Model Driving School Service Business Plan in Nigeria

Introduction

This Business Plan is for the setup of a  model driving school whose offerings would not be  limited to training of drivers alone but offer such services that are complimentary and in line with the provision of the Company and Allied Matters Act of Nigeria and and everywhere else in Africa.

Driving school operations and registerations in Nigeria are under the purvew of the Federaql Road Safety Corps  being the  lead agency in traffic management and administration in Nigeria and is empowered by Section 5 (f) of the FRSC Establishment Acts 2007 and further strengthened by Regulations 33 (1b) and 33 (1c) of National Road Traffic Regulations (2012) to regulate the activities of the Driving School. Guidelines for the establishment of such driving schools  Standard Operating Procedure are as defined by the Corps. Different guidelines exist in different countries i9n Africa

This Operating Procedure is set-up in order to ensure standard in all activities relating to setting up a Driving School and Operations of enrollment of students, training of students, certification of students and recommending such students for the process of obtaining Driver’s Licence.

Justification for setup

  1. Driving school Certification is now a prerequisite for obtaining Drivers License in Nigeria
  2. Corporate Drivers are mandated to undergo continue retraining and certification
  3. There are about 1,300 Driving school to about 120 million potential driving adults
  4. There are more openings for schools within states with low schools turnover
  5. opportunity to supply trained drivers to the Labour market is a critical driving force for future profitability
  6. Operational Cost are low and reasonable to effect good profit

 

SWOT Analysis

Strengths

i-       Location of the project will play a pivotal role in the successful running of Driving School. The turnover of the trainees largely depends on this important factor.

ii-      Registration and Legal Status gives it hedge over the unregistered schools

iii-     Serving tough competition in the market through high quality training and deliverable.

iv-     proper driving classes with basic driving skills and traffic rules and dealing with emergencies and accidents will be taught.

Weaknesses

i-       High risk of capital loss on repair and maintenance of vehicle during the training processes.

ii-      Strict controls over the training need to be observed to reduce the risk level at the minimum.

iii-     High standard operating procedure  is required to sustain growth .

v-      Some State Government  interference in Driving school can be a deterrent.

Opportunities

i-       Increasing preference of public towards adherence to the traffic laws and regulations.

ii-      The FRSC is taking positive steps towards the traffic laws and has made it compulsory for a driver to obtain certification from the Driving school before Drivers License is issued.

Competitiveness

There are about 1,300 Registered Driving Schools in Nigeria with the top five listed below

Location Number of Schools
Lagos 191
FCT 65
Rivers 62
Delta 56
Kaduna 51

Competitiveness

AA Rescue Driving school is the most spread with 14 Branches Spread accross the Country Including Lgaos, Abuja, Portharcourt, Benin, Kaduna, Jos and others.

  1. AA Rescue driving school
  2. Lasdriv Lagos
  3. A1 driving institute
  4. Aso driving school
  5. Heritage driving school
  6. Ultimate driving school
  7. Steerite driving schol
  8. Western driving school
  9. Lafarge Driving School
  10. Lear Right Driving school

Revenue Stream

The Company shall seek to earn revenue alongside these streams

  • New drivers Training
  • Automotive inspection of Vehicle to determine Road worthiness and Safety.
  • Vehicle Licenses processing and procurement including Road worthiness, vehicle license, local government papers, learners permit etc.
  • Assist in Processing of new driver’s license and renewal of old driver license.
    Recruitment and Training of Drivers
  • Outsourcing Trained Drivers to individual or corporate companies that need them.
  • process Hacking permit which is a license that is required by commercial operators of vehicles.
  • Car tracking installation services.

Share of Revenue

Revenue Share
Vehicle Licenses  processing and procurement 15%
driver’s license Assist 18%
New Drivers Training 45%
Outsourcing Trained Drivers 12%
 process Hacking permit 5%
Car tracking  installation services. 5%
Total 100%

 

Training Plan

The installed  Training Enrollment plan for the Drivers Training would be 2 vehicles, 2 instructors and 16 Students. We project an initial 20 Trainees monthly in the early commencement stage and expanded as traction is gained.

The Driving School shall operate with the  ISO 9001:2015  standard in other to remain relevant. This shall reflect in its Training Guidelines and operating procedures. The financial Models adopted shall be to treat each Revenue Stream as Profit centers so as to be able allocate resources that matches its contributions and grow each stream to become independent entity in the future.

Proposed Driving School  Fee Plan

The plan is subject to location of the School and other deliverable.

Course  Price  Car Type 
1-week driving course N8,500 Manual class
1-week driving course N9,500 Automatic class
2-week driving course N14,000 Manual class
2-week driving course N18,000 Automatic class
3-week driving course N20,000 Manual class
3-week driving course N24,000 Automatic class
4-week driving course N26,000 Manual class
4-week driving course N30,000 Automatic class

Recruitment and Outsourcing Plan

The Business will also seek Registration with the federal Ministry of labour and relevant organisations to enable it register, train and supply Drivers to the Labour force. upon Registration and certification, The Company shall seek to work with the corporate World, Educational Institutions and high worth individuals to achieve this objective.

We envisage an annual turnover of 65 Drivers in to the stream.

 

Physical Requirement 

  1. 2 Good Condition working Vehicle. Volkswagen Gulf or anyother strong Brand ( can be Tokunbo)
  2. 2 Computers with Game console equipped with Driving Simulation Programs
  3. Driving and Traffic Instructional Signs and videos
  4. Adequate Training Room that can accommodate a stream of Trainees( 8 at least)
  5. 2 Licensed Driving instructors
  6. Instructional Course manual
  7. Copies of Highway codes and Traffic laws/regulations
  8. First aid facilities
  9. Fire extinguishers
  10. Open space or Driving range( Not necessary owned but can be leased)
  11. Roads sign models
  12. Vision Acuity Test Facilities
  13. a Small Library

Finance

Total set up cost for this model is about 3.5 Million Naira excluding accommodation and furniture but including the basic cars, certifications, stock of tracking devices and working Capital.

PROFITABILITY

The first  year Profit before tax projection is projected at N2.5M factoring vehicle depreciation cost @ 20% and maintenance cost at 15% of revenue.

How to get the Business Plan

The detailed and comprehensive report according to scale of production cover can be made available to you on request. It will cover all the aspects of the project, from analyzing the market, confirming availability of various necessities and operational techniques and forecasting financial aspects by estimating the cost of Service, formulating the income statement, balance sheet and cash flow.

Terms and Policy

All Amanyyoung Consulting Feasibility reports, Business plans and Market research reports are not generic but customized and tailored to suit your requirement. They are produced after due consultation and production and cost baselines are mutually agreed with the users.

Customization of project is within 3 working days.

All reports and business plans are delivered through electronically means however client may require a hard copy be delivered in addition. This would be at a charge for delivery and printing cost.

Perhaps you need an assessment of the cost and timeline requirement for this particular pre-feasibility report you have read please complete the form below or drop us a line at

Call 0909 215 5870   or email your enquiry to youngoliki@gmail.com. you can also contact via the contact form below.

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