5 Tips for Your Small Aircraft Brokerage

Currently, there are approximately 23,000 business jets across the globe. Fifteen thousand operate domestically in the United States, while the rest operate abroad. Statistics show that by 2025, the business aviation sector will reach 1.2 trillion dollars, steadily growing since its boom in 2020. People and businesses are building, buying, and selling corporate aircraft, which means it is our time to shine! This article will discuss five tips to help your small aircraft brokerage business organize, market, grow, staff, and overcome challenges.

Organizing

You must first prioritize organization when starting a small business. It's common knowledge that you must be a registered business or corporation in your state when handling aircraft transactions. Also, keep in mind that some states require a license and a surety bond to operate your aircraft sales business. Small aircraft brokerages' most common business formation is a Limited Liability Company (LLC). An LLC protects you from most individual liabilities and is an essential requirement when performing specific tasks and duties as a business. There are many ways to register your business; however, consulting an accountant is recommended when considering each company's circumstances.

Retaining an attorney or an accountant to create your business can be an exorbitant cost. However, other cost-effective options exist. Companies like Legal Zoom can help small businesses organize and procedurally construct a company for a reasonable fee. This economical option will allow you to start your practice legally and also include discounted partnerships with companies like WIX and NOVO, which provide the company with a website forum and accounting. Business is litigious, and you need professionals to assist you navigate it.

An organized firm is more likely to be a successful one. According to Forbes magazine, business failures are due to many intangibles, such as the inability to identify a market niche or lack of company vision. All these factors must go hand in hand with an institution's appropriate structuring. You need to have the proper foundation. Planning, promoting, and eventually growing your business is nearly impossible without a firm foundation, so when starting or acting as a broker, it is vital to get organized.

Marketing

Once organized, it’s time to let people know who and what you do. Traditionally, companies will post on billboards, newspaper ads, and even pick up the phone and call; however, in the last decade, that has changed. In today's digital world, small businesses that gain a competitive edge understand and strategically use Search Engine Optimisation. SEO is how most small businesses generate new qualified leads. While word-of-mouth marketing from existing clients and colleagues is the best form of marketing, ensuring a clear, clean, and marketable online presence is also essential for a successful campaign.

If you’re a business manager or owner, you should ask the following questions: “What does my virtual profile look like? Is my website user-friendly? Is my business posted on internet search engines? How far down do I have to scroll to find my website on a search page? What companies are ahead of me? What is my company's brand? What is my mission? Can people easily and quickly identify what services I offer by my online profile? Improving the cleanliness of your online presence will produce more clicks on your page, which will drive your company's profile to the top of the list.

Growth

It’s time to grow once your company is stable, profitable, and busy! A company can only grow once it reaches critical mass, but you must know your market. In 2003, Crumbles Bake Shop boomed into the market with delicious cupcakes and was an instant hit. The husband-wife team began its expansion project and opened as many as a hundred stores in less than ten years. However, after massive expansion, cupcake suppliers flooded the market, and the trending dessert soon lost appeal. This turn in the market demand led to stores and, eventually, the entire business closing.

Crumbles Bake Shop crumbling was not because they were not ready to grow but because they foreshadowed the market inaccurately. As brokers, you must understand and foreshadow the market before deciding to grow. Sources like the NBAA and AvBuyer write great business and corporate aviation analytics and data to help make educated decisions. Do you know what is happening in the market right now? What forecast problems or resolutions plan to occur in the next decade? As a broker, you are responsible for being a subject matter expert; you should always understand what is going on in aviation now and what is predicted for the future to plan your next strategy.

Staffing

Being appropriately staffed is necessary when expanding your small brokerage. Patience and waiting for the right-fit individuals to join the team make or break a small business. One company I know with a small corporate flight department vetted over one hundred applicants before hiring just one pilot. For this small flight department, it was vital to hire the right individual because they understood the repercussions. Think of the type of person you are and perhaps pick someone who can do what you can’t. If you are more frugal, choose someone who is extravagant. If you’re introverted, pick someone who is extroverted. While you might not see eye to eye on personality traits and every topic, having a unique perspective will help your business make well-rounded choices. According to this article, every successful team has these five characteristics that help streamline a seamless practice. Having a variety of differences on one team will not only make your company diverse but also bring complex insight into decision-making, business intangibles, and insight.

Challenges

Starting a small aircraft brokerage comes with growing pains. You must be willing to work and learn along your business journey. Only 20% of small businesses survive the past ten years, so unfortunately, the odds are against you. What makes your small brokerage different? Challenges every step of the way when starting your small brokerage exist, but the people who overcome them stick around. How are you going to handle a lawsuit? Are you ok with making a mistake? How important will your mistake be? While enduring challenges, every successful business finds a way around them. That is why staffing is so crucial when operating a small business. If you have the right people, you’ll get the right results!

Running a small business is tough, but you must trust your gut and have just a little luck. Take risks, but be conservative; sometimes, you just won’t know what will happen. As Mark Cuban once said,   “It is not about money or connections - it is the willingness to outwork and outlearn everyone… And if you fail, you learn from what happened and do a better job next time.”