Do you want to start a private jet rental company from scratch? Or you need a sample private jet rental business plan template? If YES, then i advice you read on.
Now, this one is for the big boys. Lol, I usually say this when a business is a little bit capital intensive albeit profitable. While some of us wouldn’t mind to hop on the economy section of a plane, some people cannot be caught dead traveling ‘economically’, they would rather go business/first class.
And there are also some that wouldn’t even be caught dead boarding a public plane at all; they want their own private plane for comfort, privacy and luxury purpose and because they cannot be bothered with the flight delays, cancellations and general unreliability of airline companies. As a private jet charter company, you have to know who your customers would be. Your customers would be:
Starting a Private Jet Charter Company – Your Target Customers
- Rich Business executives who prefer to fly private so that they can hold meetings on board, go from state to state, country to country and just attend to their busy schedules easily without stress.
- Companies who want to transport a large number of their staff.
- Celebrities who desire privacy and secrecy.
- Event management companies organizing A-list events, weddings, etc.
- Tourism planning and management companies.
- Football clubs to transport players and supporters.
- The list is endless; with extensive research, you would be able to identify people that are in need of such services.
Now, this kind of business is highly technical and you would need extensive research and knowledge to start this business. First, you need to study the air charter industry to understand the laws, rules and regulations guiding the industry
You should spend at least three months learning about the industry before venturing into the business; why? Because a lot of wealthy people have hurriedly ventured into this business in the past but failed and considering the fact that this business would suck up quite a sizeable amount of capital; you cannot afford to take fail. So, here is how to start your private jet charter company.
Starting a Private Jet Charter Company – Sample Business Plan Template
1. Decide on a niche-: Do you want to rent out your aircraft regularly or do you want to lease it out for long term use? This is the first question you should tackle. You should also look at your pocket to determine how many jets you can afford in your fleet.
2. Write your business plan-: Because of how capital intensive this business is, you might need to seek extra financing and that means you would need a well written business plan for that. Before you write your business plan, do a proper research and feasibility study to find out how viable the business is. Yes, people hire private jets but what is the percentage of people that do?
- How often do they do?
- How long would it take to recoup your investments?
- What are the equipment, tools and resources you need?
- What are the taxes and levies you would pay and how much expenses would you undertake on average?
- What are the challenges facing people in the industry? Please don’t start this business until you have been able to answer these very vital questions.
3. Research your competitors-: You should also spend time learning some vital information about those already in the business and how they make profit, the challenges they face; just generally do a SWOT analysis of the business using your competitors as case study.
4. Purchase your aircraft(s)-: Now this is most important part. If you can afford it, you can easily buy your aircraft from manufacturers or dealers but if you can’t, you can consider the following financing options-:
- Fractional Aircraft ownership-: Fractional ownership is also known as ‘jet sharing’ you don’t buy the whole jet but just a portion. This means that you own the jet along with others and it would only be released for your use based on specific agreement. It helps to reduce the costs of owning and managing an aircraft but has its own challenges, the biggest one being the availability of the aircraft at all times when you need to serve your clients.
- Lease financing-: You can also consider lease financing options for owning a private jet. This way, you can spread your costs over a long period of time.
- Bank Financing-: If you have solid financial standing, you can always approach your bank for a loan.
- Partnership-: Another idea is to look for someone with similar passion and business interest and then pool resources together and start the business.
5. Understand the financial implications of the business-: Some of the financial factors of the business would include-:
- The cost of the aircraft-: Expect a cost price from $1million upwards depending on the size and features of the aircraft.
- Maintenance-: You are going to perform regular maintenance checks on the aircraft to guarantee safety of lives on-board and this would not come cheaply.
- Staffing-: You would need to hire a pilot, cabin crew members, and other support staff; to manage the business for you. You can look out for average salaries for such people in your country to give you an idea of your average staff costs.
- Insurance-: Insurance to protect your investment (the aircraft), your company (against liabilities in case you are sued for negligence if something unfortunate happens), your staff (who would be risking their lives flying around the world) and your passengers (whose families would grab you by the jugular should anything bad happen to them on-board).
- Storage-: You can’t park it in your garage, you would need to rent a hanger for protective storage and this also doesn’t come cheap.
- Take-off and landing fees
- Legal fees and so on and so forth
6. Hire a lawyer-: Trust me; there is lots of legal brouhaha that come with buying an aircraft and running a business in the aviation industry. It wouldn’t hurt to have a legal adviser so that you can understand the laws and stick to it.
7. Hire a manager-: If you want to take this as a full time business, excellent! You can invest the time needed to run this business but if you are a busy executive adding this to your already long list of businesses, the please consider hiring a management company to run the business for you.
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