Intelligent Instructor is proud to have brought together industry and business experts to produce ‘The Ultimate Guide to Running a Driving Instructor Business’.

This FREE  64-page guide, in association with Drive-Up Training, will support you in running a business the way you always dreamt it could be.

Over the next nine weeks, we will publish a selection of the articles in this guide.

This week, Vickie Ambrose and Kim Gibson, Co-Founders of Drive-Up Training analyse where best to start when setting up your driving school business.


 

Where to start?

From doing the books to booking the lessons, and everything in between, running a driving school requires a knowledge of all business areas.

Establishing, expanding, and maintaining a driving instruction business presents a range of challenges at every stage. Indeed, the driving instruction itself is only a small piece of the pie.

This is nothing new for any ADI. But when is the right time to start learning about the operational aspects of running a business?

Ideally, the knowledge of how to register as a sole trader – if that’s your chosen route –setting up a website, filling your diary, tracking your student’s progress, keeping an efficient record of your finances, and so much more, should be imparted during Part 2 of the ADI qualification process. Unfortunately, this is not the norm. As a result, many driving instructors find themselves fully qualified and ready to open their diaries without a structured approach to business management.

Key considerations for business operations

Where to begin?

Let’s start with those open diaries; a well-organised one is essential, including lesson availability and dedicated time for administrative tasks. Naturally, setting your own rates as an independent
driving instructor is a crucial decision, but what should you expect in terms of bookings?
A diary filled to at least 80% capacity is generally considered a strong position.

And what about scheduling lessons? Should we book learners weekly or monthly or align their lessons with their anticipated or actual test date?

Planning ahead benefits both learners and instructors. For learners, a structured training plan provides consistency and progression. For instructors, it enables better forecasting of workload and earnings, ensuring a steady flow of business. Additionally, pre-planned schedules reduce cancellations and last-minute changes, leading to a more efficient and productive work schedule.

Planning for theory and practical tests

One of the most important aspects of learner progression is the scheduling of the theory and practical tests. Students will invariably be keen to book their test as quickly as possible, but many are unaware of industry processes, such as the requirement to pass the theory test before booking a practical test. Reinforcing procedure, therefore, and the necessity to get enough practice hours out on the road, should be a focus, over and above expediency.

“A well-organised diary is essential to leave time for administrative tasks.”

Naturally, this demand can play out in the shape of it being difficult to find test slots, and the result is that we’re seeing an increasing trend of some resorting to third-party services to secure test dates, often at a premium. However, engaging in such activities only exacerbates an already significant issue within the industry.

Instead, as ADIs, it is imperative that we uphold ethical standards and discourage this practice. We must maintain professional integrity and adhere to the standards set by the DVSA, taking proactive steps to guide learners through the booking process. While it’s tempting to get the theory test booked in as soon as possible, the focus should be on ensuring students are well-informed and prepared for each stage.

Leveraging the Online Booking System

To facilitate the above, the DVSA provides ADIs with access to the Online Booking System (OBS), a valuable tool for managing test bookings. This system is particularly beneficial for instructors operating under a franchise model, as it increases the pool of available test dates, making rescheduling quicker and more efficient. Utilising the OBS not only streamlines test scheduling but also reduces uncertainty for both instructors and learners, allowing for smoother business operations and improved time management.

Financial responsibility and payment management

Taking responsibility for managing the finances of your own business can be daunting and understanding how to deal with incoming payments is a big part of this. Whether you opt to take payments from learners on a pay-as-you-go basis or in bulk, best practice is to only consider income as ‘earned’ once the lessons have been delivered. Deposit funds into a holding account rather than treating them as immediate income and keep on top of your admin by regularly transferring earnings from the holding account to a personal or business account. This level of financial discipline and professionalism allows for easy refunds if necessary, ensuring customer trust. Furthermore, keeping detailed records of payments, outstanding balances, and refund policies provides transparency and prevents potential disputes with learners.

 

 

Business administration and financial planning

No-one likes doing the books. But regular sessions allocated to your finances – balancing costs against earnings – will ensure financial stability, and there are a number of excellent digital tools, such as accounting software or scheduling apps, that can enhance efficiency and organisation. Conversely, delaying these tasks can lead to unnecessary stress and complications.

Put thought into your pricing to ensure the business remains profitable; while an hourly rate of £40 or £45 may seem sufficient, it is crucial to assess actual earnings after deducting business expenses. And you should always be reviewing your situation to determine whether rate adjustments are necessary.

Beyond revenue management, consider investments in business growth. Whether upgrading teaching materials, maintaining vehicles, or attending training courses, reinvesting in the business helps sustain long-term success, not only for the business, but also for our
own self-development as instructors.

Continuous Professional Development (CPD)

Passing the three ADI qualification exams is not the end of the journey – it is just the beginning! To excel in this profession, continuous learning and skill development are essential. CPD opportunities include free and paid courses, workshops, conventions, expos, and industry-specific training. Additionally, external training such as coaching, mentoring, and certifications like the Award in Education and Training can further enhance an instructor’s expertise.

“Passing the ADI qualification exams is just the beginning!”

Professional development not only benefits instructors but also positively impacts learner outcomes. By staying updated with industry best practices and innovative teaching techniques, ADIs can offer a superior learning experience, ultimately leading to higher pass rates and improved road safety.

The journey of an ADI is one of ongoing growth. By continuously improving and developing skills, instructors can provide higher-quality training, enhance their reputation, and contribute to raising industry standards. The driving instruction industry needs dedicated professionals who are committed to excellence. Keep learning, keep evolving, and strive to be the best in the field!

 

 

 

 

 

 

 

 

 

 

Vickie Ambrose & Kim Gibson
Co-Founders, DRIVE-UP TRAINING

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Next week – Dan Hill, Founder and MD of MyDriveTime, discusses how to set lesson prices.