SURVIVAL OF THE WILLINGEST
One of the more stringent laws of nature - and business - is "ADAPT OR
PERISH."
When market conditions change, those who can't (or simply won't) adjust
their attitudes and strategies are automatically on the endangered species
list - and a serious threat to the economic health of your business and
staff.
If you've been in business long enough, you've seen at least one period in
the past when enrolling new students was almost literally like shooting fish
in a barrel. In most areas, that situation no longer prevails.
In its place is the traditional process of marketing, from prospecting to
qualifying to closing for a commitment.
The economy has changed recently (something RS Mitchell said would happen
during last year's convention in San Antonio.) The mortgage meltdown and
credit crunch is changing the spending habits of many people. In addition
to consistent and aggressive marketing you also need to look at the way you
are doing business.
Some things you need to think about.
1. With consumer spending being tighter some schools may want to consider
going back to doing 12 months programs and putting these students directly
on Black Belt Training. The benefits are that the student is not pressured
to upgrade immediately. You still have the opportunity to upgrade to
Masters, Premier or Leadership so your potential for additional income is
still there. However at the same time students on a tighter budget are not
under pressure for an additional down payment and higher payments.
Another upgrade option is a 24 month upgrade vs. the 36 month program. Many
homeowners are now getting a little reprieve from rising mortgages. This
mornings USA TODAY reported that the countries largest mortgage company,
Country Wide is re-writing many mortgages and putting off large payments for
a while on below prime mortgages. At the same time a 36 month commitment
for a martial arts program might be concern for some students with one of
these mortgages.
2. If you are having difficulty with getting large down payments you might
want to consider being flexible by reducing the down payment and adjusting
the monthly payments slightly higher to reflect the total cost. You
statistics and program director can give you feedback on this as they deal
with new students and upgrade conferences daily.
3. If a family is having tight finances parents might be a little more
likely to let "little Johnny" quit if he loses interest. Be sure your
classes are the best you've ever taught and your school is the most exciting
activity each student has in their lives. Carefully monitor your
attendance and account receivables to catch a potential problem.
4. Attend the United Professionals event in New Orleans. We have planned
this carefully to make sure you have the motivation and tools to hit 2008
off and running.
5. Watch your statistics and numbers. If they begin to change you need to
have a plan of action. Be sure to contact myself, Mr. Van Over or Mr. Fiori
with questions. I have been in the martial arts industry for 35 years and
have seen changes in the economy many times and have had successful years in
all kinds of economic situations.
6. It is also true that the smart school owners are going to survive and end
up having less competition when all is said and done.
The information we will be sharing in the future will keep you informed on
the changing market and the tools to keep you ahead of the curve. UP is
going to become more important than ever as will the networking with other
school. Owners like Board of Director Doug Bertrand who enrolled 200
students in two schools since August 1st is a valuable source of
information.
Right now is a great time to review all the basics business systems to make
sure you are getting the best results from marketing to enrollment. You
will find all these on the UP website under
SYSTEM DRIVEN.
of our head instructors turn in her two week notice so we have been actively and aggressively trying to train her replacement.