Don’t Be “Nike in the ’70s”: Grow Your Dojo’s Revenue and Profit (Before Cash-Flow Cripples You)

In the 1970s, Nike was the hottest brand in sports—but it was also one bad month away from bankruptcy.

They racked up jaw-dropping sales, yet razor-thin margins kept cash so tight that every “successful” month nearly sank the company.

Phil Knight’s turning point?
Realizing growth without margin is just expensive busy-work. Nike stopped chasing every shiny opportunity, streamlined operations, and doubled down on higher-margin products.

Sound familiar?

Plenty of martial-arts studio owners brag about 300 students or five-figure months—while their bank accounts beg for mercy. Busy mats, empty wallets. Let’s fix that.

1. Audit Class Profitability (Fire the Bottom 20%)

Track profit per program, not just headcount.
• Tiny paid-in-full trial packages may fill the mat but kill payroll margins.
• Niche adult classes at 7 p.m. might pull premium rates with minimal overhead.
Cut or reprice any program that eats 80 % of your time for 20 % of the profit.

2. Package, Don’t Custom-Fit

Each “special exception” (free sibling, prorated summer pass, one-off private rate) shreds margin.
Create three clear tiers—Core, Leadership, Mastery—and stick to them like belt-rank rules. Predictable pricing = predictable profit.

3. Scale Systems Before Staff

Many owners hire an admin for tasks a $49/month automation could handle—then wonder why payroll explodes.
Document intro flows, tuition billing, test scheduling, and mat-talk scripts before adding bodies. Hire only for roles a system can’t replace (e.g., world-class instruction).

4. Raise Prices as You Raise Value

If you add curriculum depth, leadership badges, or app-based progress tracking, your fees should rise accordingly.
Parents don’t value “cheap.” They value “worth it.” Small, strategic increases compound profit—without adding a single new student.

5. Know Your Unit Economics

CAC (cost to acquire a student), LTV (lifetime value), churn rate, and contribution margin must be dashboard numbers— not mysteries.
If you don’t measure, you’ll bleed unknowingly until it’s too late.

Bottom Line: Revenue Feeds Ego. Profit Feeds Freedom.

Nike almost learned that too late. Don’t repeat the lesson in your dojo.
Grow smart—not just fast—and your mat, your team, and your bank account will thank you.

🗓 Next Step: Mastermind Your Margins
Join us at BK Mastermind Live — March 13-14 in SoCal.
Use code BK300 for $300 off your seat and get hands-on tactics to scale revenue and profit—no more razor-thin months.

Secure your spot ➜ YES- I Want to WIN in 2026