Are you about starting a truck driving school? If YES, here is a detailed sample truck driving school business plan template & FREE feasibility report.
If you are conversant with driving jobs, you will know that those that make huge money from driving are those that drive trucks. This is because truck drivers drive for long distances; they transport goods from one city to another. Driving trucks require extra expertise, especially if the truck is a heavy duty truck.
So, if you intend starting your own truck driving school in any part of the world, you must be ready to work hard and smart.
The truth is that starting a truck driving school is capital intensive and it requires accreditation (permit and license) from the government of your country because upon graduation students from your school will apply to obtain a Class A Commercial Driver’s License (CDL) from your state government.
A truck driving school just like any other driving school requires accreditation from the government of your country. You can search for the organization responsible for issuing license in your country from the internet and apply for accreditation.
The truth is that the facility and equipment you have on ground will first be inspected before you can get approval to run your school. If your truck driving school is not accredited by the government of your country, any certificate you issue to students will not be honored. Below is a workable truck driving school business plan template that will help your draft yours.
A Sample Truck Driving School Business Plan Template
1. Industry Overview
Truck driving school falls under the trade and technical schools’ industry and establishments in the industry offer vocational and technical training in a wide range of technical subjects and trades. The trainings offered by trade and technical schools often leads to job-specific certification.
Instruction may be provided in diverse settings, such as the company’s training facilities, the workplace, the home or through distance-learning methods. Key areas in this industry include music schools and musical instrument training, cosmetology and barber schools, flight training, truck driving training, apprenticeship training, etc.
Statistics has it that in the united states of America alone, there are about 8,876 registered and licensed trade and technical schools responsible for employing about 127,260 people and the industry rakes $13 billion annually. The industry grew at -1.1 percent annual rate within 2011 and 2016. It is important to state that there are no establishments in this industry that has a lion market share.
A recent report released by IBISWorld shows that the industry exhibits a low degree of market share concentration. IBISWorld estimates only Roadmaster is capable of garnering a noteworthy market share, due largely to their 13 locations across the country.
Beyond Roadmaster, the industry is comprised of many small driving schools operating on a local or regional basis. Driving schools with fewer than 10 employees are estimated to account for over half of all establishments.
With only a few employees, the ability of staff to handle high volume of students is limited. Further, this type of instruction is usually handled on a one-on-one basis. With the ongoing decline in truck driving as a profession, establishments keep their costs low by hiring only necessary staff.
Due to the fact that it can be somehow stressful to get government accreditation for a standard vocational school in the United States, it will be safe to say the industry is under saturated. It is important to state that entrepreneurs, who are into training people, can easily be found without stress.
Some of the factors that encourage entrepreneurs to start their own truck driving training school despite the fact that the business is challenging is that the business is highly profitable.
Starting a truck driving training school requires professionalism and good grasp of the skills you want to teach people. Besides, you need to get the required certifications and license (accreditations) and also meet the standard for such business before you can be allowed to start a standard truck driving training school in the United States.
So, if you are well positioned and you know how to impart truck driving skills to students, you will always smile to the bank.
2. Executive Summary
The name of our company is Cross Country® Truck Driving Training School, LLC; we are a registered and accredited truck driving school that will be located in Grand Forks – North Dakota. We are well equipped to train aspiring truck drivers and professional truck drivers to meet with international best practices as it relates to heavy – duty automobile driving.
Although our intention of starting our truck driving school is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services. In the bid to maximize our position as the leading truck driving school in the whole of Grand Forks – North Dakota, we will regularly update our teaching approach to meet up the trends in the industry.
We are quite optimistic that our values and quality of service offering will help us drive our truck driving school to enviable heights and also help us attract the number of students that will make the business highly profitable. We are dedicated to establishing good business relationship with our students giving them value for their money and reasons why they should continue to recommend their family members and friends to us.
Our corporate business goal is to be among the top 5 truck driving schools in The United States of America. As a company, we are willing to go the extra mile to invest in some of the finest professionals (truck driving trainers / instructors) we can find.
Also, we have put processes and structures in place that will ensure that we are always at the top of our game when it comes to impacting knowledge. We have been able to secure permits from all relevant departments in North Dakota.
Cross Country® Truck Driving Training School, LLC is owned and managed by Benny Williams and his immediate family members. Benny Williams studied Geography and Regional Planning (BSc.) from the University of North Dakota and he has over 20 years of driving experience.
3. Our Products and Services
Cross Country® Truck Driving Training School, LLC is a standard and accredited truck driving school that offers services that revolves around the driving school industry. We will be dedicated to establishing good business relationships with our students giving them value for their money and reasons why they should recommend their family members and friends to us.
These are the services we will offer as a driving school;
- Teach people how to drive trucks, forklifts and heavy duty automobiles
- Offer truck driving refresher courses
- Offer other related advisory and consultancy services such as helping our students renew their commercial driving license and truck documents, processing new trucks plate numbers and documents, process truck change of ownership, secure learners permit and help prepare students for driving test prior to securing their commercial driving license
- Supply of professional truck drivers
4. Our Mission and Vision Statement
- Our Vision is to become the number one government approved truck driving school in the whole of Grand Forks – North Dakota.
- Our mission as a government approved truck driving school is to develop a highly successful and profitable truck driving school which provides quality training in our community and to become the standard for an ideal truck driving school not only in Grand Forks, but also throughout North Dakota.
Our Business Structure
Cross Country® Truck Driving Training School, LLC is aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our driving school on the right business foundation.
We want to build a dedicated workforce who will ensure that our students are satisfied and they get value for their money when they enroll in our truck driving school.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and standard operating processes in place that will help us deliver excellent trainings.
Cross Country® Truck Driving Training School, LLC will employ professionals and skilled people to occupy the following position;
- Head of The Driving School/School Coordinator
- School Administrator
- Truck Driving Instructors
- Marketing and Sales Executive
- Client Service Executive
- Front Desk Officer
5. Job Roles and Responsibilities
Head of the Driving School/School Coordinator:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Driving School Administrator
- Responsible for overseeing the smooth running of HR and administrative tasks for the driving school
- Regularly hold meetings with key stakeholders to review the effectiveness of the schools’ Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily activities of the driving school.
Truck Driving Instructors
- Effectively train students who enroll in our school
- Access the progress of students under their care
- Ensure that students abide by the rules and regulations of the regulating bodies in The United States of America
- Receive complaints from students and channel it to the appropriate quarters
- Handle any other duty as assigned by the driving school coordinator.
Marketing and Sales Executive
- Identify, prioritize, and reach out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the student’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the driving school.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for one or more properties
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes students and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s services
- Manages administrative duties assigned by the school coordinator in an effective and timely manner
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
- Distribute mails in the organization
- Handles any other duties as assigned by the school authority
6. SWOT Analysis
Truck driving school is one of the many businesses that can easily generate business deals with little stress as long as they are well positioned and equipped to carry out their trainings. We are building a standard truck driving school which is why we have decided to subject our business idea to SWOT Analysis.
We hired the services of a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Cross Country® Truck Driving Training School, LLC;
Cross Country® Truck Driving Training School, LLC is centrally located in – between a densely populated residential estate and industrial estate in the heart of Grand Forks – North Dakota; our location is in fact one of our major strengths because we are in a location with the right demography for the kind of business we run.
Another strength that counts for us is the power of our team, our workforce and management. We have a team that are considered experts in the truck driving business, a team of hardworking and dedicated individuals.
Cross Country® Truck Driving Training School, LLC is a new business which is own by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.
We are centrally located in one of the busiest areas with trucking activities in Grand Forks – North Dakota and we are open to all the available opportunities that the city has to offer. Our business concept and staff strength also positioned us to accommodate over 20 students per time.
The truth is that there are no standard truck driving schools within the area where ours is going to be located; the closest to our proposed location is about 10 miles away. So, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Cross Country® Truck Driving Training School, LLC are unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumer spending and of course emergence of new competitors within the same location where our driving school is located.
7. MARKET ANALYSIS
- Market Trends
The key to attracting students is the ease at which students learn how to drive trucks. Any truck driving school that has good records and loads of positive testimonials from students who have passed through the school will always thrive.
Another common trend in the truck driving industry is that in the bid to survive global economic meltdown and to ensure steady flow of income to effectively run the business, most players in the industry engage in other related services.
8. Our Target Market
Before choosing a location for our truck driving school, we conducted thorough feasibility studies and market survey and we were able to identify those who will benefit greatly from our service. Below is a list of the people and organizations that our driving school is designed for;
- Aspiring professional truck drivers
- New owner truck operators
- Food truck operators
- Corporate organizations who are looking for professional truck drivers
- Truck owners who want to renew or process their vehicle documents.
Our Competitive Advantage
The fact that truck driving school business is easy to start does not mean that there are no real competitions in the industry. The truth is that no matter the line of business that you are involved in, as long as it is called business, you will definitely face one form of competition or the other
Our competitive edge is that we are a standard and government approved truck driving school that is centrally located in – between a densely populated residential estate and industrial estate in the heart of Grand Forks – North Dakota; our location is in fact one of our major competitive edge because we are in location with the right demography for the kind of business we run.
Another strength that counts for us is the power of our team, our workforce and management. Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Cross Country® Truck Driving Training School, LLC is going to be driven basically by excellent customer service and quality training delivery. We want to drive sales via the output of our jobs and via referral from our satisfied students.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Cross Country® Truck Driving Training School, LLC.
Cross Country® Truck Driving Training School, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our truck driving school by sending introductory letters alongside our brochure to schools, truck licensing office, businesses that hire truck drivers, households and key stake holders in Grand Forks – North Dakota
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our truck driving school and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper about our truck driving school and the services we offer
- Leverage on referral networks such as agencies that will attract students who would need our customized services
- Advertise our truck driving school in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry and other relevant groups to market our services.
Sources of Income
Cross Country® Truck Driving Training School, LLC is established with the aim of maximizing profits in the skills training industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Cross Country® Truck Driving Training School, LLC will generate income by offering the following services;
- Teach people how to drive trucks, forklifts and heavy duty automobiles
- Offer truck driving refresher courses
- Offer other related advisory and consultancy services such as helping our students renew their CDL commercial driving license and truck documents, processing new trucks plate numbers and documents, process trucks change of ownership, secure learners permit and help prepare students for driving test
- Supply of professional truck drivers
10. Sales Forecast
We are well positioned to take on the available market in Grand Forks – North Dakota and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow our truck driving school and our student base.
We have been able to examine the skills training cum truck driving school business – market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Cross Country® Truck Driving Training 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 (FY1): $250, 000
- Second Fiscal Year (FY2): $750, 000
- Third Fiscal Year (FY3): $950, 000
N.B: This projection was done based on what is obtainable in the skills training industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same 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.
11. Publicity and Advertising Strategy
Cross Country® Truck Driving Training School, LLC is set to create a standard for the truck driving school line of business not only in North Dakota, but throughout the United States of America which is why we will adopt and apply best practices to promote our business.
Here are the platforms we intend leveraging on to promote and advertise Cross Country® Truck Driving Training School, LLC;
- Encourage our loyal customers/students to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Billboards in strategic locations all around Grand Forks – North Dakota
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
- Ensure that all our staff members wear our customized clothes, and all our official trucks are customized.
12. Our Pricing Strategy
Generally, for skills training and coaching businesses, both per hour billing and flat fees on a weekly or monthly basis applies. As a result of this, Cross Country® Truck Driving Training School, LLC will charge our students flat fees except for few occasions where there will be need for us to charge special students on hourly basis.
At Cross Country® Truck Driving Training School, LLC we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
- Payment Options
The payment policy adopted by Cross Country® Truck Driving Training School, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the Federal Government of The United States of America.
Here are the payment options that Cross Country® Truck Driving Training School, LLC will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money platform
- Payment via Point of Sale Machines (POS Machine)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part.
13. Startup Expenditure (Budget)
We have been able to pull cash that will be enough for us to launch a standard truck driving school in Grand Forks – North Dakota. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $15,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $10,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and auto insurance) coverage at a total premium – $10,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing of training and administrative facility for the business – $150,000.
- The total cost for the purchase of trucks and related training gadgets – $80,000
- Other start-up expenses including stationery – $10,000
- Phone and utility deposits – $8,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for the purchase of administrative (office) furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $10,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand dollars ($350,000) to successfully set up a medium scale but standard truck driving school business in the United States of America.
Generating Funds/Startup for Cross Country® Truck Driving Training School, LLC
Cross Country® Truck Driving Training School, LLC is owned and managed by Benny Williams and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup 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 $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Cross Country® Truck Driving Training School, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our truck driving training services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Cross Country® Truck Driving Training School, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Rent a small office and training facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed trucks to be used for training students: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with key players in the industry: In Progress