A driving school in the United Kingdom that nearly went out of business in 2012 is now helping lead the industry. Ian McIntosh took over Red Driving School in 2012, and now the company has turned completely around.
Back in 2012 Red Driving School lost over £1 million and ran out of money. However, with McIntosh stepping in and help from investors, the company survived.
McIntosh, a former company president in the food industry, took on significant risk by coming aboard. He purchased 11 percent of the company and thought each day could be the company’s last.
Eventually, though, he got the wheels rolling again. McIntosh’s first move dealt with payments. He changed the policy from day-off payments to paying in advance. This way, it’s harder for customers to back out at the last moment.
Additionally, the new owner trimmed jobs. It wasn’t something he wanted to do. However, it needed to happen. McIntosh cut nearly 400 jobs from the company to reduce costs.
Red Driving School
Despite doubts coming in from investors in 2014, Red is showing consistent growth. The school turned in profits each of the last three years. In 2017, Red brought in £11.5 million and showed a £1.2 million profit. The company is also Britain’s most significant concerning on-road instructors.
Red Driving School also benefits from some very notable clientele. One significant trainee is Game Of Thrones star Maisie Williams. The young actress passed her driving test after going to Red.
However, the company still faces a variety of difficulties.
McIntosh believes, for example, that teenagers aren’t as excited to get their licenses. He adds that parents don’t want to pay large amounts when the kids start learning.
Also, with the pound losing value, McIntosh is paying more to lease cars for training. The owner isn’t concerned about self-driving cars, though.
He believes that even when the vehicles become more common, they’ll still need highly trained drivers for the foreseeable future.