Eagle Express

NOVEMBER 2008

2009, Issue 1

20% More: Chairman’s Call to ActionChairman Nicholas Cokinos’ 2008 Summit Keynote Speech

I’ve been assigned to talk to you about the economy. I think it is a serious subject. But I don’t think it is as serious as people make it out to be. I think we’ve been engulfed in fear and emotion. The reports in the papers would worry you to death. Let me point out something to you: Angelo Vitale, Mike Nebgen, Ernie Reyes, Keith Thompson, Tim Barchard, David Deaton, Stephen Sohn are doing $50,000, $60,000, $70,000 a month. For Pete’s sake, don’t they read the papers? And Zulfi Ahmed—God bless him—is doing $82,000 each and every month. Isn’t that extraordinary?

We’re so lucky to be in the martial arts: We don’t sell a product, we sell the betterment of humanity. Martial arts is all about improving people’s lives.

Before I talk to you about the economy, we’re going to have to appreciate ourselves. We sell what people want, but more than that we sell what people need. It is why I’ve wanted to stay with martial arts all these years. It is so satisfying. You should be proud of the work you’re doing.

I want to relate a recent experience to you: I acquired a house in the suburbs of Chevy Chase in Maryland for $240,000. Luckily, I had a tenant in there for six years, paying $22,000 a year in rent. I was delighted because it cut my investment in half. Unhappily, one day the tenant called and said he had to move out. There were four or five homes in close proximity that were vacant, and house prices were going down. So it was doom and gloom for me.

Then one day, in walked my son John with Jenny Hughes, a lady with an infectious, bubbly personality. She asked me what price I was asking for my house. Two days later she called me and said that she would have an open house there and whether I was willing to spend $10,000 on some repairs and renovations. I agreed. Ten days later she walked in with a check for $412,000. I was amazed, and I asked her what was the secret behind her extraordinary success.

She replied that it was the 20% rule. She had decided that everything she would do would be improved by 20%. As a result, she now communicated with her clients 20% more; serviced them 20% more; and the result was that she was having a better year despite the blues facing the real estate industry.

I said to myself that I have to share this with the gang. So here’s what I propose we all do: We are going to go out of the house

with a 20% better attitude. We are going to make our schools look better by 20%. Our staff meetings will be more exciting and substantive by 20%. We’re going to improve the black belt exams by 20%. We’re going to improve our demonstrations, guest programs, open houses, birthday parties, ABC classifica-tions, 2-4-6 calls by 20%. Additionally, we’re going to make the next four months the most exciting months of our lives and we will improve our school gross by 20%.

Now, everyone, do you have the humility, and the persistence to say to yourself that I’m going to work on this 20% challenge? We have to take inven-tory and say that though we are doing well enough, we’ll increase our mind, body and spirit by 20%.

By Mark Cokinos, EFC Vice President

EFC Vice President Mark Cokinos has listed a few important steps to recession-proof your business and your way of thinking, as well as getting ready for the 2009 Summit.

Taking a Forward StepTake a step forward by adopting the EFC Summit thought model!

It appears that we are all facing financial storms in this time of recession. Even President-elect Obama says, “Things will get worse before they get better.” People say that they don’t have a prayer. However bad things get, the one thing we each always do have is a prayer. In addi-tion, as individuals and collectively as martial artists, we can adopt a supe-rior thought model. Here are steps to take to be a recession-proof force of good, and be able to celebrate abun-dance at the 2009 EFC Summit...

Read complete speech on page 6

Special Report on What Needs to be Done... Now!

By Steve LaVallee

This is what Steve LaVallee recently shared with MAUI members:If you were at the Summit then you know that Mr. C. threw out a chal-lenge, which we can call the 20% challenge. He challenged us all to work 20% better than ever before. I look at it as an order and say, “Yes, Sir, I’m ready to step up.” And I hope you do the same.

Time to Step Up

Most of the clients who attended the Summit agreed to make the next four months the most exciting times of their lives. They agreed to adopt the 20% formula. We spoke to three school owners—Shihan Todd Keane, co-owner of Academy of Traditional Karate; Sensei Mike Vacca, owner of East West Karate; and Zulfi Ahmed, owner of Bushi Ban International—for some specific responses.

Three Great Perspectives on Growth

Also Featuring:

Basic Rules for Managing a Martial Arts School

By Nicholas Cokinos

see page 14 see page 7 see page 19see page 13

EAGLE EXPRESS | 2009, ISSUE 1 1

Are you making any of these 5 mistakes in managing your martial arts school?å Failure to have in place an effective

internal and external marketing system that generates at least 20 new members per month

ç Lack of a deep understanding of how to have excellent student retention

é Not charging the correct tuition amount

è Not owning your own school building

ê Wearing the hats of both martial artist and bill collector

Many Educational Funding Company clients

started with only 50 students in their schools.

Today, they are teaching 300 students and more!

Call today to order your free audio CD entitled

“Double Your Gross at No Additional Cost”

EFC USA/ Canada4740 Chevy Chase DriveSuite 200Chevy Chase, MD 20815

301-654-8677

or visit us at www.efconline.com

Call today to begin solving these problems

Dependability

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EFC UK/ Ireland6 Barton Court11-12 High Street, HighworthSwindon, England SN6 7AG

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Nicholas CokinosEFC Chairman

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CONTENTSEAGLE EXPRESS | 2009, ISSUE 1

COVER STORY: The Economy

6 20% More: An Assignment for Everyone By Nicholas Cokinos

7 Time to Step Up By Steve LaVallee

7 Defying The Economy: Ideas from our Top Growers Interviews with Angelo Vitale, Gustavo Larrea, Steve Sohn, Jason Gabriele, Mike Vacca and Eddie Solis

9 Four Cost-Cutting Tips By Dave Kovar

12 ’Tis The Season For Optimism By Charles Chi

13 Taking a Forward Step By Mark Cokinos

14 Three Great Perspectives on Growth Interviews with Todd Keane, Mike Vacca and Zulfi Ahmed

FEATURES

17 Basic Rules for Managing a Martial Arts School By Nicholas Cokinos

IN EVERY ISSUE

4 Inside Scoop

18 Staff Training Dojo Drills & Skills

69

12 13

7


PublisherEditor-In-Chief

Executive EditorTalking Newsletter Host

Talking Newsletter EditorEditor/Writer

Graphics ManagerGraphic Artist

Web/Graphic Designers

EFC Publications TeamNicholas Cokinos, EFC ChairmanMark Cokinos, EFC Vice PresidentJohn Cokinos, EFC PresidentNed Muffley, General ManagerJoe Guiton Ananya BhattacharyyaShavanthi MendisSuchandra MaitySumana Samanta

Contributing Writers & ConsultantsEFC BOARD OF DIRECTORSDennis BrownJim ClappDavid DeatonBuzz DurkinGarland JohnsonSteve LaValleeNick PatakosChris RobinsonJoyce SantamariaGreg TearneyKeith Thompson

EFC UK ADVISORY BOARDJohn LynnKen Pankiewicz Ken Robson

EFC ADVISORY BOARDAnthony ArangoTim BarchardCharles ChiKathy FaustJohn GodwinIvan Kravitz Teri LeeSteve Sohn Bill Taylor Debbie ThompsonAngelo VitaleLiz MahlerDavid Durman

EFC HeadquartersEFC USA/CANADA4740 Chevy Chase Dr. Suite 200 Chevy Chase, MD 20815Tel: 301-654-8677 Fax: 301-654-7750E-mail: [email protected] Manager: Ned Muffley

EFC UNITED KINGDOM/IRELANDUnit 6 Barton Court11-12 High Street Highworth Swindon,England SN6 7AGTel: 01793-764550Fax: 01793-764557Email: [email protected] Manager: Mike Allen

EFC AUSTRALIA/NEW ZEALAND3/13 Bon Mace Close,Tumbi Umbi, NSW 2261Tel: 02-4389-0808Fax: 02-4389-0818Email: [email protected]

OUR MISSIONOur job is to make people more successful. We recognize that each job in our day-to-day operation contributes to the success of others. We pledge ourselves to the pursuit of excellence. By consistent example, we develop the passion for excellence in others. The Eagle Express is published monthly by the Educational Funding Company.

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SATORI ROCKS!

All EFC Gold Package Premiumsubscribers can access two trainingvideos—covering business and staff training—via the web every week.

“I always appreciate the knowledge I receive from you, includ-ing the Satori System. I want to grow my school and help many people in their lives. One of the things I have noticed is that you seem to understand my goals. All the information not only helps to make better martial artists, but also better people. Thanks for all of your help.”

—Larry H. Adams

INSIDE SCOOP

4 EAGLE EXPRESS | 2009, ISSUE 1

SENSEI BUZZ DURKIN PROMOTED

Sensei Buzz Durkin, a long-term EFC Board of Directors member, was recently promoted to the rank of Kyundan (ninth-degree black belt) in the art of Uechi-ryu Karate-do. Congratulations to him from the entire EFC family!

EDDIE CALLA’S WORK WITH KIDS WITH AUTISM NOTED

These are times to emphasize value. Hereʼs how Eddie Calla is forming deeper bonds with society by working with kids with disabilities.

The Staten Island Advance, a local Staten Island newspaper, made note of EFC client and martial arts school owner Eddie Callaʼs work with kids with autism. It mentioned that parents are pleased with the posi-tive results martial arts training has had on their kids, which ranges from greater ability to follow directions to higher self-esteem. Calla, who used to be a trader with the New York Stock Exchange, has been teaching karate to kids with disabilities for over 15 years. The paper stated that Randy Horowitz of the Eden II School of Autistic Children in Elm Street, where some of Callaʼs students attend school, said that while karate is not a treatment or prescription for autism, it can be benefi-cial. Dr. Stephen Wakschal, a psychologist who has referred many patients to Calla, cited that martial arts has been informally used with children with autism and ADHD with increasing frequency in the recent past.

For more information, contact Eddie Calla at (718) 720-2509.

BY DAVE KOVAR

Hereʼs what Dave Kovar recommends when a child wants to quit:

None of us like to hear a student tell us that they intend

to quit and itʼs essential to have strategies to implement when this happens. Offering students a party for their friends if they stick with your program until their next belt rank (or any period of time you choose), is a great way to get students through times when they feel like quitting. A “perse-

verance party” has two benefits: Many times the student will end up staying and the party will bring new prospects into your school. This session shows you exactly how to get kids to agree to stick with the program by offering them a perseverance party.

For more such great tips, donʼt forget to check Satori videos, updated every week—with one business and one teaching tip—which is part of the Gold Package. If youʼre not a Gold Package subscriber, call your Account Executive today and register immediately. You need good ideas now more than ever to stay on top of your game.

PERSEVERANCE PARTY

5

This year H. James ʻJimʼ Clapp, Co-owner and Executive Director of American Karate Studios in Newark, Delaware, was inducted into the Delaware Sports Museum and Hall of Fame (DSMHOF). He is the first martial artist to be inducted into the DSMHOF. Also, this marks the first time a martial artist has been inducted into a stateʼs Sports Museum and Hall of Fame in the continental USA. (There were two inductees in Hawaii). The induction took place in Wilmington in front of an audience of over 500 people. Various well-known coaches and athletes were among the 12 inductees. The DSMHOF has a 5,000 sq. ft. facility in Wilmington, which displays photos, plaques and memorabilia from the vari-ous prominent professional and amateur inductees. After the cere-mony, Jim said “This opens the door for the martial arts to be recognized with all the other sports. It is my greatest honor yet, as a martial artist (after 42 years), and I hope it paves the way in the future for other martial artists to be honored and recognized across the country.”

Nationally recognized for accom-plishments in the martial arts as

an instructor and a profes-sional school owner, Jim holds one of the highest martial arts ranks (eighth-degree black belt) among Delawareans. Clapp is an inductee of The National Federation Black Belt Hall of Fame (“Kenpo Instructor of the Year”) in 1989; The World Martial Arts Hall of Fame (“Promoter of the Year”) in 1991; The Eastern Martial Arts Hall of Fame (“Man of the Year”) in 1992; and, The International Martial Arts Associationʼs Hall of Fame in 1997. He began his train-ing at West Chester University in 1967. He earned his first-degree black belt in 1971, a fifth-degree black belt in Modern Arnis in 1989, and an eighth-degree black belt in American Kenpo in 1995. Jim placed second in the Japan Karate Association (JKA) East Coast Collegiate Karate Championships and fourth in the JKA National Collegiate Championships in 1970. Since 1973, Clapp has instructed more than 11,000 students at his American Karate Studios including John Sarmousakis (who won four National Championships titles in two

“JIM” CLAPP IS FIRST MARTIAL ARTS INDUCTEE INTO DELAWARE SPORTS MUSEUM & HALL OF FAME

years (1978-9) in Black Belt Kata (forms), and Judy Anderson Clapp who was a National Martial Arts Ratings Systems Black Belt Womenʼs Forms Champion in 1978-9.

Jim and Judy Clapp produced “TV American Karate” (1985-95) which was one of the first locally aired cable TV shows in the USA to feature the martial arts. Also, many area athletes have trained with Jim including NFLerʼs Randy White (former Defensive Tackle, All-Pro, and NFLHOF with the Dallas Cowboys 1975-88), Steve Watson (former wide receiver with the Denver Broncos 1979-87), Kwame and Orien Harris (currently with Oakland Raiders and Cincinnati Bengals respectively) and Hank Milligan (boxing).

Jim Clapp at the Delaware Sports Museum and Hall of Fame, where he is a recent inductee.

EAGLE EXPRESS | 2009, ISSUE 1


THE ECONOMY ISSUE

6

Chairman Nicholas Cokinos’ 2008 Summit Keynote Speech

I’ve been assigned to talk to you about the economy. I think it is a serious subject. But I don’t think it is as serious as people make it out to be. I think we’ve been engulfed in fear and emotion. The reports in the papers would worry you to death. Let me point out something to you: Angelo Vitale, Mike Nebgen, Ernie Reyes, Keith Thompson, Tim Barchard, David Deaton, Stephen Sohn are doing $50,000, $60,000, $70,000 a month. For Pete’s sake, don’t they read the papers? And Zulfi Ahmed—God bless him—is doing $82,000 each and every month. Isn’t that extraordinary?

We’re so lucky to be in the martial arts: We don’t sell a product, we sell the betterment of humanity. Martial arts is all about improving people’s lives.

Before I talk to you about the econ-omy, we’re going to have to appreciate ourselves. We sell what people want, but more than that we sell what people need. It is why I’ve wanted to stay with martial arts all these years. It is so satisfying. You should be proud of the work you’re doing.

I want to relate a recent experience to you: I acquired a house in the suburbs of Chevy Chase in Maryland for $240,000. Luckily, I had a tenant in there for six years, paying $22,000 a year in rent. I was delighted because it cut my invest-ment in half. Unhappily, one day the tenant called and said he had to move out. There were four or five homes in close proximity that were vacant, and house prices were going down. So it was doom and gloom for me.

Then one day, in walked my son John with Jenny Hughes, a lady with an infectious, bubbly personality. She asked me what price I was asking for my house. Two days later she called me and said that she would have an open house there and whether I was will-ing to spend $10,000 on some repairs and renovations. I agreed. Ten days later she walked in with a check for $412,000. I was amazed, and I asked her what was the secret behind her extraordinary success.

She replied that it was the 20% rule. She had decided that everything she

would do would be improved by 20%. As a result, she now communicated with her clients 20% more; serviced them 20% more; and the result was that she was having a better year despite the blues facing the real estate industry.

I said to myself that I have to share this with the gang.

So here’s what I propose we all do: We are going to go out of the house with a 20% better attitude. We are going to make our schools look better by 20%. Our staff meetings will be more exciting and substantive by 20%. We’re going to improve the black belt exams by 20%. We’re going to improve our demonstrations, guest programs, open houses, birthday parties, ABC classifications, 2-4-6 calls by 20%. Additionally, we’re going to make the next four months the most excit-ing months of our lives and we will improve our school gross by 20%.

Now, everyone, do you have the humility, and the persistence to say to yourself that I’m going to work on this 20% challenge? We have to take inven-

tory and say that though we are doing well enough, we’ll increase our mind, body and spirit by 20%. We will also love our fellow martial artists by 20%, which includes sharing and network-ing with them. And we’re going to start right now.

I have one last message: I’m going to increase my love for you by 20%.

20% More: An Assignment For Everyone

Now, everyone, do you have the

humility, and the persistence to say to

yourself that I’m going to work on this

20% challenge?


Time to Step UpBy Steve LaVallee

This is what Steve LaVallee recently shared with MAUI members:

If you were at the Summit then you know that Mr. C. threw out a challenge, which we can call the 20% challenge. He challenged us all to work 20% better than ever before. I look at it as an order and say, “Yes, Sir, I’m ready to step up.” And I hope you do the same.

MAUI’s 2009 ListIf you took out your lamp right now and made your three wishes, they have something to do with your health, your wealth and your happiness. If that is right, then you’re no

different than me. I’ve done really well in the past year, and I ask myself, “How did I get so lucky?” You know the answer is, “Planning, preparation and hard work.”1. If you want to make ’09 the best year ever, you must

decide right now that it is going to be your best year ever. It won’t be unless you decide to make it. Start your new year with improved planning and preparation.

2. If you want to see 20% or better results in the New Year, we must get 20% or more organized.

3. The same goes for your time management; your follow-through or follow-up; your planning, preparation and promotional skills; and your communication skills.

4. You have to have better actions every day, starting now: better study habits, more ‘practice through rehearsal.’

5. Better yourself. ‘What can I do to improve my wardrobe?’ 6. Look at your dojo. What is a better makeover for your dojo?

You’ll be going into the New Year feeling good about yourself. 7. Could you improve your marketing by 20% or better?

Could you become a master of internal marketing, of creating referrals off of your top students?

8. Could you improve your curriculum and teaching skills by 20% or better?

9. Project students’ progress, their stripes, their belt exams. Make sure everybody knows when they are eligible and what they need to do to hit the ground running in 2009.

10. Make more calls and contacts.Mr. C. threw us a challenge, and we’ve got to step up. We have to improve our focus and our actions. If we can have a great year when the economy is challenging, what will happen when the economy improves?

Interviews by CDR Ned MuffleyTranscribed by Ananya Bhattacharyya

We asked some of our clients what were some of the things they were doing in order to keep growing in the past one year. Here are their responses:

Angelo Vitale:With the econ-omy being the way it is, what is important is that you pick up your student

service a little bit—including your DNS calls, 2-4-6 calls, energetic classes,

more personal talks with parents and students that reinforces their good opinion about our school.

We’ve been generating 30 new enrollments a month just from in house—through referrals. And pick-ing up the student service a little bit has helped in this regard. It is important to realize that if you think that people don’t want to join your martial arts school because they don’t have the money, then you won’t have new enrollments. Just come into work thinking of how you can grow your business, and it will grow.

Pick up the intensity level and

work your staff a little harder too. And they’ll have the same mindset as you.

Angelo Vitaleʼs school has shown a 27% growth in the past one year.

Gustavo Larrea:I’m a big believer in not watching the bad news. Zig Ziglar teaches one thing: If

you want job security, you have to constantly up your game. That’s what we did. We have a school that showed a

Defying The Economy: ideas from our top growers


THE ECONOMY ISSUE

8

huge improvement, and in that school, we really, really kicked it up a notch. The young instructor who is running it is 24 years old. His name is Larry Batista. He’s been in my organization since he was nine. He has been running this school for three years. This year he woke up and decided to really work on improvement.

One of the things we picked up from Mr. LaVallee and the MAUI group is that we submit Kaizen reports to one another, which is a work report of the day. We started to keep track of his closing ratios and that type of thing. One of the things we’ve been adamant about is measuring management. If you can’t measure it, you can’t manage it. If you’re not keeping stats, you’ve got a problem, because our stats teach us where we are, where we were and where we’re going.

With regard to marketing, I’ve learned over the years that you’ve got to enjoy the process. Personally, I like direct mail. Larry does not. He likes internal events. He has literally become ‘internal man.’ Sometimes he has six different events in the course of a month. Each event is providing him with six to ten new leads, from which he is convert-ing two or three. He has become very creation-minded, which means creating new business. If one doesn’t get new business, sooner or later there will be a decline. What I’ve found is that if one has three bad months, then things may start to fall apart.

For instance Larry recently had a Perfect Attendance Party, in which he invited five students with good atten-dance, and they could bring in up to 10 guests, which led to leads and prospects.

Another thing we do in our school is prospect calling. These are all people in our database who have inquired in the past. So we have a positive mind-set. When they say, ‘No,’ we think, ‘Not yet.’ We try to spend half-an-hour to an hour on these calls a month. We call them to invite them to an internal event. And we go back to our phone script, with the idea of getting them engaged, and we take it from there.

Involvement With Community. Contacting your local churches and local after school programs and developing relationships within your community is important. What we like to do is business-to-business VIP, where it is more like a community outreach program. We stop by at other local businesses and greet them and mention that we have a community outreach program and that we are giving free passes to the academy for all the local merchants as a ‘thank you’ for helping out in the community. Then we ask them how many passes they would like for their staff members. If and when you get someone from a local business to join your school, you get a walking testimonial behind the counter. They’ll let you put one of your lead boxes in there. If they have any inquiries, they will say good things about your school.

Getting mentored. People have to realize that there are mentors out there. Besides EFC, there are other mentors. Their last names are Ziglar, Tracy, Trump. They are literally willing to give you a private class for the cost of a book. I’m very adamant with my team about this. They have to report to me in their Kaizen reports about what they are learning. For example, with Larry, he has gone off the board and now I’m reading what he is recommending. It’s a wonderful experience to be learning from your own students.

One of Gustavo Larreaʼs schools, run by Larry Batista, has shown a 58% growth in the past one year.

Steve Sohn:Relationships is the key. Even now when people are coming in and telling me that they are

losing their jobs, it’s all about rela-tionships. Keeping the relationships that I have with my students is very important. If you lose the people that

you have now and there’s no one new coming in, then the check’s going to go down. I’m working very hard on retention. Having very good classes is important and so is strengthening relationships.

I’m giving away things to them—t-shirts, water, pens, key chains, toys for kids. I am greeting them at the door. I do this personally. What I want from the staff is to teach great classes, connect with people, make corrections and help people develop to the next level.

I have had instances of people coming in saying that they’ve lost a job or that they have had to take a pay-cut, but I still insist on them coming and training with me. I tell them, “You will find a job in a month or in six months, but I still want you to train with us.” I let them train for free during this period, because I feel good about it too. I feel that I’m building goodwill, and maybe they will recommend someone else.

The same goes for staff members too. For example, one of my staff members just got a brand new car, and I’m giving him a car alarm as a gift. It’s little things you do that add up.

Steve Sohnʼs school has shown a 17% growth in the past one year.

Jason Gabriele:One of the key things we’ve focused on is plugging into the system and tightening of our

systems through the MAUI organiza-tion. Kyoshi LaVallee always stresses to us that if you grow your net ‘work,’ you can grow your net ‘worth.’ One thing we’ve done is taken a close look at how we run our BBC program with regard to raising our rates and charging the amount of money that we’re worth.

We stress to our students that within the first quarter of each new year, our rates will go up. Back in the day when we charged $75/month for lessons,


we got a lot of students who lived day-by-day. They might have $100 today but not tomorrow. Now that we raised our rates to $159 (for our BBC membership program), we get people who know how to finance their money. They are already planning for their child’s college education, which is 15-16 years from now. But their mindsets are already about the savings plans. Yes, there are students who’ve lost their jobs, but there are others too who are getting promotions and raises. We stress that it costs only $159/month to keep you mentally and physically fit as well as emotionally stable. That’s cheap. My wife is a therapist, and they get paid that during a one-hour session. We’re cheap for what we do. Reiterating the values and benefits of martial arts education with your current students is important, and when they are talking to someone, they will be talking your language.

The bottomline is to give students more than they expect, that extra customer service. At the Summit too the common theme that my staff and I pulled out was that it was all about relationships. It’s things that cost a penny compared to what a Yellow Page ad would cost. When times are tough, students don’t want to get rid of you. They need you.

Sal Gabrieleʼs school has shown a 15% growth in the past one year.

Mike Vacca:Most of us in the martial arts look at it from a different point of view. We have been able to be

successful during these times, and a lot of it has to do with the principles we maintain through MAUI and EFC in developing strong relationships with our clients.

One of the things we make sure is that students and their parents know that this is a long-term relationship.

They are here not as much for a physi-cal activity as much as for the charac-ter development opportunity to really become black belts for life. We build that trust and camaraderie with our students and their families. It has a lot to do with everyday interactions that we have with our students and their families: maintaining contact, revisiting goals, letting them know that this is an ongoing process.

We send flowers and cards for a student with a new baby. And when they send us a picture of the baby, we hang that up in our dojo.

Mike Vaccaʼs school has shown an 18% growth in the past one year.

Eddie Solis:It boils down to a few things. One of them is we concentrate on teaching great classes. As Mr.

Dave Kovar says, “It all starts on the mat.” You have to make sure that each class that is taught is top-notch.

The second thing is, you’ve got to get to your school early; you’ve got to tap your pencil; you’ve got to do all the things that you know you’re supposed to be doing—following up on leads, confirming appointments, ABCing the students. On the 15th of each month, you’ve got to figure out what the plan is going to be for the next month. When the times aren’t bad you may be able to get away without doing these things. Now, you just cannot afford not to.

Finally if someone comes to us and says they’ve lost their job, we are not going to behave like the electric company that turns off their lights. We’ve got to figure things out on a case-by-case basis and see what we can do to help.

Eddie Solaceʼs school has shown a 10% growth in the past one year.

Four Cost-Cutting TipsBy Dave Kovar

Take a closer look at your operations for opportunities to save costs, says Dave Kovar, a famous name in the martial arts industry. 1. Payroll. The first thing that comes

to mind when it comes to cost cutting is taking a closer look at payroll. Look closely at your part-time staff. If you have someone with an extra hour in the evening that you don’t really need or if they come earlier than you need, and this happens two or three times a week, then that can add up. If you have more than one staff with this issue, then that will really add up. I would look at payroll to make it as tight as possible. You must have people when you need them, but not when you don’t need them.

2. Reducing waste. Walk through and analyze if you’re creating waste in any way. At the end of the week is there an extra bunch of copies floating around of handouts that weren’t handed out. Perhaps you aren’t handing out everything, in which case you should print less. Other basic areas: electricity. Make sure you turn off the lights and the A.C. or heating system.

3. Reanalyzing your advertising budget. Make sure your money is being properly utilized. What this requires is pulling up your inquiry list to see where your students are coming from. If a number of students come through newspaper advertising, then advertise more in newspapers. If you’ve put out an ad and have had no response, then consider not running that ad again.

4. Rethinking the school’s cleaning plan. If you have someone cleaning

Continued on page 13...


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Master Keith ThompsonTri-Star Martial ArtsEFC Board Member

I believe that your concept on your martial arts Hy-Gens shoe is a great idea that is long overdue. I can see where thisis practical, affordable and makes per-fect sense. Count me in.

Professor Garland R. Johnson

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As a kung-fu stylist who always wore shoes, I’ve always had problems going barefooted. We’ve had parents asking why students couldn’t wear socks with their safety gear. This solves that problem completely. Good Job. I’m on board.

Sifu Dennis Brown

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“The martial arts shoes designed by Nick Patakos are an absolute necessity for the industry. They would be a benefit and a hit in any school. This would increase our bottom line, sanitary condi-tions and make training more comfortable for all.

Master Chris RobinsonCanadaEFC Board Member

Our 900 students love the Hy-Gens shoes. It keeps their feet clean and keeps my schools beautiful. The new no-scuff bottoms are awe-some and I am delighted that we finally have a soft shoe to wear in the classrooms. My student’s parents are also purchasing the shoes to wear at home. Thank you AWMA! – This is the best thing since sparring gear.

At last a product that takes the worry out of students possibly picking up planters warts and other infections from working out in bare feet.

Grand Master Greg TearneyEFC Board Member

Hy-Gens shoes are an innovative product that is overdue. They are comfortable, attractive and they will enhance cleanliness in our dojos. I’m eager and excited to share them with my students!

Master Steve LaValleeEFC Board Member

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This is a great product. As a long time sufferer of foot fungus caught from the dojo floor, I highly recommend this.

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THE ECONOMY ISSUE

12

‘Tis The Season For Optimism

By Charles R. Chi, PhD

“There are no hopeless situations; there are only people who have grown hopeless about them.”—Clare Boothe Luce While the onslaught of negative news about the economy might make you want to hide under the covers and re-emerge only when the economy rebounds, in reality that’s the last thing you should be doing! Be bold. Be brave. And instead of thinking of survivabil-ity, think profitability.

Warren Buffett once said this about economic downturns: “Only when the tide goes out do you discover who’s been swimming naked.” If you run your busi-ness at the top of your game, you won’t have to worry so much about your level of exposure to the economic elements.

“Most people are about as happy as they make up their minds to be.” —Abraham Lincoln

The truth is, changing your attitude and your mindset can actually drive

profound and lasting changes through-out all areas of your life. This is backed up by sound scientific evidence. Research consistently shows that optimists, those with a positive mental attitude and outlook on life, live very different lives from pessimists. Consider the impact of optimism in these two areas of life:

Performance on the Job Many studies have proved that opti-mists will generally outperform their pessimistic counterparts in the work-place. In fact, there are many compa-nies that now use optimism tests as one element of their hiring practices. Optimistic salespeople, for example, will consistently outsell those who are less optimistic, and on top of that, they are less likely to quit. In sports, opti-mistic professional athletes and coaches perform better under pressure than pessimistic ones.

HealthOptimists, on the average, tend to be healthier and have better immune system functions than pessimists. Optimists are more likely to stick to their commitments to improve their health (such as exercising and eating right). And if they do have health prob-lems, optimists are more likely to iden-tify them at an earlier stage because their belief that their actions can have beneficial results leads them to seek a doctor’s opinion.

In part, the impact of optimism is a real self-fulfilling prophecy – optimists encounter fewer negative events in their lives because they take more proactive steps to avoid them. Optimists achieve more because they expect more, and as a result they work harder and more persistently toward their goals.

“Men are disturbed not by things, but by the views they take of them.” —Epictetus

Of course, the belief that optimism is a key driver in success is not new. In the 1950s, Norman Vincent Peale published a wildly successful book called “The Power of Positive Thinking.” The book’s message was that faith, prayer and posi-tive thinking were the keys to a success-ful life, which has much in common with modern research on optimism.

Here is the big question: Can you simply “choose” to think more posi-tively? Peale certainly believed so, and advocated “mind emptying,” the practice of clearing the mind of all fears and anxieties while replacing them with positive thoughts, a concept all too familiar to all martial artists (Mushin or No Mind).

In my experience, a three-step process is most effective:

RecognitionOften negative thoughts occur so quickly and so repetitively that we don’t even recognize them. Thoughts like “I’m such a loser” or “I’m not good enough” can

pop into mind so quickly that psycholo-gists sometimes call them “automatic thoughts.” So step one is becoming aware of the negative thoughts that stand between you and optimism.

Fighting backThe next step involves “thought replacement” – learning to argue with

Many studies have proved

that optimists will generally

outperform their pessimistic

counterparts in the work-

place. In fact, there are many

companies that now use opti-

mism tests as one element of

their hiring practices.


Taking a Forward StepBy Mark Cokinos, EFC Vice President

EFC Vice President Mark Cokinos has listed a few important steps to recession-proof your business and your way of thinking, as well as getting ready for the 2009 Summit. Take a step forward by adopting the EFC Summit thought model!

It appears that we are all facing financial storms in this time of reces-sion. Even President-elect Obama says, “Things will get worse before they get better.” People say that they don’t have a prayer. However bad things get, the one thing we each always do have is a prayer. In addition, as individuals and collectively as martial artists, we can adopt a superior thought model. Here are steps to take to be a recession-proof force of good, and be able to celebrate abundance at the 2009 EFC Summit to be held at the Ritz Carlton, Miami, Florida:1. Study the post-Summit notes care-

fully and commit to improving your thinking and mental attitude through listening and reading appropriate material. For those who attended this year’s Summit, understand the uplifting martial arts spiritual experience generated by the high quality people who

your negative beliefs and replace them with more positive alternatives. Try asking yourself: What is the objec-tive support for these negative beliefs? How are these beliefs holding me back? What more optimistic and empowering thoughts could I replace them with? It sounds easy, but it’s not. Optimism is a skill and it takes time and practice to develop it. And you really have to believe your new optimistic thoughts.

In fact, this process of counter-arguing with your negative thoughts is the basis of most modern forms of psychotherapy, particularly for treatments of depression.

Social supportOptimism is contagious. So is pessi-mism. Studies find that people who live with depressed people tend to become depressed themselves. Surrounding yourself with optimistic, supportive people, like the people you met at the EFC Summit, will help you turn occasional optimistic thoughts into a habitual way of thinking.

Constant and Never Ending ImprovementThis is especially important in taking your life forward, making a major difference and impacting the lives of as many students as possible. Focus on your goals and make the most of the one and only life you have. Winners have clear direction and know exactly what they want. Nothing will stop them.

were in attendance, sharing and networking knowledge.

2. Implement the ‘Staff Pay Their Way Program.’ Follow the EFC proce-dures on this. It is a piece of cake.

3. Regularly visit EFConline.com to refresh your thinking, get some ideas while recapturing the Summit spirit.

4. Mentally block out the negative financial news. This will turn back threatening financial tides.

5. Implement the 20% rule in all key areas. (For those who missed the Summit, find out more in the January Eagle Express.)

6. Begin your Summit Savings Plan.7. Pre-frame yourself and staff

that this year’s Summit will be a resounding, eye-opening mental journey. There will be an omni-presence of good, with people expressing positive attitudes and authentic fellowship within a culture of sharing and giving. The experience develops and promotes new ways to communicate and teach martial arts. Upon return-ing home Summit attendees are a greater influence for good. Their calm, strong mental currents along with the expression of an elevated martial arts spirit will deepen the martial arts experience of their students. So adopt an improved thought model and bring it to this year’s Summit along with your spouse, staff and family members.

the school around the clock, make it part of the last adult class of the night. Also you can have volun-teers to help clean up the place. It is amazing if you can adopt this into the protocol, for it is in keeping with martial arts and the way it was during the old dojo days.

If you can implement all four steps together, you’ll end up saving quite a bit of money at the end of the month.

...continued from page 9, Four Cost


THE ECONOMY ISSUE

14

Three Great Perspectives on Growth

1. Do you believe that your success begins with your outlook?Hundred percent. If you believe the community needs your services, you will do everything in your power to make sure they receive those services and vice versa. —Shihan Todd J. Keane

Yes, I am a strong believer that leader-ship and attitude start at the top! —Sensei Mike Vacca

In my opinion success is an accumu-lated effect of many factors, one of which is our outlook towards how we handle situations, achieve results and overcome challenges. Our outlook is a direct reflection of our inner look. Change the way you look at yourself and that will change your perspective of success. —Zulfi Ahmed

2. Share what your mental perspective must be to push back any temptation to let in any doubt.Failure is not an option. If anyone around you has that mindset, then they poison the pot, so they must be allowed to move onto something else that they hopefully will do better with. How can anyone in their right mind doubt that people need more self-discipline, need to get in better shape with the tragic obesity problem today,

and need to stand up for themselves and be strong. I’ve never understood that and never will. —Shihan Todd J. Keane

One way to maintain a positive atti-tude is to continuously feed your mind with positive information. In order to keep your mental perspective strong enough to repel negative thoughts, I recommend reading motivational books, listening to motivational audio materiel, and surrounding yourself with motivating people. —Sensei Mike Vacca

Having a meaningful mission statement and a solid vision should be enough to empower one to overcome any doubts and to keep them motivated towards achieving the desired goals regardless to what the external factors dictate.—Zulfi Ahmed

3. Share one specific way you are going to increase your internal marketing by 20%.It’s a simple one, almost embarrassingly simple. We are going to ask every new person who walks into our school to book an appointment. Everyone knows we should do this, but we calculated that we didn’t directly ask over 500 people last year. We will no longer beat around the bush. Our technique will be like a good karate technique—direct and

to the point. —Shihan Todd J. Keane

By implementing more aggressive “Family Add-On” strategies. —Sensei Mike Vacca

Improved customer service and communication will result in customer goodwill and will automatically enhance internal growth. —Zulfi Ahmed

4. Share two ways by which you will get more guests to visit your school.Luckily, we’ve already developed numerous ways to get guests into our school. It’s the follow-up that we have to improve, and given the state of the economy, we can no longer afford not to do. Some of the ways we have got large numbers into our school are:Ó Birthday PartiesÓ Pizza PartiesÓ PromotionalsÓ Movie Nights/Parent’s Night OutÓ School ProgramsÓ In-House TournamentsÓ Board Breaking EventÓ Bring-a-Freind eventsÓ Mother’s Day ClassÓ Father’s Day ClassÓ Parent Appreciation MonthÓ Ad Cards in the community businessÓ Education Partnership with

Most of the clients who attended the Summit agreed to make the next four months the most exciting times of their lives. They agreed to adopt the 20% formula. We spoke to three

school owners—Shihan Todd Keane, co-owner of Academy of Traditional Karate; Sensei Mike Vacca, owner of East West Karate; and Zulfi Ahmed, owner of Bushi Ban International—for some specific responses.

Todd Keane Mike Vacca Zulfi Ahmed


community SchoolsÓ Other seminars and events

—Shihan Todd J. Keane

Offering Bring-A-Friend/Leadership Days on a monthly basis; and holding “Community Event” seminars. —Sensei Mike Vacca

Improving graduations and scheduled buddy days and open house. —Zulfi Ahmed

5. Share how your staff can make a 20% increase in their work/contribution that will help your organization grow.They can follow the Zero times rule and One time rule. For things that are part of our regular procedures they need to show their self-discipline and not have to be reminded (zero times). For new initiatives, they need to implement the first time (one time). —Shihan Todd J. Keane

For 2009, our staff is focused on increas-ing their “Face-to-Face VIP” results in order to bring in new members. Also, by implementing a daily checklist to maxi-mize results inside the dojo. —Sensei Mike Vacca

Creating a vision of individual as well as team contribution. Ongoing staff training on different topics, systems and attractive bonus incentives. —Zulfi Ahmed

6. How can you increase support to your staff and team by 20%?We will continue with our extensive training efforts. Over the last year we have used MAIA consulting, traveling at least quarterly, EFC Summit, EFC networking, weekly management meet-ings, and daily prep meetings.—Shihan Todd J. Keane

Holding consistent staff training classes and by helping to educate them not only in their martial arts skills, but in the devel-opment of their personal lives as well. —Sensei Mike Vacca

Providing them with proven systems. Clearly defining their job responsi-bilities, providing them with ongoing training on personal and professional growth. Giving them an attractive incentives program to work towards and continuously sharing and remind-ing them of the objectives, the mission and the vision of the organization. —Zulfi Ahmed

7. Share one idea that can make your staff meetings more productive.They need to believe that if a student stops training or does not start training they are missing out on an opportunity of a lifetime. Specifically, we are letting them down. —Shihan Todd J. Keane

Showing a video presentation from the “Warriors Weekend Seminars” hosted by Kyoshi Steve LaVallee and MAUI. —Sensei Mike Vacca

Each staff member is given the oppor-tunity to train everyone else on a topic of their choice. —Zulfi Ahmed

8. How can your instructors en-hance their teaching skills by 20%?By getting students more involved in class in terms of participation and leadership. Every month every student needs to be in front of a class doing something. It could be as simple as counting 10 jumping jacks or giving their fellow students high fives. They also need to be prepared to run high-energy classes, not just good classes. —Shihan Todd J. Keane

By networking with other instructors and learning new ways to present their curriculum. —Sensei Mike Vacca

a) By ensuring they have a clear and solid lesson plan everyday (b) by improving their communications and class management skills, and (c) by providing them with ongoing physical

training and helping them in building better student relationships. —Zulfi Ahmed

9. How can we, during this time, concentrate even more on our spiritual well-being?We need to be able to stop and breath. Some people misinterpret high energy with manic energy. This is a tragic thing in the martial arts industry. It’s like the difference between having fun and being funny at the expense of someone else. Sometimes less is more. —Shihan Todd J. Keane

By taking the first part of each morn-ing (the power hour) and dedicating it to personal self-development and the chance to reflect on past and present. —Sensei Mike Vacca

In my personal opinion, spirituality is an ongoing process and an indi-vidual choice. It is a key element in balancing one’s internal and external outlook. Spirituality is linked with our inner faith and its workings and when applied properly can be a great source of inspiration and empowerment. —Zulfi Ahmed

10. How can you increase your love for martial arts by 20%?I’ve had to step back a little and work on my own physical conditioning. I’ve had some orthopedic issues that I’ve let go too long and have recently spent more time working on these so that I can stay active and do what I love. —Shihan Todd J. Keane

One of the surest ways to increase your own passion for the martial arts is to remain a student as well as a teacher. Teaching allows you to “share” your passion with others, and learning allows you to “renew” your passion for yourself. —Sensei Mike Vacca

Explore, experiment, train, learn and research more. —Zulfi Ahmed


Yellow Ad-8,5x11 1/13/09 4:46 PM Page 1


Yellow Ad-8,5x11 1/13/09 4:46 PM Page 1

The Chairman recommends that school owners pledge to follow the following basic rules:1. I decide definitely that my sincere

and genuine interest in my students is absolutely imperative.

2. Students come to my school because of needs: building confi-dence, learning self-protection techniques, physical fitness and a high sense of progressive thinking.

3. I must assure that I am a totally qual-ified martial arts instructor, teaching with enthusiasm and high interest, motivating my students to reach the level of first-degree black belt.

By Chairman Nicholas Cokinosbasic rules

for managing a martial arts school

4. I recognize that regular attendance is very important and that I take all steps to prevent dropouts by lock-ing the back door.

5. I never forget that in spite of any credentials and community repu-tation, I still need to promote my school in order to assume a constant flow of new enrollments. I recognize and accept that I should invest a minimum of 10% of my monthly gross on promotions, advertising, demonstrations, VIP passes, open houses and buddy days on an ongoing basis.

6. I must recognize that a well-trained

staff is important to keep student interest at a high level using a strict schedule of belt testing to show and establish good progress.

7. I need to perfect the enrollment process with effective info calls, Intro I and Intro II and an effec-tive extension conference resulting in solid paper, followed up by the “Half Moon” principle in developing the renewal process.

8. It goes without saying that the keep-ing of accurate statistics will ensure that I am managing in an efficient and successful manner, supported by sufficient contract amount.

STAFF TRAINING: DOJO DRILLS & SKILLS

18 EAGLE EXPRESS | 2009, ISSUE 1

your tone of voice. Donʼt try to hide your real self. Your voice will sound more natu-ral and animated when you let your natural enthusiasm show. People often forget to do this when they are reading a speech they have written. Avoid reading speeches unless you can make it sound fresh and spontaneous.

Discuss with your staff how they can put these concepts to work every day. Ask them for specific examples of other teammates using these concepts effectively.

1. Pay attention to timing. Most people talk too fast when they are nervous. They are afraid to let any silent spaces into their speech. But pausing to let an idea sink in is one of the best ways to get people to remember it. Practice convers-ing with a partner or talk into a tape recorder. When you want to emphasize a point or focus peopleʼs attention, pause for a full four seconds.

How did it feel when you were pausing? How did it sound when you listened to yourself on tape? (Be careful not to pause too often. Keep your talk interesting by varying the tempo.)

2. Avoid non-words. Some people fill the silent spaces in their speech with non-words such as “ya know,” “okay?” and “well.” Or they use non-verbal sounds such as “uh” or “er.” Using qualifiers such as “sort of,” “like” and “basically” is a way of being indirect.

3. Use plain language. Jargon is okay for groups that use the same language. Otherwise, donʼt use it. Avoid using big words for simple concepts.

4. Speak from the heart. Allow your feelings and convic-tions to come through in

FOUR STEPS TO MORE

EFFECTIVE SPEECH

Courtesy of Kovars, Inc.

❱❱


“By believing passionately in something that still does not exist, we create it. The nonexistent is whatever we have not sufficiently desired.” —Franz Kafka

“Price is what you pay. Value is what you get.” —Warren Buffett

“Success is a lousy teacher. It seduces smart people into thinking they canʼt lose.” —Bill Gates

“Conduct is three-fourths of our life and its largest concern.” —Matthew Arnold

“A noble man compares and estimates himself by an idea which is higher than himself; and a mean man, by one lower than himself. The one produces aspiration; the other ambition, which is the way in which a vulgar man aspires.” —Marcus Aurelius

“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.” —Archimedes

“Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better.” —Samuel Beckett

“To be happy is to be able to become aware of oneself without fright.” —Walter Benjamin

“Fun is a good thing but only when it spoils nothing better.” —George Santayana

“Devote each day to the object then in time and every evening will find something done.” —Johann Wolfgang von Goethe

FOOD FOR THOUGHTTHE CHICKEN OR THE EGG?BY KEITH HAFNER

Keith Hafner weighs in as to whether oneʼs circumstances should affect oneʼs attitude or vice versa.

“You seem to be in a bad mood. What happened?”

“Well, it was just one of those days at work. Thatʼs why Iʼm down.”

Do circumstances determine your attitude? Or does your attitude determine your circumstances?

Actually, it works both ways. Both are true. However, only one of these is useful. Why? Because often, you canʼt control circumstances. You can, though, control your attitudes. If youʼve resigned yourself to being controlled by circumstances...they will dominate you.

Decide, instead, that you will master your attitudes... no matter what the circumstances. And then, you attitudes will work for you... to bring about better circumstances.

TEACHING TIPS ON EFC ONLINE

Have you been visiting our website, www.efconline.com, to see new teaching tips by Dave Kovar every week? We hear that numerous school owners are using this invaluable information for their staff training purposes. (If you’re not a Gold Package member, talk to your AE immediately.)

Here’s an intro to a video clip that was shared recently:

Kids Have a Hard Time Doing NothingAs much as we all teach self-discipline, the fact is that itʼs best to keep children engaged in class activities as much as possible. It can be challenging to keep a full class fully engaged when giving individual feedback or running line drills. This session shows you several ways that you can keep children more actively engaged in class activities without having to rush line drills or elimi-nate individual feedback.

http://www.efconline.com


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