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[QUOTE]was wondering how most the instructors in here started there own school money wise. Did you save the money or take out loans. I only really have to options. My instructor has offered to build a school to my specifications with whatever amenities I feel I need within reason and it would be his school I would just teach at it. I would have the oppurtunity to buy him out though when ever I came up with the money. While I am teaching there profits will be split 50/50 when there finally is a profit. He has already done this for two other students one has bought him out and the other is still in the process of buying him out. I could go that route with my instructor but I would prefer to make it on my own. Do any of you know what standards I would have to meet to get a small business loan or grants? Any advice on starting a new school would be much appreciated also.[/QOUTE]
From experience, not a MA bussiness mind you, but everything the same as long as you have a product or service.
1.) LOCATION: First thing you'd have to do is find a location that would suite your needs. It would have to be far away enough from your main school so as to not create inter-competition. It would also have to be close to enough people of proper age to provide income. Find out how much rent is, how much it would cost to remodel etc. Remodelling all at once could cost a fortune. It's not uncommon to have to spend over $5000 on mats alone. So its better to only get what you need right now.
2.) CREDIT: If you do not yet have credit established (which I'm guessing you dont by your age) You will need collateral and a co-signer. Which probably means that your parents will be footing the family car or property. Perhaps if your instructor is really serious he would provide cash down. But this has to be in your hands before you move any further.
3.)LOAN: If you actually have cash there are many different tricks you can play, but it's better to stay legal. Put the money in a bank and take a secured loan. A secured loan is a loan against the money you have in the bank.
4.)OWNERSHIP: Since so many bussiness fail in the first year, make sure that you can afford total loss. Also beware of all co-owners, as the temptation to steal is very high.
5.)ACCOUNTING: Another cost that is sometimes forgotten about is accounting. Since you will have to pay taxes quarterly, you will need very accurate ways of accounting. Reciepts, cash-registers, all transactions will have to be recorded properly. Also stear clear of hiring under the table, competition will surely turn you in at first chance.
6.)WORK SCHEDULE: Work hours when running a bussiness are anywhere from 16-20hrs a day at startup, if you have a conflicting schedule, you will fail. Make sure that you have ways of eating, going the bathroom, and possibly sleeping at the dojo.
7.)DISTIBUTORS: You will also want to check out whole-sale distributors in your area, and see what they need to set up an account. This can be a lifesaver when you're falling a little behind.
8.)INSURANCE:People will get hurt no matter what. Whether someone breaks their leg falling down your stairs, or breaks their toe while walking on a mat, you have to have reasonable insurance for you bussiness. You will also want to get bussiness owners insurance that pays you if you're sick.
9.)UPKEEP: Things will break all the time. Mirrors, weapons, everything deteriorates with time. All profits will have to be put aside for upkeep. You will not make any money for several years. One prominent 5 star restuarant in this area ran for ~6yrs before they were able to take a vacation.
10.)COMPETITION: competition is going to drive you crazy. Until you have a name for youself and have established honorable relationships with the community. Be prepared for every nasty trick, calls from the IRS, all sorts of weird things.
All in all, getting a bussiness license is easy. Getting a great location is easy in a city, and owning a bussiness is one of the most rewarding things you can do. You are no longer working for someone else, but yourself. It looks easy, but is much more work that imaginable. It is possible but it takes a certain type of person to run a bussiness properly. Anybody can run one into the ground. You have to believe with everything you've got that this is the best choice in the world. Also every new bussiness owner will tell you that bussiness is great so you have to be real inquisitive. I would start by talking for a long time to the other bussiness owners that started sattelite schools. I mean...imagine running your own dojo. Worth investigating heavily don't you think?
From experience, not a MA bussiness mind you, but everything the same as long as you have a product or service.
1.) LOCATION: First thing you'd have to do is find a location that would suite your needs. It would have to be far away enough from your main school so as to not create inter-competition. It would also have to be close to enough people of proper age to provide income. Find out how much rent is, how much it would cost to remodel etc. Remodelling all at once could cost a fortune. It's not uncommon to have to spend over $5000 on mats alone. So its better to only get what you need right now.
2.) CREDIT: If you do not yet have credit established (which I'm guessing you dont by your age) You will need collateral and a co-signer. Which probably means that your parents will be footing the family car or property. Perhaps if your instructor is really serious he would provide cash down. But this has to be in your hands before you move any further.
3.)LOAN: If you actually have cash there are many different tricks you can play, but it's better to stay legal. Put the money in a bank and take a secured loan. A secured loan is a loan against the money you have in the bank.
4.)OWNERSHIP: Since so many bussiness fail in the first year, make sure that you can afford total loss. Also beware of all co-owners, as the temptation to steal is very high.
5.)ACCOUNTING: Another cost that is sometimes forgotten about is accounting. Since you will have to pay taxes quarterly, you will need very accurate ways of accounting. Reciepts, cash-registers, all transactions will have to be recorded properly. Also stear clear of hiring under the table, competition will surely turn you in at first chance.
6.)WORK SCHEDULE: Work hours when running a bussiness are anywhere from 16-20hrs a day at startup, if you have a conflicting schedule, you will fail. Make sure that you have ways of eating, going the bathroom, and possibly sleeping at the dojo.
7.)DISTIBUTORS: You will also want to check out whole-sale distributors in your area, and see what they need to set up an account. This can be a lifesaver when you're falling a little behind.
8.)INSURANCE:People will get hurt no matter what. Whether someone breaks their leg falling down your stairs, or breaks their toe while walking on a mat, you have to have reasonable insurance for you bussiness. You will also want to get bussiness owners insurance that pays you if you're sick.
9.)UPKEEP: Things will break all the time. Mirrors, weapons, everything deteriorates with time. All profits will have to be put aside for upkeep. You will not make any money for several years. One prominent 5 star restuarant in this area ran for ~6yrs before they were able to take a vacation.
10.)COMPETITION: competition is going to drive you crazy. Until you have a name for youself and have established honorable relationships with the community. Be prepared for every nasty trick, calls from the IRS, all sorts of weird things.
All in all, getting a bussiness license is easy. Getting a great location is easy in a city, and owning a bussiness is one of the most rewarding things you can do. You are no longer working for someone else, but yourself. It looks easy, but is much more work that imaginable. It is possible but it takes a certain type of person to run a bussiness properly. Anybody can run one into the ground. You have to believe with everything you've got that this is the best choice in the world. Also every new bussiness owner will tell you that bussiness is great so you have to be real inquisitive. I would start by talking for a long time to the other bussiness owners that started sattelite schools. I mean...imagine running your own dojo. Worth investigating heavily don't you think?
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