Small driving school with classroom and cars

Parents of teens needing driver's ed, adults wanting lessons, and sometimes companies, insurers or courts that need defensive driving or traffic school courses.

Course and package fees for classroom plus driving hours, single lessons, road test car rental and optional adult or defensive driving courses.

• Teaching and managing instructors
• Scheduling cars and students
• Marketing to parents and schools
• Basic bookkeeping and record keeping

• State approval of the school, curriculum and facility is often required, check this before signing a lease
• Startup costs add up quickly: vehicles, dual-brake fitting, insurance, license bonds, lease deposit and classroom equipment all need to be funded before you earn
• Commercial auto and general liability insurance cost more for teen drivers, get quotes early
• Check workers' compensation and employment rules before hiring instructors, including whether they must be licensed
• Zoning and local business license requirements for the premises, check with your city or county
• Demand is often seasonal around school holidays and summer, plan cash flow for slower months

Estimates typically put startup costs at around $40,000 to $150,000, depending on how many vehicles you buy, dual-brake fitting, insurance, license bonds, lease deposit and classroom equipment. All of these need funding before you earn.

Monthly revenue is typically estimated at around $6,000 to $25,000, depending on student numbers, lesson and course prices, and how many instructors and cars you run. Demand is often seasonal, so plan for slower months.

Check whether your state requires approval of the school, curriculum and facility before you sign a lease. Also check commercial auto and liability insurance for teen drivers, workers' compensation and instructor licensing, and zoning and business license rules.