To turn this example into your own martial arts school business plan, use the martial arts school business plan template.
Fitness and beauty businesses have some of the highest client churn rates in any service sector. Getting someone through the door for a first appointment is hard. Getting them to come back every month for a year is harder. A business plan that does not address retention is missing its single biggest revenue driver.
This sample plan shows how a gym, salon, or wellness studio builds its membership model, reduces churn, and creates the recurring revenue that makes cash flow predictable.
Follow how Cents and Senseibility Martial Arts retains its clients and grows over three years. Our Business Plan Toolkit gives you the same framework for your own fitness or beauty business.
Executive Summary
The Can-Am Taekwondo Instructors and Schools Confederation has been active in the United States for the past 30 years. Being part of this organization will benefit Cents and Senseibility Martial Arts, owned and operated by Rolly BonTemps, 5th Degree Black Belt. The Can-Am Taekwondo Instructors and Schools Confederation (CATISC) is the premier North American organization dedicated to the martial arts discipline of taekwondo, and is the founding organization of other international affiliates, overseeing over 1,500 schools and clubs, registering over 300,000 members. The focus of this program is to provide students the highest quality martial arts instruction available, in a safe and positive learning environment that people of all ages can enjoy. Rolly BonTemps, a high ranking instructor, will combine excellent student instructor ratios with state of the art training facilities.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $183,200 | $229,600 | $267,100 |
| Gross margin | 83% | 84% | 85% |
| Net profit / (loss) | $14,600 | $34,900 | $52,900 |
Company Overview
Cents and Senseibility Martial Arts is a martial arts school operating in Raleigh, North Carolina. The business was established to serve a growing demand for quality, specialist services in this sector, where many customers are underserved by larger, less responsive providers.
Mission: To deliver consistent, high-quality service to every client, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, build initial client base, reach monthly break-even |
| Year 2 | Grow revenue by around 25 percent, expand class capacity, hire a program director |
| Year 3 | Consolidate market position, target new customer segments, achieve strong net margins |
Market & Customer Analysis
Industry context
A taekwondo school sells a long path, from first belt to black belt, and families pay for it month by month. Income stays steady only if children and adults keep coming after the novelty wears off, so grading dates, parent contact and a clear syllabus matter more here than advertising.
Lenders usually test a school like this on two costs. The first is people: a common rule of thumb is that staff costs should not run past about half of revenue. In year one, instructor costs of $31,100 and salaries of $58,300 total $89,400, or 49% of $183,200 revenue, just under that mark.
The second is space. Many studio operators treat roughly 20% of revenue as the ceiling for rent and utilities. Here year one rent and utilities of $47,600 take 26% of revenue, which is over that guide. The plan's answer is growth inside the same premises: by year three the $50,500 bill is 19% of $267,100.
On break-even, $11,460 of monthly fixed costs at an 83% gross margin needs about $13,810 of monthly revenue. Year one averages about $15,270 a month, 11% above that point, which only just meets the common 10% safety cushion.
Target customer profile
Cents and Senseibility Martial Arts's primary customers are children, teens and adults in the Raleigh, North Carolina area seeking quality taekwondo instruction. These customers prioritise quality and reliability over lowest price and are willing to pay a moderate premium for consistent results.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Franchise martial arts chains | Established brand, strong national marketing | Higher price point, less personal instruction |
| Mixed martial arts and fitness gyms | Broad class timetables, adult appeal | Less focus on children and traditional taekwondo |
| Community centre and recreation classes | Low prices, convenient locations | Limited instructor depth and grading structure |
Cents and Senseibility Martial Arts's advantage: Specialist focus, personal service, and deep knowledge of the target customer segment are the primary competitive differentiators.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong service quality; clear target market positioning | Weaknesses: Limited brand recognition at launch; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Cents and Senseibility Martial Arts reaches its target customers through a combination of digital marketing, referral programmes, and direct outreach. The primary acquisition channels are local search (Google Maps and organic SEO), word-of-mouth referral from satisfied clients, and targeted paid advertising on social media platforms where the target customer is active.
Pricing approach: Pricing is set at a modest premium to the local market average, reflecting the specialist quality and reliability of the service. All pricing is transparent and communicated clearly before a student enrols.
Sales process:
- Enquiry received by phone, email, website or walk-in
- Free trial class booked within 24 hours
- Membership options and pricing explained after the visit
- Membership agreement signed; first payment collected
- Follow-up contact made within the first week to keep the new member on track
Operating Plan
Cents and Senseibility Martial Arts operates from Raleigh, North Carolina with a lean team focused on service delivery quality over volume. Standard operating procedures cover client onboarding, service delivery, quality review, and client communication.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Owner / Head Instructor (5th Dan) | 1 | 1 | 1 |
| Taekwondo instructors | 1 | 1 | 2 |
| Program director / front desk | 0 | 1 | 1 |
Key suppliers and partnerships: Cents and Senseibility Martial Arts maintains relationships with a small number of trusted suppliers and subcontractors to ensure consistent service quality and the ability to manage periods of high demand.
Management Team
The founding team of Cents and Senseibility Martial Arts brings relevant industry experience and a clear understanding of the target market. The founder has held senior roles in the martial arts school sector prior to starting the business and brings both technical expertise and commercial knowledge to the leadership of the organisation.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and client service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $183,200 | $229,600 | $267,100 |
| Direct labour and contractor costs | $31,100 | $36,700 | $40,100 |
| Gross profit | $152,100 | $192,900 | $227,000 |
| Gross margin | 83% | 84% | 85% |
| Salaries and wages | $58,300 | $74,800 | $86,900 |
| Marketing and advertising | $13,700 | $14,400 | $15,100 |
| Rent and utilities | $47,600 | $49,000 | $50,500 |
| Other operating costs | $17,900 | $19,800 | $21,600 |
| Total operating expenses | $137,500 | $158,000 | $174,100 |
| Net profit / (loss) | $14,600 | $34,900 | $52,900 |
Break-even analysis:
- Estimated monthly fixed costs: $11,460
- Monthly revenue required to break even: $13,810
- Break-even is projected within the first year of trading.
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