Is a Martial Arts Studio a Profitable Business?

If you love one of the disciplines of martial arts, you might be considering opening your own martial arts studio. However, before you commit your time and resources, you want to know that a martial arts studio can become a profitable business.  

While the business plan for a martial arts studio looks a little different from that of a restaurant, yes, it's possible to make a martial arts studio profitable. This guide can help you see how martial arts studios make their money and tips for becoming a profitable business.

Main Source of Income for a Martial Arts Studio

The main source of income always comes from the students that you teach. In some cases, the student signs an annual contract. This contract outlines the amount of money the student pays each month along with the number of weekly or monthly classes this cost includes. 

The student is obligated to make the monthly payment throughout the year of the contract whether they attend classes or not. However, you want them to attend their classes and enjoy learning martial arts as much as you do. 

You want them to attend and enjoy their classes for two main reasons. First, if they're attending the classes, they're more likely to sign up for another year when their current contract is complete. 

Second, you want a referral business. A student attending classes and enjoying learning the martial art discipline that you're teaching is more likely to tell their friends and encourage them to join your studio. 

Another consideration is the monthly payment. While you do have a contract for a year, a student who stops attending the classes is likely to stop paying. You can take them to court to get this money, but that takes time and money to do. 

As your business grows, and you add more students, you might need to operate more than one class at a time. This could mean moving to a larger space and hiring another instructor or several. 

Martial arts studios are going to offer classes mainly at night and on the weekends. These types of classes can be costly and appeal to people with full-time jobs and their children who are in school during the day, so you'll need to offer classes around their schedules. 

Additional Sources of Revenue for a Martial Arts Studio

You can create additional income streams for your martial arts studio. Depending on the discipline of martial arts, there might be practice equipment that you can sell to your students. This also helps to keep their interest in your classes as they practice at home. 

Some students may sign up for multiple classes each week. With busy families, they might not have time to wash their uniforms between classes. Your studio can make some money selling extra uniforms. 

You might consider some branded merchandise for your martial arts studio. It might consist of t-shirts, jackets, keychains, and bumper stickers.  This type of merchandise allows your students to show pride in where they're getting their martial arts training while also serving as free advertising. 

In martial arts, there are almost always levels. A new person starts at the bottom and completes each level before becoming a master or black belt. There are specific movements and stances to each level. You could create a video series outlining the movements of each level and sell them to your students. 

These videos can be used at home by your students to practice. You need to be careful that students aren't moving past their current level, but you can make a tidy profit if you have the videos professionally done and copied. 

Listen to your students and look for ways to fill a need. Opportunities to make your martial arts studio might come in ways that you never even considered. 

Tips for Making and Keeping Your Martial Arts Studio Profitable

Your martial arts studio is similar to other small businesses if not the same. There are some tips that you can take from small businesses and apply to your martial arts studio. 

Marketing and branding

You might think that marketing and branding are only necessary for businesses that sell a product. However, you're selling a product too. You're selling knowledge and skill. A robust marketing campaign can see the number of memberships soaring in your studio.

Social Media

Social media can be an invaluable resource for your martial arts studio. You want to create accounts on all the available platforms for your business. Create a private group on Facebook and only allow current students to be members. Encourage all your students to leave Yelp reviews and use a hashtag with your studio name when they post videos and photos of classes and of tests for the next levels.

Insurance

While you go out of your way to ensure each student is careful, you know that injuries happen in an instant. Your martial arts studio could be faced with a judgment or lawsuit that decimates your cash reserve or causes you to close the business. There are also liability claims for the actions of your employees. Damages to a rental property can also lead to big issues. The right liability insurance policy for your martial arts studio can make all the difference and ensure that you're protected against worst-case scenarios.

Collaborate with other small businesses in your area

Talk with other local small businesses to collaborate with them. You might consider working with a health food store or a local sporting goods store. You can plan special events or simply promote each other's businesses.

Be seen and active in the community

Most people prefer to do business with local companies, especially if they see that business giving back to the community. 

You can make your martial arts studio successful and profitable if you're willing to work hard and make smart choices. 

At NexoFit, we want to partner with you to provide outstanding insurance options that protect your business from the unexpected. We understand how hard you work and want to help you keep it.  to learn more.