Five things I wish I knew before starting my Aircraft Brokerage

It's been a little over four years since I started my aircraft brokerage, and looking back, there are a few things I wish I had known before I started. In this blog post, I'll share 5 of those things with you to help you avoid some of the same mistakes I made. 

1. Be selective with the airplanes and clients you choose to represent. 

When you're first starting out, it can be tempting to take on any client that comes your way. After all, every client is revenue, right? Wrong. You want to be selective with both the airplanes and clients you represent. If you're not careful, you could end up representing an airplane that is a maintenance nightmare or working with a client who is difficult to please, making it hard to sell. Trust me; I've been there. Neither of these scenarios is good for business. So take your time, research the aircraft and its marketability, and only work with clients willing to take your professional advice.

2. Always perform a title search before representing an aircraft for sale. 

This one is key. An aircraft title search will tell you if there are any liens or encumbrances on the airplane you're looking to sell. If there are, then it's likely that the sale will fall through - and you don't want that to happen after all the work you've put in. So before taking on any new listing, make sure to do your due diligence and run a thorough title search. It could save you a lot of headaches down the road.

I recommend Aerospace Reports https://www.aerospacereports.com/services/aircraft-title-search-75

3. If you are going to use a photographer, make sure they have prior experience with airplanes. 

When it comes to listing an airplane for sale, pictures are everything. You want potential buyers to be able to see what they're getting themselves into, and that means hiring a photographer who knows how to capture an airplane in all its glory. So do your research and only work with someone with experience photographing airplanes; it will make all the difference in the world. 

4. Always use an escrow company to take care of the transaction. 

When it comes time to close the deal, you'll want to make sure that everything is handled smoothly and efficiently, which means using an escrow company such as AIC Title or Aerospace Reports. An escrow company holds onto the money until all conditions of the sale have been met (e.g., delivery of the airplane). This protects both buyers and sellers from fraud or other potentially nefarious activities. So if you're not already using an escrow company, consider doing so; it could save you a lot of trouble down the road. 

5. Consider getting general liability insurance and Errors and Omissions insurance.

Last but not least, don't forget about insurance! As a broker, you're exposed to many risks, so it's essential to protect yourself (and your business) accordingly. You should definitely consider two types of insurance: general liability insurance and errors and omissions insurance. The general liability insurance will protect you from third-party claims of bodily injury or property damage, while E&O will protect you from claims of professional negligence or misrepresentation. Both are vital pieces of protection for any aircraft broker. 

There you have it - 5 things I wish I knew before starting my aircraft brokerage business. If you're thinking about starting your own brokerage firm, hopefully, this blog post has given you some food for thought. Be selective with your clients and airplanes, do your homework before taking on any new listings, use caution when hiring outside help, protect yourself with insurance...and most importantly, enjoy the ride! Thanks for reading!