Times are tough for many entrepreneurs, especially those in the service industry. We see a lot of media coverage for restaurants, cinemas, art… and my thoughts go to them. But I would like to speak on behalf of myself and those who have businesses that, like mine, serve everything related to physical activity.
I operate a traditional martial arts center as well as a specialty business (e-TAO.ca) selling martial arts equipment, training and therapeutic products.
For those who are less familiar, the practice of martial arts allows you to develop both physically and psychologically and is accessible to all ages. In fact, several parents have noted the benefits of martial arts on their children as well as themselves. Respect is at the heart of our practice and this shines through in every karateka, even outside the walls of our dojo (room where we practice). In times of a global pandemic, the habits we pass down, such as meditation, introspection and a balanced diet, are even more useful for overcoming it.
Unfortunately, the COVID-19 situation affects us directly. Quantitatively, we have lost more than 75% of our members since the pandemic began and only 1% have returned in person. This represents a step back of 7 years compared to the normal evolution of our dojo. By doubling our efforts, we hoped to change the situation in 3-4 years… until we heard the news of the latest health measures. This announcement hits us hard, because it shakes the remaining members who had that flame that we will struggle to maintain virtually. To illustrate our situation clearly, we must understand that we need a large pool of registrations to make a dojo profitable.
Last September, to relaunch our center, we took several steps: virtual courses, advertising campaigns for our four clubs, increasing the number of courses for beginners, increasing the number of teachers to support this increase, short-term subscriptions, etc. Despite these efforts, the slightest flu symptoms or even school outbreaks have meant that our retention rate has remained at its lowest since the center opened 15 years ago.
As an example of the impact the pandemic can have on our centre, our Rock Forest club has closed and then reopened three times since its creation in January 2020. Depending on the length of the new lockdown, we will be forced to restart this club for the fourth time, which becomes very expensive.
We have been fortunate to have access to some financial aid programs, such as CUEC, AERAM, Local operationand other support services with Progestion Sherbrooke, but this will not be enough to keep us operational for years to come. Before the pandemic, we were victims of water damage that made our practice site inhospitable for new karateka while on the job. This was enough to lower our income, which has the effect of skewing the comparison between 2019 and 2020 income when it comes time to apply for additional benefits. As a good director and father of my karate family, I have tried to offer a greater number of training courses in schools, CPEs, companies and more, to cover the expenses of the center and allow it to survive. The word survive is important here, as that is exactly what we are trying to do, as are others in the same situation. Since I had to invest my savings (my pension fund) in my business, I did not have access to some government subsidies, as the company was “too rich” to qualify for them. However, we were entitled to some loans, but obviously they will have to be repaid since they are not non-repayable contributions; so we are simply postponing our problem.
Now I’ll take a moment to tell you about the situation of my little e-TAO.ca shop. Since I hadn’t sold much equipment since the first hospitalization, I tried to sell it at a discounted price, to increase the center’s liquidity. Last September the dojos started again in a big way and with a surge in uniform sales, but like all suppliers we had not stocked up. In mid-September I placed a large order for uniforms from Pakistan. Like everywhere on the planet, labor shortages and rising raw material prices have meant that the cost of the average uniform has increased by around 20%. But, to supply the other schools that order from the center, it was necessary to place an order… With delivery times, container costs increasing, the price of gasoline rising, the situation in British Columbia (flood blocked rail transport), to date I still have not received the equipment in question which should arrive next January… Now that our dojos are closed, few choose to sign up for martial arts classes virtually, so I will have invested thousands of stimulus dollars to stock the equipment on my shelves. Luckily, along the way, I had found a manufacturer who was able to get my gear out to me quickly, at a premium price, of course, to keep my shelves stocked. I know that for restaurateurs the situation is different since they have perishable products and are therefore entitled to financial compensation. The fact remains that in the current situation it is not in my warehouse that I must have my financial liquidity, but in my bank account.
In conclusion, I share with all my colleagues who practice martial arts, combat sports, wrestling sports, tai chi practitioners, yoga… a thought for you but also for all the entrepreneurs who do not have the visibility to express their precarious situation. Whatever your job, I ask you this: “How much would you be willing to spend to do your job?”. Many of you will probably respond with “$0, in fact I ask for a salary increase”. This is why entrepreneurs are extraordinary. Since the beginning of the pandemic I have had to pay to be able to do the work I love and am passionate about. I currently envy all my colleagues who practice martial arts in community gyms, for whom practicing martial arts is just a side income. If the situation persists I will be forced to do the same.
Written by: Larry Foisy (5th dan, Renshi)
Reviewed by: Michel Fafard and the Landry/Barnes family
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