Ever notice how one of the first things a martial arts school owner brags about is, “My location is over 10,000 sq ft!” or, “We’ve got over 300 students enrolled!”?

It’s almost like it’s a badge of honor. But here’s a little secret: square footage and student numbers are only part of the picture when it comes to running a successful martial arts business. In fact, if those are your only indicators of success, you’re missing the point.

In this post, we’re going to tackle a more important question: Should you run a small school or a big one—and when is the right time to expand? These are the questions that can make or break your business. But first, let’s start by getting something straight—success isn’t just about size.

The Misleading Obsession with Size

In our industry, there’s this common belief that bigger is better. You’ve probably heard it at events or seen it in online groups: owners showing off their huge facilities or large student bases as if that’s the ultimate goal. But anyone who knows business will tell you it’s much more complex. It’s not about how big your space is or how many students you have; it’s about how effectively you operate within your means and market.

So, let’s shift focus to the questions that really matter.

Small School or Big School? The Real Questions to Ask

As entrepreneurs, we love simple, one-size-fits-all answers. Unfortunately, in the martial arts business, those rarely exist. The decision to run a small school or a large one—and when to move or expand—comes down to more than just desire. You need data, and you need to understand your market.

Here’s a starting point: Can you 10x your rent in monthly gross revenue?

For example, if your rent is $5,000, can you consistently generate $50,000 in monthly revenue? But don’t just guess—break it down:

• How many students would that require?
• What’s your average price point per student?
• Have you ever hit those numbers before?

Be honest. If you haven’t reached that level of revenue in the past, moving into a larger space could be a risky move. Success isn’t based on optimism alone—it’s built on proven numbers.

Market Research: The Foundation of Smart Expansion

Before making any big decisions, dig into these critical factors:

• Population Size and Density: How many people live in your target area? Are there enough families to sustain a growing school?
• Elementary Schools: More schools usually mean more families, which is a great sign for potential growth.
• Household Median Income: Can the local population afford your pricing?
• Competition: While it’s not the end-all, knowing your competition helps shape your strategy.
• Build-Out Costs: Whatever number you estimate for build-out, add 25%. Trust me—there are always unexpected costs.

The Bottom Line: It’s Not About Size—It’s About Strategy

I’ve seen schools of every size succeed—from cozy 1,500 sq ft dojos to sprawling 15,000 sq ft facilities. The difference isn’t in the size—it’s in having the right strategy and the right answers before you make any major moves.

Instead of focusing on size, focus on your business model, your market, and your goals. Answer the tough questions, make informed decisions, and you’ll set your school up for long-term success—regardless of whether you choose to stay small or go big.

In the next part of this series, we’ll dive deeper into the specific strategies that help both small and large schools thrive in today’s market. Stay tuned!