Just like any other industry, private jet charter has its fair share of problems. But, while these problems might exist, it doesn’t mean that each and every one of them can’t be tackled with some good old-fashioned planning and a determined attitude! The keys to success: being aware of the problems, knowing how to identify them before they begin, and learning how to effectively mitigate them as soon as possible.
We’ve compiled a list of five of the most common problems found in the private jet charter industry, and then put together some simple solutions for ensuring they don’t define your experience:
- Debt and negative budgets: Without foresight and proper planning, the possibility of running into debt or a negative budget can cause concern for those wanting to get into the private jet charter business. While it’s true that the private jet charter business can be very lucrative, it can also quickly get out of hand. Unfortunately, debts have a habit of pilling up if they’re not managed well. Before you know it, you could end up with a negative budget and spiral into an economic freefall. This is why it’s in your best interests to have your finances for the first few years settled before starting out. Know where you’re going before you get started and you should find the journey to be far more pleasant.
- Lawsuits: Unfortunately, if you run a big business in a booming industry, you’re likely to face lawsuits for any number of reasons. They could come from dissatisfied customers, former or current employees, the government, or even rival companies. With so many potential legal problems in the private jet charter business, always make sure to have an experienced legal team ready to fight for you.
- Fluctuating fuel prices: If you’re not careful, fluctuating fuel prices can make it very difficult to plan your budget and even throw off your current and future plans for the business. There are many factors that can contribute to fluctuating prices (most of which are out of our control), but one great way to deal with the unknown is to always keep a miscellaneous budget set aside for unexpected costs. Many in the business have even found success in budgeting on a quarterly basis to be better prepared for price fluctuations.
- Insurance claims: For a private jet business to run smoothly, it’s absolutely essential to have good insurance cover. While it can seem like an unnecessary expenditure when you take a policy out, it’s nothing compared to the potential disaster of not having a good policy if you run into trouble.
- Taxes: As the saying goes, only two things are certain in life: death and taxes. No matter how good you think you are with your taxes, it’s always safer to avoid opening yourself up to an unexpected tax bill or potential legal problem, so make sure to employ an accountant or tax attorney to help manage your books. They may end up saving your business!
These private jet charter business problems should by no means put you off entering the business as every industry has its downsides. But, if you keep an eye out for them and plan accordingly, there’s nothing stopping you from success!