Business Model and Start Up Expenses Ryan Agnew MAN 4801
Easy, affordable, private air travel for everyone in the Southeastern US. Be the solution for those who need to travel over a 30+ radius for their work needs. Offer top-notch service with excellent amenities in a comfortable, professional manner.
Eclipse 500 Very Light (3) Staff Ryan Agnew Ed Iaccobucci 3 Pilots 3 Mechanics On-board refreshments Plane fuel, parts, etc. Hangar space rental/lease Airport gate rental/lease Government permits, regulations and taxes FAA clearance Marketing tools (ads, signage, social media placement) Insurance Flight tracking software Reservations software Internet access Landline telephone services Mobile telephone services Survey equipment Computer & Office Equipment
Startup ExpensesLegal $10,000.00Logo design $500.00Initial website design $2,000.00Insurance $30,000.00Payroll $90,000.00Rent/Security deposit $10,000.00Computer and office equipment $3,500.00Training $5,000.00Pre-opening marketing $4,000.00Office supplies $1,000.00Consultants $-Misc and other $10,000.00 Total Expenses $166,000.00 Startup AssetsCash in the bank $25,000.00Starting inventory $-Other current assets $10,000.00Office furniture $2,000.00Signage $4,000.00Leasehold improvements $2,000.00Plant and equipment $1,000,000.00Land $-Other assets $- Total Assets $1,043,000.00 Recurring CostsRent $10,000.00Utilities $3,000.00Payroll $7,500.00Inventory $1,000.00Marketing $1,500.00All other $1,000.00Number of months 12 Total Recurring Expenses $288,000.00Total Startup Costs $1,497,000.00
Locate and sell membership to individuals who travel more than 4 hours driving distance several times per week. Utilize “test markets” in various areas to determine where core customer is located. Conduct surveys at local and national airports to determine specific needs and desires of potential customers. Man operations from non-brick and mortar headquarters to keep overheads low.
Utilizing a 3-year break-even plan and turning a profit after 4 years. $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 Expenses $500,000.00 Revenue Profit $0.00 -$500,000.00 Year One Year Two Year 3 Year 4
Form a partnership with Ed Iacobucci to ensure business success and limit payroll and liability expense. During research and trial periods, Ryan Agnew will handle all operations and strategy decisions while Ed does fieldwork for surveys, test locations, etc. Hire and man 3 planes initially for each trial location.
Utilize online surveys such as Surveybuilder or SurveyMonkeys. Build automatic points of distribution for survey information combined with mobile technology.