Looking around where I am based, over the past 10 years, the big problem with setting up a "nice" shop is that there will always be somebody willing to sit in a tatty leaking portacabin, 9am to 7pm, with a phone next to them, waiting for it to ring from somebody who wants a pleasure flight (a "trial lesson"
) and willing to do this for nothing.
These people will always undercut you.
They go bust every 1-2 years, doing a lot of damage by vanishing with student deposits, but there isn't much one can do about it. I know the airport started putting a clause in all new leases to ban the operation of a flying club, to try to cut down the number of these short-lived businesses, but I don't know how long that lasted. Somebody said it was an illegal restriction...
At one stage there were EIGHT fixed wing training operations there.