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1.0 Executive Summary
Flight School, LLC (“the Company”) will provide instruction for individuals so that they can become private pilots. The Company is based in Las Vegas, Nevada and it was founded by Horace Williams. The Company will initially start its operations with four single-engine planes and a standalone training facility. The Founder is seeking $1.5 million, via a private investment, in order to develop these operations which will be strategically located near a small airport.
1.1 The Services
Flight School, LLC will provide individuals within the greater Las Vegas metropolitan area with the ability to earn their private pilot’s license. The business will have standard and accelerated courses, which will allow enrollees to have flexibility regarding their training schedules. The business will store its four planes at a nearby airport so that students can conveniently move between the classroom and airport.
In regards to tuition, the Company will charge a flat rate of $20,000 for all instruction necessary to become a private pilot. Depending on the time commitment that can be made by the student, it will take six to twelve months to complete the program. This training includes 40 logged flying hours.
The instructional services offered by Flight School, LLC will be further discussed in the third section of this document.
1.2 Financing
At this time, Mr. Williams is seeking an equity investment partner that will contribute $1.5 million towards the development of this venture. The funds will be primarily used for the following:
• Four single engine planes
• Location development in Las Vegas
• Flight simulators
• Working capital
The business will earn substantial gross margins from its flight training programs. Based on this, the Company could acquire additional capital in order to expand the instructional capabilities of the business by hiring additional instructors and acquiring additional plans. The business may use specialized aviation financing programs to acquire future aircraft.
1.3 Mission Statement
Flight School, LLC’s mission is to provide comprehensive training so that enrollees can easily pass the necessary examinations that will allow them to flight in a private pilot capacity.
1.4 Management Team
Horace Williams has been a commercial pilot for the past thirty years. Prior to establishing this business, he was an airline pilot. His passion and experience in the field of aviation will allow Flight School, LLC to become a well-recognized institution in the Las Vegas market.
1.5 Sales Forecasts
1.6 Expansion Plan
The Company will continually expand its capacity as more people within the Las Vegas market want to become enrolled in the business’ flight training programs. As stated above, this will include hiring additional qualified flight instructors while expanding the school’s fleet of aircraft.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Flight School, LLC.
2.2 Required Funds
The Flight School will require a capital investment of $1.5 million to provide its services to the Las Vegas public. A majority of this capital will be used for plane acquisitions, real estate, and flight simulators.
2.3 Investor Equity
Horace Williams intends to work with an established private investor that is seeking to achieve substantial returns via the high-margin service income generated from flight instruction. It is anticipated that the investor and Mr. Williams will each retain a 50% ownership interest in the business. Moving forward, this capital structure is subject to further change if additional rounds of equity capital are to be secured.
2.4 Management Equity
This will be determined between Mr. Williams and his financial partners at a later time.
2.5 Exit Strategy
Flight schools produce high margin from their services, and they are generally able to remain profitable in all economic climate as people use these facilities as a steppingstone for becoming a commercial pilot. The business will be located in the wealthy market area of Las Vegas, which has several million residents within the metropolitan area. Should the business be sold, a business brokerage firm specializing in aviation businesses would be hired.
3.0 Flight School Operations
Flight School, LLC will provide the full course of instruction necessary in order to have clients be able to receive their licensure from the FAA to operate in a private pilot capacity. The business, understanding that each enrollee will have different needs, will have several different lengths of course available. The shortest course will be three months and the longest one will be one year. It is expected that most students will opt for the six-month course, which will allow them to gain the knowledge that they need while concurrently allowing them to log 40 hours of flight time.
The full course offered by the business will cost $20,000. For many people, this is a significant expense. The business will partner with specialized financial institutions that provide loans specifically for acquiring a private pilot’s license. These programs offer flexible terms and competitive interest rates.
In order to provide pilots with the most comprehensive education possible, the business will have a number of flight simulators that will allow for on-the-ground training before they begin to log their requisite flight hours.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Flight schools typically have a significant amount of economic stability given that many people intend to use their private pilot licensure to further their training when becoming a commercial pilot. These businesses, through affiliated programs, are able to offer tuition financing as well as tuition assistance. This allows the fees to become a private pilot to remain affordable.
Currently, the economy is on the right track. Although the global economy faced significant issues related to inflation and unusually high interest rates, these mainstay economic rates are returning to more normalized levels. As interest rates further decline, it is expected that more people will want to become private pilots since the financing costs associated with buying a small aircraft will decline.
4.2 Industry Analysis
There are approximately 600 companies that operate among one or more locations that teach people to become private pilots. The industry produces $3 billion per annum and employs 20,000 people.
The ongoing growth of the flight school industry is expected to be comparable to that of the economy. Approximately 85,000 people become pilots each year.
4.3 Customer Profile
Management will use the following profile when implementing the Flight School’s marketing campaign:
• Is located within 20 miles of the Flight School’s Las Vegas based location.
• Will spend $20,000 (over a period of six months to one year) to become a private pilot
• Age range of 25 to 50
• Has an immense love of aviation and flying
Mr. Williams has decided to develop the operations of the Flight School in Las Vegas for a number of reasons. First, given that it is a desert area, the daily conditions for safe flights are far more common than other areas in the United States. Second, this market is known for its wealth as well as its significant population density. The business will be able to easily secure a student base once operations commence in the next six to twelve months. You can further expand this part of the analysis by indicating information about your specific market, why you feel your flight school will thrive in the area, and relevant statistics about the targeted population.
4.4 Competition
The ongoing competition that Flight School, LLC will face is relatively modest. The business will be only one of a handful of locations that provides comprehensive training for people that want to become private pilots. The business, in order to maintain a major differentiating factor, will use the latest in simulator technology in order to better prepare individuals for real-life flight situations. The business will use aircraft that are commonly used by people that have recently acquired their private pilot’s licenses.
As it relates to your specific flight school, you can further discuss attributes that will set your business apart from other flight schools in your respective market. You can discuss offering classes that teach instrumentation and other disciplines that are common to the field of private aviation.
5.0 Marketing Plan
Flight School, LLC is offering a highly specific training program for people that want to become a private pilot. As such, the business will need to use a highly focused marketing campaign that specifically targets people that have an interest in the field of aviation.
5.1 Marketing Objectives
• Develop relationships with area schools that will provide referrals among people that have indicated an interest in becoming a pilot.
• Implement highly targeted online advertisements among people that are searching for flight schools in the Las Vegas area.
• Use Mr. William’s existing contacts in order to create interest among instructors that will teach at the facility while concurrently boosting the brand name awareness of Flight School.
5.2 Marketing Strategies
Once the business establishes its location in Las Vegas, the ongoing marketing needs of the business will be moderate as the Company establishes a student base in this market. The Company, to a modest extent, will announce the grand opening of the location among regional newspapers and publications. This will create brand name awareness among people that are aware of the location and may provide referrals to people that they know have an interest in private aviation.
Many students on the high school and college level often explore potential careers in the field of commercial aviation. The Company will frequently host open houses while allowing attendees to try out the business’ flight simulators. These events will be held every two months. The business will create visibility for these events by announcing the time and date on the Company’s website and social media pages. The business will also work with regional schools to promote these events. Given the high pay that pilots enjoy, Management sees a substantial opportunity to work with third parties that can suggest aviation as a rewarding and lucrative career.
Flight School, LLC will maintain a presence on the internet through its own website as well as well-developed pages on social media. The Company’s website will feature numerous professionally created videos that showcase the fleet of owned aircraft, the flight simulators, and the flight training facilities. These videos will include interviews with all staff members that render instruction onsite, including Horace Williams. For social media, the Company will use targeted advertising on Facebook and LinkedIn among people that have expressed an interest in becoming a private pilot. These advertisements will be specifically geared towards a 50-mile radius from the Company’s Las Vegas location.
The website will be frequently updated with new videos and pictures, which will contribute to SEO specific for target market.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• Flight School will acquire a $1.5 million investment to establish its operations in Las Vegas.
• The Company will achieve gross margins of 90% on all tuition income.
7.2 Sensitivity Analysis
Flight School’s revenues are somewhat sensitive to negative economic changes. The tuition associated with becoming a private pilot is paid for with discretionary income, and it is a substantial expense for most people. However, the Company will generate significant gross profits from its operations. This will provide the Flight School with a substantial financial cushion that can abate difficult economic times.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
