Free Airline Ground Supplier 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
purposes only. If you are interested in purchasing the completed editable MS Word
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
table of contents.
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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 $150,000 for the development of an airline ground supplier company while showcasing the expected financials and operations over the next three years. Airline Ground Supplier, Inc. (“the Company”) is a New York based corporation that will provide airline support services to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As mentioned above, the business is a multifaceted aviation service company that will primarily provide on-ground management of airplanes for small and medium sized airlines and airports. These services include field operations support, catering management, and minor maintenance. The Company will have the ability to source and distribute airplane parts to its airline clients, which will be a major part of the Company’s revenue streams. The third section of the business plan will further describe the services offered by the Airline Ground Supplier.
1.2 The Financing
Mr. Doe is seeking to raise $150,000 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. The financing will be used for the following: • Development of the Company’s office location. • Financing for the first six months of operation. • Capital to finance deposits for leasing of two trucks. Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
The Airline Ground Supplier’s mission is to become the recognized leader in its targeted market for airline ground support services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the transportation 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
As time progresses, Management intends to aggressively expand each segment of the Company’s operations, especially the business’ parts brokering unit. The Company will also extensively develop ongoing support relationships with additional airlines and airports.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Airline Ground Supplier, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Airline Ground Supplier requires $150,000 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 Airline Ground Supplier, 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 the Airline Ground Supplier. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings. However, with recent fuel costs rising, the premiums for transportation support businesses have declined due to the volatility of the oil markets. It should be noted that Mr. Doe intends to operate this business for a significant period of time, and a potential exit strategy would not be executed for at least five to seven years.
3.0 Products and Services
Below is a description of the services offered by the Airline Ground Supplier.
3.1 Outsourced On-Ground Aviation Administration
The primary revenue center for the business will come from the ongoing outsourced management of on-ground aviation on behalf of airports and small/medium sized airlines. Within this segment, the Company will provide services related to the maintenance of operations while the airplane is on the ground. Within the industry, these services are referred to Airplane on Ground (AOG) services.
3.2 Part Sourcing
In addition to the above services, the Company will source airplane parts on behalf of airlines on a regular basis. Through Mr. Doe’s contacts in the industry, he will be able to source any part required for flight. As part of the Company’s service commitment to its customers, the business will source parts when required. This will be a smaller segment of the Company’s operations.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the airline support 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 for a significant period of time, at which point the economy will begin a prolonged recovery period. A primary concern for the Company is its ability to price its services affordably during times of economic recession or spikes of oil prices. As of 2010, the price of oil and its associated refined energy products have reached multiyear highs. As such, the demand for travel may decline and the business’ revenues may decline.
4.2 Industry Analysis
There are 1,500 companies in the United States that provide airplane on ground services to airports and airlines. In each of the last five years, these businesses have aggregate generated $3.7 billion dollars. The industry employs 60,000. As flying costs have increased, airlines and airports have sought to reduce their overhead expenditures by outsourcing non-core aviation management services to third party companies. As such, Airline Ground Supplier is an excellent position to expand within this market over the next five years. The growth of this industry is expected to equal that of the US economy in general
4.3 Customer Profile
Among the Company’s corporate airline clients, Management has outlined the following demographics: • Has gross revenues in excess of $20 million dollars • Is seeking to reduce costs related to non-core airplane on ground services • Operates within the State of New York
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Airline Ground Supplier intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Airline Ground Supplier.
5.1 Marketing Objectives
• Develop strong contractual relationships with airlines and airports within New York.
• Establish a large web presence to promote traffic to the Company’s website.
• Maintain proper licensure for operating an on ground support service business.
5.2 Marketing Strategies
At the onset operations, a sales representative hired by the Company will aggressively pursue airline/airport clients so that the business can provide AOG services. These sales agent(s) will be heavily rewarded for closing contracts with airlines. Mr. Doe will also develop extensive sales literature and sales brochures that will showcase the cost effectiveness, relevant licensure, and contact information for the business. Once these relationships are in place, very little ongoing marketing will be required. In this section, you should expand on how you intend to implement your marketing. List publications, local newspapers, radio, and other outlets that you will use to promote your business. Discuss how much money you intend to spending on marketing.
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
• Airline Ground Supplier will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $150,000 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. General aviation administration is not subject to changes in the general economy as airports and airlines will continue to need these services despite deleterious economic changes.
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