10 Steps to Starting a Driving School
Every vehicle owner needs to learn how to drive. They
usually approach a driving school for practical lesions. The business is lucrative
and easy to establish. However you need qualified instructors, good vehicle and
operational license.
The requirements differ from one state to the next. Things
to consider are finding good test routes, office location and advertisement.
The marketing should be strategic and focus on a particular demography.
How
to Start a Driving School
1. Become
a Franchise or Starting from Scratch
You need to decide if you want to operate as a franchise
or start from scratch. It is expensive joining a franchise because of the huge
fee. However you get all the support, training, marketing and branding.
It is cost effective starting from scratch because you
create your own identity and brand. If you want to operate from a fixed
location you need a commercial area. The location should have administrative
office and parking for your vehicles.
2. Study
the Competition
Every business has some level of competition. It is wise
to research the competition to gather information on their prices and packages.
Useful information includes type of vehicles they prefer,
customer base and location. Are they independent operators or part of a franchise?
Find out how they engage the local community and their marketing strategy.
- gather information on their prices
- packages
- type of vehicles they prefer
- customer base
- location
- Are they independent operators or franchise
- their marketing strategy
3. Acquire
Training
The driver needs to pass a test or exam before becoming
an instructor. The instructor needs to master the road signs and have a valid
driving license. The type of driving license should be a commercial license.
4. Work
on a Startup Budget
The first step is to write a business plan and carry out
feasibility study. You then need to create a budget that covers all the
fundamentals. The budget should include cost of new/used vehicle, insurance and
maintenance.
Make sure it covers cost of fueling the vehicle, salary
of instructor, marketing and administrative costs. If you have a physical
office you include rent of premises.
The startup cost could range from N3.6 million naira or
$10,000. This covers cost of vehicle, rent, company registration and
certification. The earnings of the instructors are based on revenue split or
monthly salary.
The
budget
- cost of new/used car
- insurance
- maintenance
- cost of fueling the vehicle
- salary of instructor
- marketing
- administrative costs
- rent of premises
- company registration
- certification
- salary of instructors
5. Get Startup
Funds
Once you have a practical budget you can source for
funds. Startup in some countries is relatively low especially if you already
have the vehicle. You need money for the fixed and working capital. You can source
funds through target savings or from fiends and family.
You can approach a small loans bank or micro finance bank
in your area. Use the business plan, collateral and part of startup money to
secure the loan. Try to get long term low interest loans. You might approach a
private investor or consider partnership.
- target savings
- loan from fiends and family
- approach a bank
- approach a private investor
- consider partnership
6. Driving
School License
To start a driving school you need a permit. Each state,
county has its own requirement before issuing a license. It is important you
declare a place of business and have liability insurance. The schools should be
certified and pass an inspection test.
Depending on the country a driving school may or may not have
a physical location. To acquire a business name in Nigeria approach the
corporate affairs commission and obtain approval from the federal road safety
commission or Department of Motor Vehicles. The FRSC are also the body that
issues driving licenses.
Other parameters are physical health report, application
for occupational license, live scan clearance. More include certificate of
course completion, application fee and passing a driving school instructor
written test.
- driving school license
- liability insurance
- pass an inspection test
- a physical location
- acquire a business name
- current driving license
- physical health report
- live scan clearance
- certificate of course completion
- application fee
- passing a driving school instructor written test
7. Develop a Curriculum
It is important to develop your driving schools curriculum.
Apart from practical lesions your student must learn theory. Get updated
instructional material from the federal road safety or AAA. Instructional
material includes tutorials, videos and tests.
To conduct practical lessons you need to identify safe
test routes for each stage of the course. The routes gradually become difficult
as the student progresses with the course. There are also DMV accredited test
routes in some local governments.
To succeed you need to adequately manage appointments and
schedules. Don’t forget to create a competitive price list of your services.
School
Curriculum
- practical lesions
- updated instructional material
- tutorials
- videos
- tests
- identify safe test routes
8. Purchase
the Vehicle
It depends on how much funding you have. You could
purchase a new vehicle or used one. The vehicle should pass any vehicle
inspection test and is safe for students to drive.
The most appropriate vehicle is those with manual transmission.
This is because students that learn stick can easily transition to automatic.
However you should consider buying both automatic and manual transmission cars.
There are also vehicles with dual control for driver and
instructor. Make sure the vehicle has all the safety requirements for the job.
9. Build
a Website
Secure a domain name and host plan to build a website.
You could alternately hire a web designer to create the site.
The site should include contact information, services,
phone number and demography you operate. Drive traffic to the site through
FaceBook ads or Adwords. You can also develop a social media presence and gain
lots of followers.
10. Marketing
To advertise the school you can use electronic or print
media. Print flyers, posters, banners and billboards. If you have a physical
office place a signage board in front.
The car is your primary mode for practical lessons should
have adverts on the body. There are advertisement fees to pay for wrap round
vehicle advertisement.
Try to establish relationship with Federal Road Safety
and partner with insurance companies. You can target middle class workers,
students and teenagers.
It is important your students have a pleasant experience
and your instructors are patient and accommodating. To get recommendations
maintain a high standard to stand out from the crowd.