If you are wondering how to start a driving school and if it’s a profitable business, the answer is yes, it is a profitable enterprise. Although, a lot of driving schools go out of business after opening their doors to the public, owning one can be a very profitable endeavor as long as you know how to manage it.
That is, if the person starting one does their due diligence and homework beforehand. Listed below is a plan on how to open this kind of business in your area. Unfortunately, as a business owner, expect to spend a lot of time and energy, completing paperwork for the city or state before opening your doors to the public.
Fortunately, they will have a continuous supply of clients or students. Every 16 and 16 years old cannot wait to get their driver’s license. Most of them need to go through driver education programs. Each year, they will have a new group of students.
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Step one: Study your state’s driving regulations
Before starting your driving school business and move forward with the plan, the first thing you need to do is to see if the state you live in will allow this kind of enterprise to operate. Most states do, but some do not allow driving schools since they do this kind of education in-house.
Some areas will approve this kind of enterprise, but only if it operates outside major cities. A thorough review of state laws and regulations will make sure that this kind of business is allowed in the desired market. Owners need to do their due diligence before spending money.
The old saying “Measure twice, cut once” works well in this type of situation. Schools that don’t comply with state or city rules and regulations may get penalties, as well as license suspension – even worse, license revocation. Once the business has determined that their city or state does allow the opening of a new school, they need to be prepared to submit tons of paperwork.
The establishment and instructors need to be certified by the right agency in the state or city. Vehicles need to pass appropriate inspections, and the records need to be available and open to state inspectors. There are appropriate agencies that monitor all driver education third-party test and defensive driving programs in some areas of the country. Field inspectors audit program files, investigate complaints, monitor instructors, as well as oversee the necessary training.
Check out https://en.wikipedia.org/wiki/Driver_licences_in_Australia to know more about drivers’ licenses.
Now that the business has determined that their operation area will allow them to open a driving school, the next question they need to answer is if they are ready to open one. Well, it depends on the competitive nature of the industry and the environment. Will their area of operation to be able to support another driving school enterprise or is the market for this kind of business already too crowded? Or will the school provide services that are not offered at other institutions?
The only way to get these essential answers is to conduct a marketing analysis on the competitors in the area of operation. According to marketing experts, the Internet is an excellent place to identify opportunities to serve prospective and newly acquired clients, discover the competition’s recipe to their success, find tried and tested ways to service the target market and know how large the target market of the business.
Choose the right location
After the entrepreneur has determined that their operation area will allow them to start the business and their competitors are not too tough, it is time to look for a particular location. Experts recommend that they use a real estate broker to help them find the right place.
Leasing terms can be very complicated, and there are business owners who sign their life away just to secure an adequate space. Do not be locked into a five- or ten-year lease. What happens if after a couple of years, you decided that the industry is not for you? A good option is to secure a fair and flexible lease.
Owners need to sign a personal guarantee from the start, but it is worth it since they can turn that off after a couple of years. A reputable real estate agent for commercial spaces can help people find a good and flexible lease with a one-year option. Like for example, if a driving school in Carine is pretty successful, then they can sign a 5-year or 10-year leases.
When choosing a location, it is imperative to know the state regulations. Some state agencies require minimum-sized classrooms. They will want to ensure the space meets and all of their size specifications. Entrepreneurs will also want to consider visibility.
Can the location and its signs be seen by hundreds, even thousands of people on a busy road every day? If the answer is yes, good. Is it accessible to the public? Is it close to any high school establishments? Are popular stores located in the same area? These are some critical points entrepreneurs need to consider before signing the lease.