Are you writing a driving school business plan? If YES, here is a sample driving school financial projection, profit & loss statement, sales cost. In setting up any business, the amount or cost will depend on the approach and scale you want to undertake.
If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a standard driving school; it might differ in other countries due to the value of their money. We have been able to pull cash that will be enough for us to successfully launch a standard and government approved driving school in Manhattan- New York. These are the key areas where we will spend our start – up capital on;
Startup Expenditure (Budget)
- The Fee for registering the business (venture) in America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,350
- Marketing promotion expenses for the grand opening – $3,200
- Cost for hiring Business Consultant – $3,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,200
- Cost for payment of rent for 12 month and renovation inclusive – $100,000
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, fueling of the cars, and payments of bills et al) – $50,000
- Cost for store equipment (cash register, security, ventilation, signage) – $15,000
- Cost of purchase of 3 used cars et al– $60,000
- The cost for the purchase of furniture and equipment (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000
- The cost of launching a website – $500
- The cost for our opening party – $5,000
- Miscellaneous – $10,000
TOTAL EXPENSES: $260,000
We would need an estimate of $500,000 to successfully set up a small scale but standard and accredited driving school business. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funds/Startup for Zebra Line® Driving School, LLC
Zebra Line® Driving School, LLC is a business that will be owned and managed by Banky Williams and his immediate family members. They are the sole financial of the business, which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about 0,000 (Personal savings 0,000 and soft loan from family members ,000) and we are at the final stages of obtaining a loan facility of 0,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
Sources of Income
Zebra Line® Driving School, LLC is established with the aim of maximizing profits in the skills training industry cum driving school line of business and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.
Zebra Line® Driving School, LLC will generate income by offering the following services;
- Teach people how to drive cars
- Teach people how to drive trucks
- Offer driving refresher courses
- Offer other related advisory and consultancy services such as helping our students renew their driving license and car documents, processing new car plate numbers and documents, process car change of ownership, secure learners’ permit and help prepare students for driving test prior to securing their driving license
- Supply of professional drivers
- General Merchandizes: sale of C –Caution, reflector, fire extinguishers and other car safety gadgets and accessories.
The fact that there are people will always turn 18 and that people who don’t know how to drive would always aspire to own a car, mean that the services of driving school will always be needed. We are well positioned to take on the available market in Manhattan- New York, and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our driving school and our student base.
We have been able to critically examine the skills training cum driving school line of business – market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Manhattan- New York
Below are the sales projections for Zebra Line® Driving School, LLC, it is based on the location of our business and of course the wide range of related services and products that we will be offering;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $400,000
- Third Fiscal Year-: $650,000
INCOME FOR YEAR ONE
Teaching a person how to drive a car will cost $100
- Having 1,200 client, it will cost $120,000
Offering refresher course will cost $50
- Having 1,000 client, it will cost $50,000
Offer other related advisory and consultancy services such as helping our students renew their driving license and car documents, processing new car plate numbers and documents
Provisional driver license will cost $20
- Having 1,000 client, it will cost $20,000
Learner permit will cost $20
- Having 1,000 client, it will cost $20,000
General Merchandizes: sale of C –Caution, reflector, fire extinguishers and other car safety gadgets and accessories.
Reflector cost $15
- Sales on 1,000 reflectors will cost $15,000
Fire extinguishers cost $25
- Sales on 1,000 fire extinguishers will cost $25,000
TOTAL INCOME : $250,000
ON-GOING OPERATIONAL EXPENSES FOR YEAR ONE:
- Operational cost for the second quarter of the year (salaries of employees, fueling of the cars, and payments of bills et al) – $50,000
- Operational cost for the third quarter of the year (salaries of employees, fueling of the cars, and payments of bills et al) – $50,000
- Operational cost for the last quarter of the year (salaries of employees, fueling of the cars, and payments of bills et al) – $50,000
- Equipment rental, repairs and maintenance – $5,000
- Supplies ( stationaries et al) – 4,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $10,000
N.B: This projection is done based on what is obtainable in the skills training industry cum driving line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional related services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.