City Dojo (a Karate School) has been in existence since 1964. Since 1975, City Dojo (a karate school) has been operated by the Shihan (head instructor). The city has experienced many changes as well as the Martial Arts Industry.

Martial Arts is currently being practiced by over 5 million Americans. While the 1960 boom years are gone, new students continue exploring the field.

City Dojo’s location and the surrounding area, which has over 250,000 potential members, have been an ideal place for Martial Arts training. There is intense competition. The dojo is in a critical moment of its existence. City Dojo, currently operating on a part time basis (for love of art), provides little income or even no income for its owners. To identify potential, the following business plan (the first for City Dojo) was developed. What was discovered is that there is tremendous potential in Martial Arts. The dojo is in a strong position to not only exist but thrive in Martial Arts.

The following plan will outline how the dojo’s ability to grow from its 65-member break-even level to 200 members (80% of its capacity) in three year. Based on an expanded membership, sales would grow from $65,000 in 2001 to $198,000 year-end 2004. If the dojo is managed full-time, the plan shows that it could generate significant cashflow. Investors and owners would be able to enjoy a healthy income.

To accomplish this growth, dojos require a $20,000 loan over eight years. Secured by the property of the owner, this collateral will be a house.

1.1 Objectives

1. Remodel and upgrade dojo by the end of 2002. This includes a new computer, new trainer mat, visitor area, dressing rooms upgrade, and repairs to the sauna.
2. By year-end 2004, increase paid membership to 200 (equivalent of 80% dojo capacity).
3. By year-end 2004, reduce membership turnover by 30% (measured as the number of students who have taken belt testing from blue to white).
4. You should create a cash flow that allows you to make investments in the future.

1.2 Mission

City Dojo was founded to offer a safe place to learn karate, have fun, make commitments to learning, and use that knowledge to improve one’s self, family, and community. The dojo offers a memorable experience that lasts a lifetime.

1.3 Keys to Success

• Create a unique, modern, clean and safe dojo environment.
• Establishment, implementation and tracking of a budget and business plan.
• Establishing a strong Board of Advisors that will be able to assist with business and karate issues.