Kelajak Drıvıng School Executive Summary
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Kelajak Drıvıng School Executive Summary Kelajak Driving School (KDS) offers a wide range of driver services. It is ultimately the goal of the company to be a one-stop facility for all driver needs, including registration, licensing, etc., but at this time Kelajak mainly offers private and commercial driver education in the Kuvasay area. KDS is positioned as a low-cost facility with excellent service. 1.1 Objectives The objectives over the next three years for Kelajak Driving School (KDS) are the following: Achieve sales revenues of approximately $2.1 million by year three. Expand by starting up two more facilities (one in Sufan and the other in Kakilan) 1.2 Mission , The mission of Kelajak Driving School is to provide high quality, convenient and comprehensive driver education courses at the lowest cost. The most important aspect of driver education is SAFETY. It is the goal of Kelajak Driving School to have graduates of our programs with the safest driving records of any other competitor in the Pacific Northwest and to exploit that reputation to create greater market share. 1.3 Keys to Success Kelajak Driving School stands at a great moment in its history. Having achieved an enviable record of providing the lowest cost drivers education services with comparable quality for the greater Kuvasay area, The firm plans to open two more facilities, one in Sufan, and the other in Kakilan, . Six years ago, when the company was founded, the owners realized that there was a great untapped opportunity in this industry. No company was providing what the customers truly demanded, high quality driver education at the lowest possible cost. Large companies were charging too much for their services and the local companies were not providing enough programs and services or they were poor quality. The opportunity rested in creating synergy with other organizations that were either buyers or suppliers. by doing so a company could reduce costs, shut out competition, and gain market share. This has been MDS’s driving strategy and winning business model since the company began. It’s steady growth in a mature market has proven the company’s management policy over time. Now the company is ready to expand and the keys to success over the next three years for such an endeavor are as follows:Lower costs so that the company’s gross margin increases to 66%. Appoint a cost control officer for each of the new facilities who is responsible to the president and general manager. Institute a comprehensive cost reduction program throughout the company. Strengthen and pursue partnerships and strategic alliances with suppliers so as to further reduce costs. Aggressively pursue contracts with organizations who need our services such as police departments, high schools and trucking agencies. Company Summary Kelajak Driving School was started by four individuals who saw an untapped potential in the driver education industry. This potential was in creating a new low cost position while still being able to compete with the larger companies on quality. This strategy would be created through strategic alliances and partnerships of local suppliers and buyers. The company has seen steady growth in a mature market which is a sign of the firm’s viable business strategy. The company has eight investors, the majority of whom are employees of the firm. The company has achieved revenues of approximately $185,000 and a gross margin of 37%. In addition, the company has achieved a customer satisfaction rate of 92%. 2.2 Company Locations and Facilities The company has its original facility in Kuvasay at 87 1st Gafur Gulam. This is in the Teenagers Industrial Park and consists of office space, 3 fifteen person and 4 ten person classrooms and numerous simulators, storage space, garage, and an outdoor driving course. The facilities are very modern and comfortable, making it a relaxing atmosphere for students. The future facilities in Kakilan are at 67 A. Navai St. a marine supply store prior to being rented. It will also contain the same equipment and layout once the renovations are complete. The third facility, in Sufan have not been decided yet and the company is presently assessing the merits of several different facilities. Market Analysis Summary Just about every individual in this country needs driving education at one point or another in their lives. Therefore the potential market for KDS consists of every person age 15 and above in our geographical area of Kuvasay, . We segment this market into a series of groups based on their individual needs and different demographics. These segments are: Beginner drivers. Adult drivers. Drivers under court order. High schools. Commercial drivers. Each of these groups are mentioned in more detail in the market segmentation section. Although KDS does not offer services for commercial drivers just yet, since this will be part of our business in the future, it is included here. Each group has different needs based on lifestyle and past driving experience. Many of our adult drivers are people with tight work schedules who can only devote time for driver education at lunch hours and in the evenings. They often need brush up courses or defensive driver courses. For these individuals KDS has compressed courses designed to get the driver back onto the street quickly but safely.For our beginner drivers, the majority of whom are teenagers, we offer courses both in the summertime, after school and AT their school. These course are usually longer, and devote more time to the mechanics of driving than the adult classes. Finally, our future commercial drivers segment will require courses that are more technical in nature, most detailed and last the longest. Furthermore, many of the students will be able to take the classes during normal working hours. For these students, a more detailed syllabus with the best instructors is necessary. 4.1 Market Segmentation Each group has different needs based on lifestyle and past driving experience. Many of our adult drivers are people with tight work schedules who can only devote time for driver education at lunch hours and in the evenings. We have designed classes that meet such needs. In addition, unlike our young students, many of the adults are pre-existing drivers who either need brush up courses, defensive driver courses or are required to take a course due to traffic violations. For these individuals KDS has compressed courses designed to get the driver back onto the street quickly but safely. These courses concentrate more on the rules of the road than on driving skills. For our beginner drivers, the majority of whom are teenagers, we offer courses both in the summertime, after school and AT their school. These course are usually longer, and devote more time to the mechanics of driving than the adult classes. The high school segment falls under this larger category. It is separated out from the others since they are “corporate” customers who often bid for and negotiate contracts. Please note that in the Market Segmentation table, the numbers for the category “High School” denotes the estimated number of students, not schools. Finally, our future commercial drivers segment will require courses that are more technical in nature, most detailed and last the longest. Furthermore, many of the students will be able to take the classes during normal working hours. For these students, a more detailed syllabus with the best instructors is necessary. Market Analysis
4.2 Service Business Analysis This section is covered in the Competitive Comparison section of the Plan. 4.2.1 Competition and Buying Patterns This industry is highly seasonal. Most of our students attend classes during the fall or spring, with winter being the slowest months. The summer sees a good number of students seeking our services, but not as many as in spring or fall. Most customers of driver education services discover their provider through some form of referral, such as another education institution, the state DOT, or something else. For this reason, MDS and other providers seek to make as many contacts in the community as possible.Strategy and Implementation Summary The following subsections outline the marketing, pricing and promotion strategies, and competitive edges for Markam Driving School. 5.1 Marketing Strategy At the moment, the company is focusing on its core market segment, the beginner students. This means creating closer ties with school districts and pursuing those contracts. In addition, the company is focusing on Web, magazine, newspaper and TV advertisements, all with a teen focus. Starting next year, MDS hopes to have some form of advertisements or booths within shopping malls frequented by our target market. With the company’s expansion, we have focused on creating a detailed report on the lifestyles of our target market to further hone our marketing efforts. With this report we will be able to go forward with the best possible client organizations and partnerships to promote sales and to fill our classes to capacity. 5.2 Competitive Edge MDS possesses two competitive edges in relation to its rivals. The first one is its excellent ability to create strategic alliances that reduce costs and allow it to become the low-cost provider and create its vision of the one-stop driver support center. In addition the company has a very aggressive marketing executive in the person of Ellen James, who’s goal is to proactively discover how best to provide our services, when to provide them, and where to provide them. Ms. James work has spawned new service ideas such as Driver’s Ed Housecalls, a program that is now being evaluated where a driver educator could provide hands on teaching at a person’s home. Other ideas such as this are also in the works to improve service as much as possible.Strategic Alliances The following table and chart illustrate the projected sales forecast for Markam Driving School. Sales Forecast Sales
The company’s expansion to include two additional offices will put a great deal of strain on the company’s existing management. Each of the company’s four principal officers, with the exception of the marketing coordinator and the controller, are expected to become the facilities manager for each of the existing or proposed sites, along with their current duties. At this time management does not feel comfortable with hiring new managers for these positions. Once the profitability of each site becomes apparent, the general manager will determine the need to add on additional personnel. Personnel Plan
Financial Plan The following subsections outline the financial plan for Markam Driving School. 8.1 Break-even Analysis The company’s Break-even Analysis is based on the company’s running costs, including payroll, and its present fixed costs, not including the expenses associated with the firm’s planned expansion.Break-even Analysis
Assumptions:
8.2 Projected Profit and Loss The following table is the projected Profit and Loss statement for Markam. Pro Forma Profit and Loss
8.1 Break-even Analysis The company’s Break-even Analysis is based on the company’s running costs, including payroll, and its present fixed costs, not including the expenses associated with the firm’s planned expansion. Driving school business plan, financial plan chart image Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan Break-even Analysis Monthly Revenue Break-even $74,087 Assumptions: Average Percent Variable Cost 40% Estimated Monthly Fixed Cost $44,452 Need real financials We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. Create your own business plan 8.2 Projected Profit and Loss The following table is the projected Profit and Loss statement for Markam. Pro Forma Profit and Loss
8.3 Projected Cash Flow The following table and chart show the projected cash flow and cash balance figures for Markam Driving School. Driving school business plan, financial plan chart image Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan
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