September 2019 by MASuccess

SEPTEMBER 2019

www.MASUCCESS.com

MASUCCESS

SEPTEMBER 2019 • $5.99 US

OFFICIAL PUBLICATION OF THE MARTIAL ARTS INDUSTRY ASSOCIATION

JOHN

CORCORAN (1948-2019)

The Pen is Still Mightier Than the Sword

Remembering MASuccess’ longtime editor, journalistic trailblazer, and mentor, John Corcoran

ISSN 2380-561 7(PRINT ) 2469-6889(ONLINE )

The Budo Banker

When K arate An d Ca re e r C ollide

A BJJ World Champion Comes To Grips With Cancer In 2014, Joao Rocha Engaged A Terrif ying Opponent In A Years-Long Fight For His Life

My Student, Joe Hammel

You Can’ t Always Trust A First Impression!

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CONTENTS FEATURES 30

JOHN CORCORAN: THE PEN IS STILL MIGHTIER THAN THE SWORD BY KAREN EDEN

In May, 2019, longtime MASuccess Editor John Corcoran passed away after a series of health complications. The martial arts writing and publications industry lost a preeminent champion, and many of us lost a good friend. He leaves behind shoes that will never be filled, and a legacy that will always be honored.

SEPTEMBER 2019 DEPARTMENTS

COLUMNS 40 BLACK BELT LEADERSHIP BY

NG UYEN

“ TOM”

G RI G G S

04 LETTER FROM THE PUBLISHER

T is for Trust

44 IN THE CLASSROOM BY

DAV E

06 FROM THE DIRECTOR’S DESK

KOVAR

My Student, Joe Hammel

12 IN THE KNOW 62 TURNING POINT BY

HERB

B ORKL AND

Phil Wilemon: Training with Legends

18 HEAR FROM YOUR PEERS

64 HEALTH KICK! 52

BUDO BANKER: CAREERS COLLIDING BY

A NDRI E S

ERI C

THE

TRAI NER

22 PRODUCT SPOTLIGHT

Motivate Your Masses: Part 2

P R U I M

A career transition redefined the importance of martial arts as a business for one karate instructor-turned-banker. He’s sharing his insights with other school owners looking at banks for financing.

66 YOU MESSED UP! NOW WHAT? BY

KATHY

24 THE MAIA REPORT

OLEV SKY

Why Am I Not Growing?

86 CONSULTANT’S CORNER

26 MARKETING RESOURCE

B Y M A I A C O N S U LT A N T MIKE METZGER

A BJJ WORLD CHAMPION COMES TO GRIPS WITH CANCER BY TERRY L. WILSON

Joao Gabriel Rocha has earned superstar status among his Brazilian jiu-jitsu (BJJ) peers as one of the most successful competitors in the game. However, his greatest victory was when he defeated cancer and fought his way back onto the mats, becoming a leading contender in the sport’s super heavyweight division.

5 Ways to Communicate Your School’s Activities

88 MASTERFUL RETENTION BY

C HRI STOPHER

RAPPOL D

How to Solve the Two-Inch Problem

90 THE KICK YOU NEVER SAW COMING BY

B ETH

A .

B LOC K

Take it to The Street

92 THE LEGAL LANDSCAPE BY

PHI L I P

G OS S,

JR.,

ESQ.

Call an Employee a Contractor and You Might Be Wearing a Scarlet Letter!

96 INSPIRATION OVATION BY

KAREN

EDEN

Seasons Change

MASUCCESS

68 SCHOOL SHOWCASE

MAXIM OF THE MONTH “Don’t be afraid to take a big step if one is indicated. You can’t cross a chasm in two small jumps.” — DAVID LLOYD GEORGE, BRITISH STATESMAN

HER

ESK

30 52

74 SEPTEMBER 2019

LETTER FROM THE PUBLISHER

Thank You, John Corcoran!

L BY DAVID WAHL

PUBLISHER

“John, you were one of a kind. Your taste in clothes was bold. Your love for the martial arts was endless. Your loyalty to your friends was unbreakable. And that laugh of yours was quintessential you.”

ate in the summer of 2001, Frank Silverman and I were struggling to meet deadlines for the imminent launch of the Martial Arts Industry Association (MAIA), as well as a new trade publication we called MASuccess magazine. Our prospects of getting the latter up and running in three months were bleak: We had no experience creating magazines and no idea where to start. And we had no editor. Out of the blue, I got a call from someone (and for the life of me I can’t remember the identity of this saint) who had heard we were starting a magazine. They suggested that we hire one Mr. John Corcoran as editor. The very next phone call I made was to John. Thirty minutes later, MASuccess had its first and, for the last 18 years, only, editor. He started with nothing: no content, no leads, and a scattered, clueless staff. John willed the magazine into existence in less than a month. Our goal was to create the best trade magazine in the martial arts industry. I believe we succeeded because of John Corcoran. He had the experience to cut through the chaos and get us to where we needed to be in a very short amount of time. He had a stable of talented writers, and the organizational skills to know what to work on first. He set MASuccess on a course that made us all proud. Those early days may have been stressful, but they were also an absolute blast. Nearly every editorial phone call included rounds of laughter, either at a prank we pulled on John or a joke that was shared. When John laughed, it was long and loud. We would have to wait until he got his breath back before the next bout broke loose.

I called his number. No answer. Soon, I got a call from beloved MASuccess columnist Karen Eden (hired by John way back in our first issue), asking me if it was true. I didn’t know how to answer. John’s Facebook page flooded with messages: an immediate outpouring of love and appreciation from hundreds of people. Then, about four hours later, John himself posted on his page: “Rumors of my demise have been greatly exaggerated!” When I spoke to John a few days later, I told him we were ecstatic that he was not, in fact, dead. More so, I was happy that he had gotten to see just how loved and admired he was. Few people on this earth have ever gotten to hear their own eulogies, but John was one of them. Two months ago, Frank suggested that we fly to Vegas to see John. If only we had. On May 17th, 2019, our friend and colleague passed away peacefully in his sleep. In our last editorial meeting, John’s voice was weak but his spirit was undiminished. Before we got off the phone, I got to hear one more belly laugh from John. That laugh, as ebullient and sincere as John himself, is what I will miss the most. John, you were one of a kind. Your taste in clothes was bold. Your love for the martial arts was endless. Your loyalty to your friends was unbreakable. And that laugh of yours was quintessential you. We will miss you, John Corcoran. Thank you for a life well lived in the service of the martial arts industry. e

Last September, Frank sent me a text: “Did you hear that John died?” I couldn’t believe the news. I had known that John was in the hospital battling a serious health issue, but we’d kept in touch even so. I had spoken to him just days earlier. He had made it sound as though his condition wasn’t life-threatening.

MASUCCESS

Section_1.i

Section_1.indd 5

1/4/19 5:25 PM

FROM THE DIRECTOR’S DESK

My Friend and Colleague, John C. BY FRANK SILVERMAN

MAIA EXECUTIVE DIRECTOR

“John wasn’t calling to discuss an article. He didn’t call to run a story line by me. He called to say, “Frankster, (John always called me “Frankster,” or “buddy”), I just wanted to call you to tell you I hate seeing all this hate in the world. I want you to know I love you, buddy. I wish everyone could get along.”

n early May, I was in Boston at an MAIA Wealth seminar. The event was on Thursday and Friday. Since I was also hosting a business forum seminar on Saturday, my wife flew in Friday evening for one day. We had a nice dinner, and the next day I taught the seminar. We grabbed lunch in Little Italy on the North End (I love the food in Boston) and caught a flight home around 7 p.m. It was a great weekend: a one-day getaway with my wife, great food, a successful Wealth seminar and a hugely successful business forum. But none of those things are why I will always remember this particular trip. We were coming home from dinner at 10 p.m. As I hopped out of the Uber, my cellphone rang. The screen showed the caller’s name: John C.

“John C” is how I have had the late John Corcoran saved in my phone’s contact information and address book for 18 years. That late at night, I might not normally have seen the call, let alone picked up. But something told me to answer. Maybe, I reasoned, he needed something last-minute for MASuccess. Maybe he needed MAIA input for one of the stories.

MASUCCESS

I will remember this trip to Boston not so much for the successful business events or even the mini-vacay with my wife, but for the last call I would ever get from my friend and colleague. Today, I realize that this call was his farewell to me. A little over a week after we spoke, John passed away. In my phone, he was just John C., but in real life, he was so much more: caring, thoughtful, funny, a little bit crazy, a lot bit fun and all-around super great guy — and the best editor I’ve ever worked with. I’m a better person for having had his friendship. I will miss him and will never forget him. I am glad that I happened to see and answer that phone call. Thank you, John — love you, buddy! e m Contact Frank Silverman at teamcfck@aol.com. Follow him on Twitter and Facebook @franksilverman.

But John wasn’t calling to discuss an article. He didn’t have a story line to run by me. He called to say, “Frankster (John always called me “Frankster” or “buddy”), I just wanted to call you to tell you I hate seeing all this hate in the world. I want you to know I love you, buddy. I wish everyone could get along.” At the time, I thought it a strange call. In the 18 years I had known him, we had never once talked politics. But for some reason, we did on that call. We talk about “just getting along.” We talked about

his health — which he acknowledged was not great, although he indicated that he was doing OK. As a matter of fact, he let me know how much he had schooled the doctors for not getting it right over the past year — totally John Corcoran style. We spoke for about 20 minutes, none of it about the business of martial arts.

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STAFF 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

MELISSA TORRES IS THE DIVISION

Director of the Martial Arts Industry Association,

Manager of the Martial Arts Industry Association.

and the owner and operator of 11 martial arts

She is a practitioner of kung fu san soo, Cage

schools in Orlando, FL. He’s also the author of

Fitness and yoga. She is passionate about helping

Business Is Business: Passion and Profit in the

FROM THE DIRECTOR’S DESK

Martial Arts Industry. Follow Frank on Twitter and Facebook @franksilverman. Contact him at

school owners succeed and achieve their goals.

THE MAIA REPORT

She can be reached at mtorres@masuccess.com.

teamcfck@aol.com.

DAVE KOVAR OWNS AND OPERATES A chain of successful martial art schools. Additionally,

NGUYEN “TOM” GRIGGS, ED.D., IS

he operates Pro-Mac (Professional Martial Arts

a sensei in Japanese jujitsu at TNT Jujitsu under

College), dedicated to helping martial artists

Hanshi Torey Overstreet in Houston, TX. He’s the owner of Lead Connect Grow, LLC. Organizations

BLACK BELT LEADERSHIP

IN THE CLASSROOM

become professionals in Business Management, Mat Mastery, Sales Mastery, Wealth Management

hire him to develop black belt-level professionals

and Cutting-Edge Classroom Concepts. In 2010,

in the areas of Teams, Leadership and Conflict

he was the recipient of the Martial Arts Industry

Management. Feel free to email him at

Association’s Lifetime Achievement Award. Contact

tom@ntgriggs.com.

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

HERB BORKLAND WAS ONE OF

CHRISTOPHER RAPPOLD IS THE

Jhoon Rhee’s original white belts at America’s

founder of a successful martial arts organization,

first taekwondo school and, later, a closed-door

Personal Best Karate, headquartered in Norton,

student of Chinese “soft” styles pioneer Robert

MA. He’s a five-time world karate champion and

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

TURNING POINT

is currently the executive director of the world-

hosted the weekly Black Belts TV show. He did the screenplay for Cynthia Rothrock’s HBO-featured Honor and Glory and is an Inside Kung-Fu Hall of

MASTERFUL RETENTION

Fame martial arts writer. He can be reached at

MASUCCESS

sponsorship. Rappold is the author of the landmark reached at founder@personalbestkarate.com.

MIKE METZGER IS A MARTIAL ARTS

BETH BLOCK, A 4TH-DEGREE BLACK

Industry Association (MAIA) consultant and a

belt in karate, is the president of Block Insurance

successful multi-school owner with 14 schools

in Orlando, FL. Block has protected businesses

nationwide. He has consulted for various school

that serve children for the past 24 years. She is

owners around the world. He can be contacted via

team supported by sport-karate’s longest-running MAIA program Retention Based Sparring. He can be

herbork@comcast.net.

CONSULTANT’S CORNER

renowned Team Paul Mitchell, a championship

email at mmetzger@masuccess.com.

THE KICK YOU NEVER SAW COMING!

the writer of Martial Arts Minute, a weekly riskmanagement newsletter. You can reach her at (800) 225-0863 or beth@blockins.net.

STAFF MASUCCESS IS PUBLISHED BY

SARAH LOBBAN IS THE ASSOCIATE Publications Editor for the Martial Arts Industry Association. She has trained and fought in MMA and muay thai, and currently trains in jeet kune do. She

IN THE KNOW

can be reached at slobban@centurymartialarts.com.

VOL. 20, NO. 09

SEPTEMBER 2019 MAIA LLC, 1000 Century Blvd., Oklahoma City, OK 73110;

EDITOR EMERITUS

John Corcoran

(866) 626-6226.

EDITOR

Robert Young

KATHY OLEVSKY AND HER HUSBAND, Rob, own and operate Karate International in

EXECUTIVE DIRECTOR MARTIAL ARTS INDUSTRY ASSOCIATION

North Carolina. Kathy is the managing partner

Frank Silverman

in their five-school operation. She’s an 8thdegree black belt with 32 full-time years of

YOU MESSED UP! NOW WHAT?

teaching and operating martial arts schools. She can be reached for questions or comments at kathy.olevsky@raleighkarate.com.

E R I C T H E T R A I N E R ( E R I C P. F L E I S H M A N ) I S A Hollywood-based celebrity personal trainer with over 28 years’ experience. He has worked with top actors and musicians, MMA fighters, and the military. He hosts the popular TV

HEALTH KICK!

show “Celebrity Sweat,” which you can watch on Amazon Prime. His enthusiastic message of living

Melissa Torres ASSOCIATE EDITOR

Sarah Lobban 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 Kurt Klingenmeyer Robby Beard Mike Metzger Jason Flame Adam Parman Antonio Fournier Shane Tassoul Cris Rodriguez ADVERTISING DIRECTOR

Jan Szijarto ART DIRECTOR

Todd Bane

a healthy life has been adopted by many groups,

GRAPHIC DESIGN

most recently the American Culinary Federation. For

Kaily Prince Bridgette Rabe

questions or comments, contact Eric the Trainer at Mainemonster@gmail.com

THE LEGAL LANDSCAPE

MAIA DIVISION MANAGER

Stacy Robertson

COLUMNISTS & CONTRIBUTORS

David Barnett

Sarah Lobban

Beth A. Block

Mike Metzger

PHILIP E. GOSS, JR., ESQ. IS A

Herb Borkland

Kristin Miller

member of the Florida and several other Federal Bar

Karen Eden

Kathy Olevsky

Associations. Phil welcomes any e-mail comments

Jason Flame

Suzanne Pisano

or questions at PhilGosslaw@gmail.com and will

Eric P. Fleishman

Christopher Rappold

attempt to respond personally, time permitting.

Antonio Fournier

Frank Silverman

Philip E. Goss, Jr., Esq.

Shane Tassoul

Nguyen “Tom” Griggs

Melissa Torres

IBISWorld.com Perry William Kelly

KAREN EDEN IS A 6TH-DEGREE

Kurt Klingenmeyer

master of tang soo do. She’s a broadcast journalist

Dave Kovar

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

INSPIRATION OVATION

for NBC and PBS. Karen is also a published book author and magazine columnist who has written for or been featured in every major

CORRESPONDENTS

Herb Borkland (VA) Karen Eden (CO) Andrea F. Harkins (AZ) Andre Lima (CA)

Perry William Kelly (CANADA) Terry L. Wilson (CA) Keith D. Yates (TX)

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. © 2019 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.

martial arts magazine globally. Contact her at renedenherdman@gmail.com.

PUBLISHER

David Wahl

SEPTEMBER 2019

14826

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IN THE KNOW

WORDS OF WISDOM

“

”

IN ORDER TO BE IRREPLACEABLE ONE MUST ALWAYS BE DIFFERENT.

BY SARAH LOBBAN

— COCO CHANEL

MAIA ASSOCIATE PUBLICATIONS EDITOR

MARTIAL ARTS TRIVIA 1

List these arts from most recent to oldest: tae kwon do, karate, savate, judo.

Which Japanese art involves the drawing of the sword from its scabbard, striking, and re-sheathing the sword?

How long is the shortest UFC Championship fight currently on record? A) 1:03 B) 0:17 C) 0:57 D) 0:13

Which warrior group used the martial art called glima? A) Vikings B) Maori warriors C) Samurai D) Gladiators

2) Iaido 3) D 4) A MASUCCESS

ANSWERS: 1) tae kwon do (1964), judo (1882), savate (1828), karate (late 1700s)

YOU ASKED DO YOU HOST SUMMER CAMPS?

IN THE KNOW

STATS SPEAK

Yes, we host a variety of summer camps from specialty camps for students to fun camps, which are open to friends and nonstudents.” — M E L O D Y J O H N S O N , S K I L L Z W O R L D W I D E , S T. P E T E R S B U R G , F L

A BUSINESS WITH TWO NEGATIVES ON THE FIRST PAGE OF ITS SEARCH RESULTS RISKS LOSING

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Yes, we host summer camps. Some years we have done as many as eight camps while, other years we did just one week of each month.”

OF ITS CUSTOMERS.

— 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

No, although we do offer some daytime classes to make up any missed classes during the summer.” — J A S O N F L A M E , TA N G S O O D O U N I V E R S I T Y & M O O R PA R K K R AV M A G A , M O O R PA R K , C A

We have found that summer camps are an outstanding way to increase retention by giving participating students a different experience outside of their regular class. We offer engaging sessions such as weapons, kicks and tricks, and MMA to get them excited and trying new things.” — K U R T K L I N G E N M E Y E R , B L A C K B E LT K A R A T E S T U D I O , R A C I N E , W I

SEPTEMBER 2019

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HEAR FROM YOUR PEERS

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MASUCCESS

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a Visit MAIAHub.com/sleek-ninja or call 866.626.6226. SEPTEMBER 2019

THE MAIA REPORT

How to Become a Social Media AND Business Guru Times are changing. They have been for quite some

BY MELISSA TORRES

MAIA DIVISION MANAGER

“The rest of our industry still needs help on social media basics. If your school is not on Facebook, you could be losing thousands of dollars. That’s something that should get your attention.”

will be to your business. These skills are your building

time now. And as for social media, it seems to change

blocks. If you are going to be successful, you need a

daily! I’m sure that as busy full- or part-time school own-

strong understanding of business and digital marketing.

ers and instructors, most of you can’t honestly stand up and declare yourselves digital marketing experts. Not many people can. I certainly don’t claim to under-

Most school owners do what they do for the love of the martial arts. They are not business experts. They are not digital marketing gurus. But after this six-month

stand every facet of the ever-changing world of social

course, you will gain the confidence you need to run a

media. This is why MAIA brought in an expert on the

successful business and to use your Facebook page to

subject.

get results.

Cris Rodriguez is MAIA’s newest consultant, specializ-

With Foundations, every other week you will have a

ing in digital marketing. She’s dedicated the past 10 years

group coaching call with either Mike Metzger and Shane

of her life to studying digital marketing and its impact

Tassoul, or Cris Rodriguez. You will get the recordings of

on her school, Gracie PAC MMA. If you got a chance to

the calls in case you can’t make the live time — or in case

hear her speak at the recent Martial Arts SuperShow, you

you want to re-watch a certain segment. You also get

know that she is the best in our industry!

access to a closed Facebook group where you can post

When Cris joined the MAIA team, she knew right away that the social media aspect was something we were

questions for our experts. For the duration of the course, you will also get access

missing in our coaching. She started speaking at our Elite

to MAIA Edge. This way, you will have all the resources

conferences, and the response was overwhelming! Our

you need to reach your goals right at your fingertips.

school owners are hungry for this knowledge. We are so

There are many other bonuses to check out, too! I sug-

proud to have her on our team — and even more ecstatic

gest you visit MAIAFoundations.com to see a break-

that we can now provide our Elite members with social

down of exactly what you will learn each month with our

media-focused talks at our Elite events.

Business Maximizer and Social Media Tutorial.

But the rest of our industry still needs help on social

I promise you that the MAIA experts will walk you

media basics. Cris tells us that if your school is not on

through anything you don’t know. Even if you have

Facebook, you could be losing thousands of dollars.

absolutely no knowledge of Facebook and marketing, Cris

That’s something that should get your attention. And if

will start from the beginning and tell you step-by-step

you think that just having a page with a few pictures and

what to do with done-for-you ad slicks. Don’t let a

your address is enough, think again. You need to under-

fear of the unknown in the digital marketing world

stand how to use it, when to use it and why this effort

stop you from being wildly successful.

will pay off. That’s why we are excited to introduce MAIA Foundations.

If you have any questions on the course, reach out to me directly or post in our MAIA Hub Facebook Group.

For the first time ever, we have combined business coaching

I hope you’ll take 10 minutes out of your day to check

and social media coaching. Once Cris was on board, we

out the website and see all the things you can get from

knew it would be huge for our industry. She has merged

MAIA Foundations.

her knowledge with that of two of our business consultants, Mike Metzger and Shane Tassoul, to bring you a program that can massively change your school. Together, the three of them ironed out the details of the MAIA Foundations program. The name “Foundations” emphasizes how crucial the knowledge you learn here

MASUCCESS

m Melissa Torres is the Martial Arts Industry Association Division Manager and can be reached at mtorres@masuccess.com.

are you tired of struggling to

GET MORE STUDENTS? do you ever feel overwhelmed with

ONLINE MARKETING?

information go to MAIAFoundations.com.

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In 2009, Len Fridman started a local bootcamp in his neighborhood park. It was a rewarding endeavor that helped people of all ages, sizes, and fitness levels. Soon, what started as a local passion project turned into multiple locations across the country. Riding on this success, Len and his childhood friend Sasha Davids partnered with fitness businesses across North America to create the MetaBody Fitness Pass, with upwards of 60,000 active clients at its peak. But along with their success, came a list of hurdles with their business management software provider.

On top of subscription fee increases, their software provider was unable to support MetaBody’s business model. Instead, Len and Sasha were faced with convoluted workarounds and unreasonable price hikes. They decided enough was enough. They took matters into their own hands and created a simple software system to help their own instructors manage their schedules. That’s when WellnessLiving was born.

Built with customers in mind since day one, now WellnessLiving is an all-in-one user-friendly fitness management software with everything a martial arts studio owner needs to run their business. On top of essential features like online scheduling, WellnessLiving offers linked profiles for families, merchandising management, a rewards program, staff and client apps, and so much more. WellnessLiving is now trusted by thousands of business and over 7.1 million users. With an economical pricing structure and an enthusiastic team that’s growing every day, WellnessLiving is truly the software company with a heart. Book a free, no-obligation demo at wellnessliving.com

JOHN

CORCORAN (1948-2019)

The Pen is Still Mightier Than the Sword By Karen Eden

“Writing is a talent. You can either write, or you can’t.” T

hose are the words of the late John Corcoran, who passed

that contain the two-part story. But I never took the time to

away on May 17, 2019. I have to laugh, because if you could

thoroughly read them until now. It was as if my good friend and

write, he’d be the first to let you know. And if you couldn’t write,

mentor, who we called “Cork,” was speaking directly to me from

he’d also be the first to let you know.

a magazine that is now 24 years old.

To the best of my knowledge, John Corcoran only went public

tomorrow, and would have missed the chance to tell my story,” the

now defunct “Inside Tae Kwon Do” magazine from 1995 (CFW

article read. His last paragraph would disseminate his life’s intent –

Enterprises, “The Pen is Mightier than the Sword,” Oct/Nov 1995,

intent that I am honored to reiterate on his behalf today.

by Andre Alex Lima). The biographical story “The Pen is Mightier than the Sword” happened to be in the same magazine that I was writing my very first martial arts column for, so I still have both magazines

“John Michael Corcoran, Jr., was born in Pittsburgh, during a time when steel mills were in full swing. The air was filled with smoke and the towns were filled with hard-working, hard-living people.”

He spoke of why he wanted to do his write-up: “I could die

about his life one time. It was in a two-part write-up in the

MASUCCESS

JOHN CORCORAN

In the Beginning, There was Chaos John Michael Corcoran, Jr., was born in Pittsburgh, during a time when steel mills were in full swing. The air was filled with smoke and the towns were filled with hard-working, hard-living people. “The Irish-Catholic Corcoran family elevated ‘hell-raising’ to a science,” he wrote. I knew exactly what he was talking about. I was working for a radio station that was one floor up from where John used to work as a delivery boy for the Lincoln Pharmacy in Millvale, Pennsylvania, a little town right outside of Pittsburgh, not too far from the Heinz Ketchup plant. We wouldn’t discover this until years later, but I can attest to the fact that practically every other building in that little town was and probably still is a drinking establishment. It was rare that my friend Cork ever spoke of his childhood. But I knew it wasn’t a happy one. On several sentimental moments over the years, he would tell me how much he could relate to my writings, and how much my inspirational words reminded him of his own past. I knew when Corky gave a compliment he meant it, and I was honored. As a teenager, John sought out the discipline and focus of martial arts training. He credited a dysfunctional upbringing for driving him on this search. As so many of us do, he fell in love with the arts. Five years later, he would earn his black belt in Okinawan Shorin-ryu, from Instructor Glen Premru of Pittsburgh.

The Risk and the Payoff Remember the job at the Lincoln Pharmacy I referenced? As a young man, John saved up enough money to buy a one-way ticket to L.A, and let’s just say that he went on his last delivery job. John was going to take the risk of becoming a screenwriter and martial arts magazine contributor in Hollywood. He left the pharmacy car parked at the Greater Pittsburgh Airport, then made one last trip to the phone booth to let them know where they could find it. Very few people could leave me with a loss for words, but Cork was one of them. I always did a double-take when he told me these stories. In Los Angeles, Cork started to get writing gigs. His first published piece was for Official Karate Magazine in 1972. I can only guess that the “luck of the Irish” was on his side. Months later, a relatively new magazine called Black Belt would take notice of his work. They offered John Corcoran the editor’s position. He was a writer with an actual black belt, and it would become a historical partnership – one that would set John as the founding father of martial arts journalism.

SEPTEMBER 2019

Gut Instinct and Writing from the Heart Over the next couple of decades, John became instrumental in promoting and consulting within the martial arts industry. He helped to forge greatness in major karate organizations and magazines, many that are still up and running strong today. He helped put Karate Illustrated and Black Belt Magazine on the map. He also consulted with Joe Corley and the Professional Karate Association (PKA) in setting up rules and guidelines that are still being used nationally and around the world today. Joe, along with Bill Wallace and Jeff Smith, would later honor him with the Joe Lewis Eternal Warrior Award at the Battle of Atlanta for his contributions. Corky had a “gut feeling” about Jean-Claude Van Damme and T. J. Roberts. He touted them in the media as “the next rising stars,” and he was right. He made media sensations out of champion fighters Bill “Superfoot” Wallace and Joe Lewis. He also took the next generation of writers under his wing and helped them get established – writers like Keith Yates, Andre Lima and myself. As a matter of fact, if you were a martial arts writer of any kind, John probably had something to do with it. Other martial arts notables that I’m sure could thank Cork today include Howard Jackson, Karyn Turner, Ernie Reyes Jr., Troy Dorsey, Earnest Hart and Don “The Dragon” Wilson. Ask any of them (us) and you’ll hear that John Corcoran had a great role in promoting personal martial arts success stories.

MASUCCESS

JOHN CORCORAN

Roommate with the Greats By a strange twist of fate, John Corcoran would become

But if you could catch John at the right time, the stories about

roommates with both world champion fighters Joe Lewis

his “L.A. roommate” days would keep you entertained for hours.

and Bill Wallace, who was filming “Force of One” with Chuck

Bill Wallace said it was a blast having the three of them together

Norris at the time. It was the late 70’s in Los Angeles. This is

in one apartment…we can only imagine!

when Cork says Joe Lewis became his martial arts mentor and best friend. “Joe could take the moves you spent hours training on at a

It was also around this time that Cork would become an established screenwriter. His main claim to fame would be “American Samurai” starring Mark Dacascos. John also had minor

traditional karate school and turn them into practical skills,” John

roles in action films and stunt work. But he always maintained

iterates in his biography. He also wrote that death of Joe Lewis in

that he was a writer first, and he was here to put martial arts on

2012 sent him spiraling downward with grief for months.

the literary map.

SEPTEMBER 2019

Working with the Next Generation “Write from the heart; don’t do what everybody else is doing,” Cork would tell me. For myself, in 1997 I was offered the book deal of a lifetime. It was to write the Tae Kwon Do book in the extremely popular “Complete Idiot’s Guide” book series (Simon & Schuster, MacMillan books). “It’s not my kind of writing, Karen, and you need to do it,” Cork told me. I was in the middle of grieving the tragic death of my father, working seven days a week at the most stressful major market TV job of my life, and my marriage had just ended. “I can’t do it, Cork,” I said as we sat at a local restaurant just outside of Pittsburgh. He paused, then silently pushed the book format back toward me on the table. “Not only can you do it, Karen, but you will do it, because it will set up you as a respected writer in the industry.” He was my writing mentor and I trusted him. So for the next three months, I would get off work at the local FOX news affiliate late at night, go home and spend the next three hours of the early morning writing “The Complete Idiot’s Guide to Tae Kwon Do.” As usual, Cork was right. It was my ride up, gaining the attention of book agents and setting my royalty fees for many years to come. I don’t know why John Corcoran believed in me. But like many, he evidently saw something in me that I couldn’t see in myself at the time. This is a direct quote from his biographical write-up: “I am revealing my formula for success at this time because I don’t think I have that many books of any magnitude left to write, and I want to pass the torch to the next generation. I have worked very hard to take martial arts literature into the big-time arena, and I hope some young ambitious martial arts writer out there who’s reading this will someday take the genre farther than I have.” After 12 books and 24 magazine editorial positions, I can only say that Corky, you’re leaving us with some big shoes to fill!

MASUCCESS

JOHN CORCORAN

SEPTEMBER 2019

In the End, Writers are Immortal Cork was in the middle of editing MASuccess magazine

John’s final words in his personal write-up from 1995 seem to

when he left us. I remember in 2001 when he was hired by

resonate more today than they even did back then: “Whomever

Century Martial Arts to be the managing editor.

it is (in the next generation of writers) must understand, you

“This is a revolutionary magazine, Karen,” he told me with great enthusiasm. “It’s a high-quality magazine that is going to reach millions of schools owners like never before.” The last words I heard from Cork were the same words

can’t be motivated by money alone. The big reward is what every person seeks in his lifetime, immortality. My books will live on long after I’m gone.” Rest in peace, our longtime friend and comrade. We have your

books, and your pen indeed is still mightier than the sword. e

I’d been hearing for the last 26 years: “Got your column,

Karen,” he wrote. But this time he’d added another line:

m Karen Eden is a 6th-degree martial arts master of Tang Soo

“Love you.”

Do. She is also a columnist, book author and broadcast journalist.

John had been recovering from triple-bypass surgery a

Her news segments have aired on FOX News National, CNN and

few months earlier, but had never quite seemed to recover.

Animal Planet. Her column “Inspiration Ovation” known as the

Within a couple of days, he would pass peacefully with his

“back page inspiration” for MASuccess magazine has run

wife Leslie by his side. He was 70 years old.

consecutively for over 17 years.

MASUCCESS

â&#x20AC;&#x153;

I am revealing my formula for success at this time because... I want to pass the torch to the next generation. I have worked very hard to take martial arts literature into the big-time arena, and I hope some young ambitious martial arts writer out there whoâ&#x20AC;&#x2122;s reading this will someday take the genre farther than I have.

John Corcoran 1948-2019

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BLACK BELT LEADERSHIP

“T” is for Trust

BY DR. NGUYEN “TOM” GRIGGS

“Results are hard to guarantee, but effort is not. The fact that my cousin was consistent in his actions and words helped everyone see him as trustworthy and authentic person.”

ell, friends, we’ve come to the end of our series on B.L.A.C.K. B.E.L.T. leadership! The last letter, “T,” stands for trust. This is arguably one of the most important concepts for effective leaders and teams.

My cousin made sure that his people knew when he was going to share information with them so they had time to compose questions about their concerns beforehand. This also made it easier for the workers to effectively manage their schedules in advance.

The number of relationships that have been solidified or ruined by the degree of trust within is innumerable. We all have stories of being on the giving and receiving ends of both good and bad trust-related stories. But leaders and teams grow or fail based on how well trust is nurtured or withheld. Here’s a quick lesson on trust that I know you’ll find helpful.

3) Seek feedback and implement changes. My cousin wanted to know what the workers thought of the results and his efforts. He shared with me that in the beginning of the negotiations, he simply tried to take note of everyone’s concerns, but he’d gotten overwhelmed.

I have an older cousin who worked for a big chemical plant in a rural town in southeast Texas. The workers there didn’t have a union, so they were largely dependent on their supervisors to represent them and their interests. One year, the workers’ contracts were up for discussion, and management was proposing some numbers that upset the workers. My cousin had recently been promoted to a supervisory position. Many of the workers didn’t really know much about him, but one of his duties was to speak up for them. Because he was new, they feared that perhaps he wouldn’t represent them well. But he reassured them that his goal was to listen to them and to present management’s perspectives, all while fighting to get them a fair and profitable contract. After several weeks of negotiations, things were finally settled. Neither management nor the workers were completely happy. But everyone got some of what they wanted, and my cousin gained a great deal of respect and admiration from the workers and managers alike. I asked my cousin about the actions and tools he used to develop trust and effective leadership in a difficult situation. He offered four pieces of simple, but essential, advice: 1) Be transparent. My cousin let everyone know what actions he was going to take and what the results were. He hid nothing and even discussed details that seemed miniscule. Remember, leaders don’t always know the depth of their followers’ understanding or their desire for details. It’s better to overcommunicate. When you don’t provide enough information and things don’t go well, you get blamed for hiding things and/or being incompetent. 2) Communicate purposefully. He shared information every Friday and made sure to cover only what was on that day’s agenda. This allowed his worker meetings to be concise and specific.

MASUCCESS

He eventually asked his people to give him their concerns in writing. This made his job much easier with regard to sharing concerns with management. Likewise, he got managers to provide him with copies of the notes from the meetings to make it easier for his people to remain informed. He was willing to change his approach to accommodate his people. 4) Promise effort, not results. All sides knew that no one was going to get exactly what they wanted. But the workers felt reassured knowing that my cousin made his very best effort to follow through with details and clarity. The workers knew this because my cousin always followed the previously mentioned steps. When you are transparent, communicate with purpose, seek feedback and implement changes, people will believe in you and your efforts. Results are hard to guarantee, but effort is not. My cousin also let people know that he would be there to talk with anyone at any point. The fact that he was consistent in his actions and words also helped everyone see him as a trustworthy and authentic person. If you’d like to read more about trust, Dr. Carol Kinsey Goman’s “How Leaders Build and Destroy Trust” is an amazing article. Dr. Goman provided data and feedback from 537 managers regarding how leaders affect trust. She received some very succinct, focused statements and outlined five very specific growth points. The article is a quick read — and well worth it. Thanks as always for reading and leading. Keep earning those stripes, and I’ll see you soon! e m Nguyen “Tom” Griggs is a professional consultant/speaker

in the areas of Teams, Leadership and Conflict and can be reached at tom@ntgriggs.com.

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RE PA Y PO

TS EN M

SUP

S OF T WA

S OF T WAR

14625 Fitness Spread maSuccess.indd 1

3/7/18 3:36 PM

IN THE CLASSROOM

My Student, Joe Hammel

BY DAVE KOVAR

“After his last training session, Joe pulled me aside and told me how much he had learned from our school and how valuable martial arts training was for him in his life. But the truth is that I learned way more about hard work, patience and perseverance from Joe than he ever learned from me.”

very now and then, you meet someone who immediately grabs your attention. Joe Hammel was one of those people. I’ll never forget the day in the early 1990s when he walked into my school. He was 53 at the time, and I remember thinking how old he was. He told me that he had wanted to do martial arts since he was a teenager but never had the courage to get started. I told him that it was never too late to start! Now was just as good a time as any! I didn’t really believe it, but I didn’t tell him that part. Joe was no dummy. He was an English professor by day and a concert pianist by night. Smart he certainly was, but coordinated he certainly was not. During his first lesson, I remember thinking that he was the most ungraceful person I’d ever worked with. I asked him about prior athletic endeavors. He said he’d never done anything remotely like a sport in his whole life. It showed. At first glance, the lack of previous physical training seemed like a big disadvantage. But Joe quickly proved that there was at least one perk: He had no past injuries to contend with, despite being in his 50s. What Joe lacked in coordination, he made up for in hard work. After a few months of consistent training, his body became noticeably stronger and more supple. I began to see the start of a martial arts athlete. Over time, his coordination improved to the point where he actually looked the part of an average middle-aged student. But Joe wasn’t happy being average. I learned that when he did something, he went all-in. And he was certainly all into his martial arts training. Four years and three months after his first visit to our school, Joe earned his black belt. He continued to train with us through third degree. Despite my first impression of him, Joe ended up becoming an excellent black belt. He could out-spar, out-kata and out-pushup classmates 30 years his junior! As a matter of fact, watching him practice, you would never guess that he had ever been uncoordinated.

MASUCCESS

Joe was also an amazing ambassador for the school. Every martial arts school should have a Dojo Dad, and ours was Joe. He helped out in class on a regular basis and never missed an event. He was loved by all. He worked his way into the very fabric of our organization. When he retired and moved away at 70, we all knew how much we’d miss him. After his last training session, he pulled me aside and told me how much he had learned from our school and how valuable martial arts training was for him in his life. I thanked him, but the truth is that I learned way more about hard work, patience and perseverance from Joe than he ever learned from me. Joe passed away a few years back, but I’m proud to say that his grandson just earned his junior black belt with us. It is an honor to see Joe’s martial arts legacy continue to expand even after he’s gone. The clear lesson this story shows is that you should never pass judgment on someone’s potential. Looking back, if I had told Joe what I was thinking when he began, I might have discouraged him from pursuing martial arts training. If that had happened, not only would he have missed out on a great experience but also I would’ve missed out on a great lesson and the members of our dojo would have missed out on a great person. Thank you, Joe. Your hard work, dedication and perseverance will be forever remembered. e

m You can contact Master Dave Kovar at dave.kovar@kovars.com.

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THEFLOWSYSTEM.TV

BUDO BANKER CAREERS COLLIDING A career transition redefined the importance of martial arts as a business for one karate instructor-turned-banker. Heâ&#x20AC;&#x2122;s sharing his insights with other school owners looking at banks for financing.

BY ANDRIES PRUIM DESIGNED BY BRIDGETTE RABE

BUDO BANKER

“My final small epiphany was the realization that for anyone interested in making a career out of martial arts, the age-old adage “business is business” still very much applies.”

SEPARATE PHILOSOPHIES When you begin your martial arts training at a young age, it is nearly impossible not to incorporate their traditional philosophies into your daily life. For the most part, this is a good thing! The life lessons taken from martial arts have created many upstanding, well-respected members of society. However, some of the philosophies can restrict a modern martial artist from becoming financially independent – and, ultimately, even curtail the number of people they are able to help. There is a common misconception that teaching martial arts is a worthy cause, and, therefore, is its own reward – with or without adequate financial compensation. This has resulted in many talented martial arts instructors having to maintain a separate career outside of teaching in order to pay bills, raise a family, and (hopefully) own a home. This practice of asking for less than what they’re worth is prevalent among today’s instructors. They feel that asking for reimbursement that is, in some cases, simply a living wage, would devalue the art that they are trying to teach. This is the environment I found while studying budo, a modern version of Shotokan karate (although one that continues to instill the philosophy of being above monetary concerns). I supplemented my training stateside with over a dozen trips to Japan. There, I trained at the Honbu Dojo, headquarters of the famous 10th-dan Shotokan karate Master Hirokazu Kanzawa. Although an amazing learning opportunity from a training sense, from a business perspective, it made little sense. It was imparted to me that if you needed money for living, you would simply take a full-time day job, while teaching karate during any non-work hours. Some of my peers took one or even two part-time positions in order to get by. I decided to take a position with a bank, since one of my students happened to be a branch manager for one of the major institutions. I thought that working as a teller would provide me with enough income to survive as I tried to enhance my martial arts career. What I didn’t expect was for this “supplemental” income source to turn into my actual career! It also gave me a completely different perspective on martial arts – especially, the business of martial arts. I found that my analytical side was a perfect fit

for the bank. I took advantage of the opportunities this career offered, and quickly rose through the administration. I continued to teach karate three nights a week, while taking banking and lending courses to further my education. Karate never became less important or less valuable to me. However, I did start to realize how some of the traditional values taught by martial arts were in conflict with the school as a business, and were even hurting the school’s long-term viability. It was at this point that I had to make decisions about the future of my career and my family. At first, I was able to sustain both my banking and karate careers. Unfortunately, life brought me to a fork in the road where I was forced to choose between them. I had an opportunity to significantly advance my banking career, by taking a position as a commercial lender. However, the job was in a different city. As a married man with a new child in the picture, I knew I had to make the decision that would allow me to best support my family. Although I was reluctant to leave my school in other hands, I packed my things, and took the plunge into the world of commercial lending. Ultimately, this decision would lead me to learn more about the martial arts industry – from the “other” side.

BUDO BANKER

SMALL EPIPHANIES When we moved to the new city, I was not surprised to find that I was already well-acquainted with many of the martial arts schools there, through my many years on the tournament circuit. What did surprise me was that a number of them began to pay me visits when they discovered I was a business lender. Of course, these started as polite social calls to welcome me to the city. However, one by one, I began to receive financing requests. As the new kid on the block within the bank’s commercial lending department, I was closely supervised. For this reason, I had to be especially careful that any financing request I submitted for the bank’s approval included standard financial statements, a business plan, and detailed financial statements. To do any less could have reflected poorly on me and the school asking for a loan. I certainly didn’t want that! The more I looked into them, the more apparent it became that, based on their principals, these schools could only be considered hobbies, regardless of their long-term intentions. Most of the lending would need to be based on their financial statements (to a bank, these show credit worthiness). I quickly gained insight into how schools documented their yearly income and expenses. Most school owners tried to ensure that they paid the minimal amount of taxes possible. Unfortunately, this meant that the financial statements I was given reflected almost no profits for the year in question. Additionally, the accompanying business plans were, to be polite, somewhat unprofessional in their contents. Finally, most school owners had only nominal net worth, which, again, made any collateral options limited. My final small epiphany was the realization that for anyone interested in making a career out of martial arts, the age-old adage “business is business” still very much applies.

BUSINESS IS BUSINESS This simple statement reflects the banker’s position that no matter what product or service you offer, you must run your operation along standard business parameters. What I also realized after conversations with my commercial lending colleagues was that there was no standardized business model for a full-time martial arts school. We attempted to leverage the private school model, but the lack of a standardized curriculum between martial arts schools made this difficult.

MASUCCESS

I discovered that, too often, martial arts schools were not deemed “standardized” enough to grab the attention of their local banks – mine, unfortunately, included. In an effort to help, I personally met with and consulted local martial arts school owners. However, due to the infancy of the industry, most schools were run by a single owner with no support staff and limited business expertise. The business plans they presented to me simply fell apart upon scrutiny. Any martial artist who wishes to make his or her passion into a rewarding career must realize that the industry we know today is considerably different from what it was as little as 40 years ago. In fact, up until the mid-1980’s, there was not a true martial arts “industry.” Most schools were of the “hobbyist” variety. It was the generation of “Karate Kid” movie fans that eventually took martial arts from garages and backyards to the mainstream. This was when the martial arts industry began to start tapping into the same financial resources as other, more wellestablished industries.

BUSINESS INCLUDES BANKING When I first started commercial lending at a major international bank, there was little appetite for financing any martial arts facility unless it was attached to a wellknown fitness center. Even then, the focus was on the fitness side of the business, rather than the martial arts. After many years as a commercial credit manager, I came to the conclusion that when evaluating a loan request, most lenders focus on the three basics components of lending. These are the three “C’s” of credit evaluation: Cashflow/Capacity, Collateral/Capital and Character. Even when evaluating the three “C’s”, lenders initially look at the first two fundamentals: Cashflow/Capacity (“How are you going to pay the loan back?”) and Collateral/Capital (“What do you have to offer to secure a loan in the first place?”) The importance the lender places of one of these criteria depends on the value of the other. For example, if the security you are providing is of high value (such as the first mortgage against your home), the concern for repayment is not as high as if you were only providing an unsecured personal guarantee. This is because the value of personal residences rarely depreciates and can quickly be sold to recoup funds. If your security value is lesser, then the cash flow

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analysis must be concise and convincing. There must be definitive documentation to convince the lender that your revenue and profit figures are attainable. Leveraging my considerable time in commercial lending, I would like to provide some insights on how a banker examines your financing requests. Most banks use a standardized template to capture the basic details of the request (see sidebar). As a business owner, you should familiarize yourself with these details before dealing with a financial institution or private investor. Once the technicalities of the request are agreed upon (such as the amount of the loan, the interest rate, and how repayment will take place), the bulk of the banker’s analysis will focus on the following three main areas of the business: • Industry Risk • Business Risk • Financial Risk

This section will provide a more detailed view of the lender’s analysis, which will be useful when developing your business plan.

INDUSTRY RISK In risk analysis, the focus is on the viability of the industry and how it falls on the industry maturity scale. For most industries, there is a myriad of data that the lender can obtain from government or other official sources. Although martial arts has been a widely available activity for many years, the business side of the industry is still considered to be in its infancy. This is because of the lack of set professional standards across organizations. In fact, in lending terms, the martial arts industry is classified under the umbrella of physical fitness businesses. This means that the lender will likely look to SEPTEMBER 2019

C ONTINUED ON P G 61

LOAN GUIDE FOR SCH O O L OWNE RS

Your Bank Inc. Commercial Credit Request

New Martial Arts School and Fitness Centre Ltd

Client Name

DBA: Your Bank Inc. Commercial Credit Request 7991 SIC:

New Waves Schools

Physical Fitness Facilities This is where the legal name of the Business Entity is fully identified, together with any ‘doing business as’ names that may appear on the Business frontage. Usually aNew rating 1 through 10 - and based on some internal criteria Risk Rating: Arts School Fitness Centre Ltd In Client addition, if your business is not incorporated, youMartial willofhave to provide some details as to how you are prepared to Name

mitigated the possible personal liability in this litigious society if the business is a simple partnership or a sole proprietorship. New Waves Schools DBA: Borrowing Request Amounts

Your Bank Inc. Loan Type Existing Borrowings Oustanding Balances Commercial Credit Request 7991 - Physical Fitness Facilities SIC: Operating Loan

$0.00

New Requests

$10,000.00

$0.00 aNew $90,000.00 TermRating: Loan Usually rating of 1 through 10 - based on some internal Risk Martial Arts$0.00 School and Fitness Centre Ltd criteria Client Name Standard Industrial Classification (SIC) codes are numerical codes assigned by governments to business establishments to identify the primary business of the$0.00 establishment. $0.00 $100,000.00 Totals

New are Waves Schools under Fitness Centre which means Even after allRequest these years, the classification for Martial Arts schools still categorized DBA: Borrowing Amounts this is where the Lender will be looking for statistics unless you can provide them with separate and verifiable resources for Repayment Terms Loan Type Existing Oustanding Balances New Requests exclusively Martial Arts related stats.Borrowings 7991 Physical Fitness Facilities SIC: Loan TypeLoan Details $0.00 $0.00 $10,000.00 Operating Operating Loan Term Loan Risk Rating:

New Request On Demand $0.00 a rating of 1 through $0.00 $90,000.00 Usually 10 - based on some internal criteria

Totals

Interest Rate $0.00

Floating - Prime + 5% $0.00

$100,000.00

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When the Lender breaks down the Risk Rating assessment, there is usually a matrix whereby a rating is obtained, when New Request Amortized over 5 Years Term Type LoanLoan Loan Details $0.00 $0.00 $10,000.00 Operating taking into consideration: • Personal Credit the Principals New Request On Demand Operating LoanScore of $0.00 $90,000.00 Term Loan • Personal Worth of the Principals$0.00 • Total existing debt loadInterest for both the Principals and the Company Rate Floating - Prime + 5% $0.00 $0.00 $100,000.00 Totals • Security Quality • Business/Industry Maturity Monthly Fee $100.00 Repayment Terms Term Loan Loan Type

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Usually a rating of 1 through 10 - based on some internal criteria New Martial Arts School and Fitness Centre Ltd

Risk Rating: Client Name Borrowing Request Amounts DBA: Loan Type

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Existing Borrowings

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$0.00

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Totals

$0.00

$100,000.00

Borrowing Request Amounts Repayment Terms This is the summary portion of the loan request. It details out any outstanding borrowings and the total exposure of Loan Type Existing Borrowings Oustanding Balances Newcredit Requests theLoan business. In some cases, any personal borrowing (including personal mortgages) will be listed in order to allow for a full Type Details $0.00 $0.00 $10,000.00 Operating Loan review of the principalâ&#x20AC;&#x2122;s debt obligations. New Request On Demand Operating Loan In this example, the new martial arts$0.00 business (a karate school, in $0.00 this case) is requesting a term loan of $90,000 for $90,000.00 Term Loan

tennant improvements and Interest equipmentRate purchases. TheFloating operating -line is for+initial Prime 5% working capital requirements, although there will be some conditions on how these funds can be used. $0.00 $0.00 $100,000.00 Totals Monthly Fee

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Details

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Floating - Prime + 5% Fixed - XX % for a 1 year term

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This is a simplified example of repayment terms, with the operating loan being a rotating line of credit. This requires a floating rate to allow theisfinancial institution (FI) up to assess interest rates against any outstanding balances. 1. Operating Loan to be fully cleaned everycurrent 60 days For the term loan, most institutions will want to see full repayment within a five-year period, but some longer terms can 2. Term Loan funding to be predicated by invoices for all equipment purchases. be obtained depending on the equipment being purchased. For the most part, though, you should be prepared for a short repayment timeline.to be executed and registered before any funding occurs. 3. All Security As4.forPersonal interest rates, this is where your negotiations skills must come into play. This time, your personal business with the Guarantees to be provided by all Company Principals. FI will help you get a better rate. If the business is a standalone, in that it is the only business being done with the FI, then Monthly Listing to be provided by the 5th business day of each month. be5. prepared for Student high ratesReceivables to apply. 6. Financial Statements to be provided every quarter by 10th business day following quarter end. 7. Year End Accountant prepared Financial Statements to be provided within 60 days of year end C ONTINUED ON P G 60 Security â&#x20AC;˘ General Security Agreement providing a fixed and floating charge over all assets of the Company.

$1,500.00 per month + Interest Interest rate

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Conditions 1. Operating Loan is to be fully cleaned up every 60 days 2. Term Loan funding to be predicated by invoices for all equipment purchases. 3. All Security to be executed and registered before any funding occurs.

Repayment to commence 4. Personal Guarantees to be provided by Payment all Company Principals. one month after drawdown 5. Monthly Student Receivables Listing to be provided per by the 5th business day of each month. $1,500.00 month + Interest 6. Financial Statements to be provided every quarter by 10th business day following quarter end.

Interest rate

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7. Year End Accountant prepared Financial Statements to be provided within 60 days of year end

Fixed - XX % for a 1 year term

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down to zero at least once every 60 days. The purpose of this condition is to ensure there is no constant residual

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suffice.

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• The involvement of lawyers, both those representing your interests and those of the FI. Laws are quite explicit

4. Unlimited Personal to be provided by all Company Principals. these daysGuarantees as to whenGuarantee charges/liens are Principal assessed against or property. • Personal from # 2 a business

Providing Student your personal In Worth: mosttocases, the FI willbyalso on unlimited guarantees from all principals; 5.• Monthly Receivables Listing be$XXX,XXX provided theinsist 5th business day of each month. o guarantee. Person Net however, you should try to negotiate a limited guarantee to only the amount being borrowed.

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• General Security Agreement providing a fixed and floating charge over all assets of the Company. • Unlimited Personal Guarantee from Principal # 1 o Person Net Worth: $XXX,XXX o Credit Score: 800 • Unlimited Personal Guarantee from Principal # 2 o Person Net Worth: $XXX,XXX o Credit Score: 800

When borrowing business funds, most FIs will implement a number of conditions. These may include: • Regular clean-up of operating facilities. This means that the balance outstanding on the operating loan must come down to zero at least once every 60 days. The purpose of this condition is to ensure there is no constant residual balance outstanding, which should be termed out via a monthly repayment schedule. • Verification that funds are being allocated properly, per the terms of the agreement. Copies of invoices will usually suffice. • The involvement of lawyers, both those representing your interests and those of the FI. Laws are quite explicit these days as to when charges/liens are assessed against a business or property. • Providing your personal guarantee. In most cases, the FI will also insist on unlimited guarantees from all principals; however, you should try to negotiate a limited guarantee to only the amount being borrowed. • Standard financial reporting, allowing the FI to monitor the progress of your business.

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the fitness industry – gyms, fitness studios, and similar operations – for statistics and comparisons. Still, there are still several differentiators between the fitness industry and the martial arts industry. Some of these contrasts are positive, such as the self-defense and life skills taught by martial arts. In some cases, these comparisons may be unfavorable. Some martial arts schools, for example, seem anachronistic next to modern fitness studios. Another risk factor that weighs against our industry: government statistics show that the martial arts only makes the list of “top 10” interests for the five- to 12-year-old age bracket, and it’s in 10th place. In all other age groups, it doesn’t even make the top 10. This is where you as the business owner, need to step up and provide your lender with quantifiable and reliable sources for your own school, as a piece of the martial arts industry. This is why it is important for you to keep detailed records of student enrollments, payments, and other financial information. It is also wise to keep an eye on industry trends. Make sure the information you present is thorough, clear and, above all, correct. The lender will usually only do a nominal amount of research of the industry, especially if it is smaller, as is martial arts. It is in your best interest to ensure the lender has all the facts they need to make an informed decision on not just whether to support you, but the industry as a whole.

BUSINESS RISK This section deals with your business acumen and the pertinent business climate. With respect to the latter, one aspect of the analysis will not only look at the competitive factors for your business, but at what alternative exist for the products and services you provide. Unfortunately, the martial arts industry has quite a lot of competition – or, “alternatives.” Since a majority of our clients (students) are children, the alternatives are all the other activities kids love to participate in: soccer, football, dance, gymnastics, softball… the list goes on. Businesses survive on cash flow. It is your responsibility to convince the lender that you can generate the necessary revenue. If you are a small operation, you will have to document your abilities and experience. You will also have to show proof of your skills in an actual class. This is another reason to have your school well-established before approaching any financial institution for funds. This way, you will be able to demonstrate your teaching, organizational and communicative skills, allowing for a more informed

decision to be made by the lender. In addition to being able to physically demonstrate your capabilities, you will also need to show your documented knowledge. This would include not only your business plan, but a detailed class schedule and curriculum. You will also have to show that your curriculum works. Does it do what you say it will – that is, are students able to learn progressive skills and advance in rank? In your plan, and throughout your discussions with your lender, you should also highlight your ability to properly hire, develop and manage a team of instructors and administrators. In other words, you will need to prove not just your business management capabilities, but your relationship management skills. The latter also includes your salesmanship abilities. Many times, this is the martial artist’s Achilles heel. However, this ability is especially paramount if you are going to “sell” your idea to your lender. If you know that you are uncomfortable “selling” your school, them emphasize your ability to hire a team that will draw in business. Another major factor lenders will consider is your ability to market yourself and your school. You must come in with a comprehensive marketing plan, including cost and implementation. Your knowledge of both standard print media, as well the new social media platforms (Facebook, Instagram, Twitter, etc.) will provide the lender with confidence that you will be able to locate the clientele you need to populate your school. Your research in this area must be thorough. You should provide your lender with evidence that you have looked into the demographics of your area, including how many other schools you will have to contend with in your area, and their success. Finally, while the majority of the business analysis will focus on the principal, and your ability to run a business, there will be other technical aspects that will be reviewed by the lender. You must be able to analyze your success, and communicate it. If you are not able to produce weekly stats or monthly financials, you will not be able to properly monitor the growth of your business. This is something the lender will zero in on. The lender would prefer to see a system where, if they were to request certain data (such as your active student count, revenue breakdown, or a profit and loss statement), this information could be produced immediately. In summary, while the martial arts industry has some uniqueness to it, for the most part, the analysis of the business side will be similar to all other businesses in that the lender is considering. SEPTEMBER 2019

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FINANCIAL RISK

The financial analysis is quite straightforward. This is where most experienced lenders will focus. To be blunt, most lenders are “bean counters.’ At the end of the day, it is the numbers in your business plan that will make or break your chances of getting a loan approved. In many cases, the senior credit adjudicator will go directly to the financials provided before even looking at your request. Therefore, the figures you provide must be realistic and arguable. You should be prepared to justify MASUCCESS

each of the figures you have provided in your business plan and explain how these figures were obtained. You will also have to contend with standard financial ratios lenders use. These are working capital (your business’ immediate efficiency and short-term finances), debt/equity (total liabilities divided by equity), “CapEx” or capital expenditure (money you’ve spent to maintain or improve your physical property), retained profits (net income left over after paying shareholders), as well as gross profit margins (the total amount of money you have made, minus the cost of the expenses it takes to run your school).

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While it is not necessary to be a financial expert at these figures, it would be good to sit down with your accountant to discuss the importance of each. Each of these financial ratios is there to determine the ongoing viability of your business. As all business success is derived from cash flow, these ratios will provide evidence of liquidity – the ability to pay debt, grow, and produce useful services. For the most part, the focus will be on your income statement, also known as the profit and loss statement. A good lender will scrutinize each major line of your revenue and expense statement, including your revenues streams, your facility and staff expenditures and your personal remuneration. This is why it is always best to review your business plan and your financial statements before meeting with a lender or investor. In the end, you may find yourself having to provide a substantial amount of personal assets, as it is doubtful that the business itself can support itself entirely on its own. Also, there is the last “C” to consider – character. Your personal credit will also likely be examined. How you handle your personal finances will be viewed as an indicator of how well or poorly you will handle your business’ finances – and the lender’s money.

WHAT IS THE BEST OPTION? After I left the banking industry, I accepted a position as a senior business consulting with a leading telecommunications corporation. This allowed me to gain even more insight into business processes. In the meanwhile, I continued to teach karate part-time in local schools while researching the evolving industry. My studies included dozens of books on the business of martial arts, as well as industry publications like the MASuccess. I found this magazine to be extremely informative and insightful, ideal for any martial arts school owner. In the mid-2000’s, I attended my first Martial Arts SuperShow and was encouraged by what I saw there. The business models being promoted there were, I felt, the best suited for the industry as it moves forward. Although I was tremendously impressed by the quality of the seminars (then and now!), my favorite part of the Show was talking with all the vendors on the tradeshow floor. As a banker and business consultant, I am used to talking with enthusiastic entrepreneurs both at the small business and corporate levels. The vendors here have the spirit that will put themselves and our industry on the path for success.

During my continued research, I had the honor of talking with Frank Silverman, the very busy and ever-helpful Executive Director of MAIA. He provided incredible insight as to how the industry was changing. I was also able to talk with the late John Corcoran, editor of MASuccess. He was another invaluable source of martial arts business information. I was convinced that these gentlemen and their respective organizations were on the right path to assist all martial artists in turning their passions into rewarding careers.

THE FUTURE OF THE INDUSTRY Now that I have retired from my position in corporate management, I have dedicated myself to assisting local martial arts school both in teaching and business. I continue to attend the Martial Arts SuperShow when I can, so that I can continue to best serve the schools I work with. Events like the SuperShow and organizations like MAIA truly offer school owners the best path forward. While a career in martial arts is attainable, you must decide on how much of your life you are willing to dedicate to not only your art, but to your business. The days of the martial artist teaching without adequate financial compensation are over. They were a fallacy from the outset, and certainly are today. It is not fair to you, as a school owner and instructor, to ask for less than what you are worth. To lenders, it may indicate a lack of confidence in your abilities. A full-time and rewarding career is available to you but only if you remember that it is a business, first and foremost. This means you must be constantly reeducating yourself, both with respect to your particular martial art as well as to the art of business. In this way, your careers will never collide. They merge to become your one and only true path to personal and financial success. e

Andries Pruim is a 6th-degree black belt in Shotokan karate with over 45 years experience training in his home country Canada as well as in Japan. A former martial arts school owner, Pruim has 38 years of corporate financial and business management experience. He is currently a Senior Instructor at two karate schools in Langley, British Colombia, Canada.

SEPTEMBER 2019

TURNING POINT

Phil Wilemon: Training with Legends

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.”

enth-dan Texas “Blood-and-Guts” era phenomenon Phil Wilemon started training in 1964. He won Allen Steen’s United States Karate Championships as a blue belt. As a brown belt, he either won or was disqualified in every tournament he entered, causing his longtime instructor Larry Caster to say, “Two out of three aren’t bad.” Wilemon won 13 consecutive tournaments as a middleweight black belt and fought on national championship teams. A founding officer for the Texas Amateur Contact Karate Association, he also served as a representative for the Professional Karate Association in the Southwest. Wilemon refereed or coordinated more than 100 full-contact karate matches and is still in demand as an instructor and seminar leader. Herb Borkland: Where did you grow up, and what did your dad do? Phil Wilemon: I was born in Fort Worth, Texas, and moved to Arlington in third grade. My father came from a long line of bankers but ended up buying and running a business. HB: How did you first hear about martial arts? PW: I was 4 feet 11 inches in high school — always fast and always involved, but too small for most sports. [Seventies tournament champion] Roy Kurban was my classmate. In the mid-’60s, I was working at Six Flags Amusement Park, and somebody said they were teaching karate down at the rec center. Three guys said they’d go, but only I showed up. Classes were taught by [Allen Steen black belt] Phil Ola, then a brown belt. Steen wanted quality, not a lot of black belts. He opened schools and put out his students teaching at rec centers. Of the 15 people in our class, 10 ended up getting black belts. Classes started outdoors doing knuckle pushups on concrete. No women or children. Later on, I was a college freshman with [’70s national champion] Pat Worley. By then I was a 5-foot-9-inch blue belt and had won 13 tournaments in a row, including a U.S. Championship. I stayed out of the brown-belt division exactly because I didn’t want to fight guys like Pat. (laughs) HB: Turning point? PW: I trained with great, great fighters. Training is reps and consistency. They say that “practice makes perfect.” Not so. “Perfect practice makes perfect.” Phil

MASUCCESS

Ola was a tremendous instructor. Bow in and fight! People like Fred Wren and Skipper Mullins, Demetrius Havanas and Roy Kurban set the bar so high, you had to get better or else give up. Copying after these guys, it was hard not to get better. I was on the winning team at the Battle of Atlanta, along with David Archer, James Stevens, Dennis Gocher and Demetrius Havanas. I was also on the U.S. Karate Team with D.P. Hill, Ishmael Robles, Demetrius Havanas and Raymond McCallum, and we won three years in a row. HB: Who were your toughest opponents? PW: David Archer, for sure. Demetrius was the most refined and toughest. Ray McCallum was best middleweight, Bill Wallace aside. I fought Wallace as a new black belt; he outclassed me. Joe Lewis was a unique person. David Moon was a tremendous technician — perfect control and could hit you with jump turn kicks. We learned how to block better than a lot of people. (laughs) At first, it was only about, “How well do you fight?” I like to fight. We did kata just to get rank. But Keith Yates was great with kata and weapons. People like him added to our sport when they started competing. HB: Future? PW: Everyone talks about what they have done in the martial arts. I hope people remember me for what I gave back. e m Herb Borkland is a veteran black belt who can be contacted at herbork@comcast.com.

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HEALTH KICK!

Motivate Your Masses, Part 2

BY ERIC THE TRAINER

“Many school owners find themselves spread thin, caring for everyone but themselves. Selfcare will give you increased clarity of mind, perhaps the most crucial aspect of being a great motivator.”

n my last column, Motivate Your Masses: Part 1, I went over some ways that you can inspire your “masses:” your students, their parents and your staff. However, much as you won’t have the energy to work out if you haven’t eaten, you won’t have the mental energy to motivate others if you’re not keeping up with your own welfare. Part of being a great motivator is promoting a balanced lifestyle to those you care about. Home life, work commitments, online distractions and hobbies can pull you in a million directions. Internally, things can quickly become unbalanced, causing stress and unease. Many will come to you for answers about how to create a successful, balanced life. Your words hold weight because of your position, so hand out wisdom with care. The answers you provide will be implemented, and those outcomes are a direct reflection of your ability to lead effectively. Realize that some will excel while others will falter within any system. Tap those who succeed to help mentor others. By granting this authority, you set up strong peer relationships within your school, thus delegating some of the heavy lifting while simultaneously creating strong bonds between students. Ultimately, it’s up to you to be the visionary for your school, to have a plan for success, and to motivate yourself and those around you to join you on this journey of excellence. By doing this correctly, you will not only change lives but also embody what it means to be a martial artist: someone who creates and maintains harmony in the world. Yet attaining this clarity can only happen by deciding to prioritize self-care. Many school owners find themselves spread thin, caring for everyone but themselves. Like the president, your job is to strengthen domestic issues so you’ll be a more powerful ally internationally. This means scheduling regular workouts, choosing healthy food options for yourself and going to sleep earlier to gain much-needed rest.

MASUCCESS

This pattern of behavior will bring renewed energy and allow you to have the mental focus for insights when others approach you for help with their problems. Be sure to not make your self-care a “one and done” special occasion: Set up weekly appointments for massages, hire a food-delivery service to prepare your meals or prep your own healthy meals, and enlist a workout buddy to help you be accountable with respect to hitting the gym. Set up a new and improved lifestyle that reflects your desire to excel at leadership. These elements of self-care will give you increased mental clarity, which is perhaps the most crucial aspect of being a great motivator. Most normal people experience “on” and “off” days in random sequence. During “on” days, they look and feel their best, and that fuels their confidence and cognitive abilities to successfully tackle complex situations. But on their “off” days, they experience feelings of doubt and insecurity that prevent them from achieving their goals. Although this back-and-forth pattern is normal, most do not realize it is primarily due to diet, exercise and sleep. By embracing that trio correctly, as detailed in my SLEEK NINJA program, you not only will have fewer “off” days but also will set an excellent example for others to follow. This motivating, positive behavior invites others. This proactive approach is utilized by top leaders globally. To glean inspiration for themselves, many dojo owners choose to watch short-form videos online from the thought leaders of our time. From these, you can pull out ideas, watch tried-and-true methods and expand your motivational vocabulary. These videos also showcase a spectrum of motivational styles you can adapt to suit your own approach. Not all styles work for everyone, so having and understanding several different methods will enable you to be a better communicator across the board. e

m For questions or comments, contact Eric the Trainer at Mainemonster@gmail.com. To learn more about Sleek Ninja, visit www.MAIAHub.com/sleek-ninja

YOU MESSED UP! NOW WHAT?

Why Am I Not Growing?

BY KATHY OLEVSKY

“We often think we know why we are not retaining students. But feelings are not factual. It is better to evaluate exact statistics and then draw conclusions based on facts.”

’ve been operating a martial arts school full time for 45 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.

found that we were down about 200 leads from the same period last year. We realized we had not run one particular event that had netted a large number of leads. We also found that someone had forgotten to mail out VIP referral passes to our current members.

All martial arts schools go through phases of growth. Conversely, there are times when their numbers dwindle. The biggest lesson I have learned over the past 45 years in business is that you must properly analyze your numbers to find out why you are not growing and what you have done in the past that has promoted growth.

The same can be true about cancellations and non-renewals. We often think we know why we are not retaining students. But feelings are not factual. It is better to evaluate exact statistics and then draw conclusions based on facts.

Prior to using my statistics, I simply went off what I thought was happening. This process of guesswork rarely helped me correct a curve in my business. However, as a small-business owner, I found it difficult to actually access the proper statistics. Today, there are many software programs designed for martial arts schools. They can help guide business owners by providing all the necessary statistics to correct any depression in business. Before these programs became available, I kept track of our numbers using written charts, which I would periodically review to see what we might be overlooking or doing wrong. This might not be as convenient an option as using software, but it will still work. So, even if a school is too small to consider purchasing software, it is still very possible for the owner to keep track of the data. Keep a list of your students, how they found out about you, how they are achieving rank, how often they are attending classes and how they are paying. If you do this, you will have most of the information you need. When our enrollment is declining, we look at the number of leads we have gotten in the past three months, the number of leads who have converted to members and the sources from which they came. In a recent review, we

MASUCCESS

Before examining the statistics, our manager thought that our social media leads were just not as good as they had been in the past. In fact, that was not true. The social media leads were doing better than the previous year’s had at the same time.

We keep a “quit list” of the date of termination, rank and age of each student who leaves us. This information, combined with any explanation we get in an exit interview, assists us in determining if there are trends in our cancellations. In the past, we found that we had a high percentage of students quit at a particular rank. We addressed some teaching issues and changed that curve. We all have students who move away or drop out to pursue other sports or activities. We must know for sure, though, that this is why they left. If your students are regularly dropping out for other activities, it might be a great idea to do a campaign in your school that focuses on the benefits of martial arts training. Many of these benefits do not exist in other activities. No matter what the reason, you can correct these dips in business only if you have an accurate grasp of your statistics. Instead of just using your feelings to guide your business, start tracking your statistics so you can make educated decisions to grow your school. e m Kathy Olevsky can be reached for questions or comments at kathy.olevsky@raleighkarate.com.

School Showcase September2019

School Owner

Master Brandon Low School Name

Lowâ&#x20AC;&#x2122;s Martial Arts Academy Location

Twin Falls, Idaho Style/Discipline

Tang Soo Do

Why did you begin teaching martial arts?

Who or what inspires you?

I was born into martial arts. I began training with my father when

I am inspired by many people and things. First and foremost by my

I was five years old. Martial arts has always been my passion and

father, who instilled a love in me of martial arts and all it stands for.

teaching was a natural progression in my life.

I am inspired daily by the students who take my classes; they teach

What is your school name and how did you choose it? Low’s Martial Arts Academy – I wanted to stay true to my family’s legacy with martial arts. My school is family owned and operated

me something new every day and constantly remind me why I do this. I have also been inspired over the years by Bruce Lee (my father named me Brandon after his son).

important to us to portray that family legacy in our name and we

What is something unique that your school or your student body does well?

chose to call it an academy as feel that highlights our pursuit of

There is an incredibly high level of spirit and energy in our school that

excellence in the art.

is always impressive to me.

What is your school’s motto or student creed?

What do you find most rewarding about working in the martial arts?

by myself and my wife, and both of our children involved. It was

Building a better future for our community through martial arts.

What is your school’s motto or student creed? You will get much better results with praise than punishment. Everyone has the ability to succeed; you just need to find the best way for them to learn.

What is your personal teaching philosophy? I believe that basics and core values are the foundation for any good martial artist. You have to build a martial artist from the ground up, starting with that foundation.

How long have you been teaching? Since 1989, after I received my first dan in Tang Soo Do.

How long have you owned your school?

Being able to impact people’s lives. There is nothing more rewarding than having a student come in with discipline problems or self-esteem problems, and see them transform through martial arts. This is why I do a community outreach program where I teach for free to at-risk students at a local middle school.

What is your favorite inspirational quote? “He who thinks he’s great is not.”

If you could give one bit of advice to fellow martial arts school owners, what would it be? You have to have passion in everything you do, in your entire martial arts program. You also have to care about people. If you don’t have passion, you are probably not in the right business.

Two-and-a-half years.

SEPTEMBER 2019

We Are Looking for Schools To Present In Our School Showcase.

If you’ve ever thought about seeing yourself and your school featured in the pages of MASuccess Magazine, now is the time to act! Simply email Sarah Lobban, slobban@centurymartialarts.com and let us know that you’d like to be considered for the School Showcase. Sarah will send you an application to complete and return. All applications will be reviewed by the Editorial Board, and we’ll notify you if you are selected.

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A BJJ

World Champion COMES TO

grips WITH

cancer Joao Gabriel Rocha has earned superstar status among his Brazilian jiu-jitsu (BJJ) peers as one of the most successful competitors in the game. However, his greatest victory was when he defeated cancer and fought his way back onto the mats, becoming a leading contender in the sportâ&#x20AC;&#x2122;s super heavyweight division. store for the MAIA SuperShow.

BY TERRY L. WILSON

A BJJ World Champion Comes To Grips With Cancer

A LOW KICK

A LIFE-ALTERING DIAGNOSIS

People often say of a martial artist, “He was training as soon as he could walk.” In Joao Gabriel Rocha’s case, this was almost literally true. His introduction to Brazilian jiu-jitsu came from a summer camp for toddlers. At a mere two years, eight months, Joao had embarked on the journey of a lifetime. But this path would not be without struggle. Joao worked hard and saw payoffs, in the form of a series of impressive victories as a junior (not yet black) belt. In 2013, Joao was promoted to black belt, earning him a spot to compete in the elite Submission Wrestling World Championships. This grappling competition involves professional athletes of the highest level, from a variety of grappling styles, including jiu-jitsu. Joao worked his way to the finals in the 99 kg division but lost to Marcus “Buchecha” Almelda in the finals. Despite the loss, Joao was skyrocketing to the top of his profession. He was a rising star in complete control of his own destiny, until an errant kick changed his life forever. Getting injured goes along with being a professional competitor. Jiu-jitsu is a contact sport. Bumps, bruises, bloody noses and occasional black eyes are worn like badges of honor. Often, a minor injury is the price a competitor pays to take home a trophy or a championship belt. However, even the machismo of a hardened competitor has its limits: when an elbow snaps so loudly it can be heard in the fourth row, or an ankle suddenly appears boneless after a blocked kick, it may be time to see a doctor. In Joao’s case, it was a painful kick to the groin that took him to E.R.

“(In 2014) Joao was training with a friend when he was accidently kicked in the groin,” remembers his wife, Gabi Rocha. “The pain was instant and severe. He’s been injured many times and he never once complained. But this time was different.” “I have been kicked before but nothing ever hurt like that,” says Joao. “I thought the pain would go away, but it didn’t. Gabi insisted that we see a doctor.” The first doctor the Rochas went to put Joao through a battery of tests and examinations. One scan showed that Joao had a tumor. However, the doctor assured them it was benign. He dismissed their concerns, and told them there was no reason for Joao to be in pain. “That didn’t make any sense to me,” Gabi says. “I know how to read scans, and I knew he was wrong, so we went to a different doctor.” Luckily for Joao, Gabi’s instincts were spot on. The second doctor made a terrifying – but crucial – discovery. “The new doctor saw the scans and instantly recognized that Joao had a serious problem,” she says. “He knew it was cancer and recommended immediate surgery and chemo. This doctor was really good and moved quickly. I don’t know what would have happened if we had stayed with the other doctor. The doctor diagnosed Joao with testicular cancer. The tumor he had was a kind that typically affects men ages 20 to 25. Joao was 22. His cancer was also a particularly aggressive variety. It was spreading from the site of the tumor to his abdomen and lungs, with no sign of stopping its march.

by another treatment the next week. But he was so weak from the previous treatments that he needed to rest and recover before undergoing the fourth cycle. Joao underwent these treatments for four terrible months. He was very brave and faced everything like the champion he is.” And, as it turns out, there are worse places to approach chemo from than the mindset of an athlete used to grueling endurance workouts. “I looked at chemo treatments as if they were part of my job,” explains Joao. “And my job was to get well so I could train again.” Like every job, getting well had its particular challenges: “Because of the chemo, my veins would disappear,” Joao says. “Sometimes, the nurses would try for hours to stick a needle in them. I didn’t like that very much. But I stayed positive and focused on my goal, which was to train again.” “For Joao, the worst part of dealing with his cancer was that he couldn’t train,” recalls Gabi. “His immune system had to be protected (by keeping him off the mats). After each chemo treatment and after every blood draw he would ask the doctor, “Okay, now when can I train?’”

The diagnosis left Joao more confused than scared. A young man in his prime who was physically active, Joao had never considered that the greatest threat to his health would come not from across the mat but from within his own body. “When the doctor told me I had a malignant tumor, I didn’t understand what that meant,” says Joao. “I was very innocent – by that, I mean I was very young and didn’t realize he was talking about cancer. To me, a tumor was just a bump that needed to be removed.” It’s easy to understand the black belt’s mindset at the time. Everything was happening at warp speed. Joao was still riding a professional high after winning gold at the Brazilian Nationals and silver at the Worlds. His only loss was to Marcus “Buchecha” Almelda at the Submissions World Championships. At the time of his diagnosis, he had put that behind him and was training for another shot at the title. But images of standing center ring with hands held high in victory were soon replaced by visions of hospital wards, needles and scalpels. His next fight would not be for a championship title, but for his very life.

ROUND 1 OF A FIVE-MONTH FIGHT FOR HIS LIFE The second doctor the Rochas consulted quickly scheduled him for surgery and performed an operation to remove the tumor. Then, they sought out a third specialist for chemotherapy to kill the remaining cancer cells. “Joao went through four cycles of chemo, five days in a row, and each treatment lasted eight hours,” explains Gabi. “That was followed SEPTEMBER 2019

FAMILY AND FRIENDS CAN BE THE BEST MEDICINE Unless you’ve experienced it first hand, it’s difficult to understand the sheer horror that instantly attacks your senses the moment a doctor says, “You have cancer.” It’s akin to swimming in the ocean when people start screaming, “Shark!” The terror is instant, followed by disbelief, shock and a sense of fight or flight. How a person faces the reality of the situation can change the outcome. Dealing with the mental trauma of chemotherapy is the patients’ next battle. It’s no secret that the cure can be as bad as the disease itself, and there are no guarantees of success. The patient needs to create a strong mindset and a positive attitude to win what is most likely a fight for their very life. Love and encouragement from friends and family can brighten up the darkest of days. “Joao received so much support from his fans, friends and family,” says Gabi. “People all over the world would write to wish him well or to say, “Hey I’m going through the same thing, and you are an inspiration.’ “Those letters were very important to Joao. He would talk to (people,) and that would make them feel better, too. “It’s funny,” she adds, “I see him as my husband, but so many people see him as an idol. They just want to talk to him, and that helps them through their treatment.” Joao also has words of thanks for those who continue to support him: “It has been five years since I began my treatment for cancer,” he says. “Although my oncologist pronounced me cancer-free, I still have to go in once a year for a routine checkup. The support I receive from my friends, fans and family gets me through some very difficult days. I want to thank them all; I wouldn’t be doing this interview today without your unconditional support.” Joao also uses his experience to stress the importance for men to get checked early if they sense something is wrong.

“If my cancer had gone on undetected any longer it may have been to late for me. So,” he jokes, “maybe I should thank my friend for kicking me in the balls!” The BJJ superstar is back in the fast lane with a hectic schedule of events to conquer. “At the end of June, I’ll be in Long Beach, California, for the World Championships and two weeks later I’ll be Moscow to fight in the King of The Mats,” Joao says. “Then in August I’ll be fighting the heavyweight Nogi GP from IBJJF in Las Vegas. In September I’ll be back in California to the biggest grappling event there is, the ADCC.”

IN IT TOGETHER In a BJJ tournament, matches are fought one-on-one. Although there may be spectators, all the effort is exerted by the one in the ring. Cancer is exactly the opposite. Family and friends are all affected by a loved ones’ diagnosis. Fear for the person with cancer can be a paralytic – or they can step up and fight with them. Gabi didn’t waste a second getting into the metaphorical ring alongside Joao. “Dealing with his cancer was very difficult for me too,” she says. “I was his girlfriend at the time, and I knew exactly what he had. I’m not a doctor, but I am a dietitian and study medicine, and how best to treat cancer. “I began to help him fight his cancer with nutrition and diet. I gave him all the support I could. Joao’s father and I took turns driving him to his chemo treatments.” Joao, for his part, gushes over Gabi’s skill and care: “She taught at a private University in Rio de Janeiro,” he brags. “She knew exactly what kind of food I needed to fight the cancer – and the chemo.” Often, the chemotherapy needed to counter aggressive cancer can ravage the body nearly as much as the disease itself. In addition to causing nausea, fatigue, and weakening the immune system, chemo causes hair loss and water retention leading to weight gain. It can very difficult and demoralizing for a cancer patient to look into a mirror only to see a stranger peering back at them. This was especially true for Joao, as a professional athlete. His body was the tool he worked with. Each muscle had been hard-won and honed for a specific purpose. As chemo took its toll, he saw decades of hard work disintegrate in a matter of weeks. In a way, the psychological battle he faced was as great as the physical one. But Gabi stuck with him. “When Joao lost his hair and gained a lot of weight, I’d tell him he was still handsome, and tell him, “I love you,”’ she says. “I did my best to support him, but it was hard. He was always very fit and in

Do you know the 4 stages of child development?

BORN TO BE A CHAMPION Rumor has it that when Joao was born, the first thing he did was put his doctor into a submission hold then apply a rear naked choke. That may be a bit of a stretch, but not by much. At the ripe old age of two years eight months, he traded in his toddlers’ clothes for a gi and took his first steps on the road to becoming a world champion many times over. In 1991, Joao started training in a summer camp for toddlers that included jiu-jitsu in the schedule. The instructor was Master Alvaro Mansur. The youngster was a juggernaut of energy and desire to win. He took to jiu-jitsu like a fish to water. After earning his yellow belt, Joao went on to train with other BJJ notables such as Leandro Escobar and Rafael Barbosa. His winning streak continued at some of the world’s biggest competitions.

excellent shape so it was difficult for him to deal with being so overweight. “I always believed he would get well because I know how strong he is, but he could also see how worried I was for him.” Even with Gabi’s encouragement, chemo wore on Joao. He was unused to being inactive for any long period of time. The treatment didn’t just make him gain weight; it sapped his energy so that he couldn’t do anything to work it back off. He tried to pass the time and maintain a semblance of his old training routine by reading articles and watching YouTube videos, but those fell short. “It was a very difficult time for me,” Joao admits. “I’ve been doing BJJ since before I was three years old. Jiu-jitsu was my life, and during my treatments I felt as if I had no life. I had too much time to think about the past and to wonder about what was going to happen next. “Because I was young, I knew I had a lot of life ahead of me. I had confidence. If I were 60 or 70 and fighting a serious cancer, I might not have been so positive. But I had confidence that I would get well and train again because I was young and in excellent shape. And I think that positive attitude played an important in my recovery.” And recovery did come – not a second too soon for Joao, who had been chomping at the bit to return to his beloved BJJ. “When the chemo was done, he immediately went to the doctor and asked, again, ‘Hey! Can I start training now?’” remembers Gabi. “After seven months, the doctor finally gave Joao the okay. He started training the next day.”

MASUCCESS

As a brown belt, he practically took up residence on the winners’ platform, with nine first-place victories and seven second-place wins. As a result of his impressive display, Joao was awarded his black belt in 2013. “As a brown belt, I achieved all the titles that I thought were important for me,” says Joao. “I was a three-time world champion, twice in my weight class and once in open class. I was also Brazilian National Champion as a brown belt. I received my black belt at an event in Brazil called Copa Podio. In this event, I competed against black belts. At the end, my Master gave me my black belt. It was a very emotional moment for me.”

FEELING LIKE A WHITE BELT AGAIN Bouncing back proved harder than Joao had hoped. “(Even without chemo) it was very difficult for him,” Gabi says. “Joao still wasn’t feeling very good. He told me he felt like he was a white belt again.” Joao was coming from a five-month layoff, and every day of those five months, cancer and chemo had taken turns using his body a punching bag. But he had a game plan. “I had to start slowly and rebuild my strength and endurance first,” he says. “I didn’t think about being a champion again. I focused on getting back into the lifestyle of BJJ. That centers on workouts, preparation, and diet, which included the first steak I’d had in almost a year. “Training after chemotherapy was hard, but I was so happy just to be able to step on the mats again. Going back to competitions was also hard. I lost at Pan American in 2015, but I was runner-up at Worlds once again. “My first tournament was so terrible,” Joao says with a laugh. “I only had enough cardio to last me for about two minutes. I don’t know how I did it, but I won my first match. My second match I lost to the guy who would win the championship. “Right after the Pan American event I fought in Brazil (Rio Open) and managed to be the champion at that event. “I knew I had to train harder, but my body stilled needed to rest. Sometimes I would need to sleep for 12 hours. I knew it would take time for me to increase my endurance, but I also knew I had to give my body the rest it needed and rebuild slowly.”

Do you know the 7 steps of teaching a drill?

A BJJ World Champion Comes To Grips With Cancer

A BJJ SUPER FIGHT IN ABU DHABI By 2019, almost five full years after his diagnosis, the relentless training regimen undertaken by Joao had rebuilt his cardio and sharpened his skills. His unyielding determination and competitive spirit had carried him back the competitive brackets – but would it be enough to place him at the pinnacle? The first hint of an answer came when he successfully defeated Marcus “Buchecha” in a BJJ Stars Superfight event in Sao Paulo, Brazil. Fans hailed the match as the first time Joao had been able to defeat Marcus since they met at the ADCC Submission Wrestling World Championships. But the true victory came after the match: Joao’s oncologist declared him officially cancerfree. Next, Joao entered the United Arab Emirates Jiu Jitsu Federation (UAEJJF) World Pro Championship in Abu Dhabi. Immediately, Joao’s conditioning was put to the test. First, he had to win three matches to qualify for the main 110kg bracket. He did. After successfully defeating those opponents, he had to win three additional matches to make it to the finals.

MASUCCESS

He did. In the final match, on the world’s stage, Joao bested his opponent. To the roaring cheers of the crowd, he was declared champion. Today, cancer is behind Joao, and a very bright future as one of BJJ’s stars is ahead. Still, he will always have that time as a reminder of just how much he overcame. “Five years flew by very fast, but it wasn’t easy,” says Joao. “I want to thank everyone for all the support given. Without that support, I don’t think I would be here to express my gratitude.” m Terry Wilson is a lifelong martial artist an Emmy Award winning TV personality and freelance writer. He may be contacted at tleewilson@ gmail.com. To read hundreds of articles and columns vital to your school business, visit the Martial Arts Industry Association’s website at www. maiahub.com. Through this constantly-enhanced website, members can access an enormous quantity of useful information on just about any topic from A to Z

OPENING A NEW TRAINING FACILITY In 2016, Joao and Gabi moved to San Jose, California, to be closer the larger tournaments and to do some uninterrupted training. “Many of the more important tournaments were happening in America, so I moved here for that and to focus on my jiu-jitsu,” explains Joao. “In Brazil, there were too many distractions that got in the way of my training. My family and friends always had something for me to do or some place to go, and that took time away from my jiu-jitsu. In San Jose, nobody knew me. I would just focus on my training.” In six short months Joao put California in his rearview mirror and moved to Dallas, Texas, to open a training facility. “I will be opening two gyms in Dallas,” says Joao. “The one in Lewisville with be with my Master, Rafael “Formiga.” That will be open next month (June) after we get back from the Worlds in California. “The gym will offer BJJ classes for kids, and adult and advance classes as well. The other one will be in Dallas at the Pro Training Center.

Do you know the 8 tips

“I bought it from my partner and am opening it to the public offering jiu-jitsu classes and strength and conditioning classes.” For more information on Joao’s school and class schedule, visit www.doublefiveonline.com.

for teaching young children?

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t To apply as a freelancer or share a lead, email Sarah Lobban, Associate Editor, at slobban@centurymartialarts.com

You will. PreSKILL Z includes monthly skill-based content for 3- to 6-year-olds. This program is great for schools who want to of fer a 1x or 2 x per week training option, and without a belt testing format . This done-for-you program will walk you through the 8 rotating sk ills, the recommended belt system, tips for intro les sons, trials and member ships, marketing to parents, step-bystep weekly clas s planner s, and so much more

F or mor e in f o, v i s i t P r e SK IL L Z .c om Still have questions? Contact Melody Johnson directly on the Century Martial Arts Preschool Network Facebook Group.

about childhood development . Child exper t , Melody Johnson, has gone above and beyond to put together a system that will take an instructor who has never taught children and make this clas s their favorite.

ÂŠ2019 MAIA, LLC. #16662

CONSULTANT’S CORNER

5 Ways to Communicate Your School’s Activities

BY JASON FLAMEMAIA CONSULTANT

“Make sure you create a procedure for daily communication. In the last three to five minutes of class, you or your instructor should give the parents a recap of how the students did in class. During this time, give them the important information about any upcoming events.”

ne of the biggest challenges school owners face is keeping everyone in the school up to date with everything that’s going on. Many of us host special events every month, including testing, tournaments, buddy days, student orientation, seminars, etc.

3. Social Media Another platform for connecting with your students is social media. We primarily use Facebook, Twitter and Instagram. Through our email service, we can schedule our emails to be sent out while automatically sharing a link on our page.

Most members of your school are trying to fit their martial arts participation in around baseball, soccer, dance, gymnastics, or whatever other activities in which they are involved. It is therefore essential to stay connected to our members by sending out multiple reminders about activities and allowing them to plan their participation well in advance.

We have also established several Facebook groups so that we can communicate with specific students (for example, demo teams, instructor teams, black belt team students, etc.). This way, you don’t have to inundate everyone with information that may not be relevant to them.

Playwright George Bernard Shaw wrote, “The single biggest problem in communication is the illusion that it has taken place.” With that in mind, we keep our members constantly informed at our schools. Here are five ways that we stay connected. 1. Monthly Newsletter Every month, we provide our students with a newsletter. Included in each one is our Calendar of Events, which lists all upcoming special events for the current and following month. The curriculum for the current month is included on our calendar, as is our character-education topic, which explains the specific life skill we’ll be focusing on in class. For every event we promote, we distribute a flyer detailing the event, its cost, and the registration deadline. 2. Email Blasts We send out weekly emails that cover the information from our newsletter. Our email blasts go out not only to our current members, but also to any inactive students or prospects. This is a great way to stay in touch and keep connected with anyone who might not be actively training at our school. Using an email service such as Constant Contact or Mail Chimp is relatively inexpensive and an excellent means to generate professional emails. Through these services, you can also set up separate lists and send specific emails to specific groups.

MASUCCESS

4. On-Mat Announcements This is your chance to present your best “commercial” for upcoming events or to communicate important information directly to the parents. Often, there seems to be a disconnect between the parents and the instructors. Some instructors may relay information to the students, but that information doesn’t quite get back to the parents. To solve this problem, make sure you create a procedure for daily communication. In the last three to five minutes of class, you or your instructors should give the parents a recap of how the students did in class. During this time, give them the important information about any upcoming events. 5. Personal Attention Last, but certainly not least, take the time to “walk the line” and talk with every parent. This is a great way to both impart and receive information. You never know what you might learn about your student or his or her family. Take the time to build a rapport and open the lines of communication. You want your students and parents to feel that you are available for them, so they won’t be intimidated to approach you.. e m Jason Flame can be reached at (805) 657-1775 or TSDUKarate@gmail.com.

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글

MASTERFUL RETENTION

How to Solve the Two-Inch Problem

BY CHRISTOPHER RAPPOLD

“Controlling the distance enables everything to work just right. To reach the next level in sparring proficiency, you must be able to master this skill.”

hat is it that separates a good competitor from a great competitor? I have asked that question many times, and I have heard many answers. To be great, someone must be fast. Or must be strong. Or must have a long reach. Or must have superior strategy. The list of answers goes on.

Controlling the distance enables everything to work just right. To reach the next level in sparring proficiency, you must be able to master this skill.

While all these are valid, I believe that the biggest deciding factor between good and great is whether a person can control distance.

Think about it: Class time is spent kicking shields, hitting pads and sparring. What happens to the holder if a kick intended for a head-level focus mitt goes just two inches off course? Potentially, a broken nose. Improving your students’ distance control will help reduce injury and decrease the chance of dropouts.

This answer is what I would call “the elusive obvious.” It is self-evident, but sometimes we are so close to it that we don’t appreciate its value. If distance is controlled, then offense, defense, blocks, punches and kicks all work. If distance is off, they all are rendered useless. If distance is such a critical element of success in martial arts, why is it that most schools place a premium on punching and kicking and only teach distance as a necessary evil? As I reflected on the answer and spoke with others, two answers emerged. The first one is a common excuse: “That is the way I was taught.” The second is about student expectations: “Well, kicking and punching are what people want to experience when they come into a martial arts school.” Unfortunately, the first answer doesn’t allow for the possibility that there may be better ways of doing things. The second puts the student in the driver’s seat of dictating what and when things should be taught. That is not fair to the student, who cannot be expected to know the ins and outs of teaching martial arts!

As they get better at gauging distance, their punches and kicks will naturally improve. This also will help retention. Just as nothing is more discouraging than a failure to improve, nothing is more encouraging than seeing success! Solve the two-inch problem for your students, and watch their progress and enjoyment of sparring soar. e

To use karate as an example, imagine that I am in the guard position and can lean forward with my lead hand and touch my partner’s front shoulder with the tips of my fingers. Here, I am in the perfect position to effectively execute most techniques. But if I take a two-inch step back and try to execute the same technique, I will miss or be easily countered 90 percent of the time. If I get two inches too close, my partner will be able to easily execute a technique against me. MASUCCESS

Here’s an exercise you can do to educate students on proper distance: Have them move around each other as though they were sparring, but don’t let them throw punches or kicks. Allow them to move, and move, and move. Then yell, “Freeze!” At this point, they must stop moving completely. Now, make a quick visual measurement to ensure they all are at good distances from their partners. Can they touch each other? Are they too close? Too far? If so, give them pointers, then have them resume their moving and repeat the drill.

I want to share some strategies my Retention Based Sparring program uses that are vital to the program’s success. First, a great deal of attention is spent educating students about the importance of distance control. Every martial art may have slight differences, depending on the delivery system.

Distance also provides the space needed for safer exchange. When accidents happen in a martial arts class, they most often result from students not spending enough time learning to read distance.

m Chris Rappold can be reached for questions or comments at founder@personalbestkarate.com.

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THE KICK YOU NEVER SAW COMING

Take it to The Street

BY BETH A. BLOCK

“More of us have a longer work commute than in days past. This means that we’re spending more and more time on the road. The number of unsafe and distracted drivers is outpacing what technological safety advancements can keep up with.”

any new cars and trucks these days come standard with all sorts of safety features. Cameras and sensors cover all 360 degrees around a vehicle. In theory, the driver of one of these “smart cars” should be aware of not just the road immediately ahead of them, but also what is behind them, what’s in their blind spots, and any potential hazards..

You and I end up paying for that. It’s pushing up rates on our personal auto insurance and commercial auto insurance. It’s hitting us in the wallet, whether or not we’re directly responsible.

With all this technology designed to protect us, why are roadside fatalities still not declining? The problem is the human element.

I also think about my employees’ driving behaviors. As a business owner, I’m responsible for my employees’ driving when they’re working. What can I do to make sure they are paying attention when they drive?

I bet we’ve all seen the following while driving: •A semi truck drifting out of its lane on the highway •A driver looking at their cell phone instead of the road •Drivers yelling into their phones •Drivers ducking below the window and fishing around on the floorboard (presumably to find a dropped cellphone) In January of this year, I was on my way to catch a red-eye flight when I saw a truck weaving across four lanes. The truck didn’t just swerve once and correct its course. It veered from the far-left lane to the far-right lane four times in a three-mile stretch. As it made its back-and-forth trip across the lanes, it also came dangerously close to tipping over. I was concerned for my life, so I dropped back far enough to have plenty of time to stop in case it did crash. This story isn’t unique — I’m sure you all can share similar anecdotes. Distraction, aggression and rage are driving behaviors you see every day. More of us have a longer work commute than in days past. This means that we’re spending more and more time on the road. The number of unsafe and distracted drivers is outpacing what technological safety advancements can keep up with. The National Safety Council polled drivers across the country. The findings are not surprising, but they are scary: 47 percent of drivers said they were comfortable texting while driving, 10 percent of drivers said they had driven while drunk and 25 percent of drivers said they were comfortable speeding on residential roads.

This norm has a price — in lives and dollars. There’s no price that can be put on a human life, but the monetary cost is telling enough. Auto crashes cost Americans $432.5 billion in 2016. That is roughly half the cost of Social Security benefits annually. MASUCCESS

As I researched these statistics, I asked myself a serious question: “Do I have any of these driving behaviors?” I can tell you that even with my risk awareness, I’m not perfect. I have room for improvement.

I have added sensors to my commercial vehicles. These sensors collect data about the time of day my vehicles are on the road, as well as acceleration and braking behavior. All this data helps me figure out which drivers need more training. I can also figure out which employees shouldn’t be driving for me. You can use those sensors in your personal car, too. Many auto insurance companies change your premiums monthly based on your driving habits. The better you drive, the less you pay. Why does all this matter to you? Two reasons: First, you’re out on the roads with all those people: truckers who have been at the wheel for too long with too little sleep, people who are paying attention to their phones and not the road, people who are comfortable tearing through a residential area at 60 miles per hour, and people who suffer from chronic road rage. These drivers are killing people every day. Second, insurance companies are trying to keep up with paying for all those claims. The only way they can do that is to raise everyone’s insurance rates — including yours. These rates are rising faster than they have for a decade. Protecting your life and your wallet means you’ve got to push back. Change your own habits. You won’t be perfect. But you will make a difference. e m Beth Block can be reached at (800) 225-0863 or beth@blockins.net.

THE LEGAL LANDSCAAPE

Call an Employee a Contractor and You Might Be Wearing a Scarlet Letter!

BY PHILIP E. GOSS, JR., ESQ.

have a question for you: What do you call a

incorrectly characterized an employee or employees, as well as

provide a service that relates to your core product

additional penalties for each individual mischaracterization.

(teaching martial arts)? The answer might seem

obvious — clearly, that person is an employee. Issues arise when businesses choose to turn a blind eye and categorize an employee as an independent contractor. This must

“It will be difficult to promote the positive aspects of your school when shameful physical evidence of past business indiscretions hangs on your front door.”

In other words, you will incur one penalty for the fact that you

person you have brought into your business to

end now! New laws require that you err on the side of caution in

One simple incorrect decision can start the process rolling. Tens of thousands of dollars in penalties can be assessed. The New Trend: Non-Monetary Penalties The parade of horribleness keeps on coming. In California, the

how you classify your personnel.

new laws allow the imposition of personal financial liability (yes,

A Seismic Shift in the Law

anyone operating on behalf of the owner, including managers,

As is frequently the case, California is a trendsetter with

the dreaded piercing of the corporate veil) against the owner or corporate officers and directors. This is a dramatic shift in the

respect to this employment law. I won’t bore you with legal

law. Very infrequently do situations allow for personal liability in

details, but the short of the matter is that California, along with

the corporate context. A strong set of claims can bankrupt not

a growing number of other states, now uses a greatly truncated

only your school but also the people owning and/or managing it.

test to determine whether an individual is an independent contractor or an employee. There are three determining criteria: First, do you control the worker or direct that person’s activities? Second, does the individual provide services to other businesses or exclusively to you? The third factor is the game-changer. If the purported “independent contractor” provides a service that is similar or consistent with your core business purpose, then that individual is legally considered your employee. When examining employeevs.-contractor status, emphasis has shifted from how the services are being provided to what services are being provided. Rarely will you have someone engaged in your business process who is not integral to your mission of providing martial arts training. The second major trending change is that now there is a legal presumption that every employment situation is an employeremployee relationship, rather than an independent contractorbusiness relationship. This means that it is assumed that, rather than standing on equal footing (as a contactor would be to a business), you are responsible for or above the people working within your business. Trying to prove otherwise will often be a fool’s errand. It’s rare that legal presumptions are successfully rebutted in the

The Scarlet Letter California has enacted, and other jurisdictions are considering, laws that penalize intentional misclassification by making your company wear a scarlet letter. The offending business will be required to post on its website (or in a public location if it does not operate a website) a notice admitting to a serious violation of the law. This notice will also state that the business has enacted remedial measures to prevent future violations and that any other service provider who believes he or she is the victim of incorrect job classification can contact an enumerated state agency for additional relief (and more heartache for your school). Lest anyone assume that the notice is a voluntary mea culpa, it must also explain that it was posted to comply with state law. Such a notice will adversely impact your business, as well as the goodwill and reputation you have worked to create. It will be difficult to promote the positive aspects of your school when shameful physical evidence of past business indiscretions hangs on your front door. One important note: I realize I have focused on the new laws in California. This state is a far distance (both in mileage and general attitude) from middle America. However, movements

world of employment law.

started on the West Coast have, in the past, found their way

Monetary Penalties for Misclassification

school. Be ready for the day!. e

across the country. Sooner or later, these laws will reach your

The penalties for intentional misclassification of employee status have always been severe. Now, in many jurisdictions, the severity is multiplied for misclassification and for each additional violation.

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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INSPIRATION OVATION

Seasons Change

BY KAREN EDEN

“One of the best pieces of advice I got from one of my TV news directors was that only one thing will never change, and that is that things will always change.”

wo days before school closed for summer break, it snowed in Denver, Colorado. It had been a long and grueling winter on the front range, and though springtime in the Rockies is notorious for bringing a wide range of weather surprises, few people had predicted this. Old Man Winter just didn’t want to go home. “Will it ever end?” people asked themselves while defrosting their cars and shoveling the sidewalks. It’s a phenomenon that can really mess with your sense of time: watching it snow the week of Memorial Day celebrations. As a former weather anchor in the Denver area, I know that TV ratings rise with the inches of snow. The more terrible the weather you forecast, the more the management will applaud, hoping the dire warnings will lead to increased viewership. But I have news for everybody, and I say it every year. Our planet doesn’t stay still around the sun. It’s basic science. Seasons must change, and they always do. I’ve learned to appreciate the science of meteorology, although at first it greatly intimidated me. It’s actually a very simple formula: The earth is trying to balance its temperature out. Temperature will gradually change as the days march on because of how our planet tilts as it revolves around the sun. But my appreciation for weather systems goes way beyond science. You see, I have discovered that meteorology is a lot like life. Hardships and stressful times may roll in, but they won’t last forever. They can’t. That’s because the seasons of life are always changing, too. One of the best pieces of advice I got from one of my TV news directors was that only one thing will never change, and that is that things will always change. I am reminded of this every time I see former students on social media who have become respected karate masters in their own right. “Isn’t that little so-and-so?” I’ll say to myself. But then I realize it’s been almost 30 years since I started my own martial arts career. Of course, they are a master too by now! Seasons change.

MASUCCESS

Our belts change from one color to the next, reminding us that we are not supposed to be stuck at one level or rank. We learn and evolve as martial artists, and our belts represent that. We grow as people, too. We were never designed to be stuck in one place. Finally, being a weather anchor taught me that sometimes when the seasons change, it isn’t so pleasant. People change; relationships change; even our own bodies change as we wind through the years. We will all experience that unexpected snow at the end of May. But for me, the things that will never change are my martial arts training and my faith. I will always have my belt wrapped around my heart, and I will always be able to look up when there’s ice below my feet. Good or bad, nobody gets through this world without their share of changes. Learning to accept this is as simple as understanding why the weather changes: It just does. As I sit here and write this today, I’m wearing shorts and a T-shirt. I can hear the birds singing outside my open window. I am enjoying the breeze blowing across my desk while I can because I realize that this, too, will be gone in a few weeks. That’s just the way the world works. Seasons will always change. e m You can contact Master Karen Eden at renedenherdman@gmail.com.

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