Brainstorming for building a small business.. freight
Joined: Sep 2005
Posts: 298
Likes: 0
From: NZWN New Zealand
Aren't you putting the horse before the cart ?
First find the potential clients who aren't getting the services they need. Ask them to identify in writing what their needs are both in terms of volume, frequency and seasonal terms.
Once you have a potential cargo identified by clients as opposed to your wish list, then you can go to a financier and say "Here is a need and I know how to solve it if you fund me"
Go look for clients first.
Secondly look for the operator of an IFR twin who only uses it by day and ask what they'd say to you using it by night ?
Remember too that you need to factor in scheduled maintenance when your sole aircraft is not available. So now we're talking at least two aircraft.
How about cut flowers from Holland to UK ?
Very seasonal though. Seafood is always lucrative. Fish from Santander to wherever they want fish ?
Gotta find the need first and then satisfy it. I don't think you're ready yet because you haven't thought it through far enough. harsh thing to say but you need to go through about five drafts of this business plan before you're ready. You need failure to sharpen your pencil because once you're up and flying with loans to repay it's too late to find you haven't done the homework.
First find the potential clients who aren't getting the services they need. Ask them to identify in writing what their needs are both in terms of volume, frequency and seasonal terms.
Once you have a potential cargo identified by clients as opposed to your wish list, then you can go to a financier and say "Here is a need and I know how to solve it if you fund me"
Go look for clients first.
Secondly look for the operator of an IFR twin who only uses it by day and ask what they'd say to you using it by night ?
Remember too that you need to factor in scheduled maintenance when your sole aircraft is not available. So now we're talking at least two aircraft.
How about cut flowers from Holland to UK ?
Very seasonal though. Seafood is always lucrative. Fish from Santander to wherever they want fish ?
Gotta find the need first and then satisfy it. I don't think you're ready yet because you haven't thought it through far enough. harsh thing to say but you need to go through about five drafts of this business plan before you're ready. You need failure to sharpen your pencil because once you're up and flying with loans to repay it's too late to find you haven't done the homework.
Thread Starter
Joined: Jun 2005
Posts: 97
Likes: 0
From: Europe
First draft..
Hi guys.. Iīm back..
Like promised, I have my first draft done and believe me, itīs not an easy business!!
So far, I really like many of the stuff shared in the forum, but got to sharpen the pencil and make at least 4 more drafts, like kiwiguy said, to draw a nice conclusion.
By now, I hope more ideas and whatever comes to minds regarding this bussiness are shared here.
Aircraft chosen still a C206, as it is probably the most affordable and logical to begin with (500kgs payload). Fliying time will be around 02:00 hours and carrying : spares, fish, biological stuff, documents, etc..
The most difficult part will be obviously getting the clients, ideas?
Can not promise something not working yet, just to get a client.. so it is really a difficult task.. To begin flying might take a few months so it is very risky to reach target clients before that can really happens..
Like promised, I have my first draft done and believe me, itīs not an easy business!!
So far, I really like many of the stuff shared in the forum, but got to sharpen the pencil and make at least 4 more drafts, like kiwiguy said, to draw a nice conclusion.
By now, I hope more ideas and whatever comes to minds regarding this bussiness are shared here.
Aircraft chosen still a C206, as it is probably the most affordable and logical to begin with (500kgs payload). Fliying time will be around 02:00 hours and carrying : spares, fish, biological stuff, documents, etc..
The most difficult part will be obviously getting the clients, ideas?
Can not promise something not working yet, just to get a client.. so it is really a difficult task.. To begin flying might take a few months so it is very risky to reach target clients before that can really happens..
Thread Starter
Joined: Jun 2005
Posts: 97
Likes: 0
From: Europe
AOC
Good question Phil..
The aircraft will operate daytime only and will be IFR equipped and only local flights within Spain.
The AOC is another question and I might need professional help for this issue.. any suggestions for the AOC? I have a guide on how start with the operations manual in order to get the AOC but it is a very simple guide and it doesnīt help much.
The aircraft will operate daytime only and will be IFR equipped and only local flights within Spain.
The AOC is another question and I might need professional help for this issue.. any suggestions for the AOC? I have a guide on how start with the operations manual in order to get the AOC but it is a very simple guide and it doesnīt help much.
Joined: Jan 2003
Posts: 867
Likes: 0
From: Bristol
I think the operating license should be looked at long before you decide on an aircraft and how many airframes you want to operate. I assume the requirements in Spain are the same as the UK as far as personnel goes. You will need skilled personnel as post holders, Chief Pilot, Accountable Manger, Ops Manager, Engineering Manager and Quality manager. Even if the posts are shared, the overhead costs of salaries required for these people will amount to more than the purchase price of your aircraft over a loan period.
The maths in my head goes something like this. The 206 costs say $550 per hour to operate, it can operate 500 hours per year, thats $275,000, if you make 25% margin thats under $70,000 per anum to pay staff, phone bills, marketing, AOC charges and aircraft finance.
If you make more than 25% margin someone else would have already done it. And they have.
To me it just does not look practical.
However. If you want to test the market, have your company created, i.e. branding, website, promotional material etc and have a go, speak to the existing local operators and put their aircraft forward to your targetted client base with a small margin.
Phil
The maths in my head goes something like this. The 206 costs say $550 per hour to operate, it can operate 500 hours per year, thats $275,000, if you make 25% margin thats under $70,000 per anum to pay staff, phone bills, marketing, AOC charges and aircraft finance.
If you make more than 25% margin someone else would have already done it. And they have.
To me it just does not look practical.
However. If you want to test the market, have your company created, i.e. branding, website, promotional material etc and have a go, speak to the existing local operators and put their aircraft forward to your targetted client base with a small margin.
Phil
