Planning to Start an Aviation Business? Here’s a 4-Step Guide to Help Make the Process Easier
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When one thinks of the aviation sector, the airline business is the first to come to mind. However, aviation is a vast industry that includes various types of businesses related to aircraft manufacturing, maintenance, catering, marketing, and more. In this article by Captain Laura, we’ll explore the best possible business options entrepreneurs interested in the aviation sector can consider and the steps to turn their ideas into successful businesses.
Aviation Business Ideas:
Before we get into the nitty-gritty of how to get your business off the ground, first let’s explore the best options to consider:
- Aviation Consulting: If you’ve previously worked in the aviation industry as a pilot or at a management level, starting a consultancy is a great option. As a consultant, you’ll be able to work with a host of clients and will be responsible for providing advice and creating strategies to help them achieve their business goals, as reported by Chron.
- Aircraft Maintenance: With an increasing demand for air travel, there is a growing need for skilled professionals for repairing and maintaining aircraft. As an aircraft maintenance business, you’ll be able to work with major airlines, private owners, and local flight schools as well. Additionally, you’ll serve as an important part of the aviation ecosystem and, in time, land larger contracts to grow the business.
- Flight School: Starting a flight school can be a rewarding business venture as it’ll provide you an opportunity to share your love of flying with others. As a flight school, you can consider offering a range of training courses, which can include commercial pilot training, flight instructor training, and more.
Creating a Business Plan:
Regardless of the type of business you choose, creating a comprehensive business plan will serve as a roadmap to guide you to success. Additionally, having a great business plan increases the chances of securing funding from banks or venture capitalists, as during the screening process, they will surely ask you to provide financial and growth projections for your business, which will be included in the plan.
In addition, your business plan will include a go-to-market strategy in tandem with a marketing and sales strategy, which will cover the steps you need to take for achieving key business goals in the short and long term.
Securing Sufficient Funding:
Most aviation businesses require significant monetary investment to get off the ground and remain sustainable. However, as a new entrepreneur, you might not have the deep pockets needed to meet lofty financial requirements. But don’t fret, as there are a host of funding options for you to consider:
- Bank Loans: As mentioned above, a strong business plan will increase your chances of securing a bank loan with good repayment terms. However, most lenders will require collateral that can include your personal assets; hence it’s important to create accurate financial projects and create a repayment roadmap even before you approach a lender.
- Venture Capitalist Funding: VCs might not ask you for collateral. However, they will demand a percentage of equity in your business. While this is a standard business practice, it’s important not to limit the amount of equity you give away, as in the long term, it can dilute your control over the company and its decisions.
Having a high credit score will play a key role in securing funding from either of these options, as it will provide a positive representation of your current financial standing and the ability to repay the debt on time, with minimal risk of default.
Establishing an LLC:
While no business is risk-free, you can significantly reduce your risk by establishing your company as an LLC. This is because an LLC protects an owner’s personal assets from business-related liabilities and provides a host of tax benefits, potentially helping you save thousands of dollars annually, according to Management Library. Rather than dedicating time towards tedious registration processes, consider delegating this task to a formation service, and channel your efforts towards creating a business plan and securing funding.
When it comes to being successful in the aviation industry, developing a comprehensive business plan will be key. Additionally, maintaining a high credit score will be important as well to secure the required level of funding and remain financially stable for the long term.
Flying the jets, we are always forward thinking and adapting to the ever changing environments. In aviation business, the same holds true!
Wishing you Blue Skies and Smooth Flights!
Captain Laura with Kurt Brown (For more great travel information, go to www.TravelTipTank.com!)