Aviation small business startups

[mcdavi02]

I've been thinking lately about the feasibility of launching an aviation related small business. I'm an entrepreneurially minded career changer with thirst for aviation. I was wondering if anyone here has any experience putting together a small business such as aerial photography and mapping. I have heard stories about abundant contract work for aerial mapping businesses, and that they often have more work than they have planes and pilots to fly them. Most of the most successful people I have met have built their success by starting and running their own business, despite all the difficulties that must be overcome.

[WAFlyBoy]

I believe traffic watch may also be a market accessible to the small business owner, although demand for these services may be shrinking due to the use of other technologies.

I've often though that if you could innovate an aircraft component that made operating an airplane more efficient or effective in it's mission, that would be another way to get involved. If you could earn x dollars for every unit manufactured or installed, the proposition could be lucrative if the market was large enough.

Fuel saving innovations are likely to gain importance in the future. For example, computer programs (or other systems) to aid an aircraft operator in figuring out the most efficient flight profiles and/or to help make decisions on when it makes sense to tanker fuel.

Think about who was really making a fortune during the California gold rush. Not the miners, but rather the folks who sold shovels, gold pans, and Levis. I imagine aviation is probably very similar.

[granlistillo]

You could buy a flight school (or their assets) and cater to the foreign student market.

I worked in a flight school and we would get unsolicited emails to bid on programs to teach foreign pilots. I know one JCer who did pretty well in this gig.

Right now Chinese, Vietnamese, Sri Lankan, Indian pilots are coming over here in droves, and there is more to come...

[jwp_145]

Every single hour of dual-given I have is to either an Indian, Sri-Lankan, or Chinese student. And that is at a couple different schools.

[Mtts422]

Question: What's the best way to make a millions bucks in aviation?


Answer: Start with two million.



Point being it is EXTREMELY difficult to make money in aviation. I'm experiencing the trials and tribulations right now working for an aviation start-up.

I don't want to completely discourage anyone, as I share the same entrepreneurial spirit and would love to someday own and operate a lucrative aviation business. Just proceed with caution. Good Luck!

[granlistillo]

I love aviation and I love business too. I personally wouldnt want to try to mix the two. Some guys can make a go of it, and right now, getting a contract for foreign students would be probably the most lucrative in GA.

The only reason I could take a job at a regional, is that our bidness, takes care of the family, and my salary can be augmented by it.

[WAFlyBoy]

You might be able to make some money selling Avgas and jet fuel too. However I suspect the barriers of entry are fairly difficult to overcome and you'd probably have to find just the right market to avoid getting into a lowest-bidder type situation with other operators.

[ElyJs]

For those that think that getting a foreign student training contract is easy think again. They have solicited almost every flight training organization in the United States. You cannot count on a dime until the students get in the airplane. I personally know of one FBO owner that flew all of the way to China only to realize what was really going on.

To even really be a contender in these bids you are going to have to take a big risk by investing in housing, airplanes, simulators etc BEFORE they will consider you. This does not mean they won't talk to you either. Be very careful with that one.

-Jason

[ElyJs]

There are no real profit margins to work with in aviation, the numbers are very tight. If you are willing to work with those and realize you will never get rich, it is very doable. I currently run a very small flight club. I also ran some numbers on starting an airport shuttle from my town to KDEN. The numbers don't even compare, the airport shuttle is a much better business.

If you are willing to take very large risks such as above you might do a little better. Also as you move up into the higher end (Selling a lot of Jet A to rich people on their private jets) where service can really differentiate you, the margins seem to be a little better. Read through this board, most of the advice is find the cheapest training you can.

-Jason
www.flyboulder.com

[granlistillo]

Originally Posted by ElyJs

For those that think that getting a foreign student training contract is easy think again. They have solicited almost every flight training organization in the United States. You cannot count on a dime until the students get in the airplane. I personally know of one FBO owner that flew all of the way to China only to realize what was really going on.

To even really be a contender in these bids you are going to have to take a big risk by investing in housing, airplanes, simulators etc BEFORE they will consider you. This does not mean they won't talk to you either. Be very careful with that one.

-Jason

Not saying it is easy, but I know one JCer that did very well very quickly. i personally am not patient enough to work out the details, and yes some of these guys are demanding, high maintenance and as pointed out in a recent thread the "Engrish" is a barrier.

One similar opportunity is getting with some JAA schools, and working out a partnership for the 100 hr P1 time building requirement. Hourly cost in Europe are high, and a lot of schools dont want to enter a partnership with a school that does a lot of training. but if you just specialized in training for a faa private validation, time building and then ship them back to Europe, I bet you could do a very profitable bidness. Key to that would be build a personal relationship with the owner in Europe. i wouldnt start a flight school from scratch though.

[Always Moving]

For what I have seen (I have not seen books) the people who thrive start with an FBO/school/charter, then add maintenance/paint shop and end up with a compound of services. This allows you to do a one shop everything. "Yea take the plane up there for a paint job and since is there might as well fix this this and this)

If they treat you right you come back, if they fix your radios good, you come back and so on.

You have to keep quality and service up.

In the aviation business everyone wants it yesterday and the best, money will talk later (people do shop but what they do not want are problems)

[jrh]

Originally Posted by Mtts422

Question: What's the best way to make a millions bucks in aviation?


Answer: Start with two million.



Point being it is EXTREMELY difficult to make money in aviation. I'm experiencing the trials and tribulations right now working for an aviation start-up.

I work for a start-up flight school. The school's been running for a little over a year now.

The owner and I have had many talks before about making money in aviation. He's convinced he can do well with it...I'm much more skeptical. I've run numbers with him over and over, and there's no easy way to make it happen, at least not with a flight school.

You can make a reasonable living, but it's extremely difficult to actually become wealthy as a result of aviation.

I think my boss takes home about $50k/year from his flight school and aircraft sales business combined. That's not bad, but I don't see it going up much.

From a financial point of view, I think the pay is better by simply working as a pilot. That's what makes me happier than flying a desk, anyway, which is what my boss does now.

My boss, on the other hand, places a high priority on being home every night and setting his own schedule. Those are the intangible benefits you have to consider.

[mcdavi02]

Does anyone have any thoughts on the current and projected outlook for aerial mapping in particular? With the advent of things like Google earth it seems like this would remain a viable business, as most of the imagery is not actually satellite based from what I have read.