by Nick Castiglia
In our last discussion, we talked about what to consider when deciding between running a small school or a large one. Today, let’s tackle a question that weighs heavily on the minds of many martial arts school owners: When is the right time to move to a bigger space?
It’s a scenario many of you can relate to: You’ve put in the work, fine-tuned your offers, and retention is strong. Suddenly, your classes are filling up (or at least that’s the goal), and before you know it, everyone around you starts saying, “You need a bigger space!” or “You’re going to have to move soon!”
And let’s be honest, hearing that feels good—it’s a sign that your business is growing. But this is where a lot of school owners make costly decisions.
Before you jump into moving, ask yourself these critical questions:
1. What’s the square footage of your current space?
This will become crucial as you weigh your options later.
2. Is your school busy all the time, or only for a couple of hours each day?
Many schools are packed during peak times but sit empty during other hours.
3. Have you raised your prices?
If your classes are full but you haven’t adjusted your pricing, you’re leaving money on the table.
4. Do you have waitlists because you literally can’t fit anyone else in?
A true indicator that it’s time to expand is when you can’t accommodate the demand.
5. Do you really understand the costs of moving?
Moving isn’t just about finding a new location. It’s about build-out costs, equipment, marketing to announce the move, and more. If you think the landlord’s build-out contribution will cover everything, think again.
Case Study: My First School
Let’s break this down with a real example. My first school is 2,700 sq ft. At any given time, we have 450-520 students enrolled. It’s busy, and yes, we do have waitlists for certain programs. We can fit 55 people on the floor—but here’s the kicker: It’s only that busy between 4-7 PM. Outside those hours, the school is mostly empty. From 7-8 PM, we’re lucky to see 35-40 students in the building.
So why haven’t we moved? People tell us all the time, “You need a bigger space!” But let’s get real—why would we? This location is in a high-traffic area, which is hard to come by. If we move, it would only be for one of two reasons:
- We’ve purchased a building to relocate to (which should be every school owner’s goal).
- We’ve bought land to build a multi-unit space to house our school and potentially generate additional rental income.
That’s where your head needs to be—not just chasing bigger spaces, but thinking strategically about long-term wealth.
We’ve already raised our prices, we have waitlists, and I know the cost of moving would be significant—not to mention the disruption it could cause. If we’re going to move, it will be to a space we own, where we’re building equity instead of just paying higher rent.
The Bottom Line
The case study of my first school should answer a lot of the questions you’re grappling with. Don’t get seduced by the idea that bigger is always better. Focus on efficiency, profitability, and quality before worrying about size. Remember, the size of your school usually dictates the size of your rent, and higher rent doesn’t always mean higher profits.
I hope this article gives you some food for thought. In the next post, we’ll dive into why owning your building should be every martial arts school owner’s ultimate goal.
Stay tuned!