Interested in small air charter business ideas? If YES, here is how to start a charter flight company with no money and no experience. How much does it cost to start up?
Starting a Private Jet Charter Business
A charter flight company is a business that can be set up only by an individual that has access to the required capital. This is because this business is very capital intensive. Now, while a charter flight company needs a lot of money to be set up, it is also very lucrative.
Quite a number of people are of the idea that a charter flight business is not lucrative. However, the truth remains that there exist a group of people that would never fly on a public plane. Some of the reasons for this are privacy, comfort and the assumed safety that is involved with flying in chartered flights.
Now, if you are looking to start a charter flight company, then you should read on. This article contains tips on how to start a charter flight company. The following should be done when looking to start a charter flight company.
1. Select a Niche
There are many ways that you a charter flight company can be set up. Now, this is where a niche comes in. You could decide to rent out your plane to those that want to use it for short term or those that want to lease it for a long time. Now, the niche that you decide to go into is dependent on the number of funds that you have access to.
2. Get Your Business Plan Ready
This business is very capital intensive, as a result of this, it might be difficult to come up with the cash that you need alone. To overcome the challenge of getting the capital, you will need a business plan.
Prior to writing a business plan, it is very important to carry out a thorough research that will help you determine how feasible this business is. Prior to going into this business, it is certain that you know that people hire jets.
However, you need to know what percentage of people rent jets, what type of niche is more lucrative, challenges that are associated with this industry, the average expenses involved in running this business and the taxes associated with this business.
3. Get to Know your Competition
While looking to set up a charter flight company, it is important that you know about those that have been in this business ahead of you. Some of the things about them that are worth learning are how they make their gains and what challenges that are peculiar to them.
4. Get your Aircrafts
This business is all about aircraft, therefore, getting aircraft is one of the most important aspects of this business. There are several ways through which you can get your aircrafts. Some of the basic ways of financing the purchase of aircraft are;
5. Lease Financing
Lease financing is one of the available options for financing your charter flight company. The good side of this option of getting a private jet is you have the freedom of spreading the cost of running your business.
Bank financing is also another way to finance your charter flight company in the absent of lease financing.
This is one of the easiest ways to get jets for you charter Flight Company. To make this work, all you need to do is find someone with the same interest as you have in this business. As soon as this person is found, you can put funds together and get the required jets to start this business.
7. Get a Lawyer
Now, if you are not aware, there are lots of legal issues that are associated with this business. Therefore, to get ahead in this business. You will need to hire the services of an experienced lawyer. With an experienced lawyer as a part of your team, you can avoid unnecessary lawsuits.
8. Hire the Services of a Manager
The truth remains that most people that are interested in running this business are already into a couple of other businesses. As a result of this, managing a charter flight company at the same time as running your other businesses might not be so easy. Therefore, to get this business running smoothly, you will need to hire the services of a manager.
GET TO KNOW THE FINANCIAL IMPLICATIONS OF THIS BUSINESS
There are lots of financial factors that are associated with running this business. Some of them include;
· The Cost of Maintaining an Aircraft
To run a business, you will have to continually maintain your aircraft for it to remain in top shape.
· The Price of Getting an Aircraft
Averagely, the cost of an aircraft ranges from $1 million and above.
Insurance is an important part of any investment. It is even more needed when running a charter flight company. With insurance, you can cushion your company against the effects of unforeseen negative circumstances.
You do not need any special skill to run a charter start a charter flight business. All you need is interest in this business as well as the needed funds.