Business At A Glance
Startup Costs: $10,000 – $50,000
Home Based: Can be operated from home.
Franchises Available? No
Online Operation? No
Training new drivers how to be good driversis a multimillion-dollar industry in the United States. The mainrequirement for starting a driver training school is to be–or have onstaff–professional driving instructors.
Many driving instructionschools now subcontract out the driving instruction to trainedprofessionals who supply their own cars, insurance and gas in exchangefor a percentage of the revenue paid by their students. Using this typeof operating format can be a terrific way to reduce the overall startupand operating costs for the business. Currently, revenue split ratesrange from a low of 60 percent for the instructor and 40 percent forthe driving school to 75 percent for the instructor and 25 percent forthe school. This is a very competitive industry and the only way tosucceed is to secure contracts with high schools providing drivereducation courses for students. The contracts for this service areusually awarded on a tender-for-service basis every one to three years.