Starting Your Own Racing School

Starting Your Own Racing School

One of those interesting businesses that have to do with fundamental needs in society is the setting up a racing academy or school.

At the same time, we could say that it is a very noble business, since providing people with professional training to drive a vehicle safely and responsibly is something that goes beyond just providing the service or “teaching how to drive”.

Today I share a complete business plan to start your own racing school. (The complete reading of this post will take approximately 10 minutes.)

Business Description
The business basically consists of the “teaching of driving” that essentially offers a range of professional services that have to do with training people to:

  • Acquire basic driving skills
  • Know the rules and regulations that apply to each city
  • Learn defensive driving techniques for your safety
  • Advise people to process their driver’s license
  • Perform the necessary tests to certify new drivers

Target market

The service catalog of your motorsport school business is aimed at:

  • People 16 years and older who want to learn to drive a vehicle
  • People who want to improve their driving skills
  • Drivers who want to scale their professional level of driving

The good thing is that this business does not distinguish between sex or age because everyone could require the services of your driving academy. Nor is it circumscribed to a specific geographical area, because everywhere sooner or later people will need to drive their vehicle and do it safely.

Competition Analysis
It is important conduct a basic market study to determine how much competition there may be in the area where you hope to offer your services. You must make calls or visits to get an average of prices, services and offer. Here you can learn a little more about how to do a market study.

Business Location
Our business will be located at the following address __________________________.
An office or a medium-sized premises (50 – 80m2) with a parking area and space to store a couple of vehicles (initially) is recommended, considering that the line of business operates mainly on the streets.

The place should be located in a quiet area where driving lessons can be taught in a controlled way and without major risks.

The estimated rent for a place with these characteristics depending on the location should be in the range of about $ 500 to $ 1000 dollars.

Attention schedule
The hours should depend on the class of service but it is suggested:

  • For driving classes: from 8:00 a.m. to 3:00 p.m.
  • For theory tests in the mornings
  • For practical tests in the afternoons


For the optimal operation of the business you will need to cover certain functions and have the following jobs.

  • Administrator
  • Secretary / Receptionist
  • Seller (s)
  • Instructor (s)
  • Support staff (cleaning, errands, paperwork, etc.)

Business Management and Operation

Basically you must have a receptionist secretary who is in charge of providing information, giving initial customer service, collecting data and opening a file to teach driving classes. This role is very important because this person must also be very sales oriented or have a salesperson dedicated to getting customers and attracting business.

You must develop a learning program for beginners, intermediate and advanced students calculated by the hour and deliver it in writing to your clients so that they can have clear information on how their classes will proceed and what their days and times will be.

Additionally, the owner can function as an administrator as long as he has the necessary qualities to do it properly. Paying special attention to what has to do with: purchases of inputs (inventory), control and payments of services, payment of rents, payment of payroll, business legalization, paying taxes, etc.

Possible risks
Among the risks to which the business and its operation could be exposed are:

  • Few clientele: if the location of the premises is not chosen properly or if the price conditions are not competitive.
  • Insecurity: depending on the business location the protection of the premises must be considered in the budget.
  • Few sales: if you do not have an adequate marketing and sales strategy, there will be no customers or if you do not provide a good value-added customer service.
  • Financial risks: if due importance is not given to the correct administration of the business finance you could easily go undercapitalized and fall into debt. For this, it is essential to have a monthly budget of expenses and to respect it.

Financial Plan (in us $)
Initial investment fund:
Starting capital available in cash: $ 3000

Starting capital from credit: $ 5000
Capital for initial investment: $ 8000
You have a standard vehicle in good condition and legally owned
One more vehicle and a motorcycle will be acquired in the medium term

Use of funds (Initial Investment)
Adequacy of premises and furniture: $ 2000
Deposit and local rent: $ 1000
Advertising material: $ 300
Business legalization: $ 400
Working capital: $ 4000

Fixed monthly operating expenses budget:
Services (water, electricity, tel.): $ 150
Local rent: $ 500
Procedures and procedures $ 100
Promotion and Marketing $ 200
Administrative expenses: $ 200
Bank Credit Payment: $ 200
Preventive maintenance: $ 200
Depreciation $ 100
Wages $ 800
Total: $ 2550

Financing Plan (Credit)
To support the business, a bank loan of US $ 5000 is considered, which will be paid over 36 months with an estimated interest rate of 15% with repayments of about $ 190 per month.

Estimated sales
The following are estimated sales with the accredited business with a minimum of 6 months of operation. At first, as the business becomes known, these numbers can have significant improvements.

20 Management Clients at US $ 150 for 12 hours of learning, total US $ 3000
20 Certification tests for license US $ 75, total US $ 1500
10 Various procedures for us $ 100, total us $ 1000

Approximate Total Monthly Sale: $ 5550
Estimated net profit: us $ 2,950

Considerations of the Provision of Services
It is important to consider within the initial expenses of your racing school, the respective authorization by the corresponding transit agency for the provision of this kind of services and that varies in each city and country.

You should approach the traffic department to be able to find out about the qualification requirements of your academy, which fundamentally includes:

  • Qualification of the instructor who must meet certain conditions, courses and tests in order to receive his instructional license.
  • authorization of him or the vehicles intended for driving instruction.

Note: This business plan is a reference document offered to the readers of 1000 Business Ideas as such, of course, as in any business there are many specific factors for each case and for each proposal that must be evaluated, analyzed and raised when detail and it is finally the entrepreneur who has in his hand the power to decide how, when and in what way he intelligently invests his capital.

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