POLYTECHNIC OF NAMIBIA

transforming into Namibia University of Science

and Technology

SCHOOL OF MANAGEMENT
DEPARTMENT OF MANAGEMENT
INNOVATION, CREATIVITY & ENTREPRENEURSHIP (ICE 712S)

Business Plan
By:
Joel D.T Kayuhwa: 200965263

28 September 2015

Supervisor:

5. Operations plan
Pro Drive Driving School will operate by teaching people how to drive by firstly
taking them through driving simulations before they start the driving of a real vehicle
driving simulations will range from motor bikes, small cars, buses and trucks, but
driving of real vehicles will ranging from motor bikes to small cars, small and
medium buses with a future goal of teaching people how to drive heavy duty vehicles
(trucks) and big buses because of the high amount of capital required to have trucks
and big buses.
In our operation plan we going to look at how our operations will be planned out and
look at our market strategy.
5.1.

Marketing Strategy
The new driving school will serve high purpose in the Windhoek and later
Namibian communities by eliminating fear of driving especially in woman and
install road rules in people and by giving good services the driving school will be
recommended to the next person then the next until we can reach at least 70% of
being known in Windhoek and the surrounding towns by the end of the first period
which is six months and by the third period we want to be able to have premises in
Swakopmunt, Otjiwarongo, and Oshakati the Beginning of the 5 period.
By bringing a new, well organised and promoted service to the market this will
give us an advantage over traditional driving schools who advertise what they do
not have and over charge their clients since we will offer good service and
security at a good price in a well organised and well taken care of environment .
The new business will become known as one where all the staff practices the
motto, no one else is got you like we do.

5.2.

Pricing Strategy

Just like we stated before our prices will be good and deserving of the quality
we offer and it will set us apart from any of our competitors because its well

under their pricing cause of the amount market research done to compare
prices and calculate which is a good price and which is over pricing.

Vehicle

Price/hour

Motor bike
Car
Small Bus
Medium Bus
Big bus
Truck

80
90
120
150
200
250

Simulation
Machine
Motor bike
Car
Small Bus
Medium Bus
Big bus
Truck

Price/hour
50
70
80
85
95
100

5.3.

Promotion Strategy
Pro Drive Driving Schools promotion is designed to attract all those people who are
tired of going to driving arenas and end up not getting chance to drive cause the
arenas are full, those people that want to drive but are too scared, those that are tired
of being played out of their money by people who lie about having driving schools
but do not have, those that are looking for a driving school with woman instructors
and pretty much anyone else that wants to learn how to drive.
We do by coming up with well placed appealing and well understood adverts that
highlighting the fact that we have a permanent premise which offers security, stating
that we offer driving simulations on all kinds of vehicles for beginners and have our
own packing practicing area which is only used by the cc alone which means every1
gets a chance to practice, and stating our very reasonable prices.
Pro Drive Driving Schools has allocated N$ 15 000 for advertising on Television,
Radio, Posters, News papers and local magazines, web postings and by giving special
offers and by the Pro Drive Driving School CCs website.
Advertisements by Team Namibia:

Web posting:
o Come up Facebook page, Twitter page, instagram account, Namhook
before starting to operate.
o Share the Pro Drive Driving School CCs website on buy and sell Namibia
facebook and other local facebook pages, twitter pages and namhook
pages
o Create a Pro Drive Driving School CCs website before starting to operate.

Television
o Advertise on all local Televisions One Africa, NBC etc before starting to
operate.
Magazines

5.4.

o University magazines, Create a local Car magazine, and also advertise in

other highly demented local magazine
News Papers
o Monthly Advert in The Namibian, Namibian Sun, Confidante, New era at
different times in different news papers for the First 6 months
Radio
o NBC Radio, Energy Radio, Fresh FM, Kosmos 94.1, Kudu Radio, Hit
Radio, Base FM, 99 FM by texting on the radios advertising program
every week and posting on their respective facebook pages.
Offer specials
o Give specials like when A person pays for 10 hours in Advance they get 2
free hours whether on the simulation or Vehicle
o when A person pays for 15 hours in Advance they get 3 free hours whether
on the simulation or Vehicle this is for cars only
o when A person pays for 20+ hours in Advance they get 15% off every hour
whether on the simulation or for all Vehicle
Posters/ Flayers pasting posters on the streets, shopping malls and at schools
Operation Layout

The operation layout for one day includes for the driving simulation lessons:
Instructor comes to work sign in and go to the cubicle where they belong e.g.
motor bike cubicle, cars cubicle, small bus cubicle, medium bus cubicle, big bus
cubicle, or truck cubicle.
Look at their schedule for the day.
Turn on machines and wait for clients to come for their lessons.
Ensure that if the student drives they indicate that by signing next to their name on
the booking schedule for the day.
All payments will be done at the reception by the client themselves or via
electronic transfer and presenting the proof at the reception or faxing in advance.
The operation layout for one day includes for the Vehicles driving lessons:
Drivers/instructors pick up their respective vehicles and Bookings Schedule for
the day.
If the customer is doing road driving the instructor picks up client else if their
doing parking practice they come to Pro drive driving School cc premises and find
their instructor there.
Provide the drivers with the order for fuel/gas at the Garmams Filling Station.
Ensure that if the student drives they indicate that by signing next to their name on
the booking schedule for the day.
Remind students of their lessons by text.
When the booking schedule is complete the instructor my request for more or just
turn in the car and get dropped home by one of the cc members.
And their booking schedule will be compiled after that when they telling the
receptionist who wishes to drive the next day and by adding people who graduate
from the driving simulations when space is available.

Financial Plan
Pro Drive Driving School cc will be initially funded by the five owners
equity capital. Each member has invested N$ 100 000 which amounts to
N$ 500 000. The cc has further acquired N200 000 in the form of a bank
loan against mortgage leverage, boosting initial capital investment to
N$700 000.
The following financial projections are based on conservative sales
forecasts by month for the next twelve months, and by year for the three
years thereafter. Initially, only light motor vehicle (including motor bikes)
training will be offered. Heavy motor vehicles will be a future addition as
the business expands, because of the high costs required to buy heavy
motor vehicles.
Driver practical training and machine simulation training cost will range
from a total of N$130 N$350 for motor bike to trucks respectively. This
will be our average fee for the first operational year and fees are subject
to increase with inflation rates at flat rate of 8% per year thereafter. The
conversion fee will be $500 and monthly maintenance thereafter will be
$500. We expect to have all of our customers converted by June
2002. Details of projected sales and conversions are included under the
heading Revenue Assumptions.
The cost to upgrade the OBRA e-z DOS-based program to windows is
estimated at $120,000 that will be spread over the first twelve
months. Maintenance will require approximately $24,000 per year
thereafter. The cost to upgrade and integrate the MasterLink software is
estimated at $204,000 (spread over the first twelve months) with annual
maintenance of about $12,000 thereafter. Details of estimated costs are
included under the heading Expense Assumptions.
Pro Drive Driving School cc will generate negative income from April 2016
until January 2017 while absorbing the expense to maintain the cars and
simulation software license and jump start its sales and marketing
activities. We expect to be generating profits beginning February 2017
and every month thereafter.
We will require an initial investment of $750,000, all of which will have
been recovered by the end of year two in cash (approximately $700,000)
and accounts receivable (approximately $200,000). By the end of year
five, we expect to have cash and accounts receivable aggregating more
than $7,000,000

Start-Up Funding