As a business owner, the risks are yours alone.
From signing leases, hiring employees, and handling lawsuits, it’s your financial fortune on the line—not your employees'. In today’s world, hard-working business owners are often seen as greedy or selfish.
That’s why I want to talk to you about the Risk/Reward Ratio and what it really means for you as a martial arts school owner.
Taking the Risk, Reaping the Reward
Anyone can collect a paycheck, but not everyone takes the risk of building a business.
When I started NAPMA in 1993, it was from the spare bedroom of my house. I was also running two martial arts schools at the same time. It was all on me—my risk, my responsibility.
I personally created the concept, content, and even hired an expensive art director to make sure NAPMA's materials were top-tier. I was on the hook for $26,000 a month for production, printing, and mailing costs.
None of my employees were at risk for losing that money. It was all on me.
The $10,000 Gamble
One of the biggest risks I took was spending nearly $10,000 to mail 1,000 sample membership boxes across the country. The boxes included professionally produced videos, newsletters, ads, life skills lessons, and more.
It was a gamble, but it paid off. We signed up 125 new members in the first month.
When NAPMA grew to millions in revenue, we hired 25 employees. But whose risk increased? Not theirs—mine. If the business failed, I was the one losing sleep at night, not my employees.
Lessons in Lawsuits
I hired good people, including friends, but when things went wrong, I was the one holding the bag.
I was served lawsuits so often that I began to hate the sound of a knock on the door. The expenses of court battles, federal trials, and lawyers nearly destroyed me.
I had to drain my kid’s college fund and sell off most of what I owned to cover the costs.
Did my employees chip in to help? No. It wasn’t their risk. It was mine.
And because it was my risk, I was entitled to the reward.
Small Business Owners are Not Villains
There’s a growing movement that paints successful business owners as the bad guys, claiming we should be taxed more and forced to share with those who didn’t take the same risks.
The truth is, small business owners take on enormous risks every day. The taxes and regulations that politicians want to add only increase the risk.
Don’t Be the Caddie, Be the Champion
It’s frustrating to see employees claim credit for your success, just like Tiger Woods’ former caddie taking credit for Adam Scott’s victory. Employees don’t lie awake worrying about payroll taxes, healthcare benefits, or the landmines in hiring new staff.
As a school owner, you are in the arena. You are the one marred by dust, sweat, and blood. You’re the one who knows great devotion, triumphs, and failures.
The bottom line is simple: if you’re taking the risks, you deserve the rewards.
Why Should Someone Choose Your School?
When school owners come to me for coaching, the first thing I help them with is understanding the real value of their school. Too many owners focus on price, and that’s a mistake.
Ask yourself these three questions:
- Why should someone choose your school over others?
- Why should they choose you, regardless of price?
- What value are you really offering for your tuition?
Position Your School for Success
Many martial arts schools lead with discounts and low prices. That’s a terrible message.
If you and your competitor both shout about low prices, you both lose. Someone has to be the most expensive, and that someone should be you.
When you place the value on the experience, not the price, you stand out as the best. My school was always the highest priced in the area, but we delivered a top-tier experience. From the moment you walked in, you knew we were the best.
Parents care more about trust, safety, and development than a cheap price tag. Focus on those qualities, and your school will thrive.