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Business Systems: Should You Focus on Group Classes or Private Lessons?

Category: Management, Startup

Recently, one of our readers wanted to know what I thought about the Tracy’s Karate business system, founded by the Tracy brothers of Kenpo fame. He prefers to teach adults rather than children, and wanted to know if I thought he could earn a decent living following their model.

I respect the Tracys a lot. I don’t know them personally, but I know they have turned out a lot of good black belts through their studios, and that many of their instructors have achieved success using their system. Plus, they are martial arts business pioneers, and were running successful studios when most of us were still in diapers.

Having said that, with regards to the Tracy method I think it is a good business system, with one exception - it focuses on a business model that is labor-intensive. That is to say, you will work a lot harder in your studio if your main business is giving private lessons.

To illustrate this point, let’s look at the following scenario:


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