Part XIII
Building an Organization

In previous lessons you were taught that every martial artist will one day see themselves in front of their own students. There also comes a time in the life of every martial arts leader when they can envision themself at the head of their own organization of Black-Belts. The smart leader will prepare for this eventuality by making the opportunity available to their new Black Belts and to those over whom they have influence.

I am going to outline an organizational plan that must be followed closely. There is very little room for change so pay attention to it without letting your mind wander as to how you will change the plan to fit your own conception of how it ought to be done.

1. Develop some technically well qualified Black Belts who have been with you for many years. Resist the temptation to use others. They do not know you, your style or your methods.

2. Let them know early in their career that you expect them to one day have a program of their own.

3. Make sure they can teach as well as perform - there is a difference, you know!

4. Assist them in getting started but do not do all the work for them. This is the first test of their profit motivation. After all, if an instructor is not interested in getting out there to hustle up their own program, how interested can they be in coping with the problems of teaching it?

5. A new teacher's first program needs to be more of a club than a business because they don't have the experience to justify an investment. A club will allow them to make mistakes without costing them too much. As they continue to develop a need to learn more - teach them.

6. You should have a written understanding that you will assist them as long as they certify the rank of their students through your organization. This can be nicely done in the form of an official charter that can hang on the wall.

7. There should always be a modest charge for the testing and certifying of ranks. This charge should go directly to you as the chief instructor. It is through this charge that you benefit from the new club. Do not try to charge a percentage of their income or a flat monthly fee. This method is never advisable for a "Branch School" which is run by an inexperienced Black Belt. For a fact, you will be held liable for their actions and accountable for their lack of action.

8. As you continue to open clubs with Black Belts who produce students for you to test, you will begin to notice that every now and then one of the Black Belts in your organization will want to increase their level of commitment in order to make money. When this happens you have another problem identical to the first. You must anticipate and provide or they will take off on their own.

9. When you notice a person with dollar bill signs in their eyes then you have one of three courses to follow, each with its own advantages and disadvantages.

• A. If your Black Belt has the financial capacity to raise their own money and the experience to run a studio, then you may choose a course of action whereby you encourage them to get started in their own operation with the understanding that you will continue to certify their student's ranks. If you let them share in a portion of the certification fees, usually 25 % to 30%, you can always count of their support.
• B. The second course of action is to direct their desire into a branch operation that is wholly owned and tightly controlled by the chief instructor (you). Under this situation, you must cover the start-up cost yourself and should never relinquish control over the lease, stock, contracts, or testing. You must also maintain a high visibility in the school in order to keep the students loyal to you.
• C. The third method of organizational building is to allow the "new business person" to use the name of your school, its business systems, teaching method, and testing procedures in return for a percentage of the gross income as a management fee. This method is only suitable and desirable when you really have something to offer. If you restrict the freedom of choice in any way, you may be classified as a franchisor and thus guilty of failing to comply with the federal regulations governing the franchise business.

As your organization begins to grow, you will find that you have to spend more and more time in general peace-keeping among your members. This is another fact of life and if you are not prepared to handle it, you will never hold it together. It becomes a true test of your capabilities.

So now, in closing, I would like to wish you the greatest possible success. The program I have detailed has been developed from many years of martial arts experience. If you have questions or problems, I would like to hear from you. Until then, keep your mind on your business and do not allow your interests to be side-tracked by tournament involvements or would-be competitors who cannot measure up, and make your own luck!

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