Wanting to open a dojo

Luther unleashed · Brown Belt

So I have been looking at the possibility of opening a stand-alone facility here in town, the place has offered me deals to get in the door such as a few months free on rent and things of that nature, the thing I'm having a hard time figuring out is what my cost will be for electric and any other cause I'm not thinking of. I currently operate out of a rec center so of course I'm familiar with insurance business license and things of that nature, but as for electric I'm wondering if any of you guys have any ideas of what you pay monthly or would I be looking at, in my mind it could be 300 months or 1200 a month I just have no concept, any help is appreciated. It is an absolute fact that it probably varies from state to state but also depending on the plan you select, I'm just looking for rough ideas of what you or your facility might pay. If putting it out there in the open is a problem feel free to PM me.
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Luther unleashed · Brown Belt

To add on to the previous paragraph, the company out here we use is Aps and can not reveal information such as the previous persons usage and things like that so they can not tell me an estimation they say, weird.
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sensei8 · KF Sensei

As you can imagine, this will be nearly impossible to accurately pin point exact monthly prices for electricity usages.

Why?

*Hours of operations?
*Term plans?
*What, if any, devices and the like that will require electricity, AND, how long are they going to be dependent on that electricity on a 24 hour cycle?
*What lights, if any, are left on after closing?
*What's the insulation and things like that adequate?

If I were to open a dojo where I live in Pearland, TX, suburb of Houston, this is what I'd be facing...

Price per kWh is based on the average monthly ...

Average Monthly Use 1500 kWh/2500 kWh/3500 kWh
Average Price per kWh 12.90¢/12.70¢/12.50¢

Early Cancellation Fee: The greater of one-sixth of the estimated billing for the remainder of the term for electric service per ESI ID or $300.00 per ESI ID.

Negotiating for a plan that fits your needs is crucial. Can't hit the nail on its head, well, don't open a dojo or anything.

I've had 3 Kyuodan Dojo's...

CA $700 per month average
TX $250 per month average
OK $590 per month average

Square footage, type of light bulbs, type of receptors, quantity of lighting, how many outlets, type of Heating and A/C units. Manage the thermostat by signing it..."DON'T TOUCH!!" Location and zoning have a lot to do with what plan you can and can't have!!

You're going to have to be very proactive on everything that goes on your electric bill.

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JR 137 · Black Belt

I don't think the previous tenant's usage/bill is going to tell you too much, unless of course it was an MA school being run the same hours you're planning on being open. How long the lights are on, type of lights, number of lights, and any other thing that's plugged it and being used (and not being used) will effect your cost.

I'm assuming you've factored in equipment cost, mirrors, flooring/mats/carpet, furniture, decor, signage, murals/artwork, office supplies, and all that stuff. It all adds up quickly.

Luther unleashed · Brown Belt

Thanks sense for the breakdown. I wish theyou would give me a better way to calculate but sadly they are so private like everything else these days. Har to figure anything out.

Jr137 actually the last place was a martial arts school there a long time and were open similar to my usual hours lol. Been vacant almost 2 years though.

As for other costs, I don't have much capital, I can come up with money to get going but that's it. I negotiated (6 months or so of negotiating) 3 months free rent, month 4, 5, 6 are at half rent, and month 6-12 are at 75%. Full rent starts after 1 year for a 3 year lease. I havery no students in the area but many people know of me and my wife has many friends. I have done some things in the area as well. Also lived here for many years now.

As for mats, owner is cutting me a check as Ithe was a stipulation of mine to add that into the money he cut me to fix the place up. Aslo, Windows are plain, but the sign from the old place now belongs to the owner as they didn't remove it in the time given, and I get to use it for free. Large yellow light up building g sign that says "Karate". I would prefer "martial arts" or my buisness essential name but mama always told me to say thanks for free and don't be picky haha.

I have the weekend to decide, what you guys think? It's a bold move and I'm cautious but I ha E a gut feeling that things are whereally they are supposed to be.its a high traffic area, and good middle class area as well. There are a good deal of competitors but none teaching what I teach. A few Taekwondo, MMA, and freestyle karate place but none traditional Tang Soo Do which is primarily what I do. I happen to think the other things do as well make it pretty different... TO OPEN, OR NOT TO OPEN! That is the question.
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bushido_man96 · KF Sensei

I think if you made contact with the electric company, they should be able to present some kind of average for you, based on hours used and amount used. You should be able to come up with a ballpark estimate.

Another thought, and this is something the electric company does where I'm from, is you could ask if they have some kind of program they set you up on where you pay a set amount per month. I think at the end of the year, they refigure your average usage, and then refigure your monthly amounts based off that. Its a thought, and it could definitely help on a budget.
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Luther unleashed · Brown Belt

Thanks bushido, I did that of course. They assured me they can't to that. You never know who you talking to though and you know how some representatives will tell you one thing and others will say something different so maybe I should try again. They stated there was a law that passed that they could not give any information based on previous usage of other people, and essentially they told me there's no way to figure it out because there are too many plan options and things of that nature
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sensei8 · KF Sensei

See if the electric company would set you with AVERAGED Billing. That way, the bill doesn't ever cost no more that the agreed on amount per the contract you and the electric company work out. I did this in CA. You see my $700...that was the Average I worked out, and without that being set up, my monthly bill would've been 2.5 more than that. I was open from 10am to 10pm, six days a week!

If not, then be extra proactive with the managing of your electric bill. Otherwise, your monthly will have the tendency of skyrocketing to the stratosphere.

I do like the rent you negotiated; WELL DONE!! Landlords will tend to do that especially when the buildings been vacant as long as yours as been. Landlord can't make any money with an empty building.

In the MA, the words "IN TIME" also apply to supplies and equipment. When I opened in 1977, I had 1 hanging bag and a few focus pads. No mirrors, no mats...nothing. But in time, as the student body grew, so did the equipment in the dojo. In time, you'll fully equip to your needs....IN TIME!

Money doesn't grow on trees, but the bills sent to you monthly do grow on trees; paper, that is, that bills are written on!!

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chiliphil1 · Orange Belt

Luther unleashed · Brown Belt

Thanks for the responses guys. In the end I guess the statement is true that I should cover the electric with 5 or 6 students so why worry, just new to worrying about it that's all.

I do feel I lucked out on the deal. I didn't negotiate that hard actually, me being tentative for the last 6 months and just not jumping on it has made them make me better offers really. I would say things like "I don't have a student base in this area so iLloyd have to think about it" and they would come back at me with "what if we gave you a few free months to get you started". Seems like I have some good things sweetening the pot though for sure. From the sign to the rent, even the check they are cutting me to fix it up and allowing me to use the portion needed for mats.

I have decided I'm going to go for it for sure, I'll be signing the lease this week. Won't open until April for a few reasons but it allows to to get certain Affairs in order. I am still working on how I'm going to be in 2 locations at one time, but I have some ideas about things like hiring anot instructor for my location in the rec center. I have also thought about leasing my new dojo out 2 days a week to something like a jujitsu instructor while I run my rec center location, I just don't know yet but I want it bad enough so finding the right answer will come one way or another.

Chil, I would certainly recommend starting in a rec center as I have done that for the last year now. It's essentially risk free. The problem for me is as my full time job, teaching martial arts, its only 2 days a week at the rec center. Makes it very difficult to make a living only 2 days a week. I have poured so much energy into trying to find another location over the last year that I feel it's time for me to open on my own. If you are starting out its much more realistic to go for the rec center, but as I mentioned they are very hard to come by in the Phoenix area at least, due to the overabundance of martial arts programs already in place. Good luck whatever you do though.
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