How Much Does It Cost to Run a Martial Arts School?

When you're thinking of opening a martial arts school or just starting out, it's an exciting time with a long to-do list. You need to create a business plan and as part of that, you need to know how much it's going to cost to run a martial arts school. 

Of course, your location and specific needs are going to affect the final costs. This guide helps you understand the basic costs of running a martial arts studio and provides you a look at some average costs involved.

Commercial Rental

You'll need a location to open your martial arts school. For this type of property, you'll need to secure a commercial rental property or buy a property that's zoned for commercial use. 

It's a good idea to include space for at least one classroom/studio area, a visitor viewing area, restrooms and changing area, and a reception area. You might also consider a space with an office area. 

When you're looking at commercial rental properties, the leasing agent might try to push you into leasing a larger space. You want to avoid that. A little room to grow is okay, but you don't want to pay for unused space. 

Commercial space is rented by the square foot, and the cost is per year. You can expect to pay between $25 and $75 per square foot, depending on your geographical location. If you're opening a martial arts school in New York City, you'd expect to pay more for space than someone in a small town in Michigan. 

When you're first starting out, you'll need around 1,200 square feet of space for classes and about 1,000 square feet for everything else. This makes the average monthly cost between $55,000 and $165,000 per year. 

Utilities

Yes, you're going to need to keep the lights on. Your martial arts school will probably require at least electricity, water, internet, and phone service. When you're first starting out, you could use your personal cell phone as a business phone to save money. 

Depending on the space you lease, an additional utility cost could include natural gas for heating in the winter. Also, some commercial leases might come with water included in the costs. 

On the plus side, most of your students will be school-age children and working adults. You can concentrate your classes in the evenings and Saturday mornings to minimize the use of electricity and water. 

The average cost you can expect to pay in utilities is around $2.10 per square foot per year. If you rented a 2,200 square foot location, your average yearly cost would run around $4,620 each year. 

Insurance

You might consider skipping insurance if money is tight, but you shouldn't. When you're working with children and inexperienced adults to teach them martial arts, the chance of injuries or an accident is high. 

Without liability insurance for your martial arts studio, a judgment against you could leave your business bankrupt or deplete your cash reserves. In some cases, the costs might encompass your personal assets as well. 

A liability insurance policy will also cover any inappropriate actions taken by employees. It's always a good idea to do a background check on each employee, but you never know what might happen.

An insurance policy can also take care of damages to your rental property, such as a broken plate glass window or water damage. The average cost of insurance will run around $1,100 per year. 

Equipment Financing

Depending on the martial arts discipline that you teach, you'll need to buy equipment. It might only be mats and a few basics, or it could be a substantial amount of equipment. You need to have all the equipment you need to teach any level class in place when you open your business. 

The good news is that it's easy to find financing for your equipment, so you don't spend a large portion of your cash reserves. The average cost of equipment financing will run around $100 or more per month, depending on how much equipment you need. 

Website Design and Maintenance

In the modern world, a website is a must for any small business, including a martial arts school. Before you even open your doors, you want a website up and running, so prospective students can easily find you.