A good air charter business plan describes the routes you fly, the planes you have under your purview, and the costs and revenues you have and can expect going forward 3-5 years. If you are already operational, the business plan should show three years of financial history, merging profit and loss statements and balance sheets into a concise snapshot of your performance in the past three fiscal years. Going forward, to justify the funding you need, the plan needs to show a detailed use of funds table that outlines where you will allocate the capital you need to expand (or launch). If you're buying additional craft to covering the built-out costs on a small hangar or terminal, do you have sellers lined up and bids in place? Making close estimates is imperative. Also vital:
• Describe the market need clearly and show your target customer base
• What price points for flights have you been able to maintain to date?
• What promotions can you offer to generate ticket sales, without eating into your margins too much?
• What are you chief competitors up to?
• Is the current management team sufficient for the business, or do you seek outside help?
Investor IRR scenarios should be spelled out clearly, and if you need any loan component for the business, show the payback timeline and double-check the interest rates you've factored against the prevailing market conditions. Also use competitive comparables and industry average figures in your financial model as much as possible, as these will help lend credence (along with your past performance) to the projections you make for 3-5 years. The financial model for a charter airline can be complicated, but MasterPlans can make it simple. We can write your entire business plan start to finish, usually in about two weeks. We have deep experience with the aviation industry and can help you bypass all of the common pitfalls. Call 877-453-2011 to speak with a consultant today!
