Hi,
Good luck - you'll need it and more.
It will also be a great test of your management and marketing skills, and your financial control. Put it simply, if you have the skills to run a successful flying school then you'll make far more money using them in another business - and have far more time and money to enjoy your flying!
My background: I run a microlight school and own and operate a grass airfield.
First, work from top down. So, your FIs can only work for c800 hours in the air per annum, even with perfect weather. (My instructors are lucky to get 500 hours in at 847ft above sea level in Scotland)
Let's say you charge 117.50 quid an hour - including VAT. After giving HMRC the VAT, you have 80,000 a year per instructor in income.
Pay your instructor 20 quid an hour (mine actually get 35) and their max income is 16k - but if they are staff then you have employer's national insurance to pay, arrange for their pension fund, sick pay, maternity pay .... Allow 25k a year per instructor.
Now we have 55k to pay your aircraft costs and fuel (but let the student pay landing fees direct, to save some cash) and you are left with?
Fuel alone on a Katana will be 20 quid an hour - say 16k a year.
So we have 49k for aircraft costs. I don't know GA costs, with 50 hour checks etc. But let's say 20 quid an hour.
So we have 49k minus 16k = 33k.
But there are the office costs, admin, someone to answer the phone, advert in Yellow Pages etc.
And then bank charges. You'll lose 5 per cent of all credit card payments in charges - that's 4k just from that!
So, before office etc you might make c30k per instructor!
Hey, you'll get 30k plus driving a train, 4 days on 4 days off. No hassle.
So, maximise your revenue. Be harsh. If you stay in business, people will say you are ripping off your students because you charge by Hobbs time rather than engine time. If you go bust, your ripping off the students!
No-one will like you, they'll all drive more expensive cars than you!
You'll come up with devious plots for people who complain about price. Mine is: For every 1,000 pound your car is worth more than mine is worth, I'll ad a pound an hour on to the lesson costs - for every 1,000 pound my car is worth more than yours, I'll take 10 pound OFF! (With a 500 quid car it is an easy bet!)
Very best wishes,
Colin