Driving School Business Resolutions (And interesting facts) every driving school business owner needs to make now to get their 2016 off to a fast start:
Stop complaining about the bad economy.
This world is still staggering out of the Great Recession. Since 2008 however things have gotten significantly better. The cause of the recession was ultimately the financial crisis in the United States in 2007.
A review of household income in the US clearly demonstrates that the effect of the recession is that household income is less now than it was back in 2008. One of the impacts of this is that customers noways expect to receive real value for their money, especially when they are not buying necessity goods.
The bottom line is that there is so much money out there in the your economy, it cant possibly be that difficult to attract more of it in 2016 then you did in 2015. Be more optimistic and you will be surprised at how things might turn out.
What are you selling?
During better economic times, customers do buy nice to have’s. Although we not still smack bang in the middle of a recession, people are being more careful with their money them ever before. Find your customers’ pain by surveying them and asking where your business can help them the most. Its always better to sell products and services to people that they actually need, and for which they can link some kind of value to the price being asked.
Driving school services can be viewed as luxury goods, unless of course you live in a country where driving schools are mandated by laws.
What types of goods do you get:
Inferior Good: An inferior good means an increase in income causes a fall in demand. It has a negative YED. An example, of an inferior good is Tesco value bread. When your income rises you buy less Tesco value bread and more high quality, organic bread.
Normal Good. This means an increase in income causes an increase in demand. It has a positive YED. Note a normal good can be income elastic or income inelastic.
Luxury Good. A luxury good means an increase in income causes a bigger % increase in demand. It means that the YED is greater than one. For example, high definition TV’s would be luxury. When income rises, people spend a higher % of their income on the luxury good. (Note: a luxury good is also a normal good, but a normal good isn’t necessarily a luxury good)
Complementary Goods. Goods which are used together, e.g. TV and DVD player.
Substitute Goods. Goods which are alternatives, e.g. Pepsi and Coca-cola.
Giffen Good. A rare type of good, where an increase in price causes an increase in demand. The reason is that the income effect of a rise in the price causes you to buy more of this cheap good because you can’t afford more expensive goods. For example, if the price of wheat rises, a poor peasant may not be able to afford meat any more, so has to buy more wheat.
Veblen / Snob Good. A good where an increase in price encourages people to buy more of it. This is because they think more expensive goods are better.
Get rid of lazy employees / consultants who don’t add any value
Stop holding onto the people that are bad performers, lazy, poor fits, or just don’t add to the bottom line. Ultimately people are hired to perform a specific task, a driving instructor to teach students, an accountant to summarize your financial data and your marketing manager / agent to bring in business by increasing leads which you are able to easily convert into sales. Introduce an evaluation program into your business and get rid of people who don’t add their fair share of value.
Market only to prospects that can actually pay for my product
Businesses spend a lot of time trying to sell their products to people that do not have the money to buy. We waste a lot of time on these potential customers (prospects that show inconsistent interest). Rather spend more effort on people who you know upfront are more likely to buy your services. Tweak your selling processes to try and identify the time wasters up front. Add them to a mailing list which you are able to mine at the click of a button instead of spending 15 minutes on the phone trying to convince them to make that purchase.
I will not lower my price to substitute a real marketing strategy.
Leave price wars to your competitors so you can concentrate on your core business. Have the guts in your service offering not to lower your price in an effort to win more business. Focus on leads that are looking for your value added services.
Start meeting Face to Face
Stop relying on email and the phone as the purely exclusive way to talk with customers and suppliers. Strong business relationships are still built face to face (F2F). If time is limited, organize social events on social networking platforms for maximum impact.
Start attending some major industry events for networking purposes
A major part of business success in business is to never stop learning and growing. Try attend at least one or 2 major events. Prepare beforehand, learning and researching major developments in the driving school market, such as software developments, new technologies and legislation. Determine what is most important to you and identify knowledge bases at the industry events, network and build relationships.
Invest in yourself
Spend money on training yourself in new skills and areas of learning. Whether its attending a refresher course in driving instruction, or attending a 5 day marketing course you will be that much better off. Great business leaders are continuous learners.
Take time off.
In these days of ever changing technologies, peoples professional and personal lives are merging into one..Take family vacations and free your mind. Take a few days off without any interaction with your business. Use the time to think and learn new hobbies.
Prepare and Study your businesses financial statements each and EVERY month.
Many driving schools don’t even prepare their financial information let alone study them. Many business owners are too busy to check or don’t understand their financial statements. Make a commitment to learn what the profit and loss, balance sheet and cash flow statements mean to your business and use them as a guide for future action. Do not delegate that understanding to your bookkeeper, CFO or accounting professional.
Your Sales Strategy
Focus on your sales strategy, attend sales workshops and free seminars. Growing sales while maintaining your business brand and image is paramount.
Trust in Technology
Many driving school business are still run and managed using out of date technologies and methodologies. People are scared of change, but its part of life. Don’t be scared at looking for better and more efficient ways of doing things. A good place to start might be by signing up for a FREE DrivingLABS account, trying out the dynamic calendar and scheduling tools, the invoicing and reporting modules, or even the franchising and branch management functionality. Simple go to http://www.matchinglabs.com/userapplication.php and sign up Today.