The US is saturated with gyms and fitness centers – so saturated, in fact, that they are continually offering discount memberships to compete with one another.
Do you know what the US is not saturated with? Dojos. So, if you are a martial arts lover and want to spread that love, consider opening a dojo. Here’s what you need to know. (BTW – Martial arts dojo owners in the US have higher average earnings than fitness centers and traditional gyms).
Overall State of the Industry in the US
Here are some facts to chew on:
- Over 2.5 million people in the US participate in MMA, primarily for fitness, not competition
- There are close to 51,000 dojos in the US – room for more
- Total annual market revenue, not counting equipment sales is close to $10 billion
Breaking the Numbers Down
It’s good to look at the overall market stats, but how does all of this breakdown for individual gyms? Here are some average revenue figures for individual facilities based upon membership:
- Under 50 members – about $31,500
- 51- 100 members – about $73,000
- 101 – 200 members – about $155,000
- 201 – 300 members – about $271,000
- Over 300 members – about $370,000
The highest earning facilities are MMA; next is boxing, followed by Jiu-jitsu, karate, taekwondo, and kung fu.
Who Are the Participants?
Probably not a surprise here. The largest group of participants in martial arts in the US are boys between the ages of 7 and 12. After that come men from ages 25 through 34.
Overall, male participation stands at about 73%, 27% for females.
Those over 55 are the smallest percentage of membership.
This information should guide dojo entrepreneurs as they target recruitment strategies and design their facilities.
Some Concluding Thoughts
- Regarding the most favorite martial art in the US, the verdict is still out. Given the current trends, though, it seems that karate and taekwondo are the most popular. This info should drive what dojo entrepreneurs plan for, at least in the near future.
- There is definitely a fan base for martial arts in the US, even among those who do not participate. Capitalizing on this fan base with plenty of marketing to the right groups in the geographical area of setup will be critical.
- There is also lots of growth for women in this sport, especially in the competition. Perhaps having two dojos in one might be an answer – one for amateurs and one for pros. And the right teachers and coaches must be in place. And for single men looking to find a single woman who shares their love of the sport, a co-ed facility will be attractive.
- Before anyone thinks about opening up a martial arts facility, there will need to be lots of market research to identify the level of competition, the demographics of the local population, and the level of interest and enthusiasm for the sport in that locale.
- Funding your gym/dojo. If you have the funds, no problem. If you don’t and are going for a bank loan, you will need to develop a business plan to show that you have conducted all of the research and projected your income during years 1 – 5. Actually, having a business plan whether you are going for a loan or not is a good idea. That way, you can see if you are on track for your business goals.
- There are other funding sources too. Check the potential for investors who are big martial arts fans and might want a piece of the action (and profits).
In the end, martial arts is already a popular sport in the US. And the market continues to grow with good signs of profitability if done right.