Determining a good size for your martial arts school depends on the area and the rent.

Remember, you want to build a profitable school, not just satisfy your ego.

Key Considerations for School Size

When choosing the size of your school, consider the following:

  • Target Market Segment: What segment of the market are you aiming for?

  • Class Scheduling: Will you be able to schedule and support two classes per night, or five?

If you only have two classes, you may need more room to fit all the students.

If you can support five classes a night, smaller classes allow you to make a smaller space profitable much faster.

  • Space Requirements: Kids take up less space than adults.

It’s often better to lease a smaller space that offers the opportunity to expand later than to take on a larger space that you might regret.

Strategic Leasing Decisions

Always look for a space that has an empty space next to it, which gives you two benefits:

  1. Negotiation Leverage: Empty spaces mean lost money to a landlord.

It’s harder to rent a strip of stores if some are empty, as traffic is key, and empty spaces don’t create traffic.

Landlords are often more receptive to negotiation just to start filling some spaces.

However, be cautious—spaces may be empty for a reason.

Make sure the space is in the right area and talk to other stores in the plaza to see how the landlord is to work with and how business is at this site.

Also, if possible, track down who was in the space before.

Ask them why they left and if they would rent there again.

  1. Expansion Opportunities: An adjacent empty space may provide a good expansion opportunity when you’re ready.

Include a clause in your lease that requires the landlord to give you the first right of refusal at the same rent rate or lower as your current space.

This way, if someone wants to rent the space, the landlord has to offer it to you first.

In some cases, the landlord may receive a higher offer for the space.

You may be able to negotiate that you will allow the landlord to rent the space to the new client, but only if he lowers your rent.

If the numbers are right, the landlord may be able to rent the space, lower your rent, and still come out ahead.

Just make sure you won’t need to expand before your current lease expires.

Ideal Size Ranges

For new schools, my experience suggests that about 4,000 square feet gives a new school plenty of room for a large training area, an office, and some changing rooms.

On the other end of the spectrum, there are schools that do very well that have never expanded beyond 1,500 square feet.

Any smaller than 1,500 square feet, and you may have to support a schedule with so many classes each day that you risk burning out quickly.

Any larger than 4,000 square feet, and your rent may strangle your cash flow.

Conclusion

Choosing the right size for your martial arts school is a critical decision that can significantly impact your profitability and long-term success.

By considering your market, class structure, and potential for expansion, you can find a space that meets your needs without putting undue strain on your finances.