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Driving School

Opinions expressed by Entrepreneur contributors are their own.

Startup Costs: $10,000 - $50,000
Home Based: Can be operated from home.
Franchises Available? No
Online Operation? No

Training new drivers how to be good drivers is a multimillion-dollar industry in the United States. The main requirement for starting a driver training school is to be--or have on staff--professional driving instructors. Many driving instruction schools now subcontract out the driving instruction to trained professionals who supply their own cars, insurance and gas in exchange for a percentage of the revenue paid by their students. Using this type of operating format can be a terrific way to reduce the overall startup and operating costs for the business. Currently, revenue split rates range from a low of 60 percent for the instructor and 40 percent for the driving school to 75 percent for the instructor and 25 percent for the school. This is a very competitive industry and the only way to succeed is to secure contracts with high schools providing driver education courses for students. The contracts for this service are usually awarded on a tender-for-service basis every one to three years.