An aerospace company is a business that designs, develops, and manufactures products related to the aerospace industry, including aircraft, spacecraft, missiles, rockets, and other types of vehicles that operate in or beyond Earth’s atmosphere.
Aerospace companies may also provide maintenance, repair, and overhaul services for these products, as well as engineering and technical support, research and development, and other related services.
The aerospace industry is a very large industry and available statistics show that the value of the global aerospace market reached $298 billion in 2020, with North America accounting for almost half of the total. It is expected to grow at a rate of 7.7 percent to $430.7 billion in 2025, and a further 5.9 percent annually until 2030 to a total of $573.6 billion.
Steps on How to Start An aerospace Company
Conduct Market Research
Conducting market research for an aerospace company involves gathering and analyzing information about the aerospace industry and the specific markets in which the company operates. First, you need to determine what the company wants to achieve from the market research.
For example, the objective could be to identify new markets for the company’s products or to understand the competitive landscape. Next, you are expected to determine the group of people or companies that the research will focus on. This could include customers, suppliers, competitors, and regulators. Decide on the best method to gather information.
This could include surveys, interviews, focus groups, or secondary research such as industry reports and government data. Design the research questions to help answer the research objectives. Questions should be clear and concise and avoid bias.
Lastly, collect data using the chosen research method. Ensure that the data is accurate and reliable and that the sample size is appropriate. Review the data and identify patterns and trends. Look for insights that can help the company achieve its research objectives.
a. Who is the Target Market for Aerospace Companies?
The target market for an aerospace company depends on the specific products and services that the company offers. Generally, the primary customers for aerospace companies are government organizations, such as space agencies and defense departments, as they are the largest purchasers of aerospace products and services.
For commercial aerospace companies that manufacture and operate passenger aircraft, their target market is primarily airlines, as well as leasing companies and other organizations that provide aircraft to airlines. These companies may also target individual customers through marketing campaigns to promote travel on their airline customers’ flights.
For space exploration and tourism companies, their target market includes individuals who are interested in space tourism, as well as governments or private companies who want to launch satellites or conduct research in space.
b. Is an Aerospace Company a Profitable Business?
Yes, the aerospace company is considered a profitable business. The global aerospace market reached $298 billion in 2020, with North America accounting for almost half of the total. It is expected to grow at a rate of 7.7 percent to $430.7 billion in 2025, and a further 5.9 percent annually until 2030 to a total of $573.6 billion.
c. Are There Existing Niches in the Industry?
Yes, there are existing niches when it comes to aerospace companies. Here are some of them.
- Commercial aerospace companies
- Space exploration and tourism companies.
d. Who are the Major Competitors?
- Lockheed Martin
- Northrop Grumman
- Raytheon Technologies
- General Electric Aviation
- General Dynamics
- Pratt & Whitney
- Honeywell Aerospace
- Collins Aerospace
- Textron Aviation
- Gulfstream Aerospace
- Bombardier Aerospace
- United Launch Alliance
- Blue Origin
- Virgin Galactic
- Sierra Nevada Corporation
- Aerojet Rocketdyne
- Ball Aerospace.
e. Are There County or State Regulations or Zoning Laws for Aerospace Companies?
Yes, there are county and state regulations, as well as zoning laws, that apply to aerospace companies in the United States. These regulations and laws vary depending on the specific location and type of activities that the aerospace company engages in.
For example, if an aerospace company wants to build a new facility, it may need to comply with zoning laws that regulate land use and building requirements. This may involve obtaining permits, complying with setback requirements, and meeting environmental and safety regulations.
In addition, aerospace companies that engage in defense-related activities are subject to export control regulations that limit the export of sensitive technology and products to certain countries or individuals. Finally, aerospace companies must comply with various federal regulations that govern the industry, such as those related to aviation safety, aircraft certification, and space launch licensing.
f. Is There a Franchise for an Aerospace Company?
No, there are no franchise opportunities for aerospace companies.
g. What Do You Need to Start an Aerospace Company?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Operations or Production Facility
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment, Machines, and Supplies
- Startup and Working Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for an aerospace business are;
Creative Aerospace Business Name ideas
- Silver Stream® Aerospace Company, Inc.
- Copper Hills® Aerospace Company, LLC
- Eddie Smith® Aerospace Company, Inc.
- Gold Flash® Aerospace Company, Inc.
- Blue Sky® Aerospace Company, Inc.
- Quartz Ultimate® Aerospace Company, Inc.
- Jeff Jefferson® Aerospace Company, LLC
- Sky Resources® Aerospace Company, Inc.
- Julius Czar® Aerospace Company, LLC
- Fly Wave™ Aerospace Company, Inc.
- Beyond Cloud® Aerospace Company, Inc.
- Richard Williams® Aerospace Company, Inc.
- Harry Johnson™ Aerospace Company, Inc.
- Jonah Serville® Aerospace Company, Inc.
- Bright Anderson® Aerospace Company, LLC
- Silver Meta® Aerospace Company, Inc.
- Golden Wings® Aerospace Company, Inc.
- Copper Bird™ Aerospace Company, Inc.
- The Unicorn® Aerospace Company, Inc.
- Eagles Wing® Aerospace Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for an Aerospace Company?
The ideal business structure for an aerospace company is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.
However, we normally recommend a limited liability company structure. This is so because an LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.
An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open an Aerospace Company?
- General Business License
- Federal Aviation Administration (FAA) Licenses
- Export Licenses
- Occupational Licenses
- Tax Permit
- Environmental permits
- Building permit
- Zoning Permit
- Signage Permit
d. What Type of Certification is Needed to Open an Aerospace Company?
- Federal Aviation Administration (FAA) Certification
- International Organization for Standardization (ISO) Certifications
- National Aerospace and Defense Contractors Accreditation Program (NADCAP) Certification
- International Traffic in Arms Regulations (ITAR) Compliance
- Quality System Standard AS9100 Certification
- Space Launch Approval.
e. What Documents are Needed to Open an Aerospace Company?
- Business and liability insurance
- Federal Tax Payer’s ID
- Certificate of Incorporation
- Professional Certifications
- Business License
- Business Plan
- Operating Agreement for LLCs
- Insurance Policy
- Federal Aviation Administration (FAA) Licenses
- Export Licenses
- Occupational Licenses
- Environmental permits
- Building permit
- Environmental permits
- Zonal Permit
- Signage Permit
f. Do You Need a Trademark, Copyright, or Patent?
Yes, an aerospace company may need to obtain a trademark, copyright, or patent depending on the specific products, services, or technologies involved. An aerospace company may want to obtain a trademark for its company name, logo, or specific product names to prevent others from using similar names or logos in a way that could cause confusion among consumers.
An aerospace company may want to obtain a copyright for software, technical drawings, or marketing materials to prevent others from copying or using these materials without permission.
A patent protects an invention or discovery, such as a new aircraft engine or satellite technology. An aerospace company may want to obtain a patent for a new technology or product to prevent others from making, using, or selling the same invention without permission.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start an Aerospace Company?
The cost to start an aerospace company can vary greatly depending on a number of factors, such as the type of aerospace operation, the location, the size of the company, and the equipment and resources required. However, a rough estimate could range from $20 million to over $100 million, depending on the size and scope of the business.
b. What are the Costs Involved in Starting an Aerospace Company
- Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $172,500
- Equipment and supplies: $15 million
- Staffing costs: $500,000
- Rent/lease: $1 million
- Marketing and advertising costs: $20,000
- Insurance costs: $450,000
- Miscellaneous Expenses: $75,000.
c. What Factors Determine the Cost of Opening an Aerospace Company?
- The type of aerospace company
- The size of the aerospace company
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing of the aerospace company
- The cost of equipment
- The cost of the insurance policy covers
- The cost OF registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
- The cost for the grand opening of the aerospace company.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Whether an aerospace company needs to build a facility depends on the specific activities involved. For example, an aerospace company involved in aircraft manufacturing, testing, or repair will likely need a facility with specialized equipment and infrastructure to carry out these activities.
On the other hand, an aerospace company involved in software development or consulting may not require a dedicated facility and can operate remotely or in shared office space.
According to a report by the Aerospace Industries Association, the average cost of constructing a new aerospace manufacturing facility in the United States ranges from $200 to $400 per square foot. This means that a facility of 50,000 square feet could cost anywhere from $10 million to $20 million to build.
e. What are the Ongoing Expenses of an Aerospace Company?
- Materials and Supplies
- Equipment and Machinery
- Rent or Mortgage Payments
- Marketing and Advertising
- Research and Development
- Regulatory Compliance (licensing, inspections, and certifications).
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – $120,000 per year
- Operations Manager – $80,000 per year
- Aerospace Engineer – $75,000 per year
- Production Manager – $75,000 per year
- Maintenance Manager – $70,000 per year
- Human Resources Manager – $60,000 per year
- Accountant/Financial Manager – $60,000 per year
- Quality Control Inspectors – $55,000 per year
- Safety Officer – $50,000 per year
- Customer Service Executive – $48,000 per year
g. How Do You Get Funding to Start an Aerospace Company?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Copper Bird™ Aerospace Company, Inc. based in Detroit, Michigan is a leading aerospace company that designs, manufactures, and services advanced aerospace systems and components for commercial and military customers around the world.
With over 25 years of experience in the industry, we have built a reputation for delivering innovative solutions that meet the highest standards of quality, reliability, and safety.
At Copper Bird™ Aerospace Company, Inc., we are committed to staying at the forefront of the industry by investing in research and development, and by maintaining a highly skilled and experienced workforce. We also prioritize sustainability and environmental responsibility, and we are dedicated to reducing our carbon footprint and promoting sustainable practices across our operations.
Our team is comprised of highly skilled engineers, technicians, and other professionals who are dedicated to delivering the highest quality products and services to our customers. We have a strong culture of innovation and collaboration, and we are committed to fostering a workplace that is inclusive and supportive of diversity.
b. Products and Service
Our products and services include aircraft engines, avionics systems, satellite components, and other advanced aerospace technologies. We have a proven track record of success, with a diverse portfolio of projects that have been delivered on time and within budget.
c. Mission Statement
Our mission at Copper Bird™ Aerospace Company, Inc. is to design, manufacture, and service advanced aerospace systems and components that enable our customers to explore new frontiers and achieve their goals with safety, reliability, and efficiency.
We are committed to excellence in all aspects of our operations, and we prioritize sustainability and environmental responsibility in everything we do.
Our vision at Copper Bird™ Aerospace Company, Inc. is to be the leading aerospace company in the world, known for our innovation, quality, and commitment to sustainability. We strive to push the boundaries of what is possible in aerospace technology and to deliver value to our customers, employees, and stakeholders.
d. Goals and Objectives
The goals and objectives of an aerospace company are to design, develop, and manufacture products related to the aerospace industry, including aircraft, spacecraft, missiles, rockets, and other types of vehicles that operate in or beyond Earth’s atmosphere.
They also provide maintenance, repair, and overhaul services for these products, as well as engineering and technical support, research and development, and other related services.
e. Organizational Structure
- Chief Executive Officer (President)
- Operations Manager
- Aerospace Engineer
- Production Manager
- Maintenance Manager
- Human Resources Manager
- Accountant/Financial Manager
- Quality Control Inspectors
- Safety Officer
- Customer Service Executive.
a. SWOT Analysis
- Strong reputation for innovation and quality in the aerospace industry
- A diverse portfolio of products and services, including aircraft engines, avionics systems, and satellite components
- Highly skilled and experienced workforce
- Commitment to sustainability and environmental responsibility
- Strong relationships with major commercial and military customers.
- Dependence on a small number of major customers for a significant portion of revenue
- High costs associated with research and development and compliance with industry regulations
- Vulnerability to changes in economic and political conditions that affect the aerospace industry
- Potential for disruptions to supply chains and production processes.
- Growing demand for advanced aerospace technologies, particularly in emerging markets
- Potential for partnerships and collaborations with other aerospace companies to share expertise and resources
- Expansion into new product areas and markets, such as electric aircraft and space tourism
- The increasing importance of environmental sustainability in the aerospace industry creates opportunities for innovation and differentiation.
- Intense competition from other established aerospace companies and new entrants to the market
- Uncertainty and volatility in global political and economic conditions, affecting demand for aerospace products and services
- Increasing regulatory requirements and compliance costs
- Risks associated with technological advancements, including cybersecurity threats and safety concerns.
b. How Do Aerospace Companies Make Money?
Aerospace companies make money by designing, manufacturing, and servicing advanced aerospace systems and components for commercial and military customers. This includes aircraft engines, avionics systems, satellite components, and other advanced aerospace technologies.
c. Payment Options
- Credit and debit cards
- Apple Pay and Google Wallet
- Gift cards and store credit
- Installment payments
- Cash on delivery.
d. Sales & Advertising Strategies
- Establishing a strong brand
- Developing comprehensive website services, case studies, testimonials, and contact information for potential customers.
- Utilizing social media platforms like LinkedIn and Twitter to connect with potential customers, share updates on new products and services, and engage with industry influencers.
- Attending trade shows and industry events
- Creating whitepapers, blog posts, and other content that positions the company as a thought leader in the industry
- Offering free trials or demos
- Advertising campaigns on search engines, social media platforms, and other channels with the target to reach specific audiences, such as military or commercial customers, based on their interests and behaviors.
a. How Much Should You Charge for Your Product/Service?
The pricing of products and services for aerospace companies can vary greatly depending on the specific product or service being offered, as well as the target market and competition. Some aerospace products, such as commercial aircraft, can cost hundreds of millions of dollars, while others, such as avionics systems, can cost tens of thousands of dollars.
b. How Much Profit Do Aerospace Company Owners Make a Year?
According to data from IBISWorld, the average profit margin for aerospace products and parts manufacturing in the United States is approximately 9.7 percent, although this can vary widely depending on the specific company and market conditions.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the aerospace company
- The type of products and service offerings
- The location of the aerospace company
- The management style of the aerospace company
- The business approach of the aerospace company
- The advertising and marketing strategies adopted by the aerospace company.
d. What is the Profit Margin of an Aerospace Company?
According to data from IBISWorld, the average profit margin for aerospace products and parts manufacturing in the United States is approximately 9.7 percent. However, this can vary widely depending on the specific product or service being offered.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $14 million
- Second Fiscal Year (FY2): $28 million
- Third Fiscal Year (FY3): $50 million
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for an Aerospace Company?
- The demography of the location
- The demand for the products and services of aerospace companies in the location
- Accessibility of the location
- The number of aerospace companies in the location
- The local laws and regulations in the community/state
- Availability of airport, traffic, parking, and security et al
b. What State and City is Best to Open an Aerospace Company?
- Seattle, Washington
- Los Angeles, California
- Denver, Colorado
- Huntsville, Alabama
- Wichita, Kansas
- Dallas-Fort Worth, Texas
- Washington, D.C.
- Orlando, Florida
- Phoenix, Arizona
- San Diego, California.
c. What Equipment is Needed to Operate an Aerospace Company?
- Manufacturing equipment such as lathes, milling machines, and drills et al
- Testing equipment such as stress tests, environmental tests, and vibration tests.
- Design and modeling software (Computer-aided design (CAD) software)
- Assembly equipment such as torque wrenches, precision screwdrivers, and pneumatic tools.
- Maintenance and repair of equipment such as hydraulic test stands, engine test cells, and avionics test benches.
- Safety equipment such as personal protective gear, fire suppression systems, and emergency response equipment.
You are required to create a robust budget for hiring employees for your aerospace company because an aerospace company is not one of those businesses that can be operated by an individual. As a matter of fact, operating an aerospace company requires some key staff members that are trained and certified to work in the aerospace industry.
Launch the Business Proper
Launching a new business is key to how successfully the business can gain traction in the market space. So, you must make sure you organize a launch party that will attract key stakeholders in the industry.
a. What Makes an Aerospace Company Successful?
- Choose a good location to launch the business
- Make sure your products and services are top-notch
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your aerospace company
- Leverage all available online and offline platforms to promote your aerospace company
b. What Happens During a Typical Day at an Aerospace Company?
The activities that occur during a typical day at an aerospace company can vary depending on the specific type of products or services offered by the company. However, here are some common activities that may occur:
- Research and development programs to improve existing products, develop new technologies, and explore new applications for aerospace products.
- Quality Control including inspections, testing, and documentation.
- Sales and Marketing
- Customer Support including technical support, maintenance, and repair services.
- Regulatory Compliance.
c. What Skills and Experience Do You Need to Build an Aerospace Company?
- Engineering and Technical Expertise
- Excellent quality control skills
- Excellent sales and customer services skills
- Interpersonal skill
- Attention to details
- Business management skills
- Bargaining and bidding skill
- Work experience in the aerospace industry
- Experience in managing people.