Quantitative analysisPresentation

On Business Plan(Driving School )

Submitted To : Submitted By:Prof. Vaibhav Lowalekar Kamal Sewani(11)

Nitin Mehar(12)Pradeep Sahu(13)Abhishek Tiwari(14)Harsha Chotrani(15)

Introduction To Driving Industry …• A driving school is a booming business. Just about every

teenager getting ready to take their driving test takes driving lessons.

• Driving schools are also full of adults who have put off getting their license, who are timid about driving, or who are new to the country.

• You will need to have excellent skills in driving a vehicle in order to run a successful driving school.

• Driving is an art, it is different from the knowledge of how to start your car, somehow keep her moving and stop it.

• Skills in business management will allow to balance books, keep records straight, and handle inventory.

• Marketing skills will be helpful in launching a strong advertising campaign. Driving schools have become quite popular. In order to have your school stand out from the rest you will need an effective ad campaign.

Zoom in toLearn

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If Driving is an Obsession…. Driving School is an Obligation.

Learners Paradise Car Driving School makes driving easy and fun... (Member of DIA)

Address Line 1 : Indore Bhopal HighwayAddress Line 2 : Koh-E-Fiza , Bhopal-462001Telephone :- 0755-4200000 Fax 0755-4211111E-Mail lpdrivingschool@rocketmail.com Website www.LPdrivingschool.com

Business Plan• Mission : Be a successful company in car driving business and

want to become synonym to safety.

• Vision : Achieving top position in future by becoming successful service providers in this industry and to create brand value of school, and give new dimension to business.

• Objective: Completion of annual targets by taking care of customer satisfaction.

• Preparation :- Pre planning for final lay out. Market serve. Competitors action and service strategy study. Government permission and license. Market location. Customer’s hidden-need Identification Financial management.

Introduction to Business . . . • We are going to open a car driving school business

named Learner’s Paradise Car driving school. • We are coming up with 3 vehicles Maruti 800, Wagon-R

and Esteem with multifunctional accessories with proper instructions mentioned on the vehicles.

• We will start our business on large scale with capital with two other investors having share in profit and loss of company according to their proportionate investment.

• Total budget :- 25 lakhs.• Total Requirement :- License Office Cars Manpower Promotion Insurance

Work Force:• 3 Instructors for vehicle training, 1 receptionist, 1

accountant, 1 Guard, 1 peon, 1 computer entry operator for registration, record maintenance and for follow ups, 1 person for office work and vehicle maintenance.

 • Our company is going to take Advantages of these

opportunities available: We are coming up with attractive packages to attract the customers towards our company.

 Packages are:• Rs. 3000 for 20 days with 4 days practice free (from

next day of completion of course.)• Rs. 2000 for 12 days with 1 day practice free ( in

continuation day of completion of course.)• Rs. 1000 for 5 days without any free practice. 

• We are targeting youth, housewives, old age segment etc.

• We finalized the shop 2000sq. feet on rent of Rs. 18,000/- monthly at Koh-E-Fiza main road.

Strengths of the company:• Experienced Management• Well trained instructors certified from Delhi ITDR.• Good location.• Attractive Packages

Weakness:• New company in the market • No past background.• Costly than competitors.

Services . . . • Safely driving training.• Traffic rules education.• Car parts and repairing information.• Home training facilities.• Life time membership.• Professional car racing training.• Free invitation in various automobile program.• Well Trained Instructor having certified training.• Beneficial packages for customers.• Well certified courses.

Total Investment in Cars• 3 car of worth Rs. 10,00,000/- i.e. Maruti 800 worth Rs.

2,05,000, Wagon-R worth Rs. 3,45,000/-• Esteem 4, 45,000/-.• Investment in Petrol Rs. 50/- liter per hour.

Maintenance• Rs. 1,000/- required for maintenance of each and every

car in normal case without any breakage. • Any breakage during driving is company’s responsibility.

That’s why insurance is required. It cost Rs. 7,000/- annually on each car by National Insurance Corporation.

Batches• We are expecting to train 35 students per month at early

stage.Time-Duration• 1 hour to each student. Training time from 6am to 7pm

Cars cost 9,00,000/- Fixed

Annual Rent 18000x12= 2,16,000/- Fixed

Maintenance 1000x12x3= 36,000/- Variable

Petrol 50x35x30x12= 6, 30,000/- Variable

Parking Expenses 150x3x30 13,500 Fixed

Total Annual Investment

Total Annual Investment cont…

Electricity, Water,Telephone

36,000 Variable

Furniture 70, 000 Fixed

Office Permission. Firm Name

30,000 Fixed

Insurance 7000x 3 21000 Fixed

3 instructor 6000x3x12 2,16,000 Fixed

1 Receptionist 3500x12 42,000 Fixed

1 peon 2000x12 24,000 Fixed

1 guard 2500x12 30,000 Fixed

1 computer operator 3500x12 42,000 Fixed

1 accountant 4000x12 48,000 Fixed

1 office person 3500x12 42,000 Fixed

Registration RTO 3000x3 9000 Fixed

Advertisement 1, 00,000 Variable

Total Cost 1st year 24, 88,000

FIXED COST 15, 82,500/- INCLUDING 9, 39,000 OF ONE TIME COSTVARIABLE COST 6, 66,000/-

SALARY

Revenue generation• Business is on peak in summers 3 months in April, May

and June, we are expecting 40 -50 per month students to join the school.

• We are expecting 135 students in whole summers. In that, only 30 students is from package of 20 days, 45 students is from package of 10 days, 60 students is from package of 5 days.

• In winters, business is average 4-5 months, October, November, December, January and February; we are expecting 30-35 students per month to join the school in these months.

• 5-7 students per month from package 1 10 per month from package 2 18-20 per month from package 3.

• In rainy season, business is down; only 20 students per month are expected to join school.

Revenue Generation Estimate :-

1st Package of 20 days

2nd Package of 10 days

.3rd Package of 5 days

50x3000 =

160x2000 =

270x1000 =

150000

320000

270000

Total Revenue = 7, 40,000

• 1-2 per month from package 1, 5-6 per month from package 2, 12-14 per month from package 3.

Break Even Analysis• The total cost going to be Rs. 24, 88,00 and yearly income

approx. 7,40,000/- it will take 4 to 5 years to reaches at Break Even Point.

Service DescriptionLearners Paradise Driving School provides a wide range of statecertified courses and services. These include:-• Adult evening and noon classes for the busy working

individual.• High school programs for school districts that do not have

their own in-house services.• Street safe courses.• Court approved defensive driving courses for those people

looking to reduce traffic fines.• Brush up courses.

 

Marketing Strategy . . . • We are targeting youth, housewives etc.• Promotional activities: We will use different

promotional activities to make people aware about our services. We decidedto use the alternatives on basis of readership, circulation, footfalls etc. The different activities which we are going to use are as under :-

• Banners 15 banners 15000/-• Newspaper Advertisement (Running classified)

Dainik Bhaskar Full Year 48,000/- Raj Express Alternate 15,000/- Patrika Alternate 15,000/- BSNL Directories Bold Entry 3,000/-

• Pamphlet - 4,000/-  • Total Expenditure

1,00,000/-

Learning . . .• This study gave us a information about various dimensions

involved in starting a new business.

• Through this business plan, we came to know about the complexities involved in car driving business.

• It will take 4-5 years to reach at its break even point, so entering into this business is not an easy task.

• It is proved that, in business whether you are earning or not there are expenses and cost which you have to incur compulsorily i.e. Fixed costs.

• As a cost cutting, we can only control our variable cost.

• One thing is positive that the one time cost is quite high, so which gives us enough space to earn something in coming few years.

Thank You . . .