Beach Driving School
1.0 Executive Summary
Beach Driving School (BDS) will offer a wide range of driving and instructional
services to accommodate all age groups. BDS will be a one stop for driving programs, to
include; First Time Driver’s Instruction, Licensing Classes For All Ages, Insurance
Reduction (Point Classes),Fleet Safety, Defensive Driving, and Mature Driving Refresher
Classes. BDS’ objective is to earn our reputation one student at a a time. We believe that
our business will come from having a strong business network, AAA certified instruction,
and top quality training (on-road and in class).
1.1 Mission Statement
Our objective is to provide quality Driver Education and Driver-Safety services to
teenagers, adults, and companies with fleets/driver-safety programs in Horry County,
South Carolina. The greatest distinction for our group will be the high profile that we
establish in the Horry County legal and law enforcement community.
1.2 Objectives
Three year BDS OBJECTIVES:
• Build the business incrementally-in 50 unit blocks- to$75-95,000 in Year One;
$145-175,000 in Year Two, and, to over $200,000 in Year Three.
• Exploit a ‘niche’ at local public and private high schools for First Time Driver
Education (offered there now, but with low quality and long wait).
• In a competitive market for Driver Education, develop and promote our unique
‘Brand’.
• Create and maintain market edge in pricing- yet provide quality training.
• Personally touch the business: what makes our school a ‘school of choice’ is that I
will be there day-to day. Others that I bring around me will share the same interest,
professionalism and be deeply knowledgeable in Driver Safety.
• Capitalize on a strategic alliance with Diamond Cab Company and advertise
extensively (should produce 50-60 students per year).
• Secure our customer base with a high level of service, and then look to open one or
two more schools in the South East region by 2010.
Beach Driving School
1.3 Keys to Success
Background
BDS has conducted an in-depth study of the business environment, competition and
required elements for success in the Driver Education business. The good news is that
industry statistics show that 60-75% of schools that embark into the business make it
into year two*- the difference is what happens in year 2,3 and beyond. Unlike
restaurants where the high failure rate is driven by undercapitalization, high
infrastructure, labor and rental expense, driving schools actually have very minimal
burdens in these areas. Most succeed because they do not require much capitalization,
infrastructure costs are low (minimal classroom build-out and equipment expense) and
the balance of labor and rent to income is well leveraged to an owners’ benefit.
BDS has significant edges in the market it is entering. They are as follows:
• Lower cost basis than the competition.
• Myrtle Beach has only (2) competitors and they have no permanent classrooms.
• Established providers have ‘created’ a market where a new school can capture some
of the existing market share.
• Public and Private High Schools have an overflow of students ready to take class.
• BDS to offer variety of classes: Over 55; Fleet Safety; Defensive Driving; Special
Needs
• Advertising more heavily than the competition will yield customers
Source: Steven J. Blank, Independent Business Consultant to Driver Ed. schools
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Beach Driving School
2.0. Company Summary/Business Outlook
BDS exists to serve a basic need in American communities- providing Driver
Education services. To some extent, the core business can be broadened to encompass other
populations (ref. 1.3). It is worth noting that high gas price, low gas price, ‘bull-market’, or,
‘bear-market’ people find the money to take Driver Education. According to AAA newly
licensed drivers are set to increase by 15% by 2010.
2.1. Company Ownership
Mr. Mark Conley and Diamond Cab Co./Diamond Motors are equal partners in BDS.
There are no ‘silent’ partners.
Day To Day Responsibilities
The experience and financial backing of Diamond Cab/Motors will be critical in
guiding and developing systems for the school. President Raj Malik will serve in an
advisory capacity and Mr. Conley will handle day to day operations.
2.2 Premise and Approvals
BDS has a signed lease for 800 sf. in a newly renovated office building located at
1110 3
rd
Ave., South in Myrtle Beach, SC. The school has been approved by The South
Carolina DMV licensing authorities to teach all classes. Facility and equipment approvals
are forthcoming.
2.3 Company History
Founded on July 15, 2008 by Mr. Mark Conley and Raj Malik, BDS intends to
distinguish itself from other driving schools by offering a broad array of Driver
Education/Safety services at a lesser cost than existing competition.
2.4 Services
BDS will have a full range of Driver Education/Safety courses. The need for services
of this type is well established. In the course of their lives every person will be exposed to
some level of Driver Education/Safety. Whether they choose to drive and need basic Driver
Education, or, are looking for a discount on insurance premiums, or, are remanded by the
court- most everyone will take a driving course.
Each school starts with the same advantage. The industry is extremely competitive,
consequently, the public views driving schools in general, as all the same. In order to
make it in the driving industry you must stand out above the competition and uniquely
distinguish yourself from other driving schools. A good 70% of what will make us different
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Beach Driving School
and more effective is presented. The balance will occur as we pull our team together and
‘go live’ in market conditions.
One area of major focus will be on the driving portion of the course (BTW). Teens
will encounter many circumstances while behind the wheel and lack of awareness is a
major factor in accidents. Our instructors will teach new drivers to see more of the
potential risks in their surroundings, in lieu of just ‘looking’ at the driving scene. This is
the experience that they go home and talk about most with their families and mentors, and,
it is critical that BDS receive good reviews in this area.
3.0 Service Description
Beach Driving School has a wide selection of state certified classes and services. Our
offering are:
• Beginning Driver Education course- (8) hours classroom and (6) hours behind the
wheel.
• Defensive driving course which gives individuals a “point reduction” on their
driving license and an insurance reduction on premiums.
• Mature driving course for people 55 years and older.
• Fleet driving course will give companies a discount on insurance premiums and
provide update drivers education.
• Driver Improvement class.
• Driver’s Training Certification classes (course that trains new instructors).
3.1. Fulfillment
BDS employees AAA trained and certified instructors who teach all the courses-
Classroom and BTW. For maximum business control and quality assurance, a partner-
Mr. Mark Conley, will be conducting all of the classroom sessions. As the driving portion is
key, the BTW instructors will be hand selected from professional drivers that the partners
have known for many years.
BDS will begin with one fully equipped and state approved teaching car, and
probably add another 2 cars within the first 6 months. planning on having at least 3
vehicles by the end of 2008. Two BTW instructors will be in training to be approved to
teach BTW sessions by October 1, 2008.
3.2. Competitive Comparison
There are several choices for driver education in Horry County. Some providers
are set up at the high schools and offer classes for under $75, but can only handle 200-250
students per year. Thus if a teen wants/needs their license quickly, they cannot accomplish
it at the high schools, and, are driven into the private ‘full-pay’ market.
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Beach Driving School
According to estimates from the South Carolina DMV, over 3,500-4,000 teenagers
will take a Driver Education course in Horry County, SC in 2008. On average, only 800 are
able to take the class at their high school. This means that there are over 3,000 potential
‘full-pay’ teenage students in the marketplace
Where will they go ? Price will naturally be a big ‘driver’. Referral and word of
mouth will be two others. Fortunately for BDS, teens are not afraid to try something new-
even prefer it, and will likely look hard at our offerings.
The internet and ‘strategic-alliances’ will be an area of focus in our marketing. We
envision forming working relationships with Law Enforcement, Mothers against Drunk
Driving, Students Against Drunk Driving, The Red Cross and non-profit organizations. We
are even looking at a co-op and cross-promotional campaign with local gas stations.
3.3 Pool Of Students
Enrollment in Horry Co., SC public high schools- grades 10-12- is 8,000 *. Private
high school enrollment for this group is 4,500. This yields a pool of 12,500 student to
draw from. According to South Carolina DMV records, over 28,000 teenagers (ages
15-19) earned Driver Education certificates in 2007. BDS projects that Horry
County’s portion of those earning certificates through taking the class is over 6,000.
3.3 Technology
Computer technology is constantly changing and the driving school industry must
change along with new advances in teaching. BDS has a quality improvement system in
place to keep up with technology. Instructors at BDS will be exposed to the latest in
teaching methodologies and technological innovations for the car. To aid BDS in meeting
the changing demands and interests of the students, it will solicit critiques from each
graduating class.
Professional Development
BDS has employed the services of two industry professionals to aid in this area. Mr.
David Hunter of Right Turn Driving School- based in South Carolina and Mr. Steven J.
Blank, of Summit Driving School- in Baltimore, will be serving to guide BDS in ‘Best
Practices’. Further information on industry trends, new technology and changing
regulations will come from affiliations with industry associations: DSAA and ADTSEA.
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Beach Driving School
3.4 Locations and Future Growth
The company will have start with one location. Shortly thereafter, we plan to add
classes at a ‘satellite’ location in a distinct marketplace than our home base. We have made
an agreement with a local dance school, Dance On Main, that teaches mainly high school
aged students, to allow us access to a classroom at their location. This will give us access to
a pool of over 400 students at their school. The classroom holds approximately 30 students
and has bathroom facilities. BDS contemplates conducting its classes at local private
schools as well. However, it intends to take measured steps and find the right prospect for
the initial experience.
After the year one ‘soft-opening’, in which BDS solidifies foundation elements,
assures service delivery and installs efficiency systems, it will look to add other ‘brick and
mortar’ locations. These investments need to be reviewed closely as historically, multi
location expansion of this nature has proven problematic- in some cases making companies
‘top-heavy’ in rental expense.
3.5 Accessorial Income
In the course of developing this business plan BDS has had a multitude conversations
with Driving School Owners, Licensing Authorities and other business professionals. These
operators have seen Driver Education schools com and go and their input has pointed to
one major area which separates marginal schools from successful ones- Accessorial
Income.
Accessorial income (AI) in the Driving School business is a combination of many
small business edges and extra income sources that result in the needed 25-30% more funds
needed in years one and two to ensure business stability. A school operating without these
benefits will exist too close to the margin and be too ‘tight’ to fund promotion, marketing
and quality measures. After years one and two, these extra ‘Survival Dollars’ spill over into
long-term business enhancements.
There is a ‘baseline’ of AI items for each school, though possibilities vary somewhat
based upon locale, population and services. The particular AI items for BDS are:
• Car Rental For DMV Test
• Mentoring Of Required DMV Practice Hours
• Dance On Main Satellite Location
• Weekend Classes
• Court Remanded programs
• Driver Education Certification Class
• Fleet Safety Seminars
• Mature Driver ‘Refresher’ Class
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Beach Driving School
4.0. Market Analysis Summary
As previously stated, virtually everyone takes some form of Driver Education. It then
becomes a question of effectively capturing your share of the market. BDS also benefits
from the fact that there is an established market that has been developed by its competitors
over the past 40 years. People are taking Driver Education and driver Safety courses, BDS’
mission and objective is to find out best how to serve them and ‘off-sell’ the competition
where there are service anomalies.
The pie analysis of service offered and prospect areas breaks down as follows:
• Beginning drivers course
• Defensive driving course
• Mature driving course
• Fleet driving course
• Driver Improvement course
• Driver’s Training Certification course
Convenience is the key to all class schedules. Industry studies show that successful
schools have three major ingredients- and convenience is one of them. Firstly, they beat the
competition in offering the most convenient classes. Secondly, they are competitively priced.
Thirdly, they are strongly tethered in network affiliations in their communities. Each
customer has different needs based on their lifestyles, locations, and their past driving
experience. Most adult drivers have full-time jobs and maybe even two jobs. BDS
recognizes their demanding lifestyles and offers classes to fit their needs.
4.1 Market Analysis Summary
According to South Carolina state law (8) hours is required for most of the courses
offered by the school- with the exception of Mature Driving and Teacher Certification
courses. The courses are offered at different times to accommodate the varying lifestyles of
potential customers. Below is the break-down by percentage of new customers at company
outset. Future business and marketplace paradigms may change these percentages of
customers in the future.
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Beach Driving School
25%
33%
13%
13%
8%
8%
Beginner drivers
Defensive driving
Mature Drivers
Fleet Drivers
Driver
improvement
Driver's Training
Certification
*** MVA Tests Car Rental = 8 %
***** Mentoring Services = 5 %
4.2 Service Area
Hory County, SC. Boasts a population of 238,000. Median Income is $36,000 and
average home value is $143,000. In Myrtle Beach, SC., home values are in the $300,000’s
and discretionary income- of wintering and permanent residents- is much higher.
These figures are more than some communities nationwide, and, less than others.
Driving schools succeed in all levels of economic strata. On the high end, attending
driving school is a natural progression and convenience and quality- not price- is the
key to success. On the lower socio-economic end, price is central and service/quality is less
important (to the consumer). In these communities, many wait until late teens to drive-
largely due to economic forces.
Horry Co. is a blend of low, middle and high classes. This represents a good
environment for a driving school in such that it can represent its best qualities to all
parts of the buying spectrum. This is not to say don’t decide what you are going to be best
at- ie. ‘Higher Quality’, or, ‘Value-Driven’. It is to indicate that your school can be a cross
of these elements in appealing to customers. Experience in the marketing of driving schools
shows that properly trained representatives drive to uncover what their prospect really want.
Understanding Horry Co., SC demographics is going to be central to BDS’s success.
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Beach Driving School
Important facets underpinning the county’s dynamics are outlined in the state
commissioned study ‘Envision 2025”. From reviewing it and corollary research, BDS has
come to see important aspects affecting business at play in the county. Some examples are:
• Horry County is largely a service-based economy
• The majority of the population has limited disposable income- meaning they will be
‘Price-Driven Buyers’.
• Horry County is a big and varied world of incomes, transitioning growing
Incomes. Outside of our company’s main location in Myrtle Beach, within 49
minutes of BDS are (3) other “Transitional Growth Areas” that are state designated
for growth. These areas- Loris, Conway and Aynor Counties, will see targeted
growth in the next ten years.
The study is good news for those looking to enter the market with a ‘service
business’. It shows that the County has a strong low-middle income base and is in a
‘growth mode’. BDS priorities in market approach. BDS will use this baseline
information to properly orient its marketing efforts, and, gauge important changes.
4.3 Competition and Buying Patterns
Just like any other business there are times when business is good and times when
business is slow. In the driving industry fall and spring are the busiest months. Winter is
the slowest month.
A big goal for BDS is to be level in income and business in all seasons. Research with
other industry leaders in our network and Advisory Board, give us instances where this has
been achieved. Offering classes in non business hours- Holidays and weekends, will help us
in this area. Also, taking the classes to local Private schools will add students in these ‘non-
peak’ months as well. Seasonal sales (winter)and offering gift certificates for driving
instruction will also increase business.
Furthermore, the company has already been in contact with one of the biggest home
schooling companies in South Carolina and will negotiate a contract with the school. If the
school students exclusively come to Beach Driving School than a additional 10% will be
taken off the already lowest price for driving school in South Carolina.
4.4 Main Competitors
The only major competitor in the Horry area is A-Lord Ashley Driving School.
They have (17) locations in the South Carolina area and charge more than any other
driving school. This is a big edge for BDS in that we can enter the marketplace at a lower
‘price-point’.
Further, we can easily off-sell them by saying that “we are smaller and can provide
them more quality and better service”. A Lord Ashley Driving School is the only
competitor, who, like BDS, has an actual building and classroom. There are tow ‘part-time’
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Beach Driving School
schools in Myrtle Beach that are run out of rented space within other businesses. They only
offer classes now and again and have lesser service as they are run part-time by high school
educators in their off hours.
5.0 Strategy and Implementation Summary
In the next subsection you will find an outlined plan for marketing, pricing and
promotion strategies. This will show the competitive edge for BDS.
5.1.1 Marketing, and Promotion Strategy- Primary
A major competitive edge for BDS is its competitive price. BDS prices are $50-100
less than its competitors. Further, specialized incentives make BDS programs even more
affordable through: 10% AAA Member Discount; 10% ‘Good-Student’ Discount. BDS
contemplates devising a ‘Service-Sector’ discount to recognize the strong contingent of
Horry Co. vacation, leisure and retirement community support workers.
5.1.2 Marketing and Promotion Strategy- Secondary
BDS ‘Second-Tier’ programs- as described below- individually focus upon areas
and market niches that BDS is looking to develop, and, which have historically been
successful in creating new customers.
Specific Programs
Sponsorship Co-Op
BDS will align itself with local companies- ranging from Car, Insurance and
Financial to Retail/Service-related and cross-promote with logos on BDS
souvenir t-shirts given to graduating students. BDS and the participating
companies will honor discounts.
Workbook
Not all driving schools have workbooks for their classrooms. The higher quality
ones utilize them for class participation and student-directed exercises. BDS is
working in partnership with IDEA Driver Ed Supply to develop a custom
workbook for its classrooms. Advertisers from the BDS network will pay to
place advertisements in the workbook. They will see that this is a rare
opportunity to target such a prime audience for their products/services.
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Beach Driving School
Car Dealership
BDS will develop a ‘Strategic-Alliance’ with a local car dealership with
the specific purpose of having the dealership underwrite the cost of cars.
Ideally, the car dealership would donate a car for a period (typically, 6-12 mos.-
dependent on mileage) and BDS would use it at little, or, no charge. The dealer
would benefit in brand promotion- on-road, on the internet and in BDS
workbook.
Fleet/Driver Safety
There are over 20,000 businesses in Horry County, SC. Many of them
have on-road vehicles, or, vehicles that represent their concerns. One of their
greatest worries is that their relatively small companies could go out of business
from a claim arising from their negligence in a vehicle crash. There is a major
opportunity to provide quality consultative services to these companies which
will provide them safety training and the most critical documentation that each
year they are being proactive by conducting fleet safety training.
Mature/Sr. Drivers
Mature/Sr. Drivers are a growing population nationwide and there is
a growing demand for Sr. safety and refresher courses. In fact, some states
are now requiring recertification of Sr. Drivers above a certain age. After our
first year in business, BDS will look to offer classes in this area.
High School Safety-Message Promotion
BDS, in keeping with its network alliance building program, will develop
a ‘High School Safety Message’ campaign where local high schools will
compete to develop the best driving safety message.
Law Enforcement Alliance
Central to BDS promotional strategy- and full congruent with BDS
core values- will be BDS’ engagement of law enforcement, judicial and legal
professionals. The goal will be to integrate important and guiding information
into BDS classrooms. On the business side, a Strategic-Alliance with this group
could prove to be highly valuable in a political and business sense.
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Beach Driving School
‘Service-Sector’ Providers Promotion
An estimated 80 % of all working residents of Horry Co., SC work as
Service-Sector Providers- meaning that they service golf, leisure, retirement,
nursing and Housing/Apartment communities. This group will serve as the
Foundation group for BDS’ core clientele. Through incentives and grass-roots
Marketing , BDS will work to be the preferred driving school of this populace.
AAA Certified Instructors
Prestige and name recognition are major benefits of having AAA
trained and certified instructors. Consumers know that they are getting quality
when they learn that BDS instruction meets their strict criteria.
5.2. Pricing Strategy
BDS believes that it begins with an important edge in this area. Its prices should be
at least $50-$100 less than the competition (20-30% less). However, the business is not
solely predicated on being a ‘low price leader’.
6.0 Advisory Board
The partners of BDS believe strongly that an essential ingredient to company success
will be to solicit and integrate the experience and business principles of other successful
Driving School owners and business people. To that end, BDS has developed the following
Advisory Board made up of successful industry professionals and businesspeople from all
major sectors.
Beach Driving School Advisory Board
Civic and Community
Legal
Financial
Law Enforcement
Local Business Leader
Industry Business Leader (s) Mr. David Hunter, Owner, Right Turn DS
Mr. Steven J. Blank, Partner Summit DS
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