People are attracted to leaders. People like to be led; it means less work for them. This is why people have personal trainers and why they train harder when when in a class than they do when they train on their own. People want a leader who does all the research to find the best way to do something; that way they don't have to take the time to do the research. People want a lesder they trust to tell them the best thing for them.
To attract students, you must be a leader in your martial arts community, or at least create that illusion. Take out front-page ads in community newspapers and in the Yellow Pages. Pay to have a pre-movie advertisement at local movie theaters, espscially when a martial arts film is showing. Project yourself as the best martial arts instructor in the community. If you do things small, you will be perceived as small.