How to Make A Billion Dollars Annually in Business Aviation | Part 4

How to Make A Billion Dollars Annually in Business Aviation | Part 4

“Oh, wait it is a start up and we do not do start up’s!”

I have been writing a series of post on how to make a billion dollars annually in aviation. And to tell the truth it actually is not that hard to do, if you know how, but the problem is this, very few people that consider themselves aviation professionals actually know much if anything about how business aviation really works. But that is not the subject of this post, this post is about investors.

Now while investors are not expected to know anything about how aviation works, I sort of expected them to know about investing. But finding actual fluid investors that know much if anything about investing is actually harder to find than an aviation professional that know which end of an aircraft the hot air comes out of.

While these faux professional investors want you to jump through hoops to prove to them how much money you will make them, you cannot question anything about them. You are expected to accept that they everything they say they are, they are. While the unwashed creators and innovators of the real programs are viewed as unworthy, untrustworthy, and incapable.

And God forbid you are talking about a start up.

I am assuming that this change in investing came about during the Dot Com era when investors were so anxious to invest in the internet that anyone that could start a computer was considered an expert…but typically those experts knew nothing beyond how to start a computer and had no plan once they did. But investors were standing in line to hand over $100 million to all of them…and they did. Right up until the dot com bubble burst.

It was not the Dot Com side show barkers at fault here; it was the investors. Same thing eight years later when the housing bubble burst…investors were tripping over themselves to fund sub prime markets so they could sell them to other investors who after all were insured by AIG and guaranteed by Lemann Brothers and as it turned out us.

All of this history has led us to a place where you cannot be a start up…oh if you phony-ed up some paper work and said you were making $10,000 a month for six months showing that you were not a start up….well just like in the dot com era. these geniuses are standing in line to give you all the money you ever spend, no questions asked. But if you have an actual plan based on facts and a proven market, well that is not good enough for MBA’s from the Trump University or Harvard. And it is hard to tell the difference anymore between the Trump U and the Harvard grads…but put together some Bull S&^% paper work and bingo, instant success. I only wish I was like that, as this would be a lot easier.

In 1988/89 when I started Jet Support Services Inc., aka JSSI the largest supplier of non-OEM jet engines service programs in the world, I had a ten-page business plan which included the front and back cover, a table of contents and seven single sided pages of double spaced type. I got JSSI funded in ten days. And JSSI is still going, has 2,500 aircraft under contract and 5,000 plus engines and is making money than Gulfstream and doing it with less than 150 employees world wide. Compare that to Net Jets who has 550 aircraft and 6,250 employees and Net Jets is owned by the smartest guy around according to him.

Investors pay that guy millions just to have lunch with him the guy that owns this aviation company loses hundreds of millions of dollars every year. OK maybe he needs the write off for his main company, but a loser is still a loser. And as a loser in aviation, that company taints all the rest of us trying to get real functional programs started in aviation.

So I have created and started two internationally successful aviation companies, and have developed a new and better plan, but when I talk to investors the first thing out of their mouths is we do not do start ups. Well from what I see in Zero Hedge you are not doing very well with anything that has to do with money.

 

 

 

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