Free Air Charter Company Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
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and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
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templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a flight chartering business while showcasing the expected financials and operations over the next three years. Air Charter, Inc. (“the Company”) is a New York based corporation that will arrange private flights for individuals and corporate customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary service offered by Air Charter, Inc. is to charter and arrange flights on behalf of the Company’s individual and corporate clients. Management has already begun to source a number of private jet operators that maintain extensive fleets of small jet engine aircraft. For arranging a flight, Air Charter, Inc. will receive a 15% commission deducted from the cost of each flight for its services. Management expects that the business will arrange approximately $8 million dollars of flights within the first year of operation. The third section of the business plan will further describe the services offered by Air Charter, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
It is the goal of the Company to create a business that provides customers with a seamless way of charting private flights to and from any destination in the world. Management intends to work diligently to provide seamless operations that quickly place clients with their needed flights.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the aviation industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target wealthy individuals and corporate clients within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Air Charter, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Air Charter, Inc. requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Air Charter, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Air Charter, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Company.
3.1 Private Flight and Chartered Flight Brokerage
The purpose of the business is to arrange flights on behalf of large organizations (primarily corporations) and wealthy individuals that are seeking to fly on non-scheduled flights and private aircraft. The cost of each flight varies from $5,000 for placement on a small private jet to more than $150,000 for the rental of a full sized transporting a very large number of people. Management has already begun to source the airlines and aircraft that it will use as it progresses through its business operations. Through Mr. Doe’s years of aviation experience, he has developed a significant number of contacts within the chartered and private flight industry. Additionally, safety and legal compliance and the Company’s number one priority, and as such, Air Charter, Inc. will ensure that each flight organized by the business is done through a FAA certified private airline with up to date aircraft. Mr. Doe has a complete understanding of the complex licensure and operational procedures that need to be completed before each chartered flight.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the air charter industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid 2010, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
In the United States, there are approximately 1,400 businesses that provide brokering of high end travel with specificity towards the chartered and private flight industry. Each year, these businesses generate an aggregate of approximately $750,000,000 in annual fees from the $5.5 billion dollars of nonscheduled flights arranged for their customers. Among these businesses, the industry employs more than 23,000 people, and provides payrolls of approximately $150 million dollars. The growth of the industry has increased significantly over the last five years as the price of fuel has increased significantly. The industry has experiences approximately 2% growth each year as a result of new market supplies.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
Flight brokering is a highly commoditized industry with a number of market suppliers arranging private and chartered flights to and from any destination in the world. As such, the key differentiation among chartered flight brokers is price and expediency. Management intends to develop highly streamlined procedural and operational protocols that will allow the business to place flights for its clients within hours of a request. Among the 1,400 chartered and private travel arrangement brokers in the country, there are a number of national level competitors that dominate a significant portion of the industry.
5.0 Marketing Plan
Air Charter, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market.
5.1 Marketing Objectives
• Establish relationships with corporate concierge services within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
As Air Charter, Inc. is targeting a highly selective demographic of businesses and people, Management feels that the best way to develop its marketing campaign is via a public relations and marketing firm. Management intends to use this firm to handle all traditional print and media advertising on the behalf of the Company. The advertisements placed by the Company need to be in very specific industry journals, magazines, and newspapers that are regularly read by the Company’s high end demographic. Air Charter, Inc. also intends to use an online based marketing campaign to develop its sales. Primarily, the Company will use search engine optimization techniques that will increase the Company’s visibility when selected key words are used among major search engines. For instance, when a person does a Google search for private flights or chartered aircraft, the Company will appear on the first page of the search. This strategy is technically complicated, and the Company will use a search engine optimization firm to develop the Company’s visibility on a non-paid basis. Management expects that a SEO firm will place large amounts of linking data and text specific keywords into the business’s website. A majority of web portal and search engine companies use very complicated algorithms to determine a website’s relevance in relation to a specific keyword. SEO firms place text and tags on the website to increase the rank of a specific website.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Air Charter, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to a number of external environmental factors that are beyond its control. Private flights are by all standards an economic luxury, and during times of economic recession or pullback the Company may have trouble generating top line income as businesses and wealth clients may scale back their luxury spending.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis