moses 50

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FEATURED STORY

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FEATURED STORY

Master Rondy McKee is a recruiting machine! As a former advertising-agency owner with a propensity for out-of-the-box thinking, she’s a world-class marketer. Following her own advice that she’s sharing in this article, McKee created a landmark mega-school unlike anything else in the world. Her White Tiger Martial Arts is an immaculate 24,000-square-foot mega-school and complex in Cary, NC, situated on 3.5 acres and boasting over 2,000 students! It’s a multimillion-dollar, self-contained community, and she owns the entire property. The school also owns a Hummer and a limo as its standard vehicles.

McKee’s vibrant personality is matched only by her wisdom when it comes to intimately understanding all the approaches to getting prospects in the door. Here, she fi st briefly ci es her proven top-10 recruitment tips in reverse order, with Number one being the most lucrative technique. McKee’s aware that some of her recruitment techniques are unique to her own situation and not necessarily applicable for all school owners. So, in the main article following her 10 tips, she elaborates on a mind-boggling array of new-student recruitment techniques — some known, but most of them so innovative they’ve never been heard of before in our industry!

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FEATURED STORY

Top-10 Recruitment Strategies Tip #10: Free Classes McKee finds a time when her school is ’t busy and offers a free class in P90X, an extreme exercise regimen. “It doesn’t cost us anything,” she says. “There isn’t any overhead and there isn’t any charge because we do them during off tim .”

Tip # 9: VIP Card “We give a uniform that stands out. You can’t buy it; the only way to get it is to refer a friend that signs up. I call this the gift that continues to market.”

Tip #8: Other People’s Marketing “This is where you get other businesses to do your marketing. I call it OPM, Other People’s Marketing.”

Tip #7: Testing Tickets “Testing Tickets are used to invite people to come to a belt testing. But the backside of the ticket has a special for that day only and we sell the programs to the audience during testing. It’s an event we’re doing anyway and we’ll sell an extra 20 memberships.”

Tip #6: Contests “What we do is a free one-year membership for anyone who brings in five new students ”

Tip #5: Buddy Week Instead of bringing a friend in for a day, McKee extends it to a week, so that it builds momentum as it progresses. “With this technique, it’s important that the prize is a big one,” she says. “A big prize is something that continues to promote and should be something that will be seen by many. We get a prize that the kids will play with outside. I’ve done a waterslide, for example.”

Tip #4: Free Family Fun Day “We turn our testing in the summer into a huge outdoor festival. It’s a high-profile vent that promotes us while also having fun.”

Tip #3: Corporate Workshops “This is where we have 50 people from a company come in for a special seminar. The company pays for it and we make a lot of money for just 90 minutes of instruction.”

Tip #2: Field Trips “We sell field trips and th y show up by the bus loads. We get the trips from anyone who offers summer camps, so the companies that once were our competition now all work together with us.”

Tip #1: Birthday Parties “My philosophy is that not everybody wants to do martial arts, but everybody wants to have a birthday party. There is a bonus we call a ‘Tiger Trail Package’ that our students sell. That puts someone in my school for five wee s and the students keep the $10 fee for themselves.”

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â&#x20AC;&#x153;One of her marketing strategies is to show the athlete how martial arts can make him or her better at his or her chosen sport. McKee has soccer players that, during the offseason, train with her to specifically increase their flexibili y. She also teaches football players hapkido falling techniques.â&#x20AC;?

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FEATURED STORY

Recruiting Per a Prospect’s Needs

Never Too Young to Learn

“Twenty or 30 years ago, marketing a school was built pretty much around selling a self-defense program,” McKee explains. “Today, it’s more about finding a ay to make more people interested in the martial arts and creating a way to draw them to your school.” McKee says one method is to determine specifically what your client’s needs are or interest is, then tailor an event or program that will enhance the desired end results. “Some people are interested in learning how to focus better. They may need that for business or school,” she says. “There are individuals that only want rank or certifica es. If that’s the case, then you market specifically o that interest. Another popular program is fl xibility training, which allows you to tap into so many other sports markets.” For instance, McKee has soccer players that, during the off-season, train with her to specifically inc ease their fl xibility. One of her marketing strategies is to show the athlete how martial arts can make him or her better at his or her chosen sport. “When the soccer players see how we can extend a side kick straight up in the air, they realize how that kind of fl xibility can enhance their soccer skills and they sign up,” McKee says. “We have football players, too. I’ll show them our hapkido falling techniques and that appeals to their full-contact nature, which is a big part of football. So, they’ll train here to improve their performance on the field. e also have basketball players who see the benefit of our leaping and jumping techniques.” McKee calls this “cross-marketing,” because everyone from high-school-level athletes to professionals need more fl xibility. “Creating programs around anti-bullying has been very popular over the past few years,” McKee adds. “Go into [academic] schools, do a demo and set up a program.”

Keeping an eye on trends, McKee noticed that, following a period of gradual decline, traditional martial arts tournaments are once again picking up steam. With that in mind, she created a unique program for future competitors. Her Tiger Tots is the taekwondo version of Pop Warner Football, minus the contact. “We made a special program for preschoolers two to five earsold,” McKee explains. “We took the curriculum that our regular kids use. It takes them from a white belt to yellow stripe, which normally takes about two months, and I broke it down over 12 months.” There isn’t any contact between these pint-size warriors. When they square off, there’s lots of space between the combatants as they hop, punch, kick and spin just like the big kids do. “The training also has a valuable education aspect,” says McKee. “When they punch, we get them to count — one, two, three — and they learn how to counter using the alphabet — A, B, C.” Class runs 30 minutes. All the techniques are designed to get the kids accustomed to following verbal and visual instructions. “These are all things that will help them when they get into kindergarten,” McKee points out. “We also deal with taking turns. So, when they go to kindergarten, they understand it’s not all about them and that other kids get turns, too. Through our class, they learn that there’s a time and a place to be loud, and there’s a time and place to be quiet and to listen.” Although the Tiny Tots don’t earn belts, McKee says kids at that age aren’t motivated by them; what they love are stickers. “I want to be fair to my older students that have worked and earned a belt, too. So, I’m not about to give one of my Tiger Tots a green belt, but in its place I’ll give him a green sticker,” she says. “The parents love to watch them tumble and have fun, It’s a winwin situation. Kids are happy, the parents are happy and nobody quits, which is great for the school.”

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What Summer Slump? Most schools fear the summer slump like the plague, because it almost always takes students off the mat or weeks if not months, and some never return. Some schools, especially smaller ones, have had to close their doors because of the dreaded summer drought. “Most martial art schools dread the summer because everybody goes on vacation and people get lazy and don’t want to come to class,” explains McKee. “We, on the other hand, love summer. We have camps and field trips with 00 kids coming in and out of the school every week in the summer, in addition to booking a morning and afternoon field trip ” McKee believes that attending a camp is a necessity while training in martial arts is a luxury. While a camp is a great time for the kids, camp is equally great for working parents.

“Parents need a place to put their child during the day, and our camp is a full day of activities starting at 7:30 a.m., so the parents can drop the kids off and et to work,” McKee says. “We have a full schedule filled with a ariety of activities, like soccer, waterslides, arts and crafts, a climbing wall and other fun things to occupy their day and energy. This is childcare and it is big money. Most parents get reimbursed from work for it, plus they get tax breaks.” When it comes to field trips, Mc ee has found a way to make the mountain come to Mohammad and, in the process, turn a nifty profit while getting future students in the door. “When it comes to field trips, the e are all these places that offer a Summer Camp — every church and YMCA — and they don’t know what to do with those kids for 11 hours a day,” explains McKee. “So, instead of looking at them as being my competition, I invite them to come on over, bring the kids here and have a field trip at my school ”

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McKee charges $8 per person. Students stay 90 minutes, see a taekwondo demo, get a trial lesson, then fill out the emaining time with a variety of different activities. “Last year, I had 60 kids on the floor at ending one day’s Summer Camp,” she says. “And what’s great about it is that we got paid to do advertising. Think about it, a school’s big goal is to get people in the door and a percentage of them will come back, probably with a friend and sign up for lessons.” According to McKee, almost everyone that is currently enrolled at her school at one time or another has been there for a Summer Camp or a birthday party or a Field Trip. “It’s a great way to market to kids in the summer who need camps and things to do anyway,” says McKee. “So, instead of looking at everybody else in town as competitors, I see them as partners.” McKee’s camps are so popular in her area that they book one in the morning and one in the afternoon.

It’s a Family Affair “We are over 40 percent family enrollment here,” McKee points out. “That means every member of the family is doing something. They may not all be doing the same style, but they’re taking some kind of class here.” Offering a potpourri of styles and programs from which to choose, McKee’s school teaches taekwondo, hapkido, wing chun, Lady Tigers and Tiger Tots. “We have it so the entire family can train, either together in the same style or in different rooms but at the same time,” she says. “Children are going to quit martial arts eventually, and adults are going to quit even more likely than children. But what is so great about families is that they never quit. Show me parents that are going to quit in front of their children; it’s not going to happen. Families that enroll together get their black belts together.”

Staying Involved with Your Community “Community involvement is so important for teenagers now,” explains McKee. “To get into college and the National Honor Society, they need to show volunteer hours served. So, we do a lot of community involvement work. “Help with blood drives, assisting and promoting animal shelters, pet-adoption events, book drives, and anything else that is going on in your community. This puts your school’s name in front of the public and makes you a valuable part of the community. “Another way to get adults into your school is by making the school a fun, social environment in which to train and meet people,” says McKee. “The martial arts school is a healthy environment with people

involved in healthy lifestyles. Our adult class is the last class of the night. Often, groups will go out together for a pizza or something afterward and they become friends. “Think about it: People quit activities all the time, but we don’t quit our friends. So, if your friends are at the school training, you’re not going to want to stay home and watch TV. You’ll want to be with them.” Giving back to her community is very important to McKee, too. In that regard, she created the “Community Cares Program.” It is fully funded by McKee’s black belt candidates. “This program keeps kids in school, gets them to high-school graduation and fully funds their college education,” she explains. “It truly changes lives.”

Cross-Market Events Playing off her belief that other schools a e partners, not competitors, McKee markets her school to them for a variety of services and events. These all make her cash register ring in addition to bringing new bodies through the door. “Cross-Marketing is a great way to make some extra money while expanding your client base,” she explains. “I go to other schools and show them how they can make extra money by holding events at my school. For example, a bridal shower; whatever the venue, it gets people inside your building.” Renting out extra space to dance groups, yoga classes and for business meetings are but a few of the ways a school can turn unused space and inactive daytime, when the school is dark, into a profit enter. Also, it gets people through the door that might enroll in classes. “I found another market that has been so successful,” McKee says. “It’s pet owners. They will spend more money on their pets than they will on their children! “We hold an event here every year called the “Puppapalooza.” Last year was just our second time holding the event. Subaru sponsored it and we had thousands of people show up. We made the front page of the newspaper, had TV coverage and, for weeks, were the talk of the town.” McKee charges dog owners a small entrance fee to show off their pampered pooch’s talents, while spectators also pay a small fee to peruse vendor tables and watch the show. “It’s a doggie talent show, with local celebrity judges,” McKee explains. “I sold 26 vendor tables, making a nice profi . We had dog-food companies, groomers and veterinarians. People would buy a ticket just to come in and shop, even if they weren’t entering a dog in the contest. I had a couple thousand people inside my building and a lot of them eventually signed up for martial art classes.”

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“Cross-Marketing is a great way to make some extra money while expanding your client base,” she explains. “I go to other schools and show them how they can make extra money by holding events at my school. For example, a bridal shower; whatever the venue, it gets people inside your building.”

The Big Money in Corporate Training Another way to advertise your school and promote your classes while making big money is by hosting corporate workshops. This is a market that McKee has a firm grip on. orporations will pay big money, she points out, and usually they can write a check for $2,000 without having to get it approved by someone further up the chain of command. “That’s an ideal situation for me since my Corporate Workshops costs $1,999,” McKee says, with a laugh. “Usually, the company will have a theme. They do Team Building all the time.” The company will tell McKee what their goal is and she will customize a training session using various martial arts drills to enhance their daily work skills. “For example, if building confiden e is the theme we’ll teach them how to break boards,” she says. “If the goal is to work more efficiently as teams, we may have em do group forms.” It’s a 90-minute class and, if you do a good job, they will come back every quarter. “This is a big market,” McKee adds. These are not Penny Saver Coupon people. These are people with good jobs who work for a good company that can afford to pay me a whole lot of money to give a seminar.”

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Doing Business without Marketing Costs Rondy McKee agrees that it is necessary to be in the public eye as much as possible. Doing demonstrations at large venues, participating in parades and being on local television is all well and good. With that said, she also believes that, in doing those things, schools are mostly promoting martial arts in general rather than just their particular school. “To market effectively, people have to be familiar with you on a more personal level,” she says. “When someone is looking for a new activity, they will usually go to a place that they’ve been to before.” Getting new faces in the door is the main goal and it doesn’t have to be for a martial arts class, as pointed out repeatedly in this article. McKee has proven time and time again that, after people visit her school — for a birthday party, a dance recital or a pet-adoption day — when they begin looking for a place to train they will return to her school because it is one they’re familiar with. “When I worked in marketing, I planned programs for large store chains. They all had to be set up the same way, so that it would be familiar to consumers regardless of the city or state where they lived,” McKee explains. “Because everything was familiar to them, people would go to that particular store rather than another chain or local store.” This marketing philosophy is one of many reasons why McKee’s White Tiger Martial Arts boasts one of the largest enrollments, over 2,000 students, of any martial arts school in the world. “I get referrals all the time from people that have never trained here, but they may have been in here for a birthday party,” says McKee. “So, because they knew me and felt comfortable here, they felt okay about referring a friend to us.” “I try not to spend much, if anything, on marketing because, for me, it’s not about what you make, it’s about how much you keep,” says McKee. “I owned an ad agency and I charged lots of money for my ads. If you spend a million dollars and you make a million dollars, you are still back at zero. “My marketing budget is negative; I make money off of my ma keting. I make money by charging people to come through my doors, whether it’s for a field trip, summer camp or bi thday parties.” e To read many more insider tips about becoming a better instructor and successful school owner, visit the Martial Arts Industry Association’s website at www.masuccess.com. Through this constantly-enhanced website, members can access a massive amount of useful information on just about any topic from A to Z

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COLUMN

TURNING POINT

BY HERB BORKLAND

IN THIS INSPIRING MONTHLY COLUMN, WE EXAMINE THE PIVOTAL POINT IN A PROMINENT BLACK BELT’S CAREER THAT TOOK HIM OR HER ONTO MAJOR SUCCESS IN MARTIAL ARTS BUSINESS, SPORTS OR FILMS

Glenn Keeney: The First Drill in His First Karate Class Goju-ryu karate 10th-dan Glenn Keeney began training in 1957. Keeney’s involvement in martial sports has been widespread and influential. For five years, he and a young Bill “Superfoot” Wallace sparred 10 to 12 hours a week and attended over 200 tournaments together. In the 1970s, Keeney was a Top-10-rated fighte , promoted major national tournaments out of Indiana and, for 10 years, held the office of Rules Chairman for the United States Karate Association. He also became a prominent figu e in American professional kickboxing since the sport’s inception in 1974, Keeney judged in the first P ofessional Karate Association (PKA) World Championships in Los Angeles and became the head of its ratings committee. He established the Professional Karate Commission in 1986 as a sanctioning body for kickboxing. In 1977, Keeney was inducted into Black Belt Magazine’s Hall of Fame.

G lenn Keeney:

My six siblings and I grew up poor in Anderson, Indiana, on five acres in a two-room house. My father was an upholsterer and very good at it. He rb Borkl and: How did you fi st hear about martial arts? G K: We had no TV, but people were talking about “karate.” A local college judo instructor gave a demo at the fi st shopping mall we ever had. I’m a little guy, with sometimes too much mouth, so I went for martial arts in a big way. In 1957, I was in high school and, on weekends, hitchhiked 115 miles to Cincinnati, Ohio, to attend the only karate school in the area. I trained at some short-lived dojos and, in 1964, began studying at the Komakai Academy under Larry Pickel, whose black belt came from world-renowned sensei, Eiichi Miyazato. By 1969, what with one thing and another, I ended up owning the academy. I didn’t consider myself to be a great figh er. Sometimes, I got my butt kicked. But I fought Bill Wallace and beat him four out of eleven times. I met him when he was just out of the service. He didn’t study our style, but I taught him a lot of things.

HB:

Turning point? G K: I always wanted to be an athlete and a competitor. After my fi st lesson, all I wanted was to become the best karate person in the world. And at early tournaments, the rules switched from mat to mat. So, the rules need to be uniformed, and what about sanctioning? This needs to be done, that needs to be done, and nobody else seemed to want to, so I did it. HB: Future? G K: Karate, as I knew it, learned it and lived it, has been in decline for the last fif een or twenty years. Greed and money began to take over in the Eighties. I sold my clubs and moved south, because the way I felt and taught my passion was out of step. I still go to a few tournaments, and I’m happy to say people are still glad to see me. HB: Advice? G K: Do the right thing and don’t care if it’s popular or not. If you must hurt people’s feelings, do it low-key as possible, but do it no matter what it costs you. You don’t have to talk yourself into doing the right thing. Just do it. e

m Herb Borkland can be reached at herbork@comcast.net.

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COLUMN

YOU MESSED UP! NOW WHAT?

How Can You Outshine Your Competitors?

BY KATHY OLEVSKY

“RATHER THAN CRITICIZE OTHER SCHOOLS IN YOUR AREA, IT WOULD BE MORE PRODUCTIVE TO WORK ON WHAT WOULD MAKE YOUR SCHOOL MOST ATTRACTIVE.”

’ve been operating a martial arts school full time for 41 years. I think I may have made every mistake that can be made in this business. The reason I’m still in business, I believe, is because I asked for help. I learned quickly that others before me had already found solutions. In this reality-based column, I’ll point out key mistakes I made in my business career, which are common errors among school owners, both large and small, throughout our industry. Then I’ll share the solutions I applied to overcome them. How many times has something negative been said about you by another martial arts school owner or a student of another school in your area? I’ve heard this complaint from various martial arts school owners. There is some rivalry and it leads some to criticize others. In reality, this is a form of adult bullying. I have had this happen multiple times over the years. Most of the time, the comments were harmless enough that it was fairly simple to just overlook it. There are times when we have to take the high road. But then there are others that require taking corrective action. On one occasion, for example, a local martial arts school put signs out in front of our school and all up and down the road. My husband decided this was a little too much, so he picked up the signs and took them to the other school. He asked them to respect some boundaries and not populate our road with signs for their school. They were actually quite apologetic and it never happened again.

Social media is a source of all kinds of competitive posts for some martial arts schools. So, it is easy to get caught up in the defense of a principle or opinion. I heard from a great business mentor, many years ago, that I should think about how fast-food chains open up right next door to other competitors. In food courts at the mall, there are multiple fast-food vendors. The general concept is that there are enough customers to go around and, if you have a good product, you will get repeat customers. If we all decide that competition breeds success, then we will have many more productive days and fewer issues that take our time away from becoming successful. I have enjoyed a great relationship with other martial arts school owners since adopting this strategy. Rather than criticize other schools in your area, it would be more productive to work on what would make your school most attractive. Are you open and ready to handle an inquiry from 10:00 a.m. to 9:00 p.m. daily? Are you answering your phone? If people walk in your door, will they be so impressed they won’t need to visit any other school? If they do visit more than one, would they pick you? Are your social media outlets and your website set up to invite new students or were they designed in 1995 and filled with your titles, wards and accolades? These are the questions we need to spend time on, rather than finding ault in others. There will always be that one individual who spends too much time discussing every competitor around them and not enough time making themselves the better choice. This is one of those times we must take the high road. They have not found enough value in themselves, so their only option is to denigrate others. It is not likely they will change their behavior, so it’s up to us to decide that their opinion carries no weight. As martial artists, we all know by now that students come into our schools with all kinds of problems and leave feeling much better after a great workout. We must take our own advice, get a good workout and remember we’re in this business to build character and to create healthier students. e m Kathy Olevsky can be reached for questions or comments at kathy.olevsky@raleighkarate.com.

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s d. h at d d s. o

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Defining the Industr

Coach (noun) — / k o¯ CH / a person who teaches and trains performers and team members – giving lessons or instructions on how the team competes. Your MAIA ELITE Consultant is your coach – someone who will teach you how to be a competitive performer in today’s economy. With your coach’s training and instruction, you can GET RESULTS and create measurable di˘ erences in your business’ bottom line. Find out how the coaching of MAIA ELITE can benefit you Call us today at 866-626-6226 to schedule a free 20 minute consultation. DEFINING THE INDUSTRY

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// MAIAELITE.COM // 1000 CENTURY BLVD. OKLAHOMA CITY, OK 73110

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906 2

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FEATURED STORY

MASUCCESS

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FEATURED STORY

Financial

Self-Defense Moves Every

School Owner

Should Make Your school is running like a well-oiled machine. You teach great classes, the phone is ringing off the hook and your mat is filled with eager students. But, after years of ha d work and sacrifice to achieve this success, could financia disaster be lurking around the corner? By Rich Brugger

FEBRUARY 2016

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FEATURED STORY

A Glimpse into the Future. Is This Your Future? Many schools start off as a hobby or pa t-time venture born out of a love of the martial arts. Eventually, they evolve into full-time enterprises capable of providing financial suc ess and a satisfying lifestyle. Successful school owners spend years developing and honing systems for student retention and acquisition, sales, curriculum delivery and student service. Unfortunately, while striving to succeed and build a viable business, school owners often neglect to develop crucial pillars of financial p otection, like saving and investing for the future. In many cases, profits a e plowed back into the business to purchase equipment, expand to a more spacious location and grow the student base. Business improvement and growth end up taking precedence over funding a retirement account, acquiring adequate life insurance, building an emergency fund or securing proper liability and property insurance as the school grows. A 2006 study by the Small Business Administration (SBA) found that only about 33 percent of small business owners had individual retirement accounts or contributed to them. It is highly unlikely that percentage has grown in the wake of the financial crisis and “great recession” the U.S. suffered in recent years. Research by the SBA also discovered that small business owners, on average, have a significantly la er expected retirement age than an employee. Specificall , small business owners reported they would retire, on average, at 72.6 years old!

Due to the unique nature of running a martial arts school, it seems unlikely that most owners would desire to be teaching a full schedule, training staff and d aling with student service issues well into their golden years. Life changes such as divorce, illness, burnout and the loss of key staff membe s can accelerate the need for an exit strategy and retirement plan. While neglecting a retirement plan may be the most obvious omission from a school owner’s financial plan, it is ertainly not the only pillar of protection that’s often forgotten. For example, a school owner may open his or her doors when he or she is young and single and really have no need for life insurance. Years later, when he or she is married and has a family, the spouse and children may depend solely on the school’s income to provide for them. If anything should ever happen to him or her, the family could be left without a source of income to pay for basic living expenses as food and housing. Other tools like adequate emergency funds and sufficient operty and liability insurance are vital to provide financial p otection. The purpose of this article is to provide five financia self-defense moves that every school owner should make in order to protect the viability of his or her enterprise and provide security and peace of mind.

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FEATURED STORY

Financial Self-Defense Move

#1:

Invest in Your Retirement As prevously mentioned, we martial arts school owners must prepare for the inevitable day when we hang up our black belts. We are not employees of a corporation that will provide a pension or supply us with a retirement account and match a percentage of our contributions. Therefore, if we are to retire comfortably, we must create our own financial plan. Many owners believe they can fund their retirement by simply selling their school, but a martial arts school is a unique business that can be challenging to value and sell. Generally, a school doesn’t have many physical assets such as machinery, equipment, or real estate. Further, there’s a very limited market for a martial arts business because it’s not the type of turnkey enterprise that is attractive to buyers. In fact, prospective buyers are usually limited to senior students, staff membe s or competitors. Even if a suitable buyer is found, it’s estimated that roughly 90 percent of successful small-business sales are seller-finan ed, meaning the seller receives only 30 to 50 percent of the selling price up front. The seller depends on the buyer to successfully run the school in order to pay back the principal with interest.

“Unfortunately, while striving to succeed and build a viable business, school-owners often neglect to develop crucial pillars of financial protection, like saving and investing for the future." Aggressive saving and investing become even more important when one considers how much money will be required to comfortably retire. Based on historical data, prevailing wisdom recommends a safe portfolio-withdrawal rate in retirement of 4 percent. In other words, if you have diligently funded an individual retirement account (IRA) and amassed a portfolio value of, say, $500,000, you can (in theory) safely withdraw 4 percent per year. That’s $20,000 a year, assuming you need your portfolio to last for a 30-year retirement. Of course, this is a general example that does not account for taxes, social security, pensions or any other factors that will play into each individual retirement scenario. A Certified Public ccountant or financial planner can help you calcula e how much income you will require to pay for basic living expenses, medical care, etc., in retirement. Barring a robust pension, a significant inheri ance or a windfall from the sale of a residence, your spending power and standard of living in retirement will likely depend on your faithful saving and investing during the peak earning years of your career. Accordingly, it is necessary to formulate an investment plan and regularly contribute to a retirement account. This can be accomplished by setting up an account with a brokerage firm or with the help of a financial planne (see sidebars).

FEBRUARY 2016

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Financial Self-Defense Move

#2 :

Acquire Adequate Life Insurance

For many of the self-employed population, life insurance sits If your martial arts school supports your family, the absence of on their future to-do list. Unfortunately, procrastination can be your income could lead to financial ruin if the e’s no way to settle costly. Life insurance premiums rise as you age. You may also outstanding debts and pay expenses. develop health issues which For most school owners, the make premiums prohibitivebest option for life insurly expensive or cause you to ance coverage is the least "For many of the selfbecome altogether uninexpensive, long-term-level, employed population, surable. Worse yet, should premium-term policy, from life insurance sits on something catastrophic a reputable company. With their future to-do list. happen before you acquire term insurance, the policy But life-insurance coverage, your family could lasts for a given period, often premiums rise as you suffer financially without a 20 or 30 years, to protect the source of income. loss of income of a primary age. You may also Many schools are started earner. develop health issues when the founder is young “Level” premium is a which make premiums and single and has no immetype of insurance where prohibitively expensive diate need for life insurance. the amount that must be or cause you to become However, if others close to paid remains the same altogether uninsurable. you would suffer financially throughout the duration Worse yet, should in your absence, life insurof the contract. Generally, something catastrophic ance is important for the premiums and fees happen before you their protection. associated with “whole” Recent statistics indicate or “universal”-type policies acquire coverage, your that the average house(also known as “permanent family could suffer hold’s outstanding credit insurance”) are exponentially financially without a card balance is over $7,000. higher than term policies. source of income." Many families also carry The higher cost makes debt in the form of car loans, them prohibitive for mortgages, student loans and/ small-business owners. or home equity loans. That doesn’t take into account basic living Purchasing life insurance, this is a complex task and you expenses like food, clothing, utilities, car insurance, etc. should consult a professional to determine which insurance product best suits your needs and the amount of coverage best suited to your situation.

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Secure Your Future With MAIA elite Wealth!

Financial SelfDefense Move #3: Create an Emergency Fund An emergency fund is a savings account for funds to be used exclusively for basic living expenses during a period of reduced income, such as a stalled economy, illness, etc. The purpose of this fund is to increase financial securi y by creating a safety net that will reduce the need to use high-interest debt as found in credit cards. Emergency funds are kept in an account that’s safe from market risk and easy to access, such as a savings account. If you were running your school during the financial crisis of 008, you can probably appreciate the need for an emergency fund. During the “Great Recession,” as it has been dubbed, many schools saw a notable decrease in income due to fewer enrollments and a smaller active-student count. Because martial arts training depends on discretionary spending (income that’s left over after basic expenses are paid), an owner’s income can be greatly impacted when consumers tighten their spending. An emergency fund can provide security and peace of mind during challenging times. For someone who’s self-employed, prevailing wisdom suggests an emergency fund covering six to 12 months of living expenses. However, this amount may vary based on your anticipated financial needs. For example, a mature school with predictable cash flow that has w athered challenges, such as economic crises, increased competition, or loss of a key person, may better predict how much cash to save than a newly founded operation. Currently, online savings accounts offer some of the best interest rates available and often have no minimum deposit to open. Be sure to account for all major living expenses — food, clothing, shelter and transportation — when calculating how much money to sock away in your emergency fund.

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Since its inception in 2001 and the advent the Martial Arts SuperShow a year later, the Martial Arts Industry Association (MAIA) has taught thousands of school owners how to be more professional and profitable. Under this 15-year influence, many owners have experienced quantum-leap growth to a comfortable lifestyle for themselves and their families while doing what they love for a career. Due to this widespread prosperity, the association created MAIA Elite Wealth, an entire program exclusively dedicated to building wealth. This program is designed for school owners that have already achieved a high level of success. Its seminars are focused on how to further build and protect your assets, as well as being prepared for life beyond business — retirement. Simply put, the focus is on building your wealth and keeping it! In the Wealth program, MAIA teaches that there are three simple steps to acquiring wealth: earn income, save money and invest what you earn. Many times, an owner of a thriving martial arts school will decide to pump profits back into his business or to expand to a second location. That’s not necessarily the right choice nor the only choice. “MAIA Elite Wealth takes a five-direction approach to the process of wealth-building and wealth-preservation: planning, growing, saving, protecting and investing,” explains Frank Silverman, MAIA’s executive director and co-founder of the program. “It starts with consultation with martial arts industry experts that have shared the same experiences as they grew their small business into a larger company. “We closely examine each school owner’s financial situation individually and, using the five-direction approach, help him or her set the most appropriate financial goals and establish the best strategy to reach those goals,” Silverman continues. “We also direct them to contact financial experts, like Certified Financial Planners, outside of the martial arts to discuss other wealth aspects like stock portfolios, insurance and asset preservation. We ourselves do not sell those kinds of additional services or make commissions on what those experts do. [See sidebar story: “Choosing a Financial Planner”]. “As I explained above,” Silverman concludes, “the strength and value of the MAIA Wealth program is setting you up with a very successful mentor within the martial arts industry. Someone who has, as they say, been there and done that, and will know exactly what you need to do to achieve your goal.” When you blend these strategies and work with an end goal in mind, you will be able to meet with great success throughout your working life and into retirement. For more information about joining the MAIA Elite Wealth program, call an expert MAIA Account Manager at (866) 626-6226.

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FEATURED STORY

Financial Self-Defense Move

#4:

Obtain Proper Liability and Property Insurance According to Anita Campbell, CEO of Small Business Trends LLC, one out of every three business owners has either been sued or threatened with a lawsuit. And over half of lawsuits brought against small businesses involve companies with revenues under $1 million. Even with the proper facilities and training equipment, there are inherent risks of injury in martial arts training, which makes it crucial for schools to carry proper liability insurance. General liability insurance protects business owners from legal trouble due to accidents, injuries and claims of negligence. For example, if a student was injured during sparring, a general liability policy would protect against payments as the result of bodily injury, property damage, medical expenses and the cost of defending a lawsuit. One mishap in your school could easily result in financial ruin without proper insurance coverage. Be sure to carry proper liability insurance from a reputable entity. And just as importantly, review your coverage regularly to make sure you are covered for the appropriate number of students you serve. That applies to any programs, too, that you may have added to your school over the years.

Choosing a Financial Advisor The prospect of creating and implementing a comprehensive financial plan can be intimidating. It might include setting up a retirement account, choosing appropriate investments and selecting suitable life insurance. Not everyone has the time or motivation to do the ongoing research and learning required to be successful in this arena. A financial planner who advises clients on insurance, assets and money management can provide the necessary guidance. Note that financial planners differ from accountants, insurance agents and financial salesmen.

Also essential is property insurance, which covers risks from theft, fi e and vandalism. While your landlord may be responsible for basic structures and common areas, property insurance covers your personal property — computers, equipment, pro-shop inventory and furnishings. “Business interruption insurance” may also be added to a property insurance policy. This type of insurance covers a percentage of lost earnings due to a circumstance covered by your property insurance plan. For example, if there was a fi e that destroyed your school, this type of insurance would cover the lost or reduced income and expenses based on your pre-loss financial ecords. According to a study by The Hartford Financial Services Group, in both the most common and most costly claims by business owners, fi e claims are ranked in the top fiv . The average cost for a fi e claim is $35,000 and affects one out of every 10 business owners.

Most financial planners are paid by either earning a commission (a fee paid whenever someone buys or sells a stock or other investment) or by charging hourly or flat rates for their services. According to the Wall Street Journal’s guide, “How to Choose a Financial Planner,” you may want to avoid financial planners who rely on commissions for their income. These advisers may not be the most unbiased source of advice, if they profit from steering you into particular products. For example, they may recommend a particular life insurance package or investment, if they’re earning a large commission on the sale. In many cases, a planner who charges by the hour is the best fit for someone who is looking to lay out a financial plan. When choosing a financial planner, you should know exactly what services you need and what your planner’s background and credentials are. A good place to start when looking for a financial planner is someone who holds the designation of being a Certified Financial Planner (CFP).

A CFP designation is akin to holding the rank of black belt in financial planning. A CFP has passed a rigorous test and agreed to uphold high standards of competency and ethics. He or she must also commit to continuing education on financial standards and ethics in order to maintain that designation. Regardless of credentials, it’s important to do your own due diligence when placing your trust in someone to provide counsel on financial matters. Three Questions to Ask When Selecting an Advisor 1. What are your qualifications? Always ask what licenses, credentials or other certifications your advisor has obtained. 2. How will I pay for your services? Your planner should make it crystal clear how he or she will be compensated for the services provided. 3. What type of clients do you usually deal with? Some advisors may be better suited to deal with the unique needs of small-business owners.

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Based on The Hartford’s claims’ history, 35 percent of all general liability claims result in a lawsuit. For general-liability claims involving a lawsuit, the costs can average more than $75,000 per case to defend and settle. Costs this large could easily threaten the survival of an enterprise without adequate insurance. A consultation with an insurance broker can help you determine the type and amount of coverage that’s appropriate for your operation.

Financial Self-Defense Move #5: Review and Control Operating Expenses Most school owners tend to focus intently on growing their membership and increasing revenues. Successful owners focus on the most effective methods of marketing their programs, boosting sales, training staff and delivering curriculum o their students. But a laser-like focus on growth and revenue can lead to the neglect of basic expense management. This is a critical area of business, because the less cash needed to cover expenses, the more cash that is available for building an emergency fund and saving for retirement. The best way to make sure expenses and costs are under control is to review them on a regular basis. Every business is going to have “fixed osts” and “variable costs.” Fixed costs are expenses that remain unchanged, regardless of sales levels or business activity. Examples of fixed osts, known simply as “overhead,” include items such as an employee’s salary, utility costs and monthly rent expenses. The key to controlling fixed osts is to be proactive. Consider that the largest expense for most school owners is rent. Therefore, it is crucial to lease the proper amount of space and aggressively negotiate the best possible rental rate. And, while it’s important to build strong relationships with vendors and service providers, costs should always be bid out. Never accept a price increase without seeking competitive bids. Variable costs are costs that change in direct relation to the level of sales. Examples of variable costs are wages of part-time or hourly employees, pro-shop inventory and credit card processing fees. Just as with fixed osts, a detailed review of all variable costs is an integral part of controlling operating expenses. As an illustration, consider how many paid instructors are really necessary for each class on your schedule. Class sizes tend to fluctua e seasonally or after belt promotions. Too many hourly employees on the mat can cause your staff xpense to creep up. Tracking sales and keeping accurate statistics on pro-shop products, like sparring gear, uniforms and school apparel, can significantly educe inventory costs. Finally, soliciting competitive bids or leveraging an existing relationship with your bank can lead to a better rate on credit card processing.

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FEATURED STORY

I would recommend using bookkeeping software to manage your school’s financial t ansactions. Most software packages are relatively inexpensive and will provide you with timely and accurate financial in ormation, such as sales and expenses over a specified period of tim . In addition, every school owner should be dedicated to having basic financial li eracy and understanding business finan e. This will help you to avoid being taken advantage of and lead to a more professional operation over the long run. One caveat: don’t be “penny wise and pound foolish” when managing expenses. For example, it is ill-advised to deal with a disreputable company for liability insurance or to purchase inferior safety equipment just to save a few dollars. Avoid making decisions that will save money in the shortterm, but could cost your school dearly in the long term.

“Even with the proper facilities and training equipment, there are inherent risks of injury in martial arts training, which makes it crucial for schools to carry proper liability insurance.”

Conclusion Thanks to the numerous resources available from organizations like the Martial Arts Industry Association (MAIA), school owners as a whole are more professional, better educated and more business savvy than ever before. However, even the most astute martial arts entrepreneurs may be guilty of neglecting one or more of the above financial sel -defense moves. In order to protect your business and your loved ones — and provide you with the peace of mind you deserve — be sure to master these five moves without dela . e m Rich Brugger has been training in the martial arts for 22 years. With his wife, Michelle, he owns and operates Martial Arts for Life, a family-oriented school in New Providence, NJ. He holds in a B.S. in Business Management and an MBA in Finance. He can be contacted at martialartsforlife@aol.com. To read hundreds of articles and columns vital to your school business, visit the Martial Arts Industry Association’s website at www.masuccess.com. Through this constantly-enhanced website, members can access an enormous quantity of useful information on just about any topic from A to Z.

J 78

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COLUMN

CONSULTANT’S CORNER

5 Proven Ways to Consistently Draw New Students!

BY JASON FLAME MAIA CONSULTANT

“ALTHOUGH WE TEND TO FOCUS HEAVILY ON OUR MONTHLY STATISTICS AND RESULTS, THESE ARE MERELY CHECKPOINTS. ULTIMATELY, WE WANT TO CREATE MARKETING MOMENTUM THAT WILL HELP US TO ENROLL NEW MEMBERS CONSISTENTLY.”

e must understand that it’s not just one thing that brings us, say, 10 new students, but the 10 methods of marketing that bring us one new student (or more) each. So many school owners fall into the trap of focusing on just one marketing technique and hope that it’s going to result in tons of new students. The most important components of marketing are making a plan and being consistent. Although we tend to focus heavily on our monthly statistics and results, these are merely checkpoints. Ultimately, we want to create marketing momentum that will help us to enroll new members consistently. Here are five di erent methods of marketing to attract new members to your school: 1. Internal Marketing The most inexpensive and effective form of marketing is to recruit members from within your school. Your students’ family members have been witness to the benefits of your program and already understand the value of what we offer. To capitalize on this situation, host regular events where parents and siblings can participate in your classes. Consider having parents as volunteer target holders or guest coaches for the day. 2. External Marketing When recruiting members from outside of your school, look for every opportunity to get in front of the most people possible. Community events are always a great way to get in front of your audience through demonstrations or teaching an introductory class.

Host a booth where you can build rapport with potential students, collect contact information and schedule an appointment to visit your school. Follow up with a mass-introductory event where students have the opportunity to enroll. 3. Business Network Marketing Working with local businesses in your area is a viable way to tap into their customer base to introduce your services. Make sure that the opportunity is reciprocal; otherwise, it may be a short-lived relationship. Join your local Chamber of Commerce and introduce yourself to as many business owners as possible. Think about how many times you’ve referred business to someone you know. Likewise, you want to be the one they refer whenever someone they know wants to learn self-defense or martial arts. 4. Social Media Marketing Let’s face it, we live in the age of technology and everyone relies on social media to help them make buying decisions or ask for referrals. Consider this: as everyone scrolls through Facebook and sees pictures of events at your school, a post from one of your students can have an impact on prospects. This is planting a seed for where they may want to train. You could be missing the boat if you’re not actively engaged in social media. 5. Passive Marketing Students wearing your school t-shirts, a banner on the ball field, or school-logo window decals are all great marketing for your school. These are great ways to keep you in the forefront of someone’s mind when he or she decides that the time is right to begin training. We want to do anything that grabs the attention of potential students and reminds them of our brand. Keep this quote in mind: “Marketing is a contest for people’s attention.” — Seth Godin, best-selling author and entrepreneur e

m MAIA International Elite Consultant Jason Flame can be reached at (805) 657-1775 or jflame@masuc ess.com.

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COLUMN

MASTERFUL RETENTION

Students Will Enjoy Sparring If You Change the Way You Teach It!

ne of the biggest debates between professional martial artists these days is whether or not to spar and how much emphasis a school should put on it. In one corner are the professional martial artists who look at sparring as BY CHRISTOPHER a detriment to their growth and school RAPPOLD success and have or are thinking of Image by Chris eliminating it completely. In the other Split Photography corner are the professional martial artists who can’t imagine taking away from “THE FIRST their school the functionality sparring IDEA TO provides. While both sides may have UNDERSTAND valid points, we can bring them together IS PERHAPS using methodologies referred to as THE MOST “Retention-Based Sparring.” IMPORTANT: The fi st idea to understand is perIT’S NOT THAT haps the most important: it’s not that STUDENTS students don’t like to spar, it’s that they DON’T LIKE TO don’t like the way it is being taught. If SPAR, IT’S THAT you address that real challenge, then THEY DON’T you can effectively create a solution to LIKE THE WAY the discouragement and dropout that IT IS BEING TAUGHT.” sparring will cause. I have found that schools that want to eliminate sparring lack two things: 1) a fundamental context (the way it is presented); and 2) content (a strategically-designed set of specific drills and skills that will allow your students to make progress). In an effort to improve their program, many school owners watch videos and have sparring champions come in to their school to teach techniques. The challenge is that to be “world class,” one has to focus on his or her own skills and abilities as an instructor, not the abilities of the student. So, what you end up with are techniques that a very limited population can use appropriately and no context for improvement. In the end, this strategy falls short on retaining students and growing your active student count. That means money out with no profit oming back in!

Instead of facing this result, invest the time to create a cohesive program to correct the situation, one that makes sense and logically flows from one drill to the next, one week to the next week and one month to the next month. After this is instituted and your framework and structure are in place, then it makes sense to bring in outside talent. Bringing in a high-level martial arts practitioner or fighting champion o refine specifi skills in the new curriculum is then a worthy strategic investment. There are martial arts programs that fully embrace sparring in schools around the country. But, aside from a few really good figh ers, those schools have a low active student count. So, they need a different prescription. The schools in this camp need to explore the culture of their school and focus on context improvement. As the saying goes, “Where attention goes, energy flows ” If your focus is largely centered on your top student athletes, then you may want to step back and evaluate how a beginner would feel starting your program. Questions to consider are: Does the way we teach allow the student to feel safe? Are the skills and drills chunked down enough so they can be easily understood and applied by the beginner? Do the drills and skills we teach allow for varied skills and abilities within the same class? Is it part of the culture that advanced students mentor, encourage and protect the learning environment of the beginners and intermediate students? Do the instructors at all times set an example of control in the way they speak, teach and interact with the students? A well-designed sparring program has the ability to create a bond between students that’s very special. It provides a continual level of variety and a platform that offers a higher level of challenge to your students. Feedback regarding effectiveness creates a program that can be virtually self-correcting with minimal attention required by the instructor. Taught correctly, sparring should be as mentally stimulating as the focus required of a chess player who loses himself totally in the strategic moves of a chess match. Formatted correctly, sparring doesn’t contain the stress that some students feel from having to memorize hundreds of moves. Finally, and most importantly, sparring, perhaps more than all other aspects of the martial arts, provides an opportunity for a student to face his or her fears, doubts and worries in a way that is safe, productive and builds confiden e that is transferable beyond the mat. No matter what your opinion is, go to work on improving your content and context, and enjoy the pride and accompanied rewards of more students enjoying your school and referring members. e

m Christopher Rappold can be reached for questions or comments at founder@personalbestkarate.com. Find out more about his Retention Based Sparring System at masuccess.com.

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COLUMN

THE KICK YOU NEVER SAW COMING

Using Video Cameras in Your Studio

ecently, I was working with a school owner who had the unpleasant experience of a student accusing another student of molestation during the afterschool program. The accusation would be ugly enough without the rest of the nastiness that occurred. That nastiness revolved around the BY BETH A. BLOCK video cameras inside the studio. This particular school used cameras to keep an eye on the training floor f om the office. “IT’S The cameras were set up for live monitoring IMPORTANT TO REMEMBER only; no recordings were made or kept. When THAT the owners were setting up the system, their EVERYTHING focus was on being able to monitor the quality YOU DO IN of the instruction given to their students, even YOUR STUDIO when they weren’t on the floo . These owners IS SHAPING are absolutely committed to providing quality EXPECTATIONS experiences to their students. AMONG The owners were certain that the accusation YOUR CLIENTS.” could not be true. Their afterschool instructors had worked for the studio for years; they knew the importance of keeping a close supervision of the children. They also knew their studio layout had been put together so that there are no nooks and crannies to hide out of sight of the instructors. Last but not least, they knew the student that was being accused absolutely would not behave in such a fashion. Within a week of the accusation being made, the studio was served with a lawsuit. One of the demands made in the suit papers was a copy of the videotape from the surveillance cameras. But, how could the studio provide tape when it did not exist? When the owners reached out to me with this question, I reached out to the insurance company claims department. I was referred to an attorney that would eventually provide representation to the studio. The conversation with that attorney was enlightening to me and I want to share what I learned. I will, however, caution you: laws and customary practices vary from state to state. If you would like to be sure your practices comply with your state’s requirements, I strongly suggest you chat with an attorney in your area. What I learned in the course of my conversation is this: essentially, it’s important to remember that everything you do in your studio is shaping expectations among your clients. Often, we forget to specifically address issues, which leave our clients to make assumptions. Assumptions are business quicksand.

In the case of the video cameras, if a business has cameras, it is a reasonable expectation of clients or the public that those cameras are recording. If they are not recording, the studio owner is well-advised to notify their clients that there is no recording. You can do so by posting a sign inside your studio or by including this information in a student handbook. If you are recording from your cameras, it’s important to make sure you are reviewing those recordings daily. If there is any recorded evidence of a mishap, any incident of any type that could lead to a potential claim, you must preserve the tape of the incident. Incidents include, amoung other things, a training injury, sharp words exchanged between students, sharp words exchanged between an instructor and a student, or a slip and fall anywhere inside your studio. Failure to do so can be deemed “destruction of evidence” and be the fast track to a very large, unfavorable claim and settlement against your school. Preserving such video requires a real commitment on your part. Most systems are set up to record over the tape based on a specific in erval. Some owners do not have the ability to make a copy to preserve without the assistance of the company that installed the system. In order to move forward, you must know how often your system records over itself and how to keep a copy of portions of the recording. It’s also important to make sure your system is date- and time-stamping everything that’s recorded and that those stamps are kept when the recording is copied. As you consider whether or not you want to have recorded-video monitoring, there are two further things to think about. First, if you’re going to record, it’s important to make sure you are covering all parts of your studio other than just restrooms or locker rooms. Without the 360-degree view of all portions of the studio, it’s easy for someone with bad intentions to move out of the line of sight to perpetrate a bad deed. Lastly, it’s equally important to remember that video can absolutely provide proof of innocence when the accusation is made. It can also absolutely provide proof when a misdeed is done. You must decide if the double-edged sword of video is worthwhile in your studio. e m Beth Block can be reached at (800) 225-0863 or beth@blockinsurance.net

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The new Retention Based Sparring program aims to show school owners how to implement responsible sparring practices in their school. In the world of martial arts, it has become all too common for students to discontinue their training instead of participating in sparring.

PLEDGE

When it comes to the martial arts industry, few topics can produce stronger and more divisive opinions. From school owners to parents, instructors to insurance companies, everyone has an opinion on the best practices. But, the big questions stay the same:

practice with Sparring is a cooperative ition with an a partner, not a compet ible for opponent, and I am respons my partner ’s well-being.

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AIA, LLC.

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COLUMN

THE LEGAL LANDSCAPE

Scanning Rather Than Retaining Original Documents

enerally, if you call a business or a businessperson “old school,” certain connotations arise. First, such a moniker suggests being rooted in the past and the inefficiencies onnected therewith, like the potential failure to embrace new technologies. When it comes to file and ecord storage, I am BY PHILIP E. the poster child for old school! GOSS, JR., ESQ. My biggest issue is a “pack-rat” mentality. I just am adamant against throwing out old “IF YOU EVER files and documents, no mat er their age or HAVE TO potential future utility. I suppose such mindset PROSECUTE OR would be admirable if only I had the adequate DEFEND ANY space to keep these files in an o ganized manISSUE USING ner and easily access a specific documen . A CONTRACT Unfortunately, I have neither! On a regular OR OTHER basis, a certain Mrs. Goss suggests that I come WRITTEN out of my technology cave and do something MEMORANDA about these “damn” files clut ering my office THAT HAS and garage. ANYONE’S Conservatively, I estimate that I waste sevSIGNATURE, eral working days a year looking through maINCLUDING YOUR OWN, nila files when a ew keystrokes could get me THE ORIGINAL what I want in a fraction of the time. If only I would commit to start scanning documents SIGNATURE IS IMPERATIVE.” and trust that they will be there when I need them, my life would clearly improve. Therefore, with limited exceptions, starting in 2016, this self-professed old-school lawyer is committed to going almost paperless. This is something many of you, my forward-thinking friends, likely jumped into years ago, or if not, you can and you should! There are most certainly limits to what can be scanned and used in the legal and business contexts, so let’s address them. What Can Be Scanned and Then Properly Used in Future Proceedings? First, obviously, anything can be scanned. However, a scanned document is not always the best evidence or even admissible for purposes of litigation or filing documents in the public records. If you ever have to prosecute or defend any issue using a contract or other written memoranda that has anyone’s signature, including your own, the original signature is imperative.

While there are procedures to recreate a lost or destroyed document under the law, you are at a great disadvantage in attempting to do so. Recreating evidence of a signature is a legal burden you will not likely meet. Goss’ Rules For Keeping a Minimum of Documents: The following documents must never be destroyed or replaced with scanned documents: 1. Any “signature page” where a client, customer, vendor or third party affixed an original signat e or his or her initials to any piece of paper. 2. Any complete document of the following broad category, including but not limited to wills/trusts/living wills; documents filed in the public records; warranties; incident reports; leases; deeds; promissory notes; permission slips; releases; birth/death certifica es; and legal documents. Regarding legal documents, your lawyer should actually retain all documents related to any representation and not discard them without advance notice to you. As a general rule, you can recreate the remainder — unsigned or initialed — of other documents. Just be sure to have a full scan of the document for comparison purposes on your system. 3. Anything that has any potential of future economic value. You never know when a divorced parent may be required to pay off an obl gation to your school, by court order. It is helpful to have the document showing the correct sum due at your quick disposal. By doing what I plan, I estimate that my volume of paper will be greatly reduced. Using common sense, this can work for any other oldschool holdouts reading this column. One last point: Scanning is of no value without a foolproof data back-up system. My paranoia will, without a doubt, require a redundant system. I suggest you do as well! As I see age 57 peeking over my calendar ridge, I realize that one of the hardest things about technology is to embrace it as my friend and not something to avoid or fight at all osts. I do anticipate a steep learning curve to become adept at my scanning goal. But, a year from now I think I’ll be convinced it was a great decision and ask myself why the heck I didn’t embrace the technology far sooner! I promise you that my wife will agree as well! e

m Attorney Phil Goss, Jr. welcomes any email comments or questions at PhilGosslaw@gmail.com and will attempt to respond personally, time permitting.

MASUCCESS

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COLUMN

INSPIRATION OVATION

Hot Cheetos

BY KAREN EDEN

“PERHAPS IF THE PAIN OF OUR DECISIONS EVENTUALLY OUTWEIGHS THE PLEASURE OF OUR LIFESTYLE, WE WILL THEN ACTIVELY PURSUE THE RIGHT JUDGMENT CALL.”

here’s a snack that’s rather popular out west, “Hot Cheetos,” a spinoff of the well-known brand-name snack with added “flaming ho ” pepper spice. As someone who has taught martial arts in the inner-city for years now, this is one karate master who hates those darn things. A couple hours before my class, all my students are encouraged to eat a balanced, hot meal free of charge at the YMCA center where I teach. Yet, they come straight over from school seemingly starved to death and the fi st thing they rush to is the vending machine with the Hot Cheetos. “Why don’t you go to the dining room and get a hot, nutritious meal?” I would often ask. “Cause I don’t want a hot meal. I want Hot Cheetos,” is the standard reply. Period. End of story. Why do these kids keep making such poor nutritional choices? Because they’re kids! The real question is, “Why do so many grown adults constantly make poor decisions in life?” Ask anyone in the medical profession about it. They’ll tell you that a large majority of patients who struggle with heart disease, diabetes or cholesterol problems will rarely make the right judgment calls that lead to a healthy lifestyle. “Why is that?” I once asked my brother, who is a physician. “Because ridding your life of the things that have always brought you pleasure is too great of a sacrifi e,” he answered.

Perhaps if the pain of our decisions eventually outweighs the pleasure of our lifestyle, we will then actively pursue the right judgment call. Even still, most people will not choose to forgo life’s pleasures. For instance, many victims who have had a heart attack will once again return to the hospital suffering from a repeat heart attack in the future. Thanks to the release of dopamine in the brain, we can easily become slaves to the things we perceive as pleasurable. Whether it’s food, drugs, cigarettes or various activities, we are initially wired to enjoy the things that will help to preserve our species. The release of stress and/or the calming of our nerves that occurs when we enjoy these things cause our brains to believe our vices are preserving us, even when those things are harmful. I must confess, I love ice cream sandwiches. The problem is, I can’t eat just one. If I were to lower my guard and buy a box of these tasty treats, I would most defini ely eat the entire box. So, like the disciplined karate master I am, I do the right thing and walk right on by the ice cream section at the market — well, most of the time. My question is, “Am I able to do this 90 percent of the time because my martial arts training has helped me master my love for ice cream sandwiches? My students who were once addicts say they could not have gotten through their rehab experience without their martial arts training. I’m not a doctor, but my understanding from what they tell me is that the focus and discipline helped to retrain the way their mind operated while fighting addiction. s a karate instructor, you couldn’t give me a more beautiful compliment. And just so you know, I took that stupid snack machine out of the center. I figu ed if they were hungry enough, these students could go in the kitchen and eat something that was going to make them a better student. That wasn’t a popular move, of course. But that’s what you do when you’re surrounded by young minds that can’t make a good judgment call. As for us older students, I can only hope that we learn to retrain the dopamine pathways inside of our heads. That way, we can become better students in life and a better example for all the young “Hot Cheetos” lovers watching us out there. I’ve always been an advocate: karate, to me, seems to be the real dope. e m You can contact Master Karen Eden at Kareneden@centurylink.net

MASUCCESS

Section 1.indd 96

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New Content … New Look …

New MAIA SuccessKit January 2016

WEEK ONE

“

– GEOFFREY F. ABERT –

goal and tal to your instructors about a time frame. It takes years of hard work and dedication to achieve that goal, so don’t lose focus or get discouraged. Learning to set goals is key to success. Ask Your Students: 1.

What does goal setting mean to you?

2. Is goal setting important?

JAN

3. Should you always have goals whether it be in martial arts, school or at home?

January 2016

“

”

The process of identifying something that you want to accomplish.

The martial arts belt system is one of the greatest systems created when it comes to setting and reaching goals. It teaches us to set goals, attain them and see the visual results of our achievements. Achieving a Black Belt in martial arts has significant meaning and is associated with excellence. We can understand our goals with the visual aid of the different color belt system. If you are a new student, there are many short terms goals to reach — white belt, yellow belt, etc. The long term goal is to become a Black Belt. If you want to earn your Black Belt, set that as your long-term

WEEK TWO OUR GOALS CAN ONLY BE REACHED THROUGH A VEHICLE OF A PLAN, IN WHICH WE MUST FERVENTLY BELIEVE, AND UPON WHICH WE MUST VIGOROUSLY ACT. THERE IS NO OTHER ROUTE TO SUCCESS.

– PABLO PICASSO –

GOAL SETTING: Creating and achieving goals — Be SMART.

”

Timely: Set time frames or blocks of time when you plan to accomplish your goal. A time-bound goal establishes a sense of urgency and prevents goals from being pushed to the side from other daily activities.

Specific: Your goal needs to be specific (include details) and be stated clearly. A specific goal has a much better chance of being accomplished than a general goal.

A IA

E A K S

January 2016

The MAIA SuccessKit is all new with updated newsletters, redesigned outreach pieces, and as always, new information each month!

Ask Your Students: 1.

What does goal setting mean to you?

2. Is goal setting important? 3. Should you always have goals whether it be in martial arts, school or at home?

January 2016

“

”

WEEK TWO OUR GOALS CAN ONLY BE REACHED THROUGH A VEHICLE OF A PLAN, IN WHICH WE MUST FERVENTLY BELIEVE, AND UPON WHICH WE MUST VIGOROUSLY ACT. THERE IS NO OTHER ROUTE TO SUCCESS. – PABLO PICASSO –

GOAL SETTING: Creating and achieving goals — Be SMART.

“ ” BE FOCUSED!

”

Relevant: Make goals that matter to you. When you identify goals that are important to you, you begin to figure out ways you can make them come true.

We want to be smart when setting goals. SMART stands for Specific, Measurable, Attainable, Relevant and Timely. We want to intelligently decide what our goals will be so we can actually accomplish them.

What is an example of a SMART goal?

2. Why is it important to create SMART goals?

WELCOME TO JANUARY Jan 2016 WEEK THREE SUBTITLE 3. Can we create one SMART goal for everyone in class today?

ks ea br st

WEEK THREE

“

– GEOFFREY F. ABERT –

The process of identifying something that you want to accomplish.

LOREM IPSUM DOLOR SIT AMET, CONSECTETUR ADIPISCING ELIT. INTEGER SODALES, EST Ask Your Students: goal is achieved? You need specific criteria to What is an example of a SMART goal? EGET LAOREET CONVALLIS, measure your progress. Keeping track of your Why is it important to create SMART goals? NULLA SEM SEMPER VELIT, EU Can we create one SMART goal for everyone in class today? CONSEQUAT EROS EST NEC.

Attainable: and achievable.

GOAL SETTING:

THE MOST IMPORTANT THING ABOUT GOALS IS HAVING ONE.

Measurable: goal is achieved? You need specific criteria to measure your progress. Keeping track of your progress gives incentive to keep going.

WEEK ONE

A M2016

Relevant: Make goals that matter to you. When you identify goals that are important to you, you begin to figure out ways you can make them come true.

January 2016

“

2016

GOAL SETTING:

THE MOST IMPORTANT THING ABOUT GOALS IS HAVING ONE.

Hopefully you have had a relaxing winter break and are ready to go

GOALS THAT ARE NOT WRITTEN DOWN ARE JUST WISHES.

– FITZHUGH DODSON –

”

week 1

PARENT/GUARDIAN

on what you did, when you did it, how you reached the place you find

LE T T E R

yourself in and why you were or into the New Year. To get our MAIA THING “THE MOST IMPORTANT LOREM IPSUM DOLOR SIT AMET, were not successful in your previmembers off to theGOALS right start, we ONE.” ABOUT IS HAVING CONSECTETUR ADIPISCING GOAL SETTING: A goal is something you are willingare to work very hard achieve. ous endeavors. asking a tovery yetF.im– simple, GEOFFREY ABERT – ELIT. INTEGER SODALES, EST portant question: need to go. They also provide an opportunitywere you happy Goals need to be written down. Writing down For example, we have a goal for for celebration when you attain them. your goals forces you to clarify what you EGET LAOREET CONVALLIS, with your 2015 financial results?2If want. You must decide what you want when week Ask Your Students: Ask Your Students: MAIA and for the MASuperShow. NULLA SEM SEMPER EU you commit your goal toVELIT, paper. Writing down two tasksCAN are to 1) Set 1. How many goals have you written down? 1. How manyso, goalsthe have next you written down? goals and reviewing them regularly provokes “OUR GOALS ONLY BE REACHED For 2016, we want to grow the This is the time of year when it is of this article is not to help you CONSEQUAT EROS EST NEC. 2. Where would you place a visual picture of 2. Where would you place a visual picture of people to take action. Most people are visually your 2016 goals; and 2) Write down

GOAL SETTING:

A goal is something you are willing to work very hard to achieve.

Goals need to be written down. Writing down your goals forces you to clarify what you want. You must decide what you want when you commit your goal to paper. Writing down goals and reviewing them regularly provokes people to take action. Most people are visually motivated. If your goal is to get your black belt, then have a picture of a black belt and place it somewhere you will see it every day to remind yourself what your goal is. Writing down your goals also enables you to see and celebrate your progress. They enable you to see how far you have come and how far you

need to go. They also provide an opportunity for celebration when you attain them.

A VEHICLE OF A PLAN, event to over 3,000 members. all the things you did last year to This will take both reflection and accomplish your 2015 goals and planning. We will spend time VIGOROUSLY ACT. THERE IS NO repeat them. identifying the things that worked ROUTE TO SUCCESS.” for us in the past, and we will use If you didn’t do as –well as you PABLO PICASSO – that information to set a course for would have liked, then your two January 2016 the future. action items are a little different. 1) Make a list of where you fell short. So, let’s work on our goals togeth“GOALS THAT ARE NOT WRITTEN Be brutally honest with yourself DOWN ARE JUST WISHES.” er. Let MAIA continue to help you IPSUM SIT Below areDOLOR four steps to AMET, First, deciding what is important LOREM and, if you ALL WHO HAVE ACCOMPLISHED GREAT THINGS HAVE HAD ALL WHO HAVE ACCOMPLISHED GREAT THINGS HAVE HAD aren’t sure, consult with – FITZHUGH DODSON – reach your 2016 goals. Sign up CONSECTETUR A GREAT AIM, HAVE FIXED THEIR what GAZE ONmatters A GOAL WHICH A GREAT AIM, HAVE FIXED THEIR GAZE ON A GOAL WHICH and determining is an staying focused:ADIPISCING your staff. 2) Make a list of the WAS HIGH, ONE WHICH SOMETIMES SEEMED IMPOSSIBLE. WAS HIGH, ONE WHICH SOMETIMES SEEMED IMPOSSIBLE. today and be part of the 15 year SODALES, EST internal decision process. We all have ELIT.1.INTEGER things you believe you could have Keep organized. – ORISON SWETT MARDEN – – ORISON SWETT MARDEN – anniversary of the Martial Arts Supeople in our lives who influence that EGET LAOREET CONVALLIS, done to do better. 3. Manage your time. It seems obvious, but as the as a goal. GOAL SETTING: Board breaking perShow. Sign up today and save. “ALL WHO HAVE ACCOMPLISHED decision, but ultimately you are the NULLA SEM SEMPER VELIT, EU This goes hand in are, hand with days pass by and events, special Call MAIA at 866-626-6226. No matter where you self-reGREAT THINGS HAVE HAD A GREAT your attention to be diverted from your goal your attention to be diverted from your goal To achieve the goal of breaking a board using To achieve the goal of breaking a board using determining factor. You set the stage. CONSEQUAT EROS EST NEC. (the board), you’re likely to notAIM, dead(the board), you’re likely to not strike deada side kick, there are several goals a side kick, there are several smaller goals making lists. Keep on track and performances, andsmaller the holidays HAVE FIXED THEIR GAZE ON A flection is strike just asnot important as goal on or with as much force, causing you to on oris with as much force, causing along the way that must be met. along the way that mustYou be met. decide what important and you to not don’tIt let manage yourONE WHICH GOAL WHICH WAS HIGH, themselves happen, remaining reach your goal. reach your goal. First, you must lean proper technique for First, you must lean proper technique for setting. is others important to reflect what is not. goal eye to lookoff at every day? motivated. If your goal is to get your black determine what should be important very easy to take your your the ball belt, then have a picture of a black belt and 3. How would you celebrate achieving every 3. it somewhere every day this – SUN TSU you – will see itbefore, or lose focus on the things really article mentioned new color belt onthat your way to becoming (as the place to remind yourself what your goal is. Writing a black belt? is an internal that can only 4. matter. As the holidays approach down your decision goals also enables you to see and What goals can you set outside of and the New Yearmartial rollsarts? in, it is easy to be made by you), but we can offer forget where our priorities should lie. some simple steps that should help Take some time to refocus yourself you stay focused once you decide and reevaluate the things you are where your priorities lie during this busy holiday season.

WEEK FOUR

THROUGH your goal to look at every day?

IN WHICH WE MUST FERVENTLY How would you celebrate achieving every new color belt on your way to becoming BELIEVE, AND UPON WHICH WE MUST a black belt? What goals can you set outside of martial arts? OTHER

week 3

WEEK FOUR

” KID KICK”

throwing a side kick. Use your entire body to back up your leg to break the board. This makes the kick much stronger, just like having outside support makes us stronger and spurs us on toward our goals. Be confident. See yourself kicking through the board. Practice over and over.

week 4

NEWSLETTER

Speed is the next key. Breaking a board takes quick, decisive action, and the same is true for any goal you set. Decide on the best course and move!

– SUN TSU is the next key. Breaking a board throwing a side kick. – Use your entire body SOMETIMES time for you.takes SEEMED IMPOSSIBLE.” organized will help you stick toSpeed quick, decisive action, and the same is true for to back up your leg to break the board. This any goal you set. Decide on the best course – ORISON SWETT MARDEN – makesgoals. the kick much stronger, just like having your 4. Make time for breaks.

If you asked others “What’s outside support makes us stronger and spurs us on toward our goals. Be confident. See important and Ask what should I focus Your Students: 2. Make list.through the board. Practice yourselfakicking is another example on?” you’ll hear 1.a What spectrum of of a goal you over and over. To-do lists are key to staying can set in martial arts? Next, you must learn to focus – intensely. Next, you must learn to answers focus – intensely. as diverse as think theyou people you 2. Do you can set your own goals? Direct your eyes, ears, act brain and Direct your eyes, ears, brain and full attention focused. They as full a attention road 3. work, Should you help others around you to on the task at hand. Focus on the center of the on the task at hand. Focus on the center family, of the question: education, map getting achieve their goals? boardto when attempting important to break it. If you allow board when attempting to break it. If you allow friends, the list goes on. The intention things done.

At first this may sound counterintuitive, but breaks allow you to recharge and catch up internally. And remember, staying focused is the key to accomplishment.

What is another example of a goal you can set in martial arts?

2. Do you think you can set your own goals? 3. Should you help others around you to achieve their goals?

Dear parents and/or guardians...

WHAT ’S

INSIDE

JANUARY 2016

and move!

Ask Your Students:

• Help your children place a visual This month we will discuss goal setting reminder in your home where they can and why it is important to have goals and see it every day to remind them to stay write them down. Proper goal setting will active in pursing their goals. help your children decide what they want to achieve in life. Their short-term goals • Discuss with your children why setting will help keep them motivated and build ©2016 MAIA, LLC. / 0116MAIAKIDKICK goals is important. self-confidence as they successfully achieve their long-term goals. Be Focused! School Calendar HOW CAN YOU HELP? • HelpYour your children be S.M.A.R.T. Getting Vitamin D about creating goals. Work with them Nutrition In-Season on setting goals that are Specific,

• Make sure your children understand that goals are part of teamwork and leadership not just individual accomplishments.

goals including goals for school, home and in martial admirable goal, arts. it isn’t specific enough.

• Be a role model — set a personal goal along with your children so they can watch you achieve. There is no better way to learn than by following an example.

Goal Setting

Goal Setting GOAL SETTING IS THE PROCESS OF DECIDING WHAT YOU WANT TO ACCOMPLISH AND DEVISING A PLAN TO ACHIEVE THE RESULT YOU DESIRE.

• Have your children get a buddy that has a similar or same goal so they can

help and support each other. In your martial arts classes, we talk about goal setting quite a bit. This month, we Relevant are going to Measurable, Attainable, and Timely. spend some time talking about setting “SMART” goals. This means setting goals that are specific, • Set family goals to help your children learn the importance of goal setting. measurable, attainable, relevant and timely. Let’s talk about what • Havethat your means: children write down their

• S – Specific. While “Be better in school” might be an Decide what “better” means to you and focus on that.

• Allow your children to create a timeline including short-term and long-

term goals. • M - Measurable. Some goals are easier to measure than others. School-related goals are measurable because you get grades in school, but goals•related toa keeping your room clean Decide as family what the celebration willyou be upon reaching might have to be measured in terms of the number of times vacuum or every dust shorteach week.

Try it today for

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term goal.

• A – Attainable. If you haven’t learned to swim yet, then setting a goal of learning to dive isn’t attainable right now. Set goals you can achieve, and gradually work your way up to more difficult things. • R – Relevant. Set goals that matter to you. You are a martial artist, so setting a goal related to getting your next stripe or belt would be a great way to motivate yourself.

• T – Timely. If you set goals like “Shovel the sidewalk” without giving yourself a deadline, you will probably have a harder time getting started and a harder time completing that task. Instead, give yourself a deadline and work to accomplish the goal on schedule, or ahead of schedule. Setting SMART goals helps you focus on the things you want and make a plan for how to get them.

Cover_FEB_2016.indd 3

12/4/15 9:56 AM

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