Driving school business plan
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The main thing about the business plan of the driving school in the year
How to open a crash-free driving school
Having a driver's license is by no means a guarantee that a person driving can drive competently. And the huge number of accidents on Russian roads is another confirmation of this. Crash-free driving is a special talent that should be learned. And if you cannot master the basics of safe driving on your own, then you need to use the services of professionals.
Such a business as teaching safe driving is in great demand today. As a rule, only after gaining some experience behind the wheel, the driver realizes that he lacks the most important knowledge - knowledge that allows him to feel confident on the road in the most extreme situation.
In the accident-free driving courses, the motorist is taught to drive carefully, not to recklessly. The ability to control a car clearly, to anticipate the development of the situation on the road, to prevent the development of an accident is a guarantee that the number of accidents on the roads will decrease. And a businessman who decides to open his own emergency driving school can make a significant contribution to this.
The basic techniques of accident-free driving, alas, are not taught in most ordinary driving schools. To many, this skill does not even come with experience. In the meantime, with today's traffic volumes, basic driving knowledge alone is no longer enough. This is evidenced by the threatening emergency statistics. For this reason, a business to improve the quality of driving a car can not only bring profit to its owner, but also help reduce road accidents.
The importance of such driving schools for any city is very high, but not all officials were able to appreciate this fact. This means that from a bureaucratic point of view, opening and staffing an accident-free driving school will be as difficult for you as opening a regular driving school that provides training services for a driver's license. The owner of a driving school must obtain a license, for which a package of necessary documents must be collected. It is very important to find experienced specialists who will be able to teach students the basic skills of safe driving on city roads, in icy conditions, and to teach high-quality emergency training.
When starting a business to improve the quality of car driving, entrepreneurs often rely on the speed of learning. In just 25-30 hours, the driver learns to make the only correct decision in an emergency. And the possibility of using such techniques is one of the advantages of this type of business. The course of study, in spite of its brevity, costs good money. And if you manage to establish a methodology for attracting customers, you will expect very significant income.
Profitability in such a business as a driving school directly depends on the number of students, for which it is necessary to properly advertise your services. In this, a competent business plan of a driving school will provide you with significant support. With its help, you will be able to develop an effective marketing strategy and find out what costs you will need for this.
Opening a driving school: working order
On our website, we have already written about the auto business more than once. And in these articles it was said that the number of cars in cities is growing, and the demand for auto services is also growing accordingly.
Another, no less popular business option related to cars, is the opening of a driving school. Driving school owners always have enough clients, considering that many people sign up for driving courses not only with the goal of immediately starting to drive. There are quite a few of those who do it "in advance", even without having personal vehicles at the moment.
Is it profitable to open a driving school? Immediately, we will indicate that a driving school business will not make you a millionaire. By itself, it is not capable of generating huge profits, and with an illiterate organization it can even be unprofitable. However, if you get down to business wisely, and open a driving school where it really will be in demand, then the business can pay off and start generating a certain income.
Download driving school business plan
You can download a sample driving school business plan for free to help you get to the bottom of the business faster. The document contains a description of the service provided, marketing strategy, risk assessment, financial calculations and more. Business plan for a driving school
What you need to open a driving school
Most types of business assume that the entrepreneur can choose the organizational and legal form in which it will be more convenient for him to manage the company. Most often it is a choice between an individual entrepreneur and a limited liability company (read also Which is better, LLC or individual entrepreneur?).
But in the case of the opening of a driving school, the situation is somewhat different. Since there is a law according to which an individual does not have the right to provide training services, the option with an individual entrepreneur is immediately discarded. You can register a driving school in the form of LLC or NOUDO (non-state educational institution of additional education).
A license for the right to provide educational services is also required, and it is issued only to firms with the status of a legal entity. Get ready that you will receive a license from 4 months up to 1 year. The license is valid for 5 years.
Documents required to obtain a license
To obtain a license for educational services, you need to collect the following package of documents and submit it to the licensing authority:
- Notarized incorporation documents.
- Certificate of creation of a legal entity (copy).
- A document stating that the company has all the training materials, manuals, etc., which will be necessary in the course of activity.
- A document stating that the company has all the necessary equipment and inventory that may be useful in the training process.
- Certificate of ownership of the premises in which the driving school will be located, or a lease agreement. You also need a lease agreement for the area where practical training will be held.
- License fee payment receipt.
The car has gone from luxury to the necessary means of transportation. With the growth in the number of vehicles per capita, the issue of professional training of motorists is becoming acute. Perhaps, a driving school is a business that requires a responsible attitude, because the safety of others depends on a quality organization.
The future driving school can provide services:
- Obtaining a driver's license.
- Recovery of skills and abilities. Basically, this type of training is needed by those who, for some reason, never got behind the wheel after obtaining a license.
- Preparation of other categories - suitable for full-fledged car drivers who need the right to drive other vehicles.
- Individual training with an instructor means a schedule of classes developed for a specific student. The attention of teachers is paid to one person, which makes it possible to achieve better and more detailed training. This service is suitable for busy people who do not have the opportunity for group lessons.
- Additional hours of practical training are acquired by those who perfectly know the theory and want to tighten their practice. Many who have no driving experience develop a fear of driving.
To reach the whole mass of potential customers, take care of marketing. Constantly operating systems of discounts, convenient time for classes, bonus programs will attract attention.
Design and create your own website with contact details, accommodation information, pricing policy.
Registration and licenses
To organize the Society, the authorized capital and the Regulations of the school are required. OKVED code is as follows:
- 42. ... Activities of schools for training drivers of vehicles. This includes training with the further provision of licenses for driving cars, buses, trucks, motorcycles.
Obtaining licensing is accompanied by the submission of a package of documents:
- statement ;
- constituent documents;
- employment contracts for employees;
- diplomas of specialists who can carry out teaching activities;
- developed system and training plan;
- documents confirming the necessary equipment with materials and teaching aids;
- lease agreement or documents confirming the right of ownership structure. They are required to register with local governments;
- an agreement for the lease of an area for driving lessons;
- a receipt for payment of state duty.
The term for consideration and obtaining a license is 4 months.
An important step is the registration of the school with the justice authorities. The list of documents is as follows:
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I don't want to brag, but I want to share. This is how we can characterize the story told to us by a former bank employee, and now a successful entrepreneur Stets Alexander Viktorovich. His driving school was opened in the rented premises of the institute. This factor provided him with a constant influx of students into the classroom and allowed him to significantly reduce rental costs, thanks to the agreement on discounts from the management of the institute in exchange for bonus programs for students. Initially, in the first months after opening, the driving school staff consisted of one theory teacher and two practical driving instructors, who were originally hired with their cars to reduce opening costs.
How and why I opened a driving school and an example of creating an inexpensive business plan
While working at the bank, I had a stable job, but it did not completely satisfy me, I wanted something different, more personal, more ambitious.
So that I put my heart and soul, all of myself, and then receive a stable income, without active participation.
In my head I have been hatching this idea for several years, at the same time collecting money and studying all the subtleties of this craft. And I came to the conclusion that the driving school is what I need.
Seven Hells Towards a Successful Future
Nowadays, when every second person wants to have his own business, it is very difficult to open something of his own and to hook a significant audience with this.
The number of motorists is constantly increasing. This fact is not affected by either the crisis phenomena or the decline in the population's ability to pay in recent years. A large number of Russians cannot imagine their life without a car at almost any cost of buying and maintaining it. Back in Soviet times, having a car was considered one of the most reliable indicators of a person's status in society, and today this situation has changed little. Since it is also supported by young people, a driving school can become a profitable business. But is it really so, our driving school business plan with calculations will tell. You can use it as an example for your own planning.
The situation in the driving education market today is quite difficult. Since this area of business interacts very closely with government agencies, primarily with the traffic police, it is constantly at risk. Changes in legislation can go downhill and make the continuation of work impossible.
On August 11, 2021, new requirements for driving schools envisaged by Order of the Ministry of Education and Science No. 1408 came into force. As a result of this regulatory document, according to statistics, about half of driving schools in Russia were on the verge of closure, and a third of them ended up completely ceased operations. We will tell you more about the legal requirements in a separate subsection of this article.
Now the situation is such that the opening of a driving school will become a highly investment project with serious monthly expenses, which can only be covered by maintaining high tuition fees and a large class load by students. And it will be very difficult to achieve this and maintain the situation at the required level. For these reasons, setting up a driving school in 2021 is not considered a promising business line with a small start-up budget.
To simplify the startup process, you can buy a franchise from an operating driving school that already has a license for this type of activity. But remember that even if your work is successful, if for some reason the franchisor's license is revoked, your business is in danger of collapse.
There is also an alternative. In the last decade, so-called extreme driving schools have begun to appear in many regions. They are focused on developing driving skills when driving in difficult weather conditions and in case of an emergency on the road. Such driving schools provide additional education and are not associated with the issuance of state-recognized documents (driver's licenses), and this only benefits them. The process of setting up and running such a business is much simpler, cheaper and less subject to the risks of restricting activities by the state.
However, the extreme driving school will have much less potential clients.
The state has approved a number of requirements for the technical equipment of the school as standards. The list of mandatory equipment today includes: