econ business plan example

8/3/2019 Econ Business Plan Example

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Entrepreneurship Written Event

AmoLines Air Service

Crater DECACrater High School

655 North Third Street

Central Point, OR 97502

James Amidon

January 2011


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Table of Contents

I. Executive Summary ........................................................................................1

II. Introduction.....................................................................................................2

III. Analysis of the Business Situation..................................................................3

A. Self Analysis ................................................................................................3

B. Trading Area Analysis .................................................................................4

C. Market Segment Analysis............................................................................7D. Analysis of Potential Location.....................................................................9

IV. Planned Operation of the Proposed Business ...............................................10

A. Proposed Organization.........................................................................10

B. Proposed Services................................................................................12C. Proposed Marketing Strategies ............................................................13

V. Planned Financing.........................................................................................15

A. Projected Income and Expenses...........................................................15

B. Proposed Plan to Meet Capital Needs..................................................18

VI. Conclusion ....................................................................................................18

VII. Bibliography .................................................................................................19

VIII. Appendix.......................................................................................................21


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I. Executive Summary

The Rogue Valley has a tradition of flying. The first ever airport in the state ofOregon was in built in Medford in 1926. Since, the airport has gone through renovations,renaming and a slew of commercial carriers dating to 1931 when United Airlines wasfounded from a local air transportation operation known as Pacific Air Transport.

From those humble beginnings, Medford put itself on the map as a hub for airtravel. Now, as general aviation is booming nationwide, the Rogue Valley has been leftbehind. Why? There are no flight schools and no forum to educate aspiring pilots. All thefixed base operators in the area abandoned the loss leading education operations in favorof the bottom line. AmoLines will use outreach as part of our promotional activities toearn the loyalty of our community. With our education division, we will teach young andold the joys of flying, and reap the rewards of a true FBO with communal ties.

Our three company divisions have three separate markets, appealing to manytypes of people. The estimated target market for our educational programs totals aroundfifty-eight thousand with a demographic multiplier derived ETM of close to fifteenhundred. If we can reach just ten percent of that available market, we will not only have a

successful educational program, but dramatically increase our customer base for aviationservices. The derived ETM for our aviation services market totals 12,600, a heftycustomer base if we can effectively reach them and fulfill all their aviation needs. Our aircharter division, encompassing the smallest market segment, will undoubtedly be ourmost profitable due to the inherent expense of luxury air travel.

We will also reach the general aviator with our air charter services by offeringplane rentals (currently non-existent in the Rogue Valley) and hangaring and tie-downstorage services. Other services AmoLines will offer include fueling and aircraftmaintenance, including avionics installation. To ensure the utmost standard of quality wewill have an Avionics technician on staff as well as an Airframe and PowerplantMechanic who can, when assisted by the both general aircraft maintenance technicians,completely overhaul any aircraft in a timely manner.

With a unique mix of promotions including an open house, airshow and iPhoneapp AmoLines is poised to earn the respect of the community and gain the business ofour competitors through hard work and honest means. We will continually reviewourselves alongside our competition to ensure the most complete and satisfyingexperience for every single customer.

Organizationally, with a triumvirate of owners and Aviation (General) Manager,we will strive because of teamwork and effective management. There exists clear pathsand hierarchy through which communication can be transferred and used effectively toimprove upon our business operations.

When analyzing a young company, a realistic financial projection is essential.AmoLines will lose money over the course of a few slower months; but, in the course ofthe first three years we will earn in upwards of $1.6 million net profit with gross salestotaling approximately $6 million annually. In order to achieve this, we need capitalinvestment. We are seeking a business loan of $2 million amortized over five years at4.75 A.P.R. In addition, AmoLines is offering a 49% in exchange for $2 million. Thisventure capital will be returned over the course of eight years while retaining 49%ownership in a successful aviation based company: AmoLine Air Service.


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II. Introduction

AmoLines Air Service is a full-service fixed base operator (FBO) to be located at

the Rogue Valley International Airport in Medford, Oregon. By opening AmoLines, we

will offer services for the leisurely general aviator, professional business transport and

commercial airlines as well as everyone in between. Our mission is to be the premier

aviation services provider for the region between Portland and the San Francisco Bay

Area, serving airmen with a wide array of amenities to fulfill their flying needs.

With three different company divisions: Education, Air Charter, and Aviation

Service, we offer a full range of services for general aviation and commercial airlines.

Through the educational division, AmoLines will provide ground school, flight school

and all the other support to satisfy FAA certifications for pilots, therefore increasing the

target market for its other services.

The air charter division of AmoLines will provide aircraft rentals, hangaring,

airplane tie-downs and flight charters for patrons. Lastly, the most profitable market is

aviation services which encompass aviation fueling, aircraft mechanics and avionics.

Informational resources for the research of this business plan include a number of

entrepreneurship and business journals, personal interviews, other companies in the

aviation industry and a local demographics firm, Southern Oregon Regional Economic

Development Inc. (SOREDI). For this entrepreneurship written event, my mentors

include: my business teacher Mike Rogan, who helped me with business operations as

well as financials; Bart Lewellyn, a financial advisor who helped with the legality,

financials and requisite business regulations; lastly, my uncle Vic Olson played a large


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part in the development of this project as he has a history in business, aviation and

marketing.

III. Analysis of the Business Situation

A. Self Analysis

I have a broad array of business experience. I am a four-year member of the

Crater School of Business; this program integrates business and technology with studies

in history, economics and English.

Through the School of Business, I have also gained invaluable hands-on

knowledge with internships at Thornton Engineering, Lewellyn Financial Management

and Fidelity Print Quick all in my local area. At Thornton, I learned the value of business

organization and gained a background in engineering and commercial design. With

Lewellyn Financial, I was trained in a number of financial tools and investment vehicles,

gaining a basic understanding of the economics of running a business. Lastly, at Fidelity I

was taught how to effectively communicate goals and promote a business through the

production of ad posters as well as company stationary.

I have a background in aviation: my father, two of my uncles and my grandfather

are all pilots, flying is in my blood. I am currently logging hours in my Pilot Log so I can

take my check flight and attain pilothood. Concurrently, I have been assessing the region

trying to answer why flight training is so hard to come by in the Rogue Valley. The

answer, as I found, was, by itself, pilot education is not profitable; however, when

coupled with other aviation services often found at an FBO, a business can be quite

profitable.


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Lastly, the most important asset I have is my will. I do not give up; I will always

find a way to get the job done. Also, I take healthy risks but never too much as I like to

protect myself against the inevitable. I have the drive to succeed.

My business experience, internships, background in aviation, and drive to succeed

have honed me to found and lead AmoLines to be the premier fixed base operator in the

Rogue Valley, possibly the West Cost.

B. Trading Area Analysis

Nestled between the Cascade Range, the Siskiyou Mountains, and the Coastal

Mountains is the Rogue Valley, a beautiful home to nearly a quarter of a million Southern

Oregonians. Commonly viewing themselves as separate from the rest of the state, the

people of the valley are active in the outdoors with year-round recreation afforded by the

seasonal climate and distinct terrain.

Located at the halfway point between Portland, Oregon and San Francisco, the

Rogue Valley is the only intermediate market other than Redding, California and Eugene,

Oregon along the Interstate 5 corridor linking the two large markets. This area has a

regional hub of Medford, with many suburbs: Ashland, Talent, Phoenix, Jacksonville,

Central Point, White City, Eagle Point, Gold Hill, Rogue River and Grants Pass, roughly

following I-5 from south to north (SOREDI). With several small private airports dotting

the area, the Rogue Valley has an active flying community focused at Medford Airport

(MFR). There are three enterprises with charter services and fuel services; however, there

exists no flight school or airplane rental services at Medford Airport.

The people of the Rogue Valley, nearly 275,000 according to SOREDI, can be

dissected into many partitions such age group, sex, marital status, income and education


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levels when carving out an estimated target market. When analyzing the demographic

data for Jackson County, the estimated target market using mean methods and derived

estimated target market using multiplicative methods for AmoLines Educational division

would be 58,000 and 1500 fifty-eight thousand and fifteen hundred, respectively. In the

same way, our Air Charter market would be ETM = 52,000 and a dETM = 115 and the

Aviation Services market would span ETM = 78,000 and dETM = 13,000 (Factsheet).

Although small, the nature of an expensive marketplace still allows for a favorable

business situation. For more information on the demographics and estimated target

market see Appendix: Market Segments.

Being the high price points and inherent expense among the industry, the gross

income and economics statistics of the Rogue Valley show what should prove to be a

successful venture. More specifically, according to US Census data, a median family

income of fifty-five thousand dollars, allowing monies for spending on leisure and

possibly vocational training. Additionally, the workforce of nearly 98,000 with 88 per

cent having earned a high school diploma (SOREDI), the human resources for AmoLines

are more than existent. As proof of success of the aviation industry in the Medford area,

more than 600 are employed in aviation ventures, most notably the heavy lift helicopter

company Erickson Air-Crane (SOREDI).

In many ways isolated from the rest of Oregon, the region of the Rogue Valley in

the south of the state is a strong community for a new business such as AmoLines Air

Service because of the strategic location midway between two large west coast markets,

its people and their interests, and most importantly economically, the Medford area can

financially support our company.


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AmoLines Air Service will provide a number of services to their customers:

aviation fueling, aircraft maintenance, avionics, air charter, aircraft rentals, hangaring and

tie-downs, and the loss leader of aviation education. As can be seen in the proposed

marketing strategies section, this service of FAA education and certification will only add

to the customer base of the company and earn a loyalty before the competition can

engage the customer.

Company Address Phone Website

MedfordAir Service

4002 Cirrus Drive,Medford, OregonMedford Airport

(541) 779-5451(800) 427-0290

http://www.medfordairservice.com/

Products &Services:

Aviation Fuel & Oil Aircraft Maintenance Hangaring/ Tie-down storage

(Medford Air Service)

Medford Air Service will be the toughest competition as they currently have the

largest market share. The strength of their business is a near monopoly in providing

aviation fuel services. By entering with lower price point we can leverage the market

segment in favor of AmoLines.


Million Air2040 Milligan Way,Medford, OregonMedford Airport

(541) 842-2254 http://www.millionairmfr.com/

Products &Services:

Air Charter Aviation Fuel & Oil Hangaring/ Tie-down storage

(Million Air)

Million Airs appeal is to the air charter and private business transport market;

offering the tie-down storage for visiting bizjets and refueling services. Otherwise, many

of Million Airs accommodations are through partnership with Superior Air Charter.



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SuperiorAir

2040 Milligan Way,Medford, OregonMedford Airport

(541) 842-2250(541) 842-2254(888) 842-0550

http://www.flysuperior.com/

Products &Services:

Air Charter Aircraft Sales Aircraft Maintenance

(Million Air)

Superior Air Charter has a niche market stemming from its venture in aircraft

sales. By providing post-transaction maintenance services for their customers, Superior

Air Charter holds on to their established market share in an otherwise bland aviation

services competition.

Our disadvantage is a lack of name recognition and market share. The educational

division of AmoLines Air Service will be the niche through which we gain our market

share. Instead of only fighting for the customers of our competition, we will increase the

market itself relying on our FAA certification programs. Additionally, we will earn a

market share for fueling by offering the superior products of Chevron Global Aviation,

introduced at competitive price points. Our greatest advantage as a company will be the

wide array of products and services we offer when compared to the competition.

C. Market Segment Analysis

With the three distinct divisions, AmoLines is poised to enter the Rogue Valley

marketplace, secure a market share and reap the benefits of a successful venture into the

aviation services market.

Educational MarketDemographics Psychographics

Age: 18 - 25

Sex: Male

Marital Status: Single

Experiencers:

Experiencers are motivated by self-expression. Asyoung, enthusiastic, and impulsive consumers,


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Income: $20K to $30K

Education: HS, some College

Occupation: Student

Experiencers quickly become enthusiastic about newpossibilities but are equally quick to cool. They seekvariety and excitement, savoring the new, the offbeat,and the risky. Their energy finds an outlet in exercise,sports, outdoor recreation, and social activities.

Air Charter Market

Demographics Psychographics

Age: 30 - 55

Sex: Male

Marital Status: Married

Income: $200K+

Education: College Graduate

Occupation: Administrative

Innovators:

Innovators are successful, sophisticated, take-chargepeople with high self-esteem. Because they have suchabundant resources, they exhibit all three primarymotivations in varying degrees. They are changeleaders and are the most receptive to new ideas andtechnologies. Innovators are very active consumers,

and their purchases reflect cultivated tastes forupscale, niche products and services.

Aviation Services Market

Demographics Psychographics

Age: 25-55

Sex: Male

Marital Status: N/A

Income: $40K to $80K

Education: HS, some College

Occupation: Professional, Pilot

Experiencers:

Experiencers are motivated by self-expression. Asyoung, enthusiastic, and impulsive consumers,Experiencers quickly become enthusiastic about new

possibilities but are equally quick to cool. They seekvariety and excitement, savoring the new, the offbeat,and the risky. Their energy finds an outlet in exercise,sports, outdoor recreation, and social activities.

When analyzing the demographic statistics for the educational market and

comparing with Jackson County totals the estimated target market totals 58,000 with a

derived number of 1500 using the methods described in the Trading Area Analysis

section. Similarly, the air charter ETM = 52,000 and dETM = 115 and aviation services

ETM = 78,000 and dETM = 13,000. When looking at these market segments, the success

my fall into question because of relatively small numbers; however, two other factors

which will play vital roles in AmoLines success are the inherent expensive nature of the


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industry as well as the 80/20 Rule which suggests eighty per cent of profits come from

only 20% of the clientele. With the derived target market we are just honing in on the

specific twenty per cent to focus business promotions toward.

D. Analysis of the Potential Location

Location, location, location. Often referenced as the key to success, AmoLines

Air Service is no different. With several private airstrips, two small airports and one

controlled airport with commercial flights, locating our business at Rogue Valley

International Airport will be vital to our success because of both the commercial air

traffic and general aviation the hub attracts.

Specifically, AmoLines will be strategically placed on the east side of the main

runway, 32-14. The west side, being fully developed and without room to expand, is

quickly becoming outdated. The future of the airport is to the east side, land is cheap and

easy to come by with grand easements given by non-aviation based businesses. The

parcel itself is an expansive 88.9 acres located at 4700 Industry Drive, a spur from the

arterial Vilas Road which carries nearly thirteen thousand cars everyday (City of

Medford). Currently owned by Airport One, LLC this vacant lot is valued at $180,000

(Jackson County). This not only allows us to build exactly what AmoLines will require;

but, because of the property limitations on the west side, the east side of the airport will

soon be booming.

We can purchase this lot now inexpensively and reap the rewards as the value

undoubtedly increases, possibly in upwards of $800,000. The site will be both an

investment in the business because of location as well as for the business because of the

strategic position for the future of the airport.


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IV. Planned Operation of the Proposed Business

A. Proposed Organization

AmoLines Air Service will be the function of two Oregon Limited Liability

Corporations: Olson Property Management LLC and Amidon Aviation LLC.

Olson Property Management will be a joint venture with my uncle Vic Olson,

who will have the controlling 51% share. The role of OPM LLC we will be the

development of the parcel aforementioned. Vic, with his background in property

management and General Contractor License, will be responsible for negotiating the

purchase, constructing the buildings, paying real estate insurance and property taxes.

Amidon Aviation will own the business itself, including, but not limited to, the

company rights, furnishings, equipment, signage, and inventory. Similar to OPM this will

be a joint venture; however, I, James Amidon, will have the controlling 51% share; I am

looking to offer 49% in exchange for capital. Amidon Aviation will be responsible for

leasing and paying rent to Olson Property Management LLC in addition to maintenance

and leasehold improvements. I, James, will secure the capital investment needed to

commence business operations.

Benefits of forming the described dual corporations (Lewellyn):

Tax advantages no company tax filings, avoids double taxation. Limited liability partners free from personal liabilities, separation between

property and business liability.

Stock options either LLC can sell stock to generate income. Operations flexibility less regulated than standard corporations, treated like a

partnership.


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AmoLines Air Service Organizational Chart

At the peak of the organizational pyramid is the triumvirate of the two owners and

Aviation Manager. The position of Aviation Manager, a GM like position with

specialization in the aviation industry, will be salaried at $156,000 DOE and will be

expected to work with the owners to effectively communicate the ownerships visions.

Heading the Education division is a Chief Certified Flight Instructor (CFI) who will be

responsible for hiring, training, and working alongside both the classroom and in-flight

CFIs to ensure a complete educational experience. To lead the core of our business, the

Aviation Services division we will employ an Administration Supervisor who will be

responsible for hiring all positions in their division. In addition to aviation services, this

division will be responsible for payroll, ordering, scheduling, and building maintenance.

Lastly, running the Air Charter division of AmoLines will be the Charter Director whose

individual duties include, but are not limited to, hiring, training, and securing clientele for

our air charter market. Company wide marketing will be assigned to the Aviation


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Manager and the owners. For more information on individual salaries and labor costs see

Appendix: Labor Costs.

B. Proposed Services

AmoLines is poised to be successful because of our strategic mix of services currently

unavailable in the Rogue Valley alongside a number of services which are easily

accessible. We have a wide range of services with accompanying products, broken down

by company division:

Education

Ground Schoolo

Fixed-Wingo Rotorcraft (helicopters)

Private Piloto Single-engineo Multi-engineo Lando Seao VFRo IFR

Commercial Pilot (All Classes)o Pilot-for-hireo

Commercial Passenger Pilot

Air Charter

Piloted Chartero Business Chartero Single/ Family Chartero Group Charter

Airplane Rentalo Day Rentalo Trip Rental

Aircraft Storageo Hangaringo Tie-down

Aviation Services

Maintenanceo Annualso Airframe/ Powerplant Repairo Avionics Installation


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o General maintenance Fuel Service

o 100LLo Jet-Ao aviation engine oil

With such a wide array of products and services, it is essential to AmoLines

success to have honest, high-quality suppliers. For our fuel services, we have chosen

Chevron because of their superiority in the petro-energy industry; AmoLines will be the

only FBO on the west coast to offer this brand. For our education and much of our

aviation services we will be buying from Aircraft Spruce. This is a well known company

with a commitment to quality and product offerings from avionics and aircraft

mechanisms to pilot supplies for all aircraft, manufactured or homebuilt. Because of the

nature of the business, our inventory policies will be basic as most of our products will be

ordered from our suppliers at the point of sale. Less costly items, such as educational

materials, may be held in some stock which will increase in accordance with promotional

activities. For more info, see Appendix: Suppliers.

C. Proposed Marketing Strategies

When establishing pricing policies for AmoLines, we will closely consider the

pricing of our direct competition. Our general product mark-up will be around 30% plus

labor for installation; this is on par with our local competitors.

Sample Prices

Product AmoLines Price Top Competitors Price

Lotus Amphibious Floats $28590.00 $26480.00Garmin Avionics Panel $7835.00 $8120.00

Tempest Carbuerator $1376.00 $1429.00

Bendix Magneto $787.00 $756.00

VFR Sectional Chart $9.50 $11.00

100LL Fuel (per gallon) $3.69 $3.83

Jet-A Fuel (per gallon) $3.97 $4.09


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(Medford Air Service, Million Air)

Market availability is subject to change as are our corresponding prices. Most

products ought to stay relatively stable with small inflation-based increases in price;

however, fuels are subject to fluctuation depending upon oil prices, we will compensate

accordingly.

AmoLines promotional program will mainly focus on our Education and

Aviation Services market segments because they are so closely aligned. For our Air

Charter division, most promotional activities will be personal meetings with local

business partners. We plan to implement a unique program of nonpersonal promotion

alongside public relations events to gain renown.

First, we plan to run 15 seconds advertisements on the Radio Medford network of

stations: Lite 102, My Mix 93, KBOY Classic Rock, Hank FM Country. A 15 second clip

with 600 plays per month will run around $480 (Radio Medford). AmoLines will consult

with local web designers to produce a small airport directory, FBO search app for a

Blackberry or iPhone which will increase sales among airmen for a small price of around

$1000 (iPhone). We have elected to also paint a billboard atop our main hangar showing

our services for pilots on the final approach. Lastly, AmoLines will employ the masses of

social media with a fan page and similar company profile on Facebook and LinkedIn,

respectively.

Throughout the year we will reach out to all of our customers through a number

of events beginning with a grand opening open house to present our business to the

community. Over the weekend leading to Independence Day, we will put on an

acrobatics air show, the first time in the Rogue Valley in more than ten years. Our most


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emotional exhibit will be our Veterans Day Military Showcase in honor of those who

have served their country at home and abroad. A complete list of events is below:

First Year Promotional Program

Occasion EventApril 1 Open, press release

April 30 Grand Opening, Open House

Memorial Day weekend Airport Awareness Day, Kids Day

July 4th

weekend Acrobatics Airshow

Labor Day weekend Country Fly-in

Veterans Day weekend Military Showcase, USAF, Air National Guard

New Year (January) Flight School (discounted)

St. Patricks Day Spring Fling

With the number of competitors we have, it will be quintessential through our

promotional activities we show what we offer that our competition cannot: Pilot

education; we also need to focus on the community and earn their respect and trust

through our personal promotional activities.

V. Planned Financing

A. Projected Income and Expenses

Projected sales of $5.4 million in the first year show the modest optimism for the

venture. With a conservative growth of 7% annually, and a stable cost of sales around

35%, over three years Amidon Aviation LLC will have netted more than $1.6 million.

See the following Projected Income tables and Balance Sheet (Industry):


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A

moLines(AmidonAviationLLC)ProjectedIncomeStatementforFirstYear

M

onth

04/2011

05/2011

06/2011

07/2011

08/2011

09/2011

10/2011

11/2011

12/2011

01/20

12

02/2012

03/2012

Sales

378260

446010

465320

508490

494950

485370

463860

445690

448510

419

890

409670

424580

C

ostofSales

156450

148690

162440

182230

169960

162890

165340

153020

147230

138

980

139410

147620

G

rossMargin

221810

297320

302880

326260

324990

322480

298520

292670

301280

280

910

270260

276960

Salary/Wages

74664

74664

74664

74664

74664

74664

74664

74664

74664

74

664

74664

74664

B

enefits/Pensions

10370

10370

10370

10370

10370

10370

10370

10370

10370

10

370

10370

10370

Lease

40000

40000

40000

40000

40000

40000

40000

40000

40000

40

000

40000

40000

A

dvertising

1480

480

480

4480

240

240

480

240

Equip.Depreciation

25000

25000

25000

25000

25000

25000

25000

25000

25000

25

000

25000

25000

A

mortization

37513

37513

37513

37513

37513

37513

37513

37513

37513

37

513

37513

37513

PayrollTax

29036

29036

29036

29036

29036

29036

29036

29036

29036

29

036

29036

29036

O

therSG&A

41000

41000

41000

41000

41000

41000

41000

41000

41000

41

000

41000

41000

O

peratingExpenses

259063

258063

258063

262063

257583

257583

257823

257823

258063

257

583

257583

257823

O

peratingIncome

-37253

39257

44817

64197

67407

64897

40697

34847

43217

23

327

12677

19137

O

wnerDraws

10000

10000

10000

10000

10000

10000

20000

20000

20000

20

000

20000

20000

N

etProfit

-47253

29257

34817

54197

57407

54897

20697

14847

23217

3

327

-7323

-863


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AmoLines (Amidon Aviation LLC) Projected Income Statement for Three Years

Fiscal Year Q2 2011 - Q1 2012 Q2 2012 - Q1 2013 Q2 2013 - Q1 2014

Sales 5390600 5772400 6135700

Cost of Sales 1874260 2010980 2289610

Gross Margin 3516340 3761420 3846090

Salary/ Wages 895968 895968 895968

Benefits/ Pensions 124440 124440 124440

Lease 480000 480000 480000

Advertising 8120 6880 6880

Equip. Depreciation 300000 300000 300000

Amortization 450156 450146 450156

Payroll Tax 348432 348432 348432

Other SG&A 492000 540000 594000

Operating Expenses 3099116 3145866 3199876

Operating Income 417224 615554 646214

Owner Draws 180000 240000 240000

Net Profit 237224 375554 406214

AmoLines (Amidon Aviation LLC) Projected Balance Sheet December 31, 2011

Assets Liabilites & Equity

Current Assets: Current Liabilities:Cash 4569 Accounts Payable 28560

Receivables 45870 Accrued Payroll Taxes 261324

Inventory 37650 Long Term Liabilities:

Fixed Assets: Loan Payable 1913163

Equipment 3465900 Owners Equity:

Depreciation 225000 Owners Draw 120000

Furnishings 245400 Business Net Worth 1585825

Depreciation 27600

Other Assets:

Deposits 242083

Total Assets: 3788872 Total Liabilities & Equity: 3788872


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B. Proposed Plan to Meet Capital Needs

AmoLines is a high capital business, and with high risk comes great reward. Start-

up capital required will be $4 million, which I plan to raise through two means: $2

million venture capital investment for a 49% share; $2 million business loan amortized

over five years. This venture capitalist earn back investment over eight years using

progressive drawing techniques; in addition, they will have a 49% share in Amidon

Aviation, a business grossing in upwards of $6 million in three years. The monthly

amortization of the loan has been figured into both projected income statements as well

as the end of the year balance sheet.

VI. Conclusion

AmoLines will re-invent the idea of a fixed base operator in Medford, Oregon.

We have a sound target market for each division and we will constantly be increasing our

customer base in all phases because of our pilot education and certification programs.

Employing unique media for our advertising we will reach a broader market, increasing

our market segment further, therefore increasing our revenue streams.

As an experienced aviator and well versed businessman, I request a $2 million

business loan to be repaid over five years at a fair 4.75 A.P.R. Additionally, I ask for a $2

million investment in exchange for a 49% share in my company which has incredible

growth potential alongside high value assets with low depreciations.


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VII. Bibliography

Aircraft Spruce. 2009. 15 April 2009. .

Average Salary Information. Salary.com. Kenexa. 31 Jan. 2011..

Aviationwise. 2009. 22 April 2009. .

Aviation Supplies & Academics. 2009. 15 April 2009. .

Barker, Emily. The Bulletproof Business Plan. Mansueto Ventures LLC. October2001. 1 April 2009. .

Chevron Global Aviation. 2008. 15 April 2009..

City of Medford Oregon. 2009. 30 April 2009. .

The Entrepreneurship Test. Liraz Publishing. 2009. 15 April 2009..

Fact Sheet: Jackson County, Oregon. U.S. Census Bureau. 2007. 22 April 2009..

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Google Maps. TeleAtlas. 2009. 30 April 2009. .

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Hosting Details. Project A. 15 May 2009..

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iPhone Developer Program. 15 May 2009..

Jackson County Front Counter Application. Jackson County Oregon. 30 April 2009..


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Lewellyn, Bart. "Small Business." Personal interview. 21 May 2010.

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Illinois.Entrepreneur Resources. Gaebler Venture Capital. 31 Jan. 2011..

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Methods For Determining Price. American Express: Small Business. 2009. 12 May2009. .

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Pricing Strategies. Marketing Teacher. 2009. 12 May 2009..

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Seven Low-Cost Marketing Ideas. AllBusiness. 13 May 2009..

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VIII. Appendix

Market Segments:

Education Market

Demographic Population Percentage

Total Population of Jackson County 207,745 100%

Age: 18-25 18,533 9%

Sex: Male 100,988 49%

Marital Status: Single 39,370 48%

Income: $20K to $80K 49,586 59%

Education: HS, some College 81,209 57%

Estimated Target Market 57,937 28%

Derived Target Market 1,480 0.712%(SOREDI)

While the Estimated Target Market is 28% of the population, the expected

customer base (derived ETM) is set as 0.7 % (1480) after compilation of all

demographics accounted.

Air Charter Market



Age: 30-55 71,072 34%

Sex: Male 100,988 49%

Marital Status: Married 42,962 52%

Income: $200K+ 1,502 2%

Education: College Graduate 44,058 31%


Derived Target Market 112 0.054%

(SOREDI)

The Estimated Target Market is 25% of the regional population, however the

derived ETM is 112, a small number; the product is very expensive (as income suggests)

which makes up for the small customer base.


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Aviation Services Market



Age: 25-55 84,201 41%

Sex: Male 100,988 49%Income: $40K to $200K 44,749 53%

Education: HS, some College 81,209 57%


Derived Target Market 12,608 6.069%

(SOREDI)

The Estimated Target Market is 37% of the Rogue Valley; when all factors are

combined, the derived ETM is 12,608 leaving quite a hefty market from which profits

can be gained.

Labor Costs:

Monthly Labor Costs

Position BaseSalary

HourlyWage

AverageHours

AverageCompensation

Aviation Manager $13,000 N/A 160 hrs. $13,000

Chief CFI $7,500 N/A 120 hrs. $7,500

Classroom CFI $5,900 $20.00 60 hrs. $7,100

In-Flight CFI $5,500 $12.50 60 hrs. $6,250Administrative Supervisor $3,200 $11.25 160 hrs. $5,000

Administrative Professional x2 N/A $15.00 120 hrs. $1,800

Airframe & Powerplant Mechanic $2,750 $8.75 160 hrs. $4,150

Avionics Technician $2,650 $6.25 160 hrs. $3,650

Fuel Technician x2 N/A $12.50 120 hrs. $1,500

Aircraft Maintenance x2 N/A $12.50 160 hrs. $2,000

Air Charter Director $3,000 $20.00 160 hrs. $6,200

Crew Chief (Pilot) x2 $5,650 $40.00 60 hrs. $8,050

Co-Pilot x2 $5,150 $25.00 60 hrs. $6,650

Flight Attendant x2 $3,000 $20.00 60 hrs. $4,200Chauffer $1,250 $30.00 40 hrs. $2,450

$103,700Monthly Labor CostsAnnual Labor Costs $1,244,400

(Average Salary)


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Salaries and hourly compensation are subject to change as business progresses to allow

for more consistent paychecks.

Suppliers:


ChevronCorp.

1500 Louisiana StHouston, TX

(832)854-5927

http://www.chevronglobalaviation.com/

ProductmmOfferings:

Chevron provides its customers with the highest quality aviation fuelavailable. AmoLines will be the only FBO on the west coast to offer bothChevron Jet-A and 100LL fuels.

(Chevron)


Aircraft Spruce

& Specialty Co.

225 Airport Circle

Corona, CA

(951)

372-9555 http://www.aircraftspruce.com/Productmm

Offerings:Aircraft Spruce wholesales any part required for nearly anymaintenance or installation project for manufactured aircraft; also,they supply a number of products for home- and kit-built airplanes.In addition Aircraft Spruce offers pilot supplies of all types for ourEducation market. With Aircraft Spruce, AmoLines will offer thebest product line alongside first-rate installation to our customers.

(Aircraft Spruce)

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