Looking for Alternate Career Options - Driving Instructor

LRaka20 on 16/08/2020 - 20:45
Last edited 16/08/2020 - 23:11 by 1 other user

Hello OZB fam…

My job - at the moment - is not impacted by Covid19. In any case, I have been looking to slowly get into something which gives me an option (going forward) to completely move from a job to a business.

Want to move away from job due to (lack of) job security and want to work for myself. Found this career option as something stable in the long run and something I see myself doing.

Now from where I am, everything looks good for now. Do the course, start the driving school, do it in evenings or weekends, no need to leave full time job until the business has volumes.

I want to ask the broader community of what I am missing. Perhaps from people in this business currently, or if you have a family member doing it at the moment. What are things I am not accounting for in drafting this business plan.

I am creating a spreadsheet with set up costs (like car, dual controls, company setup, insurances, marketing) and ongoing costs (like fuel, maintaining website, keeping records, car maintenance etc).

My situation - in full time job, based in Melbourne. Liabilities - home loan (about 500k). Kids are young, partner works part time.

Please share your feedback - looking for encouragement or reasons for not getting into this.

TLDR - in full time job at the moment in MEL. Want to start driving school business side by side - is this a good idea?

Education & Work

Comments

  • Muzeeb on 16/08/2020 - 20:47

    What is a driving lesson these days? $70ph?

    How much of this would be profit?

    • Raka20 on 16/08/2020 - 20:53

      About $55 to $60 per hour from my research. car drives about 15 to 20ks per lesson - so a couple litre of petrol.

      Other option is to buy a used Hybrid Corolla for the business but will need to consider the high cost of purchase (investment) of the car

      • Muzeeb on 16/08/2020 - 20:58
        +1

        I'm guessing you would clear about $35ph.

        Is that worth it as a side gig and time away from a young family?

        • Raka20 on 16/08/2020 - 21:14

          Good point , will factor this in

      • bobbified on 16/08/2020 - 21:17

        About $55 to $60 per hour from my research

        Does that include factoring in the cost of depreciation on the car and its modifications like the second brake? There's also special insurance, service and general replacement of parts etc. If the car breaks down, you'll need to spend money on fixing it too.

        • Raka20 on 16/08/2020 - 21:19

          No it doesn't.

          Modification is a one time cost - anything between 1500 - 2000, depending on the car.

          Rest is wear and tear, general maintenance, servicing cost etc which I am adding in my spreadsheet under ongoing cost.

          Also am factoring that I might need to also change the car every 4 odd years - might be cheaper to change cars than to fix

          • bobbified on 16/08/2020 - 21:23

            @Raka20: All that needs to be factored into your hourly rate to work out approximately how much of it is actual profit. And then you work out how many hours each month you have to do to break even, turn a profit, etc.

            • Raka20 on 16/08/2020 - 21:27

              @bobbified: Perfect, thank you - I knew that spreadsheet is a good idea to calc earnings and compare with the cost of running the show.

              I am making it in a way I can tweek hours, days and add driving tests earnings and it will give me a snapshot of profit (or loss).

              will then see how many hours are possible in a day (adding time from one lesson to another) and compare.

              • David2017 on 17/08/2020 - 07:32
                +23

                @Raka20: My parents ran a driving school with 6 drivers working for them for nearly a decade (I won't say which brand or where). It's a pretty crap industry. You've got people doing driving lessons on special for $35 each and people don't see any value in paying $60-$70 when they can pay $35. Your $35 profit an hour is now looking unlikely. It's not 15 minutes between jobs unless you're only servicing one suburb so your $35 an hour is now $15-$20 to get between jobs, fill up, go to the toilet, get something to eat etc etc. You get to jobs and people forgot they had them and aren't home and you don't get paid yet you've shown up. You can't make that money back. School kids aren't available between 9am and 3 pm because they're at school. You don't get to set the hours for the lessons, the customers do. The hours are early morning before school and afternoons before dinner so don't plan on seeing your kids anytime while they're awake. Everyone wants the lesson on the way to school or to be picked up after school to go home. You're essentially a taxi driver that doesn't drive. Most kids are studying on the weekends for school tests because they're in grade 12. You're not doing 6-8 jobs per day unless you're doing lessons at midnight. Realistically it's more like 3 or 4. Car insurance is ridiculous because it's a driving school car and it will get crashed.

                You need two cars (manual and auto) because people don't want to learn the same thing and then when the auto gets crashed that's 75% of your jobs you have to cancel for the next month and people go elsewhere while it's getting repaired then don't come back. You now only have 25% of your income or if you don't have two cars you have zero income. You'd make 10 times more money detailing cars in your garage with virtually no outlay. You have to be a special type of person to sit in a deadly weapon and teach someone how not kill themselves and yourself. You then see kids obliterating themselves and their friends in road accidents on the news and you wonder why you even bothered trying to make a difference. Dad is one of those calm people but finding decent instructors was almost impossible and the pay is so rubbish it's not worth it. Dad didn't do it for money as he's retired but they were trying to make a difference to the road toll but in the end it was a complete waste of time and money.

      • OpayuOnam on 17/08/2020 - 22:36

        May I suggest Prius C? Extremely economical and super easy to drive. Very good viewing angles when driving which is important as well. These can be found second hand for $10k or less. Recommend getting the i-tech package which adds some creature comfort features.
        Toyota Corolla might have issues with handbrake as VicRoad Examiners like to see the handbrake (part of the pre test requirement is to show handbrake). Unless you get a 2020-21 which has electronic one and can be shown.

        Other than that $1.5-2k for dual control conversion. Extra for insurance (only 3 companies insure driving instructors so expect to pay a bit more). You'll be doing a lot of more service, tyre change and most importantly monthly or more frequent wheel alignment as students love to hit the curbs.

        Course is very easy but is 6 months or so full time.

        Right now, there's massive impact due to covid (only tests are allowed and that's because they have to since they don't allow private vehicles for test now, strictly to driving lessons) and the work is pretty much dead.

        I would say it's a job you really have to love to be able to do it. Imagine teaching but you have to fine tune it to every single individual. Huge responsibility and a lot of repetition for certain aspects.

        Good luck.

  • holdenmg on 16/08/2020 - 20:51

    What is the impact of self-driving cars on your business model?

    • Raka20 on 16/08/2020 - 20:54

      Self drive cars are a few years to enter. even then for Sd cars to take over a major share of the market - will take a couple of decades.

    • Orico on 16/08/2020 - 20:56
      -1

      self- driving cars haven't met Sydney drivers and two particular ethnicities that are in Sydney. One goes slow and the other goes fast.

      • Hardlyworkin on 16/08/2020 - 22:01

        And because of your ethnicity you drive just right?

        • Orico on 16/08/2020 - 22:03

          of course man I drive Hire Cars

    • brad1-8tsi on 17/08/2020 - 12:12
      +1

      What is the impact of self-driving cars on your business model?

      I'd be more concerned decline in numbers of those wanting / needing a licence. There's already a known trend as "young folk" can communicate easily without needing to go to someones house. I think this trend will continue if Work From Home does become the new normal.

  • MrHyde on 16/08/2020 - 20:52
    +2

    Don't know much about the business. First thought that came to me was that you need to spend a lot on marketing. The business does not have much repeat customers (unless you are a bad instructor).

    So, you need to focus a lot on gaining new customers through marketing and word of mouth.

    • Raka20 on 16/08/2020 - 20:56

      Correct - I am wary of that. this type of business will grow only by word of mouth - current students/learners recommending their family or friends.

      Don't think will need to spend a lot on marketing - probably will need to spend a lot of time though. Rest will be via flyers, fb, gumtree…

      considering I am not planning to jump ships full time - I can give myself that time for it to develop and grow

      • [Deactivated] on 16/08/2020 - 21:04
        +1

        In regards to this, my driving instructor got his business from another driving instructor who was super popular and so when she didn't have the time, she would pass them on to him although she took a cut. Eventually once he got big enough, which was not long at all, I was his first student actually and by the 5th or 6th lesson, he told me he was independent now, within a few months and he was pretty booked out.

        • Raka20 on 16/08/2020 - 21:21

          That is a nice positive story - am hoping mine would be similar but am happy to take it slow (if I need to). If the response is too good and am booked out too - will give a serious consideration to jump full time sooner

  • DuckKnight on 16/08/2020 - 20:55

    I wouldn't feel comfortable sitting next to strangers on a regular basis during a pandemic.

    • Raka20 on 16/08/2020 - 20:57
      +1

      I need to do a cert IV course first - at the moment all classes are on hold anyways.

      by the time the pandemic settles - I plan to finish the course and be ready with the setup.

  • kerfuffle on 16/08/2020 - 21:03
    +1

    How will you teach your students to drive in school zones if you plan to operate only on evenings and weekends?

    • Raka20 on 16/08/2020 - 21:15

      interesting point. Could ask the learner to follow school zone as per signs (not the day of lesson) and just before the test could do an actual mock on a weekday (chuck in a sickie)

  • Dlw on 16/08/2020 - 21:07

    I'm guessing you've already considered your own abilities in teaching someone to drive- your patience, calmness, verbal communication etc

    • Raka20 on 16/08/2020 - 21:16

      I have, yes - thank you :)

      • pjetson on 17/08/2020 - 08:39
        +2

        I am a driver mentor on the L2P program, and I have three (now adult) kids, so I've taught a few people to drive. Some were great, but with two, I truly feared for my life sometimes. One tended to zone out while driving, not sure where her mind went, but it definitely wasn't on driving, so I had to always be aware that she might not be seeing hazards. The other was the most agressive driver I've ever been in a car with, from beeping the horn at cars that didn't take off from the lights within a microsecond of them changing, to dangerously overtaking cars that were just a few k's under the speed limit even when I'd told him not to.

        Also, as David2017 pointed out, prepare to be without paying customers for sometimes weeks at a time when your cars have to go in for crash repairs. And your cars will be crashed.

  • screensaver on 16/08/2020 - 21:07

    Are there employment opportunities for you once qualified (working for someone else)

    • Raka20 on 16/08/2020 - 21:17

      I hear there are - but expensive. Was once told by a trainer (a few years ago) that big driving schools hire driver trainers but for a weekly fee.

      Yet to explore this fully as not looking to immediately start this full time - hence don't wanna pay fee for something that I won't be able to use to its potential.

  • [Deactivated] on 16/08/2020 - 21:28

    Unless you already have a market and untapped supply of clients 'ready to go', probably bad idea to be a sole operator

    There are driving lesson schools that dish out clients to a pool of 'on call' instructors, going to compete with these already established low cost schools?

    • Raka20 on 16/08/2020 - 21:30

      Thank you :)

      Yes, will explore this option and initially will look to go ahead with someone who takes their share per lesson rather than a weekly fee.

  • Hardlyworkin on 16/08/2020 - 22:08

    How much time will be spent between lessons? Do you need to drive to the student or do they come to you? How many lessons can you realistically do in a day? Is there any option of increasing your revenue?

    Sorry more questions than answers!

    • Raka20 on 16/08/2020 - 22:38

      No worries… All questions welcome

      Average 15mins driving between one lesson to another..
      Can work either ways. Can go to learner or they can come too (of course someone would have to drive them over)
      In a day can fit between 6 to 8 lessons like that.
      Only option to increase revenue is to have more cars and more instructor drivers and employ them.

      • kiitos on 17/08/2020 - 08:56

        I wouldn't have thought you'd be consistently booked for 6-8 lessons a day, I'd've thought after school and weekends would be they most popular hours by far?

      • 3migorengaday on 17/08/2020 - 10:32
        +1

        You physically will NOT fit 6-8 lessons in a day.
        Not everyone has the flexibility of your schedule.

        You do you however lol.

  • brad1-8tsi on 16/08/2020 - 22:47

    You need to be pulling in at least as much as a taxi as you'll be doing similar mileage. Also, learners use more fuel, cause more wear and tear on the vehicle and stuff up more tyres.

    I'm sure it's profitable but will it be really profitable?

    • Raka20 on 16/08/2020 - 23:05

      Yeah.. See.. that's the sort of thing I am not across. Hoping a professional could guide me on these..

      From where I am looking… Calculations seem good.. But is it actually a good alternate career (financially)??

      • brad1-8tsi on 16/08/2020 - 23:11

        I would think it's a "buy yourself a job" type career with no potential to scale upwards. There are only so many hours in the day.

  • OzHunterNSW on 17/08/2020 - 09:40

    The operative word in your job title is "INSTRUCTOR".

    This suggests you are a "director" and as such capable in "steering" a company, or its employees, in the right direction.

    Seek positions which require managerial qualities, like at McDonalds

  • 3migorengaday on 17/08/2020 - 10:31
    +1

    Hi OP,

    Driving instructor here.

    Returns and market are not worth the hassle considering family + "side" business.

    Requires 100% dedication to student's who tend to do one lesson before their test in hope of a pass.

    Think of the costs associated with maintenance and record keeping.

    • brad1-8tsi on 17/08/2020 - 12:18

      in NSW many learners will knock out 10 lessons as 10 hours with an instructor counts as 30hrs in the logbook.

  • TransportPosters on 28/08/2020 - 21:36
    +1

    If you have funds to set it up (eg. dual control mods, specialised insurance, website, etc) then now is the right time to get prepared because Melbourne will be a very lucrative industry once the pandemic rules relax enough to allow it and someone like you could be brave enough to be an instructor in a car with a stranger.

    I think it is currently allowed only under strict "hardship" circumstances and the industry has adopted a very strict pre- and post-lesson cleaning routine (you should carry a sanitising kit to use for for you, the student and the car interior controls and external door handles).

    Consider this:

    • There is a huge backlog of booked tests at VicRoads which people need to practice for.
    • A large amount of people haven't been able to get any or enough lessons as schools are closed and a lot of instructors are reluctant to start working again when they reopen.
    • People haven't been able to travel far to receive proper training with only other family members (it's important to get professional instruction also, as family members can often develop bad habits over time which pass onto learners, and may not have a structured plan tailored to an individual's learning style).
    • A massive amount of foreigners living and working in VIC are going to need to convert to a Victorian licence next year due to the changes in the rules which were meant to come in at the end of April this year but got postponed. Driving schools will be booked solid with this for ages.
    • A lot of young people will be looking for new jobs and may need to start driving to improve their chances of being employed once the pandemic settles down.

    In regards to the $35 special price, that low price is generally the one-time introductory lesson price. After that it goes to full price or a student buys a package which has a much lower discount.

    Be wary, however, as having a good website is very important to reach the generally young audience and this industry is extremely cluttered in Google's first page and very competitive. I doubt anyone starting out now will be able to get onto page one search results, or page two for that matter. You will also need to spend time to be very engaging and active on social media as the youngsters generally live on there.

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