How Much Does It Cost to Open My Doors?
It takes from $5,000 to $15,000 to open a Driving School. If you have a car, you are a good part of the way there. Most of the other expenses (see Business Plan) will fall under Licensure, Insurances, Classroom Materials, Vehicle Equipment, Space Lease, Office Advertising Materials and Website.
How Much Can I Expect to Make?
If your goal is to “Buy Yourself A Job” that can most certainly be accomplished with earnings after expenses of $25-35,000 perannum. However, most that do not have another business to supplement require earnings of $35-70,000 perannum, and that is doable, but the upper range takes more than a year of effort to realize.
From the outside, people think you get rich with a typical charge of $350 per student (for 30 Hrs Classroom and 6 hours Behind The Wheel). Well, after expenses, only 1/3 of that Enrollment Fee may remain. Therefore, a school instructing 200 students in year #1, may only see $90,000 of New Operating Income. Take $10,000 of that for Marketing and Promotion, $7,500 for New Equipment/Materials, $7,500 for Unforeseen Expenses and $30,000 for Payroll (Office Assistant, and one Instructor), and you make $40-45,000 net.
After Year #1, you can make more incrementally and build an income of close to the higher end of $60-70,000 a year, but this often takes 2-3 years.
How Do I Get More Students?
There is no hard and fast rule for doing this. However, experience shows that usually, an Operator can find 75-100 additional new students per year. This is a big deal because that is a Net Income of an extra $7,500 to an Operator. Here are some approaches that have proven successful .
- Affiliate with a local High School, Sports Boosters, Band or Community Group.
- Work your own group for leads. People of the same Ethnicity and Religious affiliation like to work together.
- Meet Local Businesses and encourage their employees to go to your school.
- Offer Specials – Bring-A-Friend, Holiday Class, Weekend Class, Free Road Test.
- Show Students that you are a FUN place to go for Driver-Ed.