The answer depends on how good the location is in terms of population wealth, and what the competition is.
Assuming loads of BMW Z4 owners, a nice clean airfield with a hard runway, and no other school around, there is no doubt that one would set up an upmarket flying club, well organised and with a pretty girl on the reception desk. And modern planes of course; none of the 1950s junk. Salaried instructors, no ATPL hour builders (some builders are good but they leave soon because they get jobs). Do the whole lot from PPL to IR.
But if - as is most likely - there will be local competition operating the usual knackered old junk, you will never make money because they will always undercut you and you will never achieve a dominant market share. Your only hope will be to draw in as much business as you can, hoping they will go bust. The trouble is that aviation is full of people who are willing to work for nothing and turn up and sit by the phone on an OVC002 day just in case a bunch from the local council estate book a pleasure flight (a "trial lesson"). So pushing the competition out could take years.
Also there are not many airfields in a good location that are not threatened with closure.
So, I don't think much can be done to improve matters.