Free Driving School Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a driving school while showcasing the expected financials and operations over the next three years. Driving School, Inc. (“the Company”) is a New York based corporation that will provide instruction regarding driving to new drivers its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
As stated above, the Company will provide driving instruction for young people and people that never learned to drive within its target market. Many states now require that new drivers undergo driving classes in order to qualify for a learner’s permit or a driver’s license. Many courts also require reckless drivers to take driving school classes after a conviction. The Company’s secondary stream of revenue will come from students that want to learn how to drive a manual transmission vehicle, for which the Company will allocate one of its cars. Mr. Doe anticipates that the business will have 3 vehicles in operation at the onset of business operations. The third section of the business plan will further describe the services offered by the Driving School.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Driving School’s mission is to provide students with a comprehensive driving education so that they can become safe drivers.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the driving school industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals requiring driving instruction in the Company’s targeted market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Driving School, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Driving School requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Driving School, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Driving School. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the driving school services offered by the Driving School.
3.1 Driving Instruction
The primary source of revenue for the business will be instruction regarding how to properly drive a vehicle. Mr. Doe anticipates that the business will have three vehicles that are used on a continuous basis so that students can receive 6 to 10 hours of instruction so that they can qualify for a learner’s permit or a driver’s license. Many states now have requirements that new drivers undergo at least 6 to 15 hours of driving instruction before they can acquire a learner’s permit or driver’s license. Additionally, people convicted of reckless driving are often required to take driving school classes.
3.2 Manual Transmission Teaching
The Company will also generate secondary revenues from driving instruction related to students that want to learn how to drive a manual transmission vehicle. The Company will earn moderate per hour revenues from teaching manual transmission instruction to students.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the driving school industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, many states have laws that require new drivers to undergo driving instruction before receiving a driver’s license. As such, the business will be able to maintain profitability and a positive cash flow in any economic environment.
4.2 Industry Analysis
Within the United States, there are approximately 1,100 schools that train and teach new drivers. Each year, these businesses aggregate generate approximately $1 billion per year while concurrently providing jobs to more than 11,000 people. Each year, aggregate payrolls have exceeded $303 million. This is a mature industry, and expected revenues are expected to remain flat over the next twelve to eighteen months as the economy completes its correction. However, the business will be able to continually generate revenues as state statutes often require new drivers to undergo professional driving instruction.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Driving School intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Driving School.
5.1 Marketing Objectives
• Establish relationships with schools that outsource driving instruction to third party companies.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Driving School to easily target new drivers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Driving School will also use an internet based strategy. This is very important as many people seeking local services, such as driving schools, now the Internet to conduct their preliminary searches. Mr. Doe will register the Driving School with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services offered by the school, cost of tuition, and how to enroll in the Company’s driving instruction programs. The Company will maintain strong connections with local high schools that outsource driving instruction to third party companies like the Driving School, Inc. In time, this will provide to be an invaluable source of business for the Company.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Driving School will have an annual revenue growth rate of 8% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, as stated earlier, many states have requirements that new drivers must undergo some driving school instruction before becoming a licensed driver. As such, this, coupled with the high margin revenues of the business will ensure the continued profitability of the business.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis