How to Start a Driving School

Business Angels are a source of funding that you may not have been considered when trying to secure funding for your business start-up idea. Angels are individuals with their own cash who are willing to invest in growing businesses in return for a share in the company, commonly known as equity. Provided there is a well structured and thought out business plan in place, Business Angels are not adverse to a small amount of risk - after all, they wouldn't have got to where they are without taking risks themselves. Not only will Business Angels offer their investment, but their expertise, knowledge and industry contacts also come with them as part of a package, which can prove a priceless advantage over other forms of lending.

In terms of revenue, a driving instructor has to consider the following factors which may influence potential customers' decision making process:

· Seasonal fluctuations - winter time sales are often quite slow whereas more bookings are likely to be made in the early spring. Weather conditions can also discourage learner drivers from booking lessons.

· Driving instructors depend heavily on reputation - this can take months to build up, which means sales are likely to be low for the first few months.

In order to differentiate yourself from the competition, your driving school needs to be unique. This can be achieved through various avenues; for instance, you could use a make/model of car that is different to everyone else, such as a sports car - this would mean you having to charge larger fees per hour, but the service would be of a premium nature. If it can be proved through market research that this would be of interest to learner drivers, it might be a viable option. Otherwise, you could offer more types driving lesson, i.e. Category A vehicles as well as Category B. Another niche market could be in driving techniques - off-road, motorway, or chauffeurs. Obviously, in this case the location of your business would have a large impact; there are not going to be many wannabe chauffeurs living in the countryside. You have to be able to decide whether the market you are targeting is large enough to support your business, and generate enough bookings/sales to make a profit. The size of your market depends not only on the number of potential customers but also on the number of competitors already established in the area.

There are other services which could be sold alongside your lessons to raise your profile and awareness within the target area, such as selling learning materials (Highway Code booklets, theory test CD ROM, etc) and driving accessories (‘L' or ‘P' plates). Being able to distinguish yourself from the competition is essential, and providing complete customer satisfaction is key to cementing repeat business among your clientele. Only then will your customers become loyal, and begin to influence other potential customers through word of mouth, which is one of the most desirable (not to mention free) forms of advertising available.