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Celebration:of An Historic 45 Years Rhee’s Jhoon the U.S. Congress Teaching

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An Historic Celebration:of 45 Years Jhoon Rhee’s U.S. Congress Teaching the By Keith Yates CONTRIBUTOR

Father Jhoon Rhee, we randmaster In this article, Do in America to our members.of vision plaguing the of Tae Kwon visionlack martial art discuss the many years, and a true industry for to energize martial arts ary, celebrated about plans speaking out new generation of vihis 80th birthday a to in and empower who are ready at a gala given to the sionary entrepreneurs take the industry his honor at of growth. of new levels Caucus Room We bring the the U.S. Capitol. and unique insights erThe evening’s diff a lessons from and highlight was of celerates ent industries Jhoon Rhee demonstration who arts their leaders his 80th burthday. his martial didn’t understand skills to congresof the the meaning sional members, and a veritable Ambassador miword “limitation.” the Korean artists. Rhee about of martial Read more the Korean who’s who new country after the exciting grated to this chain of schools in the succeed! vision a direction and and War and built Soviet Union. school on page 13 U.S. and former See Rhee, beginning and how your for NAPMA t. will benefi beginning on page 20 your future

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in the industry, of true visionary world fascinating who discover the the pioneer Andrew Wood, with his groundbreaking or More changed lives to Make $100,000 In just seven book, How Martial Arts. 150 martial Teaching the of built a chain over 275 with years, Wood and mentored Legendarts schools coaching company, his business Author of five books, ary Marketing. of the first sucthe publisher magazine. Wood was arts business cessful martial his success, he transof and did At the height to the golf industry interview of ferred over this insightful it again! Read by Stephen Oliver. on page 26 Andrew Wood , beginning See WOOD

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FEATURES The Truth about Middle-of-thePack Pricing: A Business Model for Mediocrity. . . . . . . . . . . . . . . . 17 How to Get the Unfair Advantage Over Your Competition. . . . . . . 18 Goal-Getter Series: How to Develop a Belief in Your Vision. . . 20 Mandatory Business Systems for Martial Arts Schools . . . . . . . . . . 25 An Attitude of Gratitude for Nick Cokinos. . . . . . . . . . . . . . . . . 26 Financial Power Summit Highlights . . . . . . . . . . . . . . . . . . . 29

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COLUMNISTS Terry Bryan. . . . . . . . . . . . . . . . . 30 Lee Milteer. . . . . . . . . . . . . . . . . . . 31 Brian Tracy . . . . . . . . . . . . . . . . . 34 and more columnists online!

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2011 Financial Power Summit: Learn the Secrets of Success Used by the Top Performers

he first of the five Summits was held in Dallas with the some of the most committed school owners determined to face the new emerging economy and build their businesses. The top performers in The the industry presented Financial cutting edge techniques On How to Enroll Power More Students with Summit in this powerful, one-day program. Prepare yourself to be part of the next generation of super-performers by attending the Newark • Chicago Washington D.C. • Los Angeles

next summit. Whether your vision is to increase your student population or expand to multiple locations, this is the one workshop you don’t want to miss to learn the lastest and most innovative ways to succeed. Story begins on page 29

An Attitude of Gratitude for Nick Cokinos, Founder of EFC

ne of the true pioneers in the industry, Nick Cokinos was one of the innovators who established the most successful business model for martial arts schools. A personal mentor of Stephen Oliver, Cokinos took Educational Funding Company from an in-house department for Jhoon Rhee Institute to a multi-million dollar business serving schools all over the country.

NAPMA Partners with World Vision to Support Japan’s Disaster Relief

APMA has partnered with World Vision to provide support to Japan’s disaster relief efforts. As many people are barely surviving on a daily ration of water and rice, NAPMA gears up to raise money and provide school owners with a opportunity to gain positive media attention for their businesses. Learn about how to create a win-win situation for your business with proven success strategies used by the most successful schools in the country. Support our fellow martial artists and your school.

Story begins on page 11

Story begins on page 26

The Truth about Middle-of-the-Pack Pricing: A Business Model for Mediocrity

et the straight story from the guy who knows, NAPMA CEO, Stephen Oliver. What works and what doesn’t when you set the price point for your business. Exactly how do you decide what the market in your area will support? You

may be surprised to discover that the lowest price is often perceived as the lowest value to the consumer. Middle of the pack pricing is the best way to establish yourself as a mediocre school and set yourself up for high student turnover. Set your school ahead of the competition and be the top dog in your area. Lower your dropout rate to less than 2% the way the highest performing school owners do — be the best. Story begins on page 17

Don’t Miss a MultiMillion Dollar Media Opportunity for School Growth When Kung Fu Panda 2 Hits Theatres Story begins on page 11

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Martial Arts Industry Business Pioneers Team Up Grandmaster Stephen Oliver NAPMA CEO; Author: Extraordinary Marketing, Using the Internet to Market Your Martial Arts School, Direct Response Marketing for Martial Arts Schools, Everything I Wish I Knew When I Was 22; Co-Author with Dan Kennedy: Wealth Attraction for Entrepreneurs.

Grandmaster Y. K. Kim • Pioneer of Martial Arts Business • Author of Success in Martial Arts Business and Join the Millionaire Club, Winning is a Choice, Success in Martial Arts Business, Taekwondo, Health is the Foundation of Success, Tae Kwon Do World, 6 Martial Arts World, U.S. National Exercise, and The New American Dream.

Five Compelling Reasons You Must Attend This Seminar

Get your School To Run Like a “Fine Swiss Watch” — Toby Milroy EXPERT IN MARTIAL ARTS MARKETING

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Will teach you the key skills to dramatically increase your effectiveness with every new prospective student and the key steps to making your school consistently produce maximum results. MARTIAL ARTS BUSINESS SOCIAL MEDIA EXPERT

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Page 4 • May 2011

The business systems you must install in order to succeed

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Features

Departments

Maverick Mindset: The Truth about Middle-of-the-Pack Pricing: A Business Model for Mediocrity. . . . . . . . . . . . . . 17

Sound Off. . . . . . . . . . . . . . . . . . . . . . 8 NAPMA News. . . . . . . . . . . . . . . . . . . . 11 NAPMA Partners with World Vision International to Support Japan’s Disaster Relief Exclusive Opportunity for NAPMA Members in Kung Fu Panda 2 Promotional Partnership The Ultimate Gift: Incredible Success Stories Told on Weekly Webinar

Don’t get crowded in the middle; stride to the front!

How to Get the Unfair Advantage Over Your Competition . . . . . . . . . . . . 18 A unique way to promote your school.

Goal-Getter Series: Step Two — How to Develop a Belief in Your Vision . . . . . . . 20 Easy steps towards advancing unshakable belief.

NAPMA Business Solutions: Mandatory Business Systems for Martial Arts Schools. . . . . . . . . . . . . . 25

MASTERING THE MARTIAL ARTS BUSINESS

WHAT YOU MISSED: DALLAS financial power summit. Don’t miss the next one!

Columnists WarriorWiz . . . . . . . . . . . . . . 30 Terry Bryan—Ph.D. and 9th-Degree Black Belt

What Most School Owners Forget To Ask When They Open A Martial Arts School!

Your Success Coach. . . . . . . . 31 Lee Milteer — NAPMA Success Coach

Time Integrity for Entrepreneurs: Idea Day, Part 3

The Psychology of Success. . . 34 Brian Tracy — Human Motivation Author, Speaker

The X-Factor More columns are online at Martial Arts Professional.com. See page 6 for a complete listing.

The Secret? Satisfy your customer’s need to succeed.

An Attitude of Gratitude for Nick Cokinos, Founder of Educational Funding Corporation . . . . . . . . . . . . . . 26 An appreciation of a innovative martial arts pioneer.

Learning the Secrets of Success Used by the Top Performers . . . . . . . . . . . . . 29

Mastering the Martial Arts Business Mastering the Martial Arts Business magazine is the premier resource for those professional martial arts school owners and operators who are serious about enhancing and/or expanding their business operations through a series of monthly visual and editorial resources, innovation, and hands-on and first-person experiences. PUBLICATION STAFF Columnists & Contributors: Terry Bryan, Tom Callos, Elsa Cordero, Jim Graden, Tom Hopkins, Joe Lewis, Karl Mecklenburg, Toby Milroy, Lee Milteer, Stephen Oliver, Brian Tracy and Zig Ziglar.

Industry Insider… . . . . . . . . . . . . . . . . . 23 Advertiser Index . . . . . . . . . . . . . . . . . . 32 Classified Advertising. . . . . . . . . . . . . . 32

NAPMA IS…

Mailing Address:

Publisher, NAPMA CEO: Stephen Oliver NAPMA COO: Toby Milroy Creative Director: Gary Smith Member Services: Bob Dunne Martial Arts Curriculum: Jeff Smith Martial Arts Curriculum: Mark Graden Web Development: Marek Gahura

2578 Enterprise Rd., Ste. 344, Orange City, FL 32763 fax: 1-747-683-9581; 1-800-795-0583

ADVERTISING (Print/Online/Digital) Advertising Program Consultant: Larry Halpern, 727-540-0500 ext. 207; advertising@napma.com

Mastering the Martial Arts Business magazine is published and distributed by Martial Arts Marketing, Incorporated, DBA/National Association of Professional Martial Artists (NAPMA®).

Visit us on the World Wide Web at: Martial Arts Professional.com The Publisher and Editors are not responsible for unsolicited material. All contributions should be submitted via Martial Arts Professional.com. All rights in letters sent will be treated as unconditionally assigned for publication and copyright purposes and are subject to our unrestricted right to edit and comment editorially. © 2011 Martial Arts Marketing, Incorporated. All Rights Reserved. Any reproduction without permission is strictly prohibited.

The views of contributing writers or featured personalities are their own. Mastering the Martial Arts Business magazine does not necessarily agree or endorse any opinions shared in this publication. Any political views of columnists or featured personalities are their own and are not necessarily endorsed by Mastering the Martial Arts Business magazine. The “Mastering the Martial Arts Business” and “NAPMA” logos are registered trademarks of Martial Arts Marketing, Incorporated. Other marks used in this publication are trademarks or service marks of their respective owners.

MartialArts Professional

Thousands of pages of expert advice covering all areas of martial arts school operations, marketing, curriculum and more!

Martial Arts Professional.com Features NAPMA Business Solutions: Mandatory Business Systems for Martial Arts Schools How to Get the Unfair Advantage Over Your Competition

Goal-Getter Series: Step Two — How to Develop a Belief in Your Vision Maverick Mindset: The Truth about Middle-of-the-Pack Pricing: A Business Model for Mediocrity An Attitude of Gratitude for Nick Cokinos, Founder of Educational Funding Corporation 2011 Financial Power Summit Learning the Secrets of Success Used by the Top Performers Martial Arts Education Columnists The Science of Fighting Joe Lewis—NAPMA Technical Consultant

Keith Yates—Instructor, University Professor

Lee Milteer—NAPMA Success Coach

Concussions: They’re All in Your Head

The Integration of Fitness and Martial Arts

The Heart of a Student Athlete

Douglas Adamson—Multiple School Owner

Karl Mecklenburg— Six-Time Pro Bowl NFL

Never Demonstrate the Wrong Way to Do Things

Player and Motivational Speaker, Author

Decisiveness in the Field

Beyond Technique

The Pinnacle of Martial Arts

Fariborz Azhakh—Martial Arts Information

Jhoon Rhee— Legendary Martial Arts Teacher and Educational Entrepreneur

Professional

The Game of Running a Martial Arts School

From Motivation to Motive-Action

Championship Success

Expand Your Thinking

Jeff Smith—Mile High Karate Chief Instructor

Jim Rohn—Author and Business Philosopher

The Champion’s Reunion, Part 1, with Jeff Smith, Bill Wallace and Joe Lewis

How to Turn Nothing into Something

Personal Development

Martial Arts Management Columnists

Tony Robbins—Black Belt and recognized authority on the psychology of leadership

The Final Word

The Secret to Being a Dynamic Instructor

Stephen Oliver—MBA, NAPMA CEO

Be Careful What You Wish For (You May Get It!), Part 2

Expert Tips & Tactics Dr. Chris Dewey—School Owner, University Professor

School Growth Potential

The Appearance of David

Toby Milroy—NAPMA COO

Locking A Steel Cage Around Your Student Body…the Keys to Ironclad Student Retention, Part 1

Speaker

Jim Graden—Founder, UBC

Time Integrity for Entrepreneurs: Idea Day, Part 3

Classical Thought

Reality Check

Fitness Kickboxing

Karl Mecklenburg, Jhoon Rhee

Your Success Coach

The Psychology of Success

Mastering Beyond the Defensive Knife Drill

Announcing Our NEW COLUMNISTS

Fitness Track

The 40 Most Common Mistakes Fighters Commit, Part 9

Peyton Quinn—NAPMA EZ Defense Expert

Growth • Success • Balance

Martial Arts Professional Asks… Martial Arts Professional Asks…

Brian Tracy—Human Motivation Author,

Tony Robbins—Black Belt and recognized authority on the psychology of leadership

The X-Factor

Please elaborate on the importance of continual growth and improvement in the martial arts field, or in any field for that matter?

WarriorWiz Terry Bryan—Ph.D. and 9th-Degree Black Belt

What Most School Owners Forget To Ask When They Open A Martial Arts School!

Brian Tracy—Human Motivation Author, Speaker

Bonus Column

Why is it important to have a crystalclear vision of where a person wants to go in life?

Harvey Mackay—

Stay Focused on the Big Picture

Internet Secrets Elsa Cordero—MBA, MS Oriental Medicine

How Can Your Website Attract More Students?

Archives Sound Off (reader feedback)

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Martial Arts Business Breakthrough TV NAPMA has taken the best business practices and made them available through the interactive media of web video. We’re offering several segments to help your business grow including Business Basics, Ask NAPMA and NAPMA Solutions. And just for watching Martial Arts Business Breakthrough TV, we have a free gift for you.

Robert Kirkpatrick

NapmaTV.MartialArtsProfessional.com Featured segments in the current episode: • The Reality of “Building a Better Mouse Trap” in Your Martial Arts Business! • How you can help support disaster relief efforts in Japan and dig deep roots in your community at the same time

Tsion Ben Levi

Style: Chung Do Kwon, Muay Thai Kickboxing; Training: 15 years to 2ndDegree Black Belt, 18 years off, then started training again in 2006; Status: Instructor.

Style: Hsing I, Baqua, Taichi, Long Fist, Arnis and Shorei Goju-ryu Karate; Training: 33 years, 6th-Degree Black Belt, 7th-Degree Black Sash; Status: Part-time (0–50 students).

Scott Yates Style: Sin Moo Hapkido, Tae Kwon Do; Training: 28 years, 9th-Dan Sin Moo Hapkido, 4th-Dan Tae Kwon Do; Status: Full-time School Owner (101-200 students).

Featured segments in the previous episode: • Mandatory Martial Arts Business Systems • An Ethical Upgrades System • Managing Your Staff

NAPMA.com

Bart Hungenaert

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WORDS OF THE WEEK

MOTIVATIONAL LESSONS FOR CHILDREN AND ADULTS

Week 1 “Be a good listener. Your ears will never get you in trouble.” Frank Tyger, author Translation for Adults Though sticks and stones have been known to break bones, words can hurt and do damage. If words were meaningless, then you wouldn’t have been taught to think before you speak. Honest communication is important, but it is equally important not to say everything you are thinking. One way to prevent saying something you might regret later is to listen more. Though listening requires your active participation by paying close attention to what is being said, listening doesn’t usually cause you trouble. Listen, and you’ll learn all the facts before you form and state an opinion of your own.

Sharing your knowledge with others is a great way to educate, inform and help others. Knowledge should not be a secret, but shared and used for the benefit of all. You learn and gain wisdom, however, when you listen instead of speaking. Wisdom is acquired through formal learning, life experience, continuing education and learning from others. It is this give-and-take that enables us to learn from one another. If you become preoccupied with sharing everything you know with those that you meet, then you will never have time to listen and learn from them.

Week 2 “It is the province of knowledge to speak and it is the privilege of wisdom to listen.” Oliver Wendell Holmes, American legal scholar and associate justice of the U.S. Supreme Court Translation for Adults Sharing your knowledge with others is a great way to educate, inform and help others. Knowledge should not be a secret, but shared and used for the benefit of all. You learn and gain wisdom, however, when you listen instead of speaking. Wisdom is acquired through formal learning, life experience, continuing education and learning from others. It is this give-and-take that enables us to learn from one another. If you become preoccupied with sharing everything you know with those that you meet, then you will never have time to listen and learn from them.

Translation for Kids

Someone calls you a name or makes fun of you. Those words can hurt you. When you are angry or upset, you may use words without thinking about what you are saying. You may wish later that you hadn’t said those words. That is why you should always listen. Listen, instead of talking, and your words may never cause trouble. You will be in trouble if you use bad words when your instructor corrects your kick. Listen carefully to your instructor. Practice what he teaches you. You will improve your kick. Remember, listen first and talk second.

Teaching others what you know is very helpful. They might learn something they never knew before. That is what a leader does. You must also be a good listener. Good listeners learn to be wise and make smart decisions. You can learn how to make smart decisions. Listen to older children or adults. They know information that you might not be able to learn from a book. For example, your martial arts instructor has a higher rank than you. He or she knows the training you are learning now and can teach you to become a Black Belt, a leader and a good listener.

Class Discussion for Kids

1. Have any words you said ever caused you trouble?

1. Name an adult who you think is a teacher.

1. Have any words you said ever caused you trouble?

1. Name an adult who you think is a teacher.

2. How do your words affect others?

2. How can sharing what you know help someone younger or less experienced than you?

2. How do your words affect others?

2. How can sharing what you know help someone younger or less experienced than you?

For more tools and reports, visit your Member Area at NAPMA.com

BLACK BELT LEADERSHIP

GUIDANCE ON LEADERSHIP DEVELOPMENT

Retaining your veteran teaching team is one of your most important responsibilities, if you expect to retain your best students and attract new ones, which is directly related to your success and prosperity.

Your goal as the G.O.L.D. team leader is to strive continuously to improve the quality of your veteran instructors’ teaching experiences. As you develop and implement your leadership training program, ask yourself, “What am I specifically doing to support, motivate and inspire my veteran teachers?” Forget the thinking of the stereotypical school owner: “I’m the master and they should do as I say.” Instead, learn to be a supporter and motivator of what they do in the classroom. Be creative and inspirational, and you’ll be recognized as the leader you want to be. Try to understand the mindset of a veteran teacher as a series of layers. The first layer is the desire to help others. It will always be difficult to retain veteran teachers unless you continually reinforce the importance of what they do for their students. Review with them regularly the progress of the students they teach. Let your veteran teachers know that you, as well as students and their parents, recognize their positive contribution to each student’s improvement, compared to where he or she started. The desire to

MOTIVATIONAL LESSONS FOR CHILDREN AND ADULTS

Week 3

Week 4

Week 3

Week 4

“The best way to understand people is to listen to them.” Ralph Nichols, author

“Every person in this life has something to teach me— and as soon as I accept that, I open myself to truly listening.” John Lahr, senior drama critic for The New Yorker Magazine

“The best way to understand people is to listen to them.” Ralph Nichols, author

“Every person in this life has something to teach me— and as soon as I accept that, I open myself to truly listening.” John Lahr, senior drama critic for The New Yorker Magazine

Translation for Adults Understanding is the difference between hearing and listening. All too often, you hear someone speak, but don’t understand what he or she is saying; you hear only what you want to hear. Your emotions and inhibitions can be obstacles to understanding what is being communicated. For example, if you were trying to decide on a birthday gift for a friend or co-worker, then you might want to listen carefully to his or her everyday conversation for that clue that would help you choose a perfect gift. All of us need to do a better job of listening to others, so we can understand them better. Just that effort would eliminate many conflicts in our lives and throughout the world. Translation for Kids Your parents ask you to take the trash outside. You “tune them out” because you’re playing a video game. You heard them, but you didn’t listen to what they said. You don’t understand what they want. That can cause you trouble. Your teacher announces during class that there will be a test tomorrow. You are not paying attention. You heard her speak, but you didn’t listen. You come to class the next day unprepared for the test. That is also trouble. Your martial arts instructor is teaching your class how to kick. You are talking with another student. You are not listening to your instructor. You are unable to show your instructor later that you know how to kick. More trouble! You must listen carefully to what others are saying. They deserve your full attention. When you listen and understand, you are learning. Class Discussion for Kids 1. Have you ever been distracted and didn’t understand what someone was saying to you?

Translation for Adults It’s easy to “tune out” others during an argument or debate because you think their opinion is wrong and yours is right. Even statements with which you don’t agree are important learning opportunities. Everyone has an opinion. Although one opinion might not be any more correct than another, it is the expression of these opinions that motivates you to question the world around you and expand your learning. No one has all the answers. If you don’t listen to people and weigh and analyze their opinions fairly, then you are closing your mind. Open your mind and expand your thinking to gain greater wisdom. Translation for Kids Everyone has an opinion. You may not agree with those opinions, but you can learn from them. Listen carefully to what others have to say. Treat what they say seriously. What they say could help you learn and make smart decisions. Your martial arts instructor is teaching your class a move that you learned earlier in the week. You choose not to listen. You didn’t hear how to use the move in a real-life situation. You heard and learned only half of the lesson. You must know how to make the move. You must also how to use it correctly. Don’t close your mind to new ideas. Open your mind and learn. Class Discussion for Kids 1. What have you learned simply by listening? 2. Why is listening important?

Everyone has an opinion. You may not agree with those opinions, but you can learn from them. Listen carefully to what others have to say. Treat what they say seriously. What they say could help you learn and make smart decisions. Your martial arts instructor is teaching your class a move that you learned earlier in the week. You choose not to listen. You didn’t hear how to use the move in a real-life situation. You heard and learned only half of the lesson. You must know how to make the move. You must also how to use it correctly. Don’t close your mind to new ideas. Open your mind and learn. Class Discussion for Kids 1. What have you learned simply by listening? 2. Why is listening important?

2. How can listening closely help you understand what is being said?

For more tools and reports, visit your Member Area at NAPMA.com

help others is like a garden; it needs to be continually nurtured with the motivation and reinforcement that you control. The second layer is the veteran instructor’s enjoyment of teaching and his or her relationship with students. Veteran teachers are certainly motivated by practical considerations, such as employment, but the enjoyment of teaching and the opportunity to make a positive contribution to the lives of their students are equally important if you expect them to remain at your school. When your veterans lose the joy of teaching, your students lose their joy of the martial arts and the satisfaction of progressing toward their Black Belts. It also stunts the growth of your school through unexplained attrition. Part of your responsibility is to foster closer ties between your students and veteran teachers. Remind your students constantly of how fortunate they are to be taught by their teachers. This creates a cycle of appreciation and caring: Students tell their instructors how much they appreciate their efforts, which motivates teachers to care even more for their students and their progress. The cycle continues, improving the teacher/student relationship with each positive act feeding the other. As the team leader, you must act as the initiator of this cycle and make sure it is always an active element in the teaching environment. The third layer is veteran instructors’ interpretations of their teaching experiences. If your veteran instructors are unable to understand and interpret their teaching experiences correctly, then you shouldn’t expect them to remain continually involved and passionate about their roles at your school. A teacher may be considered a veteran because of the quality of their instruction or the number of years in the profession. Being a veteran may also be measured by their understanding that teaching doesn’t always produce desired, or positive, results. How a

For more tools and reports, visit your Member Area at NAPMA.com

teacher interprets what happens in the classroom may determine how he or she views his or her experiences. Help your veteran teachers interpret their teaching results with debriefing sessions after each class and/or at the end of the day or week. When you invest this time, you’re making it clear that you appreciate his or her efforts and demonstrate genuine concern for someone who is an important part of your team. This continual reinforcement will motivate them to use their experiences as a self-learning tool. The fourth layer is the respect your veteran teachers receive for their contribution, and how it makes them feel important. One of the biggest mistakes of martial arts school owners is failing to express their appreciation for the contribution of their leadership teams. Veteran teachers need those “pats on the back” just as much as your new G.O.L.D team members, who often receive most of your attention. The veterans want to feel that what they do really matters to the success of students and your school. Failing to fulfill this need reinforces the negative feeling of being taken for granted, and it is especially magnified and resented when a teacher has been instrumental in the growth of your school for many years. Your responsibility is to strike a balance between what you ask your leaders to contribute and the recognition they receive.

Join the Community and Participate in the Forums and Groups A true collection of folks who are serious about martial arts and the industry. Swap stories, seek and give advice, or just sound off about the latest issues and articles in Mastering the Martial Arts Business or Community.Martial Arts Professional.com.

Stay “plugged in” to the latest industry news and trends, proven successful school growth systems and clever marketing strategies. Visit NAPMA.com/ newsletter

Translation for Kids

2. How can listening closely help you understand what is being said?

Tom Hopkins Mastering the Art of Selling Visit NAPMA.com/TomHopkins

GUIDANCE ON LEADERSHIP DEVELOPMENT

Retain Your Veteran Teaching Team With Understanding and Creative Motivation

You, or the person responsible for your G.O.L.D. team, must use creative strategies to retain your most productive and veteran teachers. Otherwise, you and your entire school become victims of an atmosphere where your relationships with your veteran teachers are taken for granted. It’s much the same as your relationships with your students: great programs and great service are not enough if the classroom atmosphere never changes. You must understand your veteran teachers’ perspective just as much as your students’, so you’re able to motivate and inspire them creatively.

WORDS OF THE WEEK

MOTIVATIONAL LESSONS FOR CHILDREN AND ADULTS

Listening Week 2 “It is the province of knowledge to speak and it is the privilege of wisdom to listen.” Oliver Wendell Holmes, American legal scholar and associate justice of the U.S. Supreme Court Translation for Adults

Join your peers in viewing and learning from our collection of informative videos on many topics. You can even submit your own video for inclusion.

Gene LeBell

WORDS OF THE WEEK

MOTIVATIONAL LESSONS FOR CHILDREN AND ADULTS

Listening

Take Advantage of the Extensive Video Library Our Members are Building!

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The Toughest Man Alive Visit NAPMA.com/GeneLeBell WORDS OF THE WEEK

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staff development program should promote the growth of professional, working relationships with group training sessions, social activities outside the school and regular meetings to learn and appreciate each other’s interests. Understanding all five layers of your veteran teachers’ mindset is essential if you expect to retain them as part of your instructional team. Compensation is certainly a motivating factor, but too many owners think money will somehow overcome a lack of understanding of the other motivating factors above. This is not to suggest that compensation is not important to your veteran teachers. If they make positive contributions to the growth of your school, then they certainly deserve their fair share of monetary reward. Compensation is a byproduct of a job well done, however; and they will do the job you expect of them (and often exceed it) if you think deeper and include the five points in this report as an integral part of your staff development program.

The fifth layer is the quality of their relationship with the other teachers and staff. Every teacher at your school wants to earn the respect of their peers and feel connected to the mission of your school. Remember, your staff members spend approximately one-third of their time at your school, so it is in your best interest to create bonding experiences for your team. Often, peer reinforcement means just as much, and sometimes more, than monetary compensation. Another part of your responsibility as a school owner is to create an atmosphere where team members reinforce each other in a positive manner. You want new students and G.O.L.D. team members to be equally attracted to your school for the quality of instruction and the feeling of staff association. Your For more tools and reports, visit your Member Area at NAPMA.com

Retain Your Veteran Teaching Team With Understanding and Creative Motivation, Parts 1, 2

Virtual Classroom Videos — For Members Only

Your weekly instructor training program for May 2011

Children’s

Lee Barden— Fun Summ er Camp Games, Part 1

Adult Training Videos

Lee Barden— Fun Summ er Camp Games, Part 2

Lee Barden— Fun Summ er Camp Games, Part 3

Lee Barden— Fun Summ er Camp Games, Part 4

EDGE MMA Carlton Gracie — From the Archives: Great Escapes, Part 1

EDGE MMA Carlton Gracie — From the Archives: Great Escapes, Part 2

EDGE MMA Carlton Gracie — From the Archives: Great Escapes, Part 3

EDGE MMA Bill Kipp — The Soft Shield Technique, Part 1

Page 8 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

Sound Off Thanks for Helping Us Through the Recession Stephen, I wanted to take a moment and tell you how much I appreciate all that you have done

for the martial arts industry in general and me in particular. When I opened my school eight years ago I really didn’t have the tools necessary to to be successful in our industry. I decided to put myself on the fast track and go to your boot camp. I eventually went to three of them and each was better than the last. While I was in sales and marketing prior to opening my school, and I do believe I might have eventually figured “it” out, I said to myself, “why take the long and hard road when I can take a freeway to growing my school and being

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MASTERING THE MARTIAL ARTS BUSINESS

profitable?” Having just survived one of the toughest recessions our country has been through (and seeing how many huge companies didn’t make it) my family and I thank you for giving us the tools needed to not only survive, but thrive. Richard Timm Empire Martial Arts & Krav Maga

Making Amends for Criticism First, I want to make a public apology to NAPMA’s CEO Stephen Oliver, who is a long-time friend of mine who I harshly criticized this weekend publicly on Facebook. While I’m at it, I’d also like to apologize to EFC, MAIA, the ATA and just about every other martial arts association on the planet Earth, as at one time or another I have been hard on almost all of them. In general, I’ve been critical of the martial arts industry for various offenses of omission and/ or what I see as short-sightedness. I’m also a very competitive person — and when I’m thinking clearly I don’t allow that competitive drive to turn into judgement or overt criticism, but if I’m feeling a little, well … edgy, it’s easy for me to turn my drive into just the sort of thing I’m now apologizing for. I don’t want to be the kind of leader who fuels his machine with any sort of negativity, despite the fact that I have done that on many occasions. When I’m clear, I just want to do what I do, better. No group or person is going to do everything perfect, and while I don’t agree with or even like many of the strategies and tactics employed by my peers in the industry, I can admit that all of them, to the person, have done far more good (and to the best of their abilities) than bad. I know them all pretty well and they’re good people, with families and dreams and all the things I’d rather focus on than their stance on billing, contracts, advertising, management, or what have you. I’m struggling with finding my own voice, without contrasting what I want to do against what I perceive as the shortcomings of those who compete with my own efforts. I’d prefer to be mostly non-abrasive, as I think my favorite role models are. I also have to acknowledge that this might not See SOUND OFF, continued on next page

Why not send us a letter?

Learn more about the Big Ass Fan Company’s strong, silent fans by calling 877-BIG FANS ( 244-3267 ) or visiting www.BigAssFans.com

Covered by one or more of the following U.S. Patents: 6,244,821; 6,589,016; 6,817,835; 6,939,108; 7,252,478; 7,284,960; D587,799; D607,988 and other patents pending. ©2011 Delta T Corporation dba the Big Ass Fan Company. All rights reserved.

Mastering the Martial Arts Business Magazine welcomes your Letters to the Editor, news releases, stories and photos. To submit online: Visit Martial Arts Professional.com If you prefer email: Editor@Martial Arts Professional.com See Martial Arts Professional.com for additional letters not printed due to space limitations and blogs by Stephen Oliver and Toby Milroy. Letters may be edited for clarity and length. Please include your name, address and daytime telephone number.

MASTERING THE MARTIAL ARTS BUSINESS

SOUND OFF, continued from previous page

be my last public apology, but that I am looking deeply at my own ego and motivations — and working to be a far better example of the kind of martial arts teacher, and human being, that I want my practice to be about. I am trying to learn how to be a leader without criticism about things that don’t move the work forward. I believe criticism about others is the weakest way to forward your own agenda — it’s simply that I occasionally find that idea easier to think and believe than to act upon. But I’m aware of it — and working diligently to evolve into a better and more productive participant in “the village” of people that seeks to assist the martial arts community. This very public apology and acknowledgement, as public as my bouts of industry-scolding, comes after a troubled night of sleep of the kind I only ever get when my actions and values head in different directions. Sorry my friends and associates, I’m working on myself — and those of you who know me, I’m sure, know this to be one of my top 389 most significant personality flaws. I’m working on it; and a final acknowledgement for the fact that most —or all —of you don’t have the same negative behavior…and I admire you for that. This is a note to tell myself to pay better attention to my own thinking. I can do better — and am practicing, now. Tom Callos n

Mastering the Martial Arts Business Magazine Is Now Available for n iPhone n iPad n Android Devices n Online in Viewable Format Cr

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Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

May 2011 • Page 9

MASTERING THE MARTIAL ARTS BUSINESS

Is Your Vision Limiting You or Empowering You?

By Toby Milroy NAPMA COO

Reach your market through these channels: • Print Edition of Magazine (every school in U.S.) • Online at Community.MartialArtsProfessional.com • Tablet Editions for iPad and Android • Coming Soon: Text Marketing to School Owners • Email Newsletter (64,000+ Internationally) • MartialArtsProfessionalCommunity.com • NAPMA Business Breakthrough TV

ne of the greatest limiting factors to the growth of the martial arts industry today is a wholesale lack of vision among its operators and far too many of its leaders. The martial arts school industry is a very small niche, and one of the primary reasons it’s struggling to break into the big leagues is there are too many folks who simply think too small. The industry needs more people with a grander vision of what’s possible and the desire to make that broader vision a reality. What I mean by that is that the overwhelming majority of martial arts school operators in the nation believe that the full extent and realization of their career goals is running one single school with maybe 75, 100 or 150 students and maybe grossing $5000, $12,000 or if they get lucky, $17,000 a month. That’s all they believe to be possible, either by being surrounded by the wrong example, or being taught to think “small.” A few years ago Stephen Oliver invited me to join him on an inspiring quest to study many different business models that closely parallel the martial arts school industry. These industries included private tutoring facilities such as Sylvan Learning Center, Huntington, Kumon and Math

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ronment, tools, systems, and strategies to accomplish this type of business growth. Combined with a more expansive vision, our industry is heading for an amazing future.

Winter 2011

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Your Partners in Prosperity: The NAPMA Team

Working to help bring you the strategies and technical information you need to build a successful business.

Visionary Leaders

The door of opportunity will open wide for smart martial arts school owners in the very near future — if you’re ready for it. NAPMA is working NOW to reﬁne the vision of the martial arts industry to encompass all levels of success: professional, personal and ﬁnancial.

MASTERING THE MARTIAL ARTS BUSINESS

Monkey. We also studied the chiropractic industry, This vision drives its industry to reach for greater dance schools, gymnastics academies, cheerleading heights and to grow beyond what one single busifacilities, private schools, associations and many ness can accomplish on its own. Banding together others. Over the past few years, we’ve compared our often helps supports and grow an industry to everyindustry to these parallel business models and comone’s mutual benefit. pared the entrepreneurs and business owners that NAPMA aims to be that driving visionary force run them with the intent of using this knowledge to for the people in the martial arts industry. By joinexpand the martial arts industry. One of the things this compariThe greatest tragedy in the life of the entrepreneur son revealed was the isn’t that they set their goals too high and miss them. Rather, mainstream acceptance and brand development they set their goals too low and accomplish them. that many of these other industries have accomplished, that we in the martial arts industry have yet to achieve. ing together the schools, businesses and organizaLet’s consider the private tutoring industry that’s tions that serve our industry, we can empower dominated by several national and international thousands or tens of thousands of students, clients or customers, and create enormous career opportuplayers such as Sylvan, Huntington and Kumon. If you’re the parent of a student who needs some nities for owners, staff, managers and investors. private academic help, you instantly think of Sylvan. Just as others have done in parallel industries, Why have they been able to accomplish such martogether we can create hundreds and thousands of ket domination, and how might we in the martial individual locations, develop thousands of qualified arts industry accomplish the same thing? staff members and have a tremendously positive imOne of the driving forces behind the growth of pact on the communities we serve, our country and these businesses is the expansive and vibrant vision even the world. Our primary mission at NAPMA is of the most successful CEOs and industry leaders. to empower school owners with a supportive envi-

The first and most important realization is that no one is created with this vision. Donald Trump wasn’t born with the skills and ability he has today. Richard Branson wasn’t born knowing about the airline industry. Bill Gates wasn’t created with the vision he has today. This is a skill that can and must be learned and develop to create an expansive organization. If you take an example such as Donald Trump, he doesn’t know anything about clothing or retail, but he knows a lot about business. Yet he has a very successful clothing line in Macy’s. He has successful golf and country club resorts, commercial and residential real estate. It’s not that he has the fundamental institutional or operational knowledge of running retail clothing establishments. He has a vision and has surrounded himself with the right people to help him accomplish it. Richard Branson has Virgin Airlines, cell phones, music stores and retail locations. He doesn’t really have a lot of experience in those specific industries operationally, but what he has is the ability to translate his vision into reality. We have our martial arts business visionaries, like Y.K. Kim, Bill Clark, Jhoon Rhee, Tiger Shulman, Andrew Wood, Mike Dillard, Jeff Smith, Nick Cokinos and Stephen Oliver, to name a few. These are people who realize that there is much more opportunity in our industry than just running a single location with a hundred students. They are visionaries, not necessarily because they’re running the big, multi-location operations that they own, but because they’ve been able to translate their vision into something bigger than what most people think is possible. Who are the People Surrounding You? Small business owners in virtually every category have a common problem. According to the late, great Jim Rohn, “You’ll become the average of the

Stephen Oliver, MBA NAPMA CEO

Toby Milroy NAPMA COO

Brian Tracy

Bob Dunne, NAPMA Member Services

Frank Brown

Mark Graden

five people you spend the most time with.” We at NAPMA truly believe that, and this is why Stephen Oliver made possible the opportunities we’ve had the past few years to meet and work with dozens of millionaire and multi-millionaire business owners and entrepreneurs in this and many other industries. These are people who are at the top of their game in their individual fields. One commonality among these highly successful people is that they always seek out other people who are doing really well and surround themselves with those people. They choose to spend time with people who inspire them and who have expansive visions as they do. Small business owners, unfortunately, often do the opposite. If you think about the day-to-day life of martial arts school operators, they get up in the morning and kiss their spouse goodbye. They go to their school where they deal with their staff members, parents and students. Of those four or five people

NAPMA Helps You Create the Business of Your Dreams with the New Vision Planner Don’t simply read about creating a vision — start creating the business of your dreams by articulating your own corporate vision statement. By writing down your vision for a business, you are more likely to achieve those goals. NAPMA will help get you started with our FREE “Vision Planner for the Business of Your Dreams,” a set of downloadable worksheets that will get you off to the right start. The Vision Planner incorporates guidance for you to describe your dream business, S.M.A.R.T. Goals to specify exactly how you will achieve that business, and a tracking system to help you see your daily movement towards those goals. The new three-part Vision Planner is an invaluable tool for effectively converting your school to your dream. Visit NAPMA.com/VisionPlanner for more information.

(Specific and Clear)

If You Could Wave

a Magic

Wands and Create the Business of Your Dreams, What Would

Can Help Me) Achieve that Goal? Do I Need; What People What Do I Need to What Tools/Resources (What skills do I need;

it Be?

Describe it:

Potential Obstacles

Solutions

Lee Milteer

Gary Smith, NAPMA Creative Director

Marek Gahura, NAPMA Webmaster

that they just spent their entire day with, none of them are entrepreneurial visionaries, big thinkers or people who can really help them grow to the next level. Most of our students are children, and we’re there to serve them. We can certainly learn from them, but they’re not going to help us look at our business strategies and help us grow. We can’t have frank, honest, open business discussions with our clients. Our vendors, the people who serve us, are often too busy doing what they’re doing to have in-depth business strategy discussions. Our spouses can be very supportive, but are either busy with their own careers or the family. If your spouse is also your business partner, he or she has the same problem you do! Top performers find other people who have accomplished what they want to accomplish, and deliberately surround themselves with those people. They do this because they know that anything that isn’t growing, whether it is a business or an individual, will die. Finding the Right People

Daily Movement Toward that Goal What are the specific daily activities you need to be doing the accomplish that Goal?

GoalsTrackable) S.M.A.R.T. Attainable, Realistic,

(Specific, Motivating, Definite Goal Statements

Jeff Smith

What would your

school contribute

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NAPMA Vision Planner

What would your

school provided

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NAPMA Vision Planner

What would your

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There are an awful lot of industry consultants who have a low opinion of the opportunities available for a martial arts school operator. I’ve even heard some so-called industry experts make the statement that you shouldn’t listen to anybody who says you can be a martial arts millionaire, because it’s not a realistic goal. That indicates a dramatic lack of vision and a lack of accurate thinking. That’s just the sort of limiting belief system you should block out as you actively work to surround yourself with people who have expansive ideas. There are many in our industry who are running schools grossing a million dollars a year or more. There are many more martial arts entrepreneurs operating successful multi-school organizations with tens of millions of dollars in annual revenue.

12/30/10 6:45 PM 09138 MAB1210.indd 21

See VISION, continued on next page

12/30/10 6:45 PM

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in the industry, of true visionary world fascinating who discover the the pioneer king Andrew Wood, with his groundbrea or More changed lives to Make $100,000 In just seven book, How Martial Arts. 150 martial Teaching the of built a chain over 275 with years, Wood and mentored Legendarts schools coaching company, his business Author of five books, ary Marketing. of the first sucthe publisher magazine. Wood was arts business transmartial he cessful of his success, and did At the height to the golf industry interview of ferred over this insightful it again! Read by Stephen Oliver. on page 26 beginning Andrew Wood

largest marilled as the show in the tial arts super Action 2011 world, the of Magazine Hall to Martial Arts invited NAPMAthis Honors has presenter for be a featured of the show. Join and years’s version Stephen Oliver event Toby Milroy, this exciting Jeff Smith at and enthusiasts Arts. attended by ls in the Martial at professiona is being held The 2011 eventCasino and Resort the Tropicana New Jersey. City, on page 16 in Atlantic , beginning

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team deAPMA’s leadershipnew vision clares a powerful the martial and for NAPMA we reveal In this article, arts industry. le mission.” “unstoppab of the most NAPMA’s with some Having worked

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Exclusive NAPMA Member-Only Resources

Make Your Tie-in Marketing with Kung Fu PandA 2 Awesome!

Exclusive Opportunity for NAPMA Members in Kung Fu Panda 2 Promotional Partnership Napma’s COO Toby Milroy has negotiated another exclusive opportunity for NAPMA members with National Cine-Media for a promotional tie-in to the Blockbuster movie Kung Fu Panda 2: Kaboom of Doom. “Learning from our success with the original Kung Fu Panda, Forbidden Kingdom, The Last Airbender and The Karate Kid remake, we’ve designed a powerful marketing plan and resources for our members.” said Milroy. “We’ve had such good results with these previous film releases, we’re really excited about the summer blockbuster movie releases. Kung Fu Panda 2, Cars 3, Harry Potter, the Smurfs, and several others will attract millions of families and children to the movies this summer, and with the strategies and tools we’ve developed, martial arts schools will have a huge influx of new students as a result.” NAPMA member schools have at their disposal a tremendous library of proven successful marketing materials and the precise “Step by Step” blueprint that has created 200, 300, 500 or more leads, and 50 to 100 additional new enrollments in our member schools over the summer months. Milroy has negotiated other joint promotions with Sony Entertainment, and NAPMA members have successfully used this opportunity to enroll hundreds of new students. Previous promotions have resulted in 400 to 500 on-the-spot sign-ups for introductory lessons from prospective students. The original Kung Fu Panda was an extraordinarily successful family movie directly aimed at the target market of NAPMA’s member schools To help members make the most of this opportunity, NAPMA is going to teach our school owners how to tie directly into their local and regional broadcast media so that they can get publicity, public relations coverage and free media coverage in conjunction with the movie. Stephen Oliver is arguably the most successful martial arts school operator in his use of movie tie-in promotion, to drive intros and enrollments into his schools. As part of this promotional campaign, NAPMA will sponsor a special webinar and other interactive media with Master Oliver to instruct school owners in exactly how to maximize this opportunity. A Public Relations Goldmine Parents loved the character-building aspects of the original Kung Fu Panda movie. In this sequel, Po the Panda, voiced by Jack Black, is living his dream as the Dragon Warrior protecting the villagers in the Valley of Peace with his fellow warriors, the Furious Five voiced by Angelina Jolie, Dustin Hoffman, Lucy Lu, Seth Rogan, David Cross and Jackie Chan. Po’s new life is threatened by a formidable new villain on a quest to conquer all of China and destroy the art of Kung Fu. Po must find the courage to confront his mysterious past and unlock the hidden strength within him. Po will be joined by a new group of characters using the vocal talents of Gary Oldman, Michelle Yeoh, Victor Garber, James Hong and martial art film star Jean-Claude Van Damme as Master Croc. The movie will be released in IMAX 3D in select markets and is due to open in theatres on May 26, 2011. This will be a multi-media release with the video game version for Playstation 3, Xbox 360, Wii and DS all being released on May 23, 2011. Millions of advertising dollars will go into promoting the movie and video games, making this a phenomenal tie-in promotional opportunity for NAPMA members. Don’t miss the opportunity to ride the wave of promotion on this million-dollar campaign and drive traffic to your school. Visit NAPMA.com/Panda for more information. n

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Page 12 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

NAPMA News Japan has suffered two of the worst natural disasters in the history of the world. Thousands of people are without homes. Many are receiving mini-

plish that goal and to support important disaster relief efforts in Japan! Obviously, anyone can make a donation to a reputable charity quickly and easily, but we’ve taken it one step further. Using our proven success

Australian Red Cross

NAPMA Partners with World Vision to Support Japan’s Disaster Relief

mal daily rations of rice and water. In support of our fellow martial artists and school owners, NAPMA has partnered with World Vision International to help support the relief effort in Japan. At NAPMA, our mission is to expand the reach and impact of high-quality, professional martial arts training and instruction. This partnership is an opportunity for our members to work together to accom-

MASTERING THE MARTIAL ARTS BUSINESS

Houses swept out to sea burn following a tsunami and earthquake in Natori City in northeastern Japan.

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strategies, you’ll not only raise more money for World Vision International, but also fill your school with new students. This is an exclusive NAPMA program where you can learn how to raise thousands of dollars to support relief efforts while attracting more new students into your school. You’ll also attract positive media and press attention. We’ve provided a complete media campaign and revealed the proven success strategies that Stephen Oliver and so many of our clients have used to attract massive amounts of free publicity and media attention, making you a local celebrity. You’ll also position yourself as the community resource for public service and leadership. This program covers in detail how to leverage this strategy to create a groundswell of referral traffic into your school, and build your community impact. This creates a “Win-Win-Win” for your prospective students and their families by engaging them in your program and in your mission. View a special session with

MASTERING THE MARTIAL ARTS BUSINESS

NAPMA CEO Stephen Oliver shown only to our members at live conferences. We have a special value addon worth $3,150.52, but you can get these free school building resources from NAPMA as part of this exclusive program. For more information about how to implement this Japan Relief Program in your school go to http:// www.napma.com/japan. We have produced a video with further details on how to claim this resource for your school. n

Win the Gift of a Lifetime! Join us for a special webinar on Ultimate Gift Promotion and to hear some incredible success stories. Register to win the Ultimate Gift and live your vision of success at NAPMA.com/newyeargift

Chuck Norris Turns 70 Martial legend, film and television star, author and businessman, Chuck Norris celebrated his 70th birthday on March 10th. Norris’ phenomenal martial arts career began in the Air Force where he began training in Tang Soo Do, but eventually became the founder of Chun Kuk Do (Universal Way). In 1969, he won Fighter of the Year awarded by Black Belt Magazine for

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

Year. He is a six-time, undefeated Middleweight Karate Champion. His record when he retired was 183-10-2. In 1997, Chuck achieved another milestone in his life by being the first man ever in the Western Hemisphere to be awarded an 8th-Degree Black Belt Grand Master recognition in the Tae Kwon Do system. This was a first in 4,500 years of tradition. He had his first film role in the 1969 John Wayne film, Green Berets.

He met Bruce Lee at a demonstration event and starred as Lee’s nemesis in Way of the Dragon. His remarkable film career continued with his first starring role in Breaker, Breaker, but he is best know for the Missing in Action series. Other notable films include Lone Wolf McQuade, Delta Force and An Eye for an Eye. Norris transitioned his star power to television in 1993 with the longrunning weekly series Walker, Texas

May 2011 • Page 13 Ranger. The popular series ran for eight years. Norris was also instructor to stars including Steve McQueen, who is credited as having encouraged him to enroll in acting classes. In 2005, the Chuck Norris Facts Website became an Internet phenomenon with fictional heroic feats being credited to the popular star. Here are some of our favorites:

See NAPMA News, continued on page 16

Revolutionary New Martial Arts Website Literally “Sucks” In Tons Of Leads and Converts Them Into Paid Introductory Memberships – All BEFORE They Ever Visit Your Academy! “Imagine Your School Getting Literally 9, 17, 36, 58, 87 or Even 133 Paid Online Enrollments in a Single Month!” “With all the Enrollments My Site Gets Me... I Need a Bigger School!”

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hen I survey martial arts schools over the phone, 25 - 35% of the time I get a recording that says the number is no longer in service. Over the past two years when I mailed out Martial Arts World magazine, I have had to pay double postage 25 - 35% of the time because the magazines were returned because the schools had closed. Still many more schools barely pay the rent and worry about the future, and many more schools’ income have declined by 30-40%. This challenging economy has hit too many martial arts schools where it hurts – in the wallet.

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Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

MASTERING THE MARTIAL ARTS BUSINESS

NAPMA News, continued from page 13

Do You Have a Solution to a School Owner Problem? Reach your market through these channels: Reach your market through these channels: • Print Edition of Magazine (every school in U.S.) • Online Edition at Community.MartialArtsProfessional.com • Tablet Editions for iPad and Android • Coming Soon: Text Marketing to School Owners • Email Newsletter (64,000+ Internationally) • MartialArtsProfessionalCommunity.com • NAPMA Business Breakthrough TV

• Chuck Norris didn’t blow out the candles on his birthday cake. He glared at them until they melted. • God offered Chuck Norris the ability to fly, which he declined for a super-strength roundhouse kick. • When the Boogeyman goes to sleep every night he checks his closet for Chuck Norris. • China bordered the United States until Chuck Norris’ roundhouse kicked it all the way through the Earth. • When Chuck Norris had surgery, the anesthesia was applied to the doctors. Well known for his philanthropic activities, Norris has supported the United Way, the Make-A-Wish Foundation and served as a spokesman for veterans, earning the 2001 Veteran of the Year award. Currently, he promotes his KickStart program, which he founded to teach karate skills to at-risk children. Norris is father to five children and stepfather to two. He has been married twice. He is a devout Christian and political conservative. The Chun Kuk Do form he founded has 10 rules to live by. They

are Norris’s personal code: 1. I will develop myself to the maximum of my potential in all ways. 2. I will forget the mistakes of the past and press on to greater achievements. 3. I will continually work at developing love, happiness and loyalty in my family. 4. I will look for the good in all people and make them feel worthwhile. 5. If I have nothing good to say about a person, I will say nothing. 6. I will always be as enthusiastic about the success of others as I am about my own. 7. I will maintain an attitude of open-mindedness. 8. I will maintain respect for those in authority and demonstrate this respect at all times. 9. I will always remain loyal to my God, my country, family and my friends. 10. I will remain highly goaloriented throughout my life because that positive attitude helps my family, my country and myself. The staff and members of NAPMA wish Master Norris a happy birthday and hopes for another 70 years. n

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May 2011 • Page 17

MILE HIGH MAVERICK:

The Truth about Middle-of-the-Pack Pricing: A Business Model for Mediocrity By Stephen Oliver NAPMA CEO

ne of the hot topics right now from the martial arts “consultants” is how to set your price point for your school. The “consultants” suggest you run around calling every martial arts school in your area, and price yourself right in the middle. Moron Alert! When you do this kind of “survey” you are really making the decision to be a middle-of-the-pack school. All that will do is put you sniffing behind some of your competitors while having your heels nipped at by others. Wouldn’t you rather be the guy out in front? The current modern martial arts school model really came from two different and radically disparate sources: The health club or the dance studios like Fred Astaire, Arthur Murray and Art Linkletter Dance Schools. Pat Burleson and Nick Cokinos, the success pioneers, model the dance school industry. These are the guys who chose to offer an extremely high level of service and an extremely high level of accomplishment towards something the customer perceived as an extremely high value. Think the Ivy League schools of martial arts — something like Harvard or Princeton. The gym club model was used by people who thought if they turned down the price and charged a lower amount they would get more students. This martial arts school model is an alternative to, say, 24 Hour Fitness, where I can take many different types of classes. This model of enrolls students on an EFT at a price point that you won’t much notice, so you won’t go to a lot of effort to get it canceled. This model also counts on the customer not using the service much but hoping to at some point in the future when the crunch at work is over or the crisis with grandma is over or they get freed from this college course that’s taking too much time. With the gym model you’re looking for a price point low enough that with or without your student training actively, they’re going to continue to pay the price for a service they don’t value enough to make a priority to use. The good thing is there is a huge audience for this. All you have to do is look at the major fitness clubs, 24 Hour Fitness, Gold’s Gym or World’s Gym, to know that customer is out there. Now, I got a part of my start early on doing fails with the fitness center model, and I know that

are counting on not using the school and not noticthere’s two things that happened. One, the market ing the $29 deduction from their bank account for is huge but so is the turnover. Two, the customer several months before they realize they are never has a short attention span and likes the variety the going to use this “membership” and cancel. big gyms offer. You are going to run yourself ragged With the high-value model, you can charge $300, competing for a customer that doesn’t value your $400 or $500 a month. You also get an student that service or want to pay much for it. will likely be there for four or five years. When it On the other side, let’s say that we’re trying to create the equivalent of the most The “consultants” suggest you price yourself right in the middle. elite private school out there. The You are really making the decision to be a middle-of-thedownside is there pack school. All that will do is put you sniffing behind some of are fewer people clamoring for that your competitors while having your heels nipped at by others. service. You have to be more creative and more aggressive and more focused in your comes to pricing, it’s really deciding who it is you’re marketing to get in front of that customer. On the going to target and what kind of value they put on plus side, you can be somebody like my good friend, the service that you’re going to provide. Keith Hafner, who has a 1.4% dropout rate. Recently, I was talking to one of our Inner Circle Let’s stop and think about this. Over the course members, Shawn Harvey, about that exact dichotof a year that means that only 18% of your student omy. He offers a UBC-ish boot camp that brings body is going to drop-out. With the alternative gym people in for a couple of months at $400 to $500 a model it’s more that 33% a month drop-out. You head. Then, he converts them to a $250-per-month sell to more people who aren’t going to actually use student learning life skills, confidence, goal setting, your service. financial responsibility and the principles of investOn one hand we have a case like Keith’s, a highing in yourself. It’s about a whole variety of life skills quality school with less volume in the front doors, developed beyond just working out and maintainbut the ones who do come through value your ing your weight. service. On the other hand, you have students you See SOLUTIONS, continued on page 19

Page 18 • May 2011

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MASTERING THE MARTIAL ARTS BUSINESS

How to Get the Unfair Advantage Over Your Competition

ony Massengill has discovered a business secret! He is a very successful writer in the martial arts world. He has three books and a huge body of articles that have appeared in just about every martial arts magazine. He currently writes a column for every issue of Martial Arts Masters Magazine and is featured a great number of instructional DVDs from Empire Media. Tony has accomplished all of this in just the last five years! This kind of exposure has caused his business to explode over that five-year time period. He has gone from retirement from public safety in 2005 to operating a successful school as well as a very busy national seminar schedule. The articles and books have also been great tools that have boosted his tuition and brought him in contact with a very affluent clientele for his private classes. Massengill has now produced a training course that can teach martial art

Tony Massengill also presents strategies for becoming a local celebrity by getting published in local media as well as a method of using a newsletter to get your school advertisement in places that would never allow your advertising otherwise. school owners and instructors how writing and getting articles published can give you an unfair advantage over your competition. The course guides you through the process of writing the article or book, how to get past the gatekeepers in the magazines and get your articles and book proposals accepted for publication. The course also has input from two giants from the martial arts publishing industry: Michael James, who spent 23 years with Black Belt Magazine, five with Inside Kung Fu and is currently the publisher of Martial Arts Masters Magazine and CEO of Empire Media; and Jose Fraguas, editor of Martial Arts Masters Magazine and COO of Empire Media, who also had a long history with Inside Kung Fu and Unique Publications. Fraguas is also a prolific author with 23 books to his personal credit. These two giants explain what publishers and editors are looking for and the proper method and structure for presenting an article or book proposal. This is invaluable expert information which will save the writer a lot of trouble and disappointment. Tony Massengill also presents strategies for becoming a local celebrity by getting published in local media as well as a method of using a newsletter to get your school advertisement in places that would never allow your advertising otherwise. This method alone has been responsible for hundreds of students in his school in the last few years!

peared in literally dozens of magazines. These articles have put me in the top of the market among JKD instructors and have led to seminars across the U.S. and Europe as well as my recent DVD series with Black Belt Magazine. The information Tony presents in this course would have saved me a lot of heartache along the way and helped me reach my current level much faster. Just the advice from Michael James and Jose Fraguas is worth many times the investment in the course!” — Lamar Davis – Hardcore JKD “Tony has been a business adviser for my school and has given me a lot of great strategies to grow my business. Just his newsletter strategies in this course are worth the investment, but it delivers so much more! I have just gotten my first book published and it has already boosted me to the top of the food chain in my local market. The book is a great “business card” which has boosted both the tuition I can charge and the demand for both my group classes and my private instruction.” — Jason Korol – Greenville Academy of Martial Arts, Greenville, S.C. Nothing can catapult your business into the stratosphere and give you the credibility and celebrity as well an unfair business advantage faster than becoming a published author. There is a reason the word authority has the word author in it! Once you are published you are no longer the owner of just another martial arts school in town, you will be seen as the authority in your market. You are the one in the magazines! Information on this course can be found at www.EfficientWarrior.com/ GetPublished Or call Tony Massengill at 757-846-1188. n

What do you think this kind of exposure could do for your business? I built my career on my magazine articles. My articles have apA D V ERTORIAL

MASTERING THE MARTIAL ARTS BUSINESS

MAVERICK , continued from page 17

The other false assumption is that a lower price point has people flooding through your front doors. That almost can’t be farther from the truth. What does happen is there’s a market to target and there’s a certain level of responsiveness in that market in part based upon the demographics and the psychology of the people you are targeting. Let’s look at the high-end school example. Let’s say I’m getting 30 intros a month, and enrolling 20 of them at $200 a month. If I drop the price to $100, I may get another two or three people to sign up. I’ll tell you the other thing that happens is those two or three students who couldn’t afford the $200 are on the average less satisfied with my program, tend to complain more, and tend to not stay as long. It is like the average woman buying a purse. If she has a choice to go to Wal-Mart and buys one for $20 or go to Louis Vuitton and buys one for $1,350, she will value the Louis Vuitton. Even if they were identical, her perception is based upon the fact that she shopped in a store where nothing is priced at less than $1,000. It is a better buy because she values it more. Many years ago I was doing a seminar for the West Coast Organization and two of my favorite people, Ernie Reyes and Tony Thompson, commented on the fact I was charging $150 a month at the time. They didn’t think their market could support that price. (They have changed their opinions since then.) This was in San Jose, Calif. If you’re not familiar, it’s Silicon Valley, we’re talking about the home of Apple computer, HP, and an endless number of high-tech companies. They said, “The cost of living is so high here people can’t afford a higher price for lessons.” I’ve heard the same thing in reverse whether it’d be White City or Wichita, Kansas, or some small town in Ohio where people say, “Well, everything else is cheaper here, therefore my lessons have to be cheaper, too. Right?” Wrong. The cost of an iPhone is $500 in Manhattan or Paducah, Ky. Honestly, when it comes to pricing your school, there really isn’t as much variance as you might think from city to town because it is about what people consider valuable. Here is my other Moron Alert from the “consultants” on this subject. People think, and it is a true

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statement, that if their school is in a poor neighborhood, that they cannot charge enough to run a high-value school. My question is if you have a school in a location where everybody is broke, why were you stupid enough to open it there to begin with? Why don’t you move it as rapidly as possible instead of worrying about pricing to fit the market that can’t afford to buy? I am reminded of my friend, Dennis

Brown, who taught on Kennedy Street in Washington D.C., for many years, and had two drug related murders on the doorstep of his school. He said the best move he ever made was move into Silver Spring, Md., because he had done his duty giving to the underprivileged. He preferred the suburbs where people could pay the bill. You can argue suburban or urban location, small town or big city. There’s not as much variation as you

May 2011 • Page 19 might think. The excuse for charging a little amount may be, “Well, everything else is expensive here, we’ve got to be cheap.” The excuse may be, “Everything else is cheap here, we’ve have got to be cheap.” What you really mean is you just don’t have the resolve or the confidence to charge what you need to charge to offer a high-value service to people who are serious about using it. That’s the truth. n

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Page 20 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online By Toby Milroy NAPMA COO

GOAL-GETTER SERIES, PART TWO The Step-by-Step Blueprint to Achieving Your Martial Arts Business Goals

Step Two: Developing an Unalterable Belief in Your Vision

This article is the second in a 12part series on the specifics for setting success-oriented goals and earning more prosperity for your business.

MASTERING THE MARTIAL ARTS BUSINESS

Challenging Your Beliefs Beliefs are nothing more than thoughts that we hold to be true. Many of these thoughts come from the teachings of childhood. For example, a Tae Kwon Do student learns to chamber their counterforce hand by the rib or their belt. A student of Japanese styles of martial arts is taught to chamber near their hip or belt. Both students are taught that this is the correct way and they adopt a belief based on this teaching. Martial artists who have studied many styles know that there are pros and cons to both beliefs. What is correct depends on what style you happen to be using at the moment. Many of the beliefs that we hold to be true are a result of what we were taught as children. As an adult, we can examine and challenge these beliefs by adding to our knowledge base and deciding if what we think is true is always true. There are two common limiting belief structures found in many low-performing schools. One is the employee mentality from people who run their business as if it were a job. The other is the attitude that working for financial success somehow cheapens the martial arts. In the 1950s people expected to

n martial arts, we teach our students that you must believe all the way to your core that what you’re trying to accomplish is possible. Unfortunately, in our work at NAPMA we have encountered many school owners who don’t follow this piece of advice themselves. In working with school owners from around the world, we have found far too many who suffer from a poverty consciousness that limits their vision of success. Poverty consciousness is an absurd attitude that equates success with greed. It also believes that external forces like a recession can keep you from achieving your goals. This belief structure is the complete opposite of the wealthiest and most successful people in the world, who know that there is an unlimited supply of abundance. We call this attitude of success the entrepreneurial mindset. This is the attitude that you have when you Poverty consciousness is an absurd believe with an attitude that equates success with absolute, unshakable certainty that you greed. It also believes that external can achieve whatforces like a recession can keep you from ever your vision of success happens to achieving your goals. be. With the entrepreneurial mindset, go to work in a company, stay for 25 you see obstacles as opportunities or 30 years and then retire with a that expand the possibilities of your pension. They believed that security life and your own personal capabiliexisted in long-term employment ties. You don’t allow yourself to be with a single employer. In today’s stopped by the day-to-day realities economy, no one entering the job of business. market expects security to come There is a three-step formula from a single employer. Many people for adopting the entrepreneurial start businesses in response to this mindset and developing a belief in lack of security hoping to make just your goals. First, you must evaluate enough from their business to supthe beliefs you currently hold, then, port themselves. They develop just identify and challenge the ones that enough skills to accomplish this, but are holding you back. Second, you never reach beyond this level. When must surround yourself with posia recession comes along, these “just tive, like-minded people who are enough” owners lack the business also working to achieve their vision. management skills to survive. Third, you must seek the knowledge Then there are school owners that you are missing from the people who incredibly hold the belief that who have achieved something simifinancial stability is actually bad lar to your goal. Ironically, this is the for a school. They believe there is same formula for success we teach a moral superiority in being in the our students.

MASTERING THE MARTIAL ARTS BUSINESS

business for the love of the art, failing to see that all school owners in our industry love the martial arts. The reality is that the milliondollar schools have extremely high Black Belt standards. They produce superior students because they have the resources to give their students high-quality instruction. The highest performing schools are also actively involved in community service, using the martial arts to make a substantial impact on the lives of others. To effectively challenge your beliefs to determine if they are holding you back, ask yourself if your school is performing the way you want it to financially, with the quality of instruction you offer and with the satisfaction of your customer base. If you are facing challenges in any of these areas, ask yourself what you are doing to correct the situation. If you resist seeking new information or listening to new ideas; if you believe that you have “tried everything”; if you believe that “there is nothing that can be done” to change a situation, then you are limiting yourself with your beliefs. Surround Yourself with Other Entrepreneurs

Jim Rowan said, “You will become the average of the five people you spend the most time with.” For most school owners that would be their family, their students, their students’ parents, vendors and suppliers, and their social circle. The problem is that none of these people can help you grow your business. Tony Robbins advises that you love your family, but choose your business associates very carefully. More than the books you read and the media you allow to enter your thoughts, the people you associate with can make or break your belief in yourself. The entrepreneurial mindset makes many people uncomfortable because it challenges their beliefs about security. Most people have adopted the employee mentality because it somehow feels safer to have the weekly paycheck. Often school owners are confronted with family and friends who pressure them to give up their vision and “get a real job.” One of the best ways to support the belief in your vision is to find a support structure like NAPMA with other entrepreneurs who are all pursuing similar goals. Then,

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and here is the part where many members limit themselves, you must take full advantage of every possible opportunity to connect to these people. When you are facing the day-to-day realities of running a business and have to fend off the well-meaning but misguided advice of non-entrepreneurs, then contact with like-minded people becomes essential to keeping yourself connected to your goals.

This kind of group support does more than serve as a resource for problem solving. It is a network for accountability, a way to keep your vision in the forefront of your mind and a way to impose higher standards of performance on yourself. This year NAPMA will make it easier than ever to attend a conference of other martial art entrepreneurs by bringing the Financial Power Summit to five metro

May 2011 • Page 21

area cities. Every month NAPMA holds teleconferences. Every day we support the online forums and resources of the website. We make it as convenient as possible to keep this supporting network of entrepreneurs available when you need it. Listen to the People Who Know The single most effective way to neutralize a limiting belief is by

See GOAL-GETTER, continued on next page

Why on earth would you even want to consider joining with Mile High Karate for your school, your students and yourself?

Reasons why some schools think they shouldn’t consider Mile High Karate, maybe you are one of them:

It’s not for me: because I’m a member of ______ (fill in the blank for yourself; i.e. WTF, ITF or any other martial arts style association.)

he key reasons why business owners in any business join a franchise rather than go it alone are: robust and complete systems, an opportunity to create real equity and therefore wealth from their business, and the incredible power that comes with organization.

Why would you?

For your particular situation the reasons are clear:

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Second: Cut 10 to 20 years OFF of your LEARNING curve. That’s time that if you do it yourself you’ll never get back. Overnight, you’ll turn on “Plug and Play” systems without having to develop them. Immediately implement proven processes and methods that make your school operate more efficiently and profitably.

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Third: Affiliate and work together with other “Winners,” all working to develop a powerful national (and international) brand and school system. There’s incredible power in lots of smart and successoriented owners working together.

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Fourth: Plug your students into a huge national support system that helps them grow and enhance their character development, success skills, focus and achievement. You don’t have to be the expert in all things since they will plug into web sites, webinars, and teleconferences.

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Fifth: Immediately start using unparalled sales and marketing materials. You’ll have immediate access to our series of infomercials for upgrades, our infomercial for enrollment, and sophisticated AUTOMATIC sales processes to develop and support your students.

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It’s not for me because: I’m a Shotokan, BJJ, Goju, Kenpo or ___________ (fill in the blank for yourself) stylist. Did you know that … It’s NOT about changing your style, changing the root of what you teach your students, or abandoning your lineage or your first love? It is about creating an INCREDIBLY strong “character development” program for kids and families, and overlaying effective marketing, sales, business and accounting systems over your existing curriculum and style. It’s about having access to great teaching support if you need it, but it’s not about changing what or who you are as a Martial Artist.

Did you know that … It’s not abandoning your current association or Master Instructor. It’s about honoring that association by overlaying more effective business practices and student support to help your income SKYROCKET! It’s not for me because: Well, it says Mile High Karate and I’m BJJ, Kung Fu, Tae Kwon Do or ________ (fill in the blank for yourself) school. Did you know that … It’s really about Martial Arts instruction in a high-trust, clean-cut and professional environment. It’s about creating a SCHOOL that teaches character, confidence, focus, and discipline to all ages. You could just as easily think of it as: Mile High Martial Arts Mile High Kung FU Mile High BJJ Mile High Tae Kwon Do It’s not for me because: I don’t want to “lose my name.” Did you know that … You don’t have to? Really, think about it as “co-branding” — you’re always the key person, the master instructor, of your career. You are the focal point for your students and your community. Mile High brings national clout, and you retain your local credibility. For a complete, no-obligation information package and invitation to our next “Discovery Day,” call or register online today.

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Page 22 • May 2011

GOAL-GETTER , continued from previous page

expanding your mind with more information. Many so-called limitations are nothing more than lack of knowledge. When you know better then your school can perform better. It should come as no surprise that most of the low-performing schools are run by owners with no business management training. When you teach these same owners

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online the proven management fundamentals of multi-millionaires and provide them with the done-for-you tools in the NAPMA arsenal of support, their schools really take off. More importantly, all of the limiting beliefs they once thought were true fall away. Being an entrepreneur is a lonely profession because there aren’t a lot of people in the world who are willing to challenge the limits of their

thinking. It’s hard and scary to give up a thought you have always held to be true. You have to be confident in your mind about what your objectives are, but you also have to continually feed your vision of success with new information and ideas. You do this by studying the people who have gone before you to succeed in a vision that is similar to the one you have chosen for your-

MASTERING THE MARTIAL ARTS BUSINESS

self. How do they think? What are their beliefs? Compare them to your own and look for the differences. Those are the areas you need to target for more information because that person who has achieved their vision has learned something. It’s something that you don’t know yet but will help you get to the place you want to be. And it is far more useful than the advice of people who have not achieved their vision of success. Highly successful people are constantly challenging their beliefs to decide if what they hold to be true still works for them. If the thought no longer fits, or if it is working against their fundamental, unshakeable belief that they can do what they have set as their goal, they discard the limiting belief. Then they open their mind to new ideas and find a new belief that helps them achieve their goal. The litmus test for any belief is whether or not it helps you grow where you want to go. With the entrepreneurial mindset, the only real security is personal security. That is your belief in your skill set and what you believe it’s worth. What you believe to be successful is the standard you set for your vision. Any belief that supports that goal has value. Choose to support yourself with people and information that is positive, correct, proven and reliable. Choose to listen to the people who have actually accomplished what you have done. Next in the Series: Putting Your Goals in Writing to Keep you Focused

How NAPMA Can Help You Realize Your Vision For solutions to the challenges of running a martial arts school… View episodes of Martial Arts Business Breakthrough TV at NAPMAtv. MartialArts Professional.com. S.M.A.R.T. Goals

(Specific, Motivating, Attainable, Realistic, Trackable) Definite Goal Statements (Specific and Clear)

What Do I Need to Achieve that Goal? (What skills do I need; What Tools/Resources Do I Need; What People Can Help Me)

Potential Obstacles

NAPMA Vision Planner

Solutions

To download NAPMA’s free Vision Planner worksheets go to NAPMA.com/ Vision

MASTERING THE MARTIAL ARTS BUSINESS

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Industry Insider NAPMA Kung Fu Panda 2 Promotion Offers Amazing Gifts to Members To help you take full advantage of the Kung Fu Panda marketing opportunity with Paramount Pictures, NAPMA has assembled a special package of materials and free gifts. We’ve included a free report, 10 Ways to Dramatically Grow Your School and Benefit from the Kung-Fu Panda 2 Movie. The latest interview with Jackie Chan, the voice of Master Monkey, accompanies the reports along with a special sneak peak preview. Don’t miss the special teleconference with marketing genius Stephen Oliver, The Promotional Secrets Teleconference, and learn how to tie in all of this information to increase your enrollments.

Century Martial Arts Bids Farewell to Retiring President, Dan Bower, and Welcomes New President, Sarah Fields After 24 years of service with Century Martial Arts, the world’s largest martial art supplier, Dan Bower, president of the company, has announced his retirement with Sarah Fields stepping in to lead the company as the newly appointed president. When Century Martial Arts owner Mike Dillard brought Bower on board in 1987, he knew that he would leverage his immense experience in merchandising, sales and commercial sourcing to grow the company. Bower provided a unique combination of seasoned business expertise and martial art industry sensibility with over 40 years of study in martial arts. Dan Bower exceeded Dillard’s expectations and earned the title of president in 2000 when he effectively ushered in an entirely new era for Century Martial Arts. Bower forged new partnerships and pushed Century Martial Arts to record high revenues. Commenting on his retirement, Mr. Bower said, “I am very proud to pass the title on to Sarah Fields. She has been dedicated to the growth of Century Martial Arts for 15 years and I know that she’ll continue to build upon that strength.” Rising through the ranks since her career with Century Martial Arts began in 1996, Sarah Fields has always had her finger on the pulse of industry product innovations as a design engineer and eventually vice president of research and development in 2003. Fields led the way with her launch of the marketing department in 2005 and continuing in to her position as senior vice president of marketing in 2006. Moving in to the role of senior vice president of sporting goods, she was instrumental in building exclusive relationships with key brands, such as UFC and TapouT, as well as maintaining Century Martial Arts’ nationwide sporting goods product proliferation. Mike Dil-

lard remarked, “Her experience has made her an ideal choice to continue the tradition of excellence that our company, the world’s largest martial art supplier, has been known for during the last 35 years.” Sarah Fields said, “I am honored to have been chosen to keep the momentum of success going. Century has always been a front-runner in the industry and we have more exciting plans for the future.”

NAPMA Members Speak to Success in The Martial Arts Industry From 70 Students to 321 and Holding STRONG!

My time with NAPMA has been nothing short of great. The info packs that you send out every month have been excellent. I have gotten so many great ideas from you and implementing them has

May 2011 • Page 23

put my schools in the lead here. I have gone from a school of approximately 70 to a school of 321 and holding strong. We are expanding to larger facility. I’m doing all this out of 1,000-square-foot dojo. I used to charge $35 per month. Now, after dramatically raising my prices, I have people charging a lot less for classes a half a mile away and we are still four times bigger. Frank Monea, Chief Instructor Kempo Karate Australia

NAPMA Advice Doesn’t Compromise the Integrity of the Art NAPMA is about education and raising the standards of professionalism in the martial arts. For a few dollars a day, I’ve hired a prolific team of graphic artists, marketing experts, martial arts business consultants and researchers that have helped me become financially independent and have allowed me to pursue the essence of karate without selling out. If you’re passionate about teaching the martial arts, NAPMA membership is an absolute must. Brad Jones, Traditional Shotokan Karate Training Brad Jones Karate Do and Fitness Training Centre Newmarket, ON, Canada n

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May 2011 • Page 25

NAPMA BUSINESS SOLUTIONS:

Mandatory Business Systems for Martial Arts Schools T

o achieve the success that the top performers in our industry have, professional management systems are mandatory. Yet, so many martial arts school owners have little or no experience in running a business, and their success is limited as a result. NAPMA is ready with solutions for every challenge a school owner faces. This month our focus is on a few of the essential systems required to run a professional school operation.

Always have a plan for “what’s next” to keep you students interested and excited about your programs and your school, and to reduce attrition.

Member Question: Lower Student Attrition by Satisfying the Need to Succeed

Brad Underwood from Maryland has been a NAPMA member for about seven months. He's a regular participant on the monthly Maximum Impact Teleconference and we've spoken to him several times, so we are familiar with his business model. He recently asked a question about attrition that affects many school operations: "I'm having a great enrollment flow now, but my attrition has always been high and I've never really done much about it. It's running right around 9% a month. What do I need to do to stand the tide?" The short answer to this question is to satisfy the "need to succeed" in your customer. Human beings have a built-in "what's next" mechanism. When you satisfy a need or a want, you have a given excitement cycle and a given attention span. For a while after you get what you want, you are very satisfied. Then, you start thinking about the next level. Maybe there's something else out there that would be even better, right? That's what has kept our species alive. We're always out there trying to do better. We're trying to improve. We're trying to grow. To stop the attrition in your school, you have to recognize this basic human need to succeed and offer a benefit to satisfy it. In many schools, if a student enrolls in the program, he or she is in the same program until they're a third or fourth degree black belt, or until they drop out. Most of them drop out before they get that far because the school owner failed to satisfy that "what's next" mechanism to push to the next level. Lots of martial arts school operators resist having additional programs in their school because they think it's some sort of sleazy bait-and-switch sales process. In reality if your ascension programs are set up appropriately, students come to you wanting more because you are giving them what

they need. They need to be recognized as having NAPMA has a “done for you” solution called met their goals and as being ready to take the next the Ultimate Referral Machine that will help you challenge. set up the marketing funnels to attract quality Say you took all of the things that you curprospects and keep the communication going rently deliver to your students — all the curafter they are enroll. Check it out on our website at riculum, all of the material — and you called NAPMA.com/ReferralMachine. that Program A. Then, if you add another layer of what the customer wants and call that Solutions for Schools: An Effective Sales System Program B, you give the student something to Requires Attention to Every Step work toward. Schools with an ascension system To run an effective sales system you must take have all sorts of people in Program A who want 100% responsibility for everybody that contacts and choose to move to program B if it's structured appropriately. In fact, they can't wait to your school. You've got to have a strong sales proget there. This isn't salesmanship, it's offering a cess in place and that means every step of the way service to satisfy a human need to improve and with the introduction, telephone contact, enrollpush beyond their current limits. ment and renewal. When you run an ad in the To create a Program B in your school, sit down newspaper or on TV, you must be ready when the with a legal pad and starting talk to the parents in your “ Thanks so much for taking the time the other day on our school and some of the older students. Maximum Impact Teleconference. Having you and Stephen Ask them speOliver on these calls has really been great for me and my school. cifically, what they like about your Thanks to you guys. My last three months have been the best program. Ask what months in the seven-year history of me running my school. “ else they would they like to acBrad Underwood complish. You can create a completely new program to phone rings with trained staff. It's important to deliver that benefit to your customer. If you can have a script for that first contact when the phone satisfy that need, you're going to see your retention rings. Everyone who answers the phone must rate skyrocket.

See SOLUTIONS, continued on page 28

Page 26 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

MASTERING THE MARTIAL ARTS BUSINESS

An Attitude of Gratitude for…

Nick Cokinos, Founder of Educational Funding Corporation By Stephen Oliver

MBA, 8th-Degree black belt, NAPMA CEO

e’ve recently featured Jhoon Rhee and his Second Black Belt student in the United States, Pat Burleson, in this publication. This month in my Attitude of Gratitude Series, I’d like to talk about Nick Cokinos. My personal relationship with the “Chairman” goes back to 1976 having been a student of the Jhoon Rhee Institute going back to 1969. My indirect association goes back to the beginning for Nick’s relationship with Jhoon Rhee. Nick is a fellow Georgetown University Alumni (and West Point opt-out) who started his career with the Arthur Murray Dance Studios chain. As we discussed in the article about Pat Burleson, the dance studio business predated the martial arts school business in its levels of professionalism and commercialism. I’m told Jhoon Rhee inquired in the Washington, D.C., area for someone to help build his martial arts school (at the time he had one location where he taught full-time) into a substantial chain. Having discovered through Pat Burleson about the tools of the dance school industry, he discovered through recommendations Nick Cokinos. At the time, Nick was a franchisee of Art Linkletter’s “Rotten-Totten” Dance Studios. He was a regional developer for Washington, D.C., and had opened seven locations in 12 months to secure that territory. They had a model that included transporting the kids from school to the dance studio for after-school classes and focused on kids’ dance plus personal development (in the 1960s.) In my case, I worked closely with Nick as a staff member at the Jhoon Rhee Institute. He sat in on my Black Belt test in 1978, which was a rare private testing held during a Friday staff meeting. We worked closely together. It was an era at the Jhoon Rhee Institute where Nick was the president, Jeff Smith the vice president, Ned Muffley the general manager and Mike Coles the head instructor. I was branch manager of the Alexandria branch with John Chung and then Charlie Lee as my head instructor. In 1982, for a variety of reasons, Jhoon Rhee and Nick Cokinos had a falling out. Nick for the first time accepted martial arts schools other than Jhoon Rhee’s as clients for Educational Funding Company (EFC). Until that point it had been the in-house student tuition billing company for the Jhoon Rhee Institute. As I graduated from Georgetown University, I moved to Denver, Colorado, with Nick’s help (and Jhoon Rhee’s, Jeff Smith’s, Ned Muffley’s, and many others’), hoping to be a Jhoon Rhee Institute franchise. I became EFC’s first client. Jeff Smith introduced Nick to many of the leaders in the industry through the larger tournaments throughout the country, and, later, as I garnered international recognition (starting in 1983), I referred hundreds of school owners to EFC. My intent was to replicate what he had done with Art Linkletter (seven

Left: Nick Cokinos (second from right) in the early 70s. Above top: Cokinos, EFC founder and martial arts business pioneer with Stephen Oliver and Chuck Norris; above bottom: Cokinos applauds Stephen Oliver’s successful 1st-Degree Black Belt test.

locations in 12 months.) I ended up with five locations in 18 months and a $1 million-plus organization. Shortly after that Nick decided to organize his top clients into what came to be known as the EFC Board of Directors. At the time he had started the EFC top 10 “All Stars” list. I recall having three or four of the top 10 locations at the time. The founding Board included myself, Steve LaVallee, Dennis Brown, Keith Hafner, Greg Silva, Jim Mather, David Deaton, and Don Southerton. Others were added over the years, and some moved on. Over the years I was perhaps Nick’s “adopted son.” As the youngest member and perhaps most precocious, I was often the leader and always the most outspoken. Nick’s term (sometimes used endearingly, other times not) was “the Oliver twist.” Over the years I became quick friends with Andrew Wood, Bill Clark, John Graden and many others – in some cases suffering through comments from Nick about my “close and personal friend” when someone like Andrew was annoying to Nick or EFC. I was pleased to suggest or hook EFC up with Jay Abraham, Dan Kennedy, Chuck Norris and many others. In the history of the martial arts industry it’s important to note that those who in the 1960s and 1970s were derided as “commercial” or a “belt factory” are now the living (or deceased) legends of our industry. Those who “threw stones” at those individuals are mostly forgotten through the sands of time, having a minimal impact on our industry or its development. Nick was never a martial artist but is a business person who focused clearly on the highest possible level of student service — who pushed for a “student creed,” a focus on personal development, and a high level of student retention and progress. While never shy about encouraging schools to “get the gross up,” he’s been a constant voice of the value of increasing service and value and then pricing tuition See ATTITUDE, continued on age 32

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SOLUTIONS, continued from page 25

use the same script. The desired outcome of the first contact is an appointment. Whoever answers the phone calls has to be focused on that goal. The script they follow needs to build rapport, answer questions and schedule that first appointment. The next contact is the confirmation call to make sure that appointment is kept. Then there is the greeting when they walk through the door. These three first contacts must be scripted. This is the first impression of your school, and you only get one chance to make a first impression. Your staff needs to be trained so they are natural in their delivery and they don't sound mechanical. Next, consider the script for the introductory class. How do you preframe and pre-qualify the enroll-

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online ment meeting? Have a script in place for this step and again train everyone in delivering this important communication to your customer. What's the outline of the introductory classes? How to you get them to bring their checkbook to the enrollment meeting? At the enrollment meeting, be prepared to make a determination between objection and condition. An objection means the prospect doesn't fully understand or you haven't persuaded him or her. A condition is something that makes a prospect unsuitable for your school such as a transfer to Tucson in four weeks. You're not going to overcome job transfer, so don't invest any more staff time. Be ready with the script for doing an evaluation, a qualification and a price presentation at the enrollment process.

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MASTERING THE MARTIAL ARTS BUSINESS

After they are enrolled you need a script for pre-framing to keep their focus and to move them to the next level or the renewal. What's the outline for how they can handle the first classes to prep them for the upgrade? What's the outline for progress evaluation and preparing the student for the upgrade? Every communication for the services and program you offer must be standardized and your staff must be trained. You need to do frequent evaluations to make sure the script is being followed. It's your responsibility how your school is presented to the customer. An effective sales process depends on your seeing to the details, start to finish. NAPMA has all the sale scripts worked out for you at every level with our product The Way of… Series. This product includes tested and proven scripts for the introduction, telephone, enrollment and renewal process. Check out the Resource Center at NAPMA.com/Solutions. The "Done for You" Solution: Instruction Program for the Higher Values of Martial Arts Training

The overwhelming majority of our Peak Performers, Inner Circle Members and almost all of our NAPMA members realize that kicking and punching isn’t really the highest

benefit that martial arts training can accomplish. Learning the lessons of self-confidence and self-esteem and the goal-setting process are much more valuable to a parent and to the student. We really wanted to make that easy for our members and their instructors to communicate those true benefits of training to their students in class. The Words of the Week Program is a very specific script with a quote from a famous person, perhaps a politician, perhaps a former president, maybe a successful entrepreneur or business owner, with an explanation of the meaning of that quote. This is presented in a format that makes it easy to cover in your classes. We have two goals for this program. Number one is to fully communicate in an effective way the larger benefits of martial arts training to our students. Our students need to be reminded that is it more than just physical fitness or kicking and punching. These skills are things like overcoming fear, building self-confidence, goal-setting, how to relate to your parents, how to relate to your teachers at school. Those types of skills are fundamentals to the education of every child. Every adult needs to understand and fully embrace these higher value skills that lead to success in other areas of their life. Our second goal for this program was to design it to be very simple for your martial arts instructors to present. They can read through this at a Monday morning staff meeting and be prepared to teach it in class that evening. It's very simple to deliver, systemized so that is very predictable and every instructor in your school will present it the same way. The entire lesson takes about three minutes of class time. Any longer than that and you've got them sitting down too long. This very important solution provides a simple, standardized, easy to use instruction of the higher values of martial arts training that we provide to all of our members. It's a very powerful tool, really something you should consider if you are not doing something similar in your school. If you are not a member of NAPMA, maybe it is time you joined and take full advantage of the many solutions we offer for successful operations. For more information about membership go to NAPMAFreeOffer.com n

MASTERING THE MARTIAL ARTS BUSINESS

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

2011 Financial Power Summit: Learning the Secrets of Success Used by the Top Performers T

he first of five Financial Power Summits to be conducted in five metro area cities took place March 12, 2011 in Dallas. Five of the industry’s top performers, including NAPMA’s Stephen Oliver and Toby Milroy, and Martial Arts World’s Y.K. Kim, came together to show owners how to adapt their vision to this emerging economy. Using outdated and restrictive business models, many school owners fail to reach their fullest financial goals. The Summit was designed to surround motivated school owners with other people on a similar mission. This collaboration of the best and brightest school owners with very competent guides who have risen to the highest levels of success is intended to help people to get where they want to go. NAPMA’s CEO, Stephen Oliver, accomplished his mission by teaching attendees the techniques that are working online and offline in the trenches of today’s business realities. Attendees will save thousands of dollars otherwise wasted on ineffective marketing. The Summit’s leaders demonstrated how to work on their business rather than work in them by adopting the attitudes and management skills of the super-successful. This millionaire mindset was the topic of Master Kim’s

schools and how to push beyond just “hanging on” as is so often suggested by other so-called experts. They gave valuable and relevant information about the advanced concepts required to move a martial arts school to the next level. Schools performing at the level

The

Financial Power Summit Newark • Chicago Washington D.C. • Los Angeles

by creating a process that enrolls 85% of those prospects who walk through their door without using high-pressure techniques. The Summit Dream Team Master Oliver worked through the

Left: Smart, growth-focused school owners took advantage of the opportnity to work on their business, not just in their business. Above, clockwise from left: The “sold-out” Dallas Financial Power Summit was was a great success for attendees.

of 150 to 400 students learned the business concepts to systematize their marketing and sales process for greater results. The innovative marketing strategies discussed at the Summit are techniques that no one else in the industry is using, giving the edge to

NAPMA’s CEO, Stephen Oliver, taught attendees the techniques that are working online and offline in the trenches of today’s business realities. Attendees will save thousands of dollars otherwise wasted on ineffective marketing. insightful presentation. The progressive and goal-oriented school owners that attended were inspired and motivated by the dynamic Master Kim. The five outstanding presenters, who also include Kirk Pelt and Keith Winkle, went into the depths of what is really working with today martial arts

May 2011 • Page 29

the owners who attended. Attendees learned the proven strategies of successful martial arts millionaires, including the three areas of focus: develop their businesses to include expansion to multiple locations; acquire more customers; and increase their effectiveness in growing

basic business analysis he offers his private coaching clients and franchisees. This highly successful and acclaimed business analysis process gave a clear perspective to participants of exactly where the problem areas were in their operation. Grandmaster Y.K. Kim inspired with his phenomenal presentation about the lost potential in the industry. The greatest tragedy in the career of a professional martial artist isn’t setting goals that are too high to be obtained, but of setting goals too low that fail to take full advantage of their potential. Toby Milroy detailed the techniques of the super-performing schools to manage student turnover. Milroy covered the four fundamental truths of retention that you must implement to keep 98% of your students. Kirk Pelt of Martial Arts World taught the most effective way to use the powerful Internet database of

social media like Facebook and Twitter. These simple, yet very powerful strategies can leverage your time while still impacting the people you are trying to reach. Keith Winkle, super-successful multi-location owner and master of the art of promotion, showed the secrets of planning and organizing an event that will draw positive attention from your local community and media. Next Summit is April 30 in New Jersey

Because our members often have difficulty taking several days to travel to an event, the Summit is touring five metro locations for a one-day, high-intensity program from the people who know what they are talking about. We’re presenting at very convenient airport hotels to reduce your travel time even further. If you need to fly in, See SUMMIT, continued on age 32

Page 30 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

MASTERING THE MARTIAL ARTS BUSINESS

What Martial Arts School Owners Forget to Ask

lassical martial artists spend much time and energy to learn timing, as part of their training. For example, in traditional Japanese swordsmanship, when the warrior defeated his enemy, based on the moment in time, he became aware that an attack was imminent.

Go No Sen is the name for a warrior who saw the attack and defended himself. Sen No Sen is when he became aware of the attack and launched a counterattack at exactly the same time (a stop hit, per se). Eliminating an attack before it is launched is the highest level of strategy.

All the Things I Wish I Knew When I Was 22 I

’ve spent millions experimenting and learning, and frankly, I’ve wasted a huge amount of money learning very expensive lessons. The good news is that you can learn from my experience and keep the money for yourself. Really there are only a very few things that really matter for you with your Martial Arts School Business: 1. Lifestyle 2. Wealth 3. Contribution What’s that mean? Well, a huge number of school owners end up working 100 hours per week — barely making a living. Even if you make $200,000.00 or more per year, do you really want to spend every waking moment at your school? I’ll share with you some of the lessons that I’ve learned on how to “Get a Life” and still run a successful school. Wealth. Everyone talks about gross revenue. Well, certainly that’s important, but, let’s face it, for your business, gross is only relative to what your expenses are. What would you rather have: $170,000 per month gross with $165,000 in fi xed expenses (I’ve done that before — really), $35,000 in gross revenue with $20,000 in fi xed expenses? Ok, once you get the net up, what’s really important? Well, two things: How well you live now AND how much you keep and invest for the future. Most people — but frankly, a much higher percentage of martial arts school owners than the general population — get to 65 or 70 years old with no assets and no retirement income, and must continue to work or live on Social Security. Do you really want to be teaching martial arts daily, to make a living dependent on income from your students when you make it to 60 or 65? In “All the Things I Wish I Knew When I Was 22” I teach you why most things that school owners think of as success are really just ego, and why the truly important things get missed by most. Among the topics covered: ■ The employee problem. Why more is not necessarily better. ■ How to simplify your life and improve your income. ■ How to separate EGO from business reality in building your school and in developing your facility. ■ Save on your rent and work with your landlord effectively. ■ The many foolish distractions that school owners pursue, and how to avoid these mistakes yourself. ■ What gets measured gets done, or the art of unshakable numbers in management.

Chuck Norris on Stephen Oliver’s assistance with the EFC: “I just wanted to let you know how much I appreciate your efforts to develop a long-lasting relationship between EFC and KDOO. I can see why Nick has you on the Board.” — Chuck Norris

■ Grow your own, or no one knows the troubles I’ve seen. ■ A crisis must never be experienced for the second time! I’ll also share with you some incredible networking ideas: ■ How I got Chuck Norris to visit my school and generated huge amounts of FREE press and favorable publicity. “Steve was the most help of anyone in the country in promoting our movie, Side Kicks. I want to recognize and thank him” —Chuck Norris Note: His visit was covered by CBS, NBC, ABC and FOX Affi liates here in Denver, and Interviews fi lmed at our martial arts school, with the school mentioned by name, and were aired city-wide. We also ended up on Entertainment Tonight and a host of radio shows. Additionally, we had so many people there that we had 14 Arvada, CO police officers directing the traffic. Quite a PR accomplishment! ■ How I’ve networked with some of the fi nest business minds in the country. Who is it you want to get to know? Using some of these ideas, I’ve had the opportunity to: ■ Have breakfast with Jay Abraham and discuss martial arts marketing ideas, including the content for my infomercial. ■ Brainstormed with Brian Tracy. ■ Met and networked with the INC. Magazine Entrepreneur of the Year (he changed my entire “paradigm” of our industry!). ■ Hung out and brainstormed with some of the top marketing minds in the Internet today. ■ Hung out with Chuck Norris at his ranch in Texas and developed an ongoing win-win relationship. ■ Shared “lesson of the week” ideas with Denis Waitley. ■ Met, worked with, and in some cases, trained some of the best known marketing experts in the martial arts industry.

Everything I Wish I Knew 22 When I Was

Jump-start the success of your martial arts school by learning from Stephen Oliver’s experiences.

“What I Wish I Knew When I Was 22” By Stephen Oliver, MBA; 8th-Degree Black Belt; Founder Mile High Karate; CEO, National Association of Professional Martial Artists

Available from

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I am amazed at the martial artists that understand this self-defense theory, but fail to understand that this is a universal principle and must be applied to all areas of their lives. Most of them tend to spend all their time learning techniques to

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8th-Degree High Karate Founder, Mile of l Association CEO, Nationa ts Martial Artis Professional

”I don’t know how you’re able to study and come up with this much great material! I was just AMAZED at the content and the exciting ideas in this system. it’s really given me some great ideas. Every school owner must have it — NOW.” What I really like is anything that I want to run with and implement immediately — you give me ALL of the tools, all the steps, and even the click-through links to web sites, authors, software tools, etc. that I need to get up an running right away. This really is the most comprehensive, yet easily readable material that I’ve ever seen.” — Joyce Santamaria, Empire State Karate “I enjoyed your book “All the Things I Wish I Knew When I was 22”, especially the part about firing students and staff. At least now I know I am not alone, when no matter what I do, I cannot please everybody. All the books you have authored all seem very informative and relevant. There are several new concepts that I have not seen before, as well as many that I have seen, but need to see over and over again anyway. Thank you for providing all your information.” —Glenn Finke, Traditional Karate-Do Center “Your genius is the ability to see things from a perspective that virtually no one else does. Your combination of an MBA and 20 years pioneering ideas for professional martial arts instructors is a valuable treasure for school owners such as myself. School owners have a choice of either spending 20 years in the process of trial and error coming up with new ideas, all the while wasting precious time and energy, plus thousands of dollars, or they can get the “Cliff Notes” of success, which is your “EVERYTHING I WISH I KNEW WHEN I WAS 22.” That’s a starting point to standing on the shoulders of your wisdom!” —Chris Rappold, Personal Best Karate, Norton, MA “Stephen, I have to say that I would have paid the fee just for your “Everything I wish I knew when I was 22.” It was absolutely brilliant and really forced me to think about my own set up in the UK. I sat there reading it thinking, “This is me!” Many of the problems you highlighted I am currently dealing with myself, and your views were certainly a balanced and well thought out comment on my current situation. Keep up the good work.” —Stephen Cowley, Steve Cowley’s Martial Arts Academy, High Wycombe, Bucks, United Kingdom “I do want to thank you for marketing such an extraordinary package of materials. Awesome is the only word I can use to describe your package at such a low cost. I have had an academy (six days a week) open for the last twelve years and before that worked for one of my instructors for about six years in his five schools. The reason that I say low cost (and you know what i am talking about) is that we have paid out thousands of dollars over the years for business ideas and teaching ideas! The software is super! We have over the years tried everything that came along. Master Vision beats them all. The little book “All the things I wish I knew when I was 22” was worth the cost of your program. Anyway, it has been the shot in the arm that we needed and we thank you for the dose of medicine. Anyway, thanks for your program. Keep the faith and keep plugging “if you never give up, never quit and you never surrender you will never fail”. —Gordon Dixon, Tupelo Martial Arts Academy, Shannon, MS “Although we are worlds apart, the similarity of our markets is absolutely scary! I am currently reading through the “Things I wish I knew.........” for a second time and really enjoy your aproach. I am (was) a technical fighter and teacher all my life and only loved Karate-do. I am now rapidly changing to become a marketer, seller, business person etc. It had been an eye-opening experience to read the material you had sent. I am eagerly awaiting to apply nearly every single suggestion in the program. The similarity in our markets are really amazing! Although we are continents apart! I enjoyed the line, “I have not found even a single advantage into entering my students into the external tournaments.” I am currently working through all the material.”

—Soon Pretorius, Karate Academy of South Africa, Pretoria, South Africa

3/11/11 3:33 PM

teach their students, instead of studying business, marketing, sales and wealth “self-deTERRY BRYAN fense.” This PhD., 9th-Degree Black belt can result in their being vulnerable to lose it all with one lawsuit, if they don’t understand entity structuring and asset protection. With 80 million lawsuits being filed every year, an instructor is more likely to be sued than being assaulted on the street. Seventy percent of the world’s lawyers are in the U. S. More lawyers mean more competition for clients, and that leads to new and creative theories of liability and methods to extract profits from profitable school owners. Consider these lawsuit facts: • Contingency fees by trial lawyers exceed $10 billion annually. For personal injury litigation, more than $96 billion is spent or lost each year in America to pay $41 billion in compensation to injured parties and their attorneys. • Lawsuits are a real threat to martial arts school owners and their financial well-being. Imagine a punk sticking a .357 magnum at your throat and demanding your wallet, credit cards, jewelry and keys to your luxury car. You would recognize that your wealth and personal well-being are being attacked and maybe you’d even feel vulnerable and violated. You will experience the same feelings if you are sued, but that will be legal. As a Black Belt businessperson, you must learn skills to help you avoid ambulance-chasing attorneys who might target you and your hardearned assets. • Do you own the building that houses your school or do you plan to own it someday? This is one of the key elements to build wealth. If you are ever sued, then the jury (who are more likely to consist of people who pay rents as tenants and are usually jealous of those that have a little wealth and own

WarriorWiz

See BRYAN, continued on page 33

MASTERING THE MARTIAL ARTS BUSINESS

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May 2011 • Page 31

Time Integrity for School Owners: Idea Day, Part 3

ast month, I presented rules for your IDEA DAY. I recommend that you schedule one IDEA DAY per month that you spend reading and studying all of the business educational materials, books, CDs, DVDs, etc. that you invested money to acquire, but lee milteer have had NAPMA INNER CIRCLE and peak performers coach no time to focus on the contents. This month, in part 3, I’ll present you with the remainder of the rules for your IDEA DAY.

The Success Coach

Rules of Your IDEA DAY

Commit to spending the entire day to read and study materials that you’ve collected. Please take the attitude that you will work ON your business and not IN your business. It would be a good thought, during the first part of the day, to let go of your problems, put decisions on hold, allow your staff and family to take care of themselves for a day, and clear your mind of the many distractions that hold you back from really being present in the now. Listen to that stack of CDs. Read those newsletters that have been collecting dust. Once you have taken the time to review past educational materials, spend some time just thinking about your business, your life and your goals. Use this time to map out BIG ideas and strategies. The entire point of this IDEA DAY is that you are gifting yourself time to just think, brainstorm and dream. May I remind you that if you cheat on your IDEA DAY, then you are only cheating you. Wow, what would that say about your integrity to self? Again, I challenge you to set an appointment with yourself to work on your business and not to break those appointments under any circumstances. lee milteer SUCCESS COACH Lee Milteer is a well-known success coach, professional speaker, author and developer of the highly acclaimed Millionaire Smarts® concept. She is also the success coach for NAPMA’s Inner Circle and Peak Performers Group and a frequent NAPMA speaker. She can be reached at NAPMA.com/InnerCircle.

Write your ideas on three-by-five cards and put them on your vision board or write them in a journal or action plan, which you can review each month. You can even send the notes to someone who keeps you accountable, such as your coach or business manager.

Decide and Then Take Action on the ideas you had during this exercise. It’s really important that you take advantage of the time spent on the IDEA DAY and commit your thoughts and goals to action steps with deadlines for implementation. Be sure to write memos to your

staff about what you want them to do, based on the ideas that you’ve learned. I guarantee that if you consistently observe a monthly IDEA DAY, then you will reap great rewards, including a renewed sense of wonder See MILTEER, continued on page 33

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Page 32 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

Classified Ads

ATTITUDE, continued from page 26

Rates for classified ads: $50.00 for the first 30 words. $1.00 per each additional word. 50-word limit. To place an ad, or for additional information, contact LarryHalpern@NAPMA.com. The Secret to Explosive School Growth is Now Available!

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FREE Software Trial Run your school and track your students with the best martial arts software available. Visit www.igokaratesoftware.com or call 866-532-9588. Big Ass Fans® The Big Ass Fan Company designs and engineers contemporary 6- to 24-foot diameter fans for industrial and commercial settings. Every Big Ass Fan uses an energy-efficient motor to generate air movement in large spaces, providing occupant comfort and energy savings year round. More than 40,000 Big Ass Fans have been installed worldwide in applications such as industrial plants, hangars, schools, lofts and health clubs. For more information visit www.BigAssFans.com or call 877-244-3267. Jackrabbit Dojo Web-based martial arts school software featuring automatic billing, attendance and belt tracking. Monthly subscription fees start at $45. Request a Free Trial at JackrabbitDojo.com

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Advertiser Index Affiliated Acceptance Corporation. . . . . . . . . . 24 AMS Online Management Solutions . . . . 14, 15 Black Belt Books . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Big Ass Fans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Black and Blue Productions, Inc. . . . . . . . . . . . 33 CageFitness.com . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Century Martial Arts . . . . . . . . . 27, Back Cover EfficientWarrior.com . . . . . . . . . . . . . . . . . . . . . . 23 Full Contact Online Marketing. . . . . . . . . . . . . 13 K&K Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Jackrabbit Dojo . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

MASTERING THE MARTIAL ARTS BUSINESS

IgoFigure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Markel Insurance Company. . . . . . . . . . . . . . . 28 Martial Arts Group . . . . . . . . . . . . . . . . . . . . . . . 22 NAPMA/AMS Financial Power Summit. . . . . . . . . . . . Inside Front Cover Sports & Fitness Insurance Corp. . . . . . . . . . . . 33 Swain/Dollamur . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Tae Kwon Do Times. . . . . . . . . . . . . . . . . . . . . . . 19 World Class Medals. . . . . . . . . . . . . . . . . . . . . . . 16 Zebra Mats. . . . . . . . . . . . . . . . . Inside Back Cover

Coming Soon Highlights from the last NAPMA Financial Power Summit and a preview of what to expect in a city near you. The next installment of our new Goal-Setting series, “Write It Down,” and Mile High Maverick covers Martial Arts business basics. New columnist Brian Tracy discusses “The Three Parts of Your Self-Concept.” Plus, a new Attitude Of Gratitude installment. Find columns by Stephen Oliver and Toby Milroy at MartialArtsProfessional.com

accordingly. He was clearly an early voice for professionalizing and commercializing the martial arts industry and unconcerned about the jealous or misguided opposing voices. For myself he was a close mentor from the early 1980s and for 20 years after that. He gave me steady guidance and advice — again more like an adopted son than as a client. Sometimes he was right (more often than not), sometimes wrong, but always intelligent, sincere and thoughtful. I still use and think about many “Cokinos-isms” as I work day to day: “I’d rather have a crisis than a sloppy situation,” “Are you driving the bus?,” “The rising tide lifts all boats (borrowed from JFK),” “Prophylactics versus Therapeutics” and many, many others. His contribution through the Jhoon Rhee Institute and then through EFC to our industry cannot be overstated. The lineage of schools developed through those two organizations and the percentage of schools that have achieved at a high level and came through his influence is truly staggering. Many organizations that you are aware of sprung out of EFC. Greg Silva left in a dispute with Nick and founded United Professionals, Jim Mather founded International Martial Arts Management Systems (IMAMS). John Graden, after working with EFC and myself, founded NAPMA. Frank Silverman (Martial Arts Industry Association) was a top Greg Silva client. Tom Callos, the Kovars, Steve LaVallee, Pat and John Worley and many others came from EFC or, of course, from Jhoon Rhee. A personal thank you goes out to Chairman Nick Cokinos for his friendship and mentorship and a collective thank you for his leadership in the 1960s, ’70s, ’80s, ’90s and today. As a side note: I intend to write about those who had wideranging impact on our industry. Certainly, many will be those who I have had a personal relationship with now or in the past. Omission of any significant figure is not intended as a slight. We welcome informed contributions and guest columns on historic figures with whom you may have significant knowledge of or be interested in writing a tribute to for publication in this magazine and/or in our online version. n SUMMIT, continued from page 29

you can ride across the street. No need for rental cars. The Financial Power Summit is part of NAPMA’s vision for unlocking the full potential of each of our members and to boost the industry to a whole new level of excellence. We invite you to join us at this can’t-miss event to learn the secret of some of the top producers in our industry. For more information go to www. NAPMAseminar.com. NAPMA is proud to co-sponsor this year’s Financial Power Summit with Amerinational Management Systems and Isagenix Nutritional Cleansing System. Isogenix nutritional cleansing and replenishing system has helped hundreds of thousands of people get in the best shape of their lives. A.M.S. has been supporting martial arts schools for 26 years with billing services, custom software products and web strategies. n

Get Your Business or Service in Front of 17,700 Martial Arts School Owners Who Need to Meet You! Mastering the Martial Arts Business Advertising | Print, Online, iPad, Android, iPhone Contact Larry Halpern for information at LarryHalpern@NAPMA.com

MASTERING THE MARTIAL ARTS BUSINESS

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

MILTEER , continued from page 31

BRYAN, continued from page 30

and excitement about your business. As business owners, we often feel burnout, as a result of having to deal with so many problems. An IDEA DAY allows you to renew your enthusiasm and creative flow again. We typically discount the importance of the time that we need to be working on ourselves and on our businesses. The bottom line is: You are to honor this appointment with yourself. Have integrity with yourself – No Excuses! I want to share with you that the most successful people I know all take the time to learn and seed their minds with a massive amount of educational materials from coaches, magazines, books, industry reports, information products and educational CDs and DVDs. If you don’t take the time to study new things and see the world from different perspectives, then you will cut yourself off from the value of learning from others. No one should be reinventing the wheel in your business. What a huge waste of time that would be! Learn from the mistakes and successes of others. Being a lifetime learner is one of the best skills you can have in our ever-changing world. Please honor yourself and take the time to actually learn new things. You have everything to gain and nothing to lose! Scheduling and following through with an IDEA DAY is one of the best ways to stay in integrity with self and your time. n

real estate) may consider your trial as a “pay back” opportunity to even the score with any hard-nosed landlords. Consider this: most judges may earn less than you. How sympathet-

Want More? Lee Milteer is the Success Coach to NAPMA Inner Circle and Peak Performance members and provides a wealth of tools and techniques. In addition to helping martial arts school owners become more successful, she has taught the same techniques to many of the top Fortune 500 companies. Lee is a popular speaker at many motivational events across the country, and publishes a well-regarded monthly newsletter and recordings, many of which NAPMA provides unrestricted access to for members. To read more about Lee Milteer visit NAPMA.com/InnerCircle

ic could they possibly be? Do you think it’s likely you’ll receive a fair trial? You might as well just hand the court your checkbook and the title to your house or commercial building! Do not rely on counterattack strategies; instead, be proactive

May 2011 • Page 33

and put your action plans to work in advance, before trouble happens. Once a lawsuit starts, it is too late to move or hide assets. It must be done in advance. Now is the best time to start to learn wealth selfdefense. n

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Page 34 • May 2011

Martial Arts Professional.com for iPAD, Tablets, Smart Phones and Online

MASTERING THE MARTIAL ARTS BUSINESS

The X-Factor

composite of all the different beliefs, s the owner of a growing values, attitudes and opinions of the martial arts school, your individual. All changes in or improveability to manage your staff, ments in external performance and students, leadership team members behavior begin with improvements in and yourself is a critical skill for you the self-concept. to develop. People, and their ability to In companies with highly motivated contribute to your organization, are workforces, you find people with positive your great untapped reservoir. It is self-concepts. In companies that have what is going on between the ears of BRIAN TRACY average productivity, high failure rate the average person, where the greatest psychology of success and lots of mistakes, you find people potential for growth, development, with low self-concepts. Self-concept is made up of productivity, performance, achievement, profitthree factors. Factor number one is the self-ideal. The ability — everything — lies. self-ideal, or the ideal image, is the ideal or image or One of the things we know about is that you picture that individuals have of the very best person cannot motivate people, all you can do as a leader they can possibly be. That is why companies that are is create an environment where potential and motivation are released naturally. really successful have a culture, and have people in After World War II, the great managerial the company that people look up to and admire. advances have been psychological in nature. We Number two is the self-image, which controls call this the “X-factor” and it explains more than performance on a day-to-day basis. And we know any thing else why some companies succeed and that the way that we see ourselves on a day-to-day others fail. Certainly, it has been demonstrated in basis is largely determined by the way people treat us. the evolvement of how students are treated within If a person treats us as though we are important, we martial arts schools now and 20 to 40 years ago. tend to see ourselves as important. We tend to act as though we were important. If a person destructively The psychological factor really comes down to criticizes us, runs us down, then we tend to think a very simple point, the discovery of what is called that are are not particularly competent, and we act as the “self-concept.” The self-concept is the belief though we are not particularly competent. structure or value system of the individual. It is a

Success Secrets

The third part is self-esteem. The self-esteem is how you feel about yourself. The best definition of self-esteem is how much you like yourself. It means that the difference between a good organization and a bad one is how much people like themselves in the organization. In the martial arts, this is similar to the difference between esteem based on the internal hierarchy, and esteem based on human worth. When I started my karate training in 1964, a white belt was looked down on like a child. This is certainly counterproductive based upon what we know now. Today, a common trait of successful schools is that all members of the school are treated well, and with respect, regardless of rank. n BRIAN TRACY CEO, BRIAN TRACY INTERNATIONAL ACMA board member Brian Tracy is a Karate Black Belt and a worldrenowned expert in the field of human development and motivation. Much of his success is a result of the discipline he learned through martial arts training.

Can’t Get Enough of Brian Tracy? Brian Tracy is now providing his life- and business-changing counsel to NAPMA members to help them succeed. For more information about accessing this unique content, visit MartialArtsProfessional.com/BrianTracy.

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June/July 2010 • Page 35