Tag Archives: business

How do you make a million dollars in aviation?

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Start with two million dollars.

That isn’t my joke — it’s standard aviation humor. And if you think it isn’t true, start an aviation-based business.

Yesterday, against all odds, UPS actually delivered the auxiliary fuel pump I needed to get Zero-Mike-Lima up and running again. Yes, on Saturday. In Wickenburg.

The UPS guy was at our neighbor’s house, looking for ours when we spotted him. Mike gave a New York hail-a-cab style whistle and the driver saw us waving at him from our hillside. Moments later, he was on our driveway in front of the house.

“How many deliveries did you have to Wickenburg today?” I asked.

“Two,” he replied. “And you’re lucky it was me driving. I was out for four weeks. If the other Saturday driver can’t find a house, he just doesn’t deliver.”

Yes, I was lucky. I needed the part to replace the fuel pump that had gasped its final gasp on Friday, right at the end of a flight. Although the pump is redundant in flight (so there was no danger during the flight), I do need it to prime the engine at startup. I couldn’t fly without it. And I had three relatively lucrative gigs lined up between Sunday and Thursday.

The fuel pump cost $1,500. Add another $40 or $50 for overnight Saturday delivery by UPS. Then add the cost of the mechanic who graciously agreed to come in on Saturday — one of his usual days off — to install it. I told him to charge me extra. He said he would. Hell, it’s only fair. He could have said it would have to wait until Monday. Then I’d miss out on one (which turned into two) of my gigs.

Doing the Math

Unexpected repairs like this are only part of what makes operating an aviation business a lot more expensive than people think. How many times have I been at a rides gig where people asked how much fuel the helicopter burned? Every single one. I tell them it’s 16 to 18 gallons an hour and sometimes they ask how much fuel costs. I tell them $4 a gallon. They do some math in their head to come up with $64 per hour. Then they see us loading people on board for $30 a head, sometimes three at a time, and figure I can get 6 10-minute flights in per hour. That number comes out to $540/hour. Jeez! I must be making a fortune!

The truth of the matter is, fuel is among the least of my expenses.

What people always fail to consider is insurance (at about $11,500 per year); regular maintenance like oil changes ($120 each), 100-hour inspections ($2,000 each), annual inspections ($2,000 each); and the cost of the oh-so-important overhaul due at 2,200 hours that costs (currently) a whopping $182,000. (Do the math on that: $182,000 ÷ 2200 = $83/hour.)

And then there are things like this fuel pump. The original pump lasted only 416 hours. If the final cost of replacement is $1,700 (with all labor and expenses), that works out to another $4/hour. Add that to the cost of replacing my primary radio, which is currently in the shop and may be declared dead: $2,100 for a used one plus several hundred for troubleshooting the old one and swapping them out. And the cost of that clutch down-limit switch that had to be replaced 200 hours ago: the $8 part with $800 labor. And, oh yeah, let’s not forget $120 just to make sure my transponder is working right — that’s something I’ll be paying for every two calendar years.

How about the support stuff that doesn’t go on my helicopter? Like the $1,200 tow bar and the $600 golf cart (used, thank heaven) to pull it? And monthly rent for the hangar to keep it safe and dry and out of the sun? And the charts and other FAA publications I’m required to keep up to date, including sectionals (twice a year per chart), terminal area charts (twice a year per chart), airport/facilities directories (every 56 days), and the FAR/AIM (once a year)? Or how about my annual medical exam, which is required just to keep my license? Or credit card fees just so I can accept credit cards for payment?

And how about marketing? The $1,600 I just spent on 4-color, tri-fold brochures and the $459/month I spend during the high season to get them in brochure racks throughout the Phoenix area? And the cost of the trade show I’ll be attending later this month to sell my multi-day excursions to folks looking for a different kind of vacation?

And how about the cost of my ground crew on those outdoor ride gigs and the cost of permits and commissions just so I can do them? And the cost for operating the helicopter just to get to and from the gig — sometimes more than an hour each way? And the cost of the table and chairs and shade structure and signs that we use on those gigs? And those orange cones and all that yellow Caution tape? And overnight lodging and meals for me and the ground crew on distant, multi-day gigs?

Don’t get me wrong. I’m not complaining. I knew I was in for it when I launched this business.

But it does explain why I have to charge $450/hour for flight time. I’m not pocketing nearly $400 in profits as most people may think. I’m barely covering my costs.

Paying for It

Today is Sunday and Zero-Mike-Lima is sitting snug in its hangar, all ready to fly. I picked up a second tour today, one of my Ghost Towns & Mines air tours. Right after that, I’m doing my first ever Swansea Town site day trip. On Tuesday, I’m taking a winter visitor to Scottsdale for some upscale shopping. And on Thursday, I’m taking some folks to Sky Harbor so they can catch a flight to Canada. The total revenue for these four flights is estimated at $1,895. That’s revenue, not net income.

Just enough to cover the cash outlay for that fuel pump and labor.

Would I give it all up? Hell, no! But I do hope the new fuel pump lasts longer than 416 hours.

Web Site vs. Blog

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What’s the Difference?

Today I got a phone call from our local newspaper’s “business advocate” — the guy who writes stories about business. He was researching an article about blogging and figured that I was the most active blogger — if not the only blogger — in town, so I might be able to to provide some information about it. He wasn’t aware that I’d co-authored a book about WordPress blogging software (WordPress 2: Visual QuickStart Guide) in 2006 and he probably wasn’t aware that I wrote Putting Your Small Business on the Web back in 2000. He probably also doesn’t know that I’ve written four books about Web authoring software (various versions of PageMill, now defunct) and that I’ve been building and managing Web sites since 1994 (although I’m not crazy enough to do it for a living).

We stumbled a bit in our conversation. He referred to my Web site, wickenburg-az.com, as a blog. (The site has been around since 1999, predating the blogging phenomena by at least 3 to 4 years.) I responded that it wasn’t a blog, that it was a Web site built with blogging software. And then he asked me what the difference was.

I had to think about it. What is the difference between a Web site and a blog?

They’re very much alike.

Let’s take a look at the similarities.

  • Web sites and blogs are both published on the Web and can be read with any Web browser. This gives them the same basic look and feel and similar user experiences. Web sites built with blogging software can look and feel just like a blog, even if that’s not what they are intended to be.
  • They depend on good, useful content. Web site visitors and blog readers come to read content. If the content is good and meets their needs, they’ll be back for more. If the content sucks, they won’t.

But they are different.

Of course, I needed to explain how they were different — not how they were the same. The response I came up with centered around the purpose of visitors coming to to the site, but there are more differences.

  • Web site visitors come to a site to look for specific information. That information does not need to be new. It just needs to be what the visitor is looking for. For example, I visit the HP Web site when I need a new driver for one of my printers. I know it’ll be there and I don’t care if it’s been there for five years. People visit wickenburg-az.com to get basic information about Wickenburg: what it’s like, what to do there, etc. But blog readers visit or subscribe to blogs to get fresh information or insight on topics that are important to them. I read ProBlogger, for example, because it has timely articles that can help me understand how to be a better blogger. People visit aneclecticmind.com to read articles like this one about blogging, or other articles about flying, or even other articles about what it’s like to live in a place like Wickenburg — all from my point of view.
  • Blogs tend to be more opinion-based than Web sites. Sure, HP is going to tell you on their Web site that their printers are the best, but what would you expect? On my blog, I’ll tell you what I think about my HP printer and compare it to other printers I might own or have experience with. I’ll also tell you what I think of Apple Geniuses or local restaurants or life revolving around the Internet. (Although some locals might find this hard to believe, I keep most of my negative opinions of Wickenburg out of wickenburg-az.com. Most.) The opinion aspect makes blogs more personal than a Web site.
  • Blogs rely on fresh content. It’s commonly accepted that a blogger should post at least 3 to 5 new entries a week. Web sites, on the other hand, are more static and don’t require as much updating. Their visitors don’t expect it, either.

Does it matter?

Who knows? But it’s made me think about blogging a bit more than usual lately. And I’m sure it will lead to a few more articles here about what makes a blog a blog in the near future.

My New (Old) Office

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I move back to old quarters.

I spent much of today preparing to move my office back into my house. Late in the afternoon, Mike arrived from work and we loaded a bunch of stuff into the back of his pickup. I’m now typing this from my relocated office.

For the three and a half years, my office has been in a condo I own in downtown Wickenburg. I moved it there after the last tenant broke their 1-year lease and abandoned the place. When I discovered that nice white carpet (installed by the previous owner; I’m not a complete idiot, you know) completely trashed, I decided I was sick of tenants and sick of having a three bedroom house with only two occupants and no guest rooms.

We moved our offices to the condo in August 2003 (I think). It was nice to have a dedicate workspace, a place I had to go to to work. It got even nicer when DSL became available and I could get fast Internet.

But as time went by and I got more and more involved with my helicopter work, the downtown office became an inconvenience. If I had a call for a flight, I’d have to hurry home and get changed into normal clothes before driving to the airport. That was about 30 minutes shot to hell. And I started to get lazy, to not want to go to work in the morning. That’s not a good thing when I’m facing a deadline.

I wanted an office at Wickenburg Airport, but the powers that be in Wickenburg decided my small business wasn’t worthy. I guess I told too many truths on wickenburg-az.com. Made a few people feel uncomfortable. They decided to punish me by not letting me have an office at the airport. When I got the FAA involved — after all, the town’s agreement with the FAA has an “economic non-discrimination” clause — they started “cooperating” and finally got around to putting out an RFP for the 1000 square feet of land I had my eye on. But do I really want to be a tenant of the town? I thought so at first, but after dealing with the town’s crap for the past eight months, I’m pretty sick of it all and not very interested in giving the town any of my money. Frankly, most of my business comes from Scottsdale these days anyway. I’m still trying to decide whether to bid on the space after all.

So I decided to move my office back into the second bedroom at our house, the same room that was my office when we first moved here 10 years ago. It’s a 12 x 10 space with a nice, big closet. There’s no additional cost and a nice tax deduction for a home-based office. Best of all, I can go to work at any time of the day or night without commuting a single mile.

Mike’s office, which occupied the master bedroom of the condo, has been reduced to the size of a desk and set of shelves in the upstairs “den” where the television and stereo are. Not too shabby. He tunes into Sirius radio on Dish Network while he’s working and listens to it in surround sound. The window he faces has the best view in the house.

The view from my officeMy window also has a nice view. It looks out into the garden with the mountains in the distance. I just finished setting up the Webcam for wickenburg-az.com, which shows the view. Here’s the small view. (Well, if you’re looking at this during the week of January 22, you might actually be seeing the inside of KBSZ studios; there’s a tiny Webcam problem right now.) When spring comes, I’ll start working in the garden again. I’m looking forward to it. I miss gardening, but when my office was in town, I never seemed to have time for it.

Right now, 2/3 of my L-shaped desk has been moved into my office. My Dual G5 computer and the big 20-inch Sony monitor has been hooked up. I put the Dell speakers on the computer, but I think the old Altec Lansings sound better, so I’ll put them on tomorrow. I’ll get the last piece of my desk later in the week, after I clear space in this room for it. (Still got one of the old “library” shelves in here.) That’s also when I’ll bring in the printers and the Ethernet hub.

Other stuff that cluttered my office is gone. I sold the G4 that was my Web server — it sold for $335 on eBay yesterday and I shipped it out today — and I moved the G4 eMac to KBSZ studios for audio streaming. Today, I disassembled the Dell Dimension L933r computer that was my old PC test mule in preparation for donating it to the local library. My old Strawberry iMac (a G3) is in the garage, waiting for me to restore it to factory settings and dispose of it. I gave my old clamshell iBook SE to my next door neighbor, who is home-schooling her four young kids. She now has her own “computer lab.”

That leaves me with a very reasonable 3 computers for my work: my Dual Processor G5 (now about 3 years old), my relatively new Dell Latitude D820 laptop test mule, and my reasonably new 15″ Mac Book Pro test mule. Oh yeah, and my 12″ G4 PowerBook, which I really can’t part with. No need for all the desk space I had in my downtown office. I’m even cutting myself down to two printers (rather than the 3 I had accumulated). Look for some new items on eBay soon.

Getting rid of all this old equipment feels good. Although I actually threw away — in a Dumpster! — three external SCSI hard drives and a dual bay SCSI CD-ROM reader today, most of the other equipment is finding a good home. I hate throwing stuff away, but I really hate storing it. And let’s face it: old computer equipment has very little value these days.

So now I’m sitting at home in my office at 8:25 PM, listening to iTunes music on my G5 (right now: “Wish You Were Here” on Wish You Were Here by Pink Floyd). It’s later than I’d usually be working. I think I’ll be working longer hours with my office in the house. Getting more work done. Blogging more.

And doing a lot of work in my pajamas once again.

Flying for Bowl Games

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And keeping very busy.

My cell phone started ringing on Saturday and it didn’t stop. By Sunday afternoon, I was booked with a Grand Canyon day trip (from Phoenix Sky Harbor) on Monday, a one-hour Phoenix Tour from Scottsdale on Tuesday morning, and a 1-hour charter from Wickenburg on Wednesday. On Monday afternoon, while I was at the Grand Canyon with my passengers, the Phoenix tour turned into another Grand Canyon Charter. I turned down four Grand Canyon day trips and two Sedona day trips from the Phoenix area for Monday, Tuesday, and Wednesday because I was already booked. I couldn’t keep up with the messages that came in while I was airborne on Monday and Tuesday and on Tuesday morning, while at the Grand Canyon, I had to shut my phone off because my battery was nearly dead.

Why all the sudden interest in helicopter day trips and charters?

The bowl game that was held in Glendale on Monday night. Don’t ask me which Bowl game it was — I don’t follow football. I only know who played (Florida Gators and Ohio State) and who won (Florida) because my Monday passengers were Gators fans and my Tuesday passengers were disappointed Ohio fans.

Like so many Phoenix area businesses, I feasted on the influx of big budget tourists, folks who think nothing of dropping $2K for a day’s entertainment. In the case of the Grand Canyon day trips, both parties wanted to get to and see the Grand Canyon but had limited time for the visit. They simply didn’t want to make the 4-hour (each way) car ride from Phoenix. So they hired me to take them by helicopter — 1-1/2 hour from Scottsdale (each way) and 1-3/4 hour from Sky Harbor

Yesterday’s group didn’t have much time to spend at the canyon. We left Sky Harbor at 9 AM and arrived at Grand Canyon Airport barely in time for them to hop on a Papillon helicopter for a canyon overflight. Afterwards, we had an hour before we had to leave the Grand Canyon to get them back to the Phoenix area in time for their pre-game parties. They spent about 3/4 of that in Papillon’s gift shop. We did have time for a quick burger at Susy’s restaurant at Prescott Airport. I think they enjoyed that meal at a typical airport restaurant almost as much as the rest of their day. Of course, they probably enjoyed the game a lot more, since their team won.

Today’s group is just a father and his 10-year-old son who are here from Ohio for the game. They spent Sunday at Sedona and decided to fly with me to Grand Canyon for the day. I set them up with a Papillon tour and they got bumped up and upgraded to fly with Grand Canyon Helicopters (Papillon’s sister company), which flies much nicer equipment (EC130s). Although they were supposed to be on the short tour, they were put on the long tour and they apparently loved every minute of it. (What’s not to like?) We took the Xantera “taxi” to the park and I set them loose in front of El Tovar so they could walk the rim and have lunch on their own.

Now, at 1:30 PM, I’m sitting in the upper lounge (hotel guests only!), trying to produce something for my blog. There’s no wireless Internet here — and that’s a good thing. After all, I ‘m less than 300 feet from the rim of the canyon and shouldn’t even be looking at a computer. I’m meeting my passengers right outside at 3 PM for the return flight. I’ll have them back in Scottsdale by 5 PM and I’ll be shutting down on the ramp in Wickenburg before 6.

Yesterday’s flight was the first time I flew to the Grand Canyon from downtown Phoenix. It isn’t a particularly interesting flight. Not if you do a straight line, anyway. So I take little side trips. The highlight was probably the red rocks tour of Sedona about an hour into the flight. I flew my passengers past the airport and over town, then headed up the canyon where the tour operators there take their passengers. Near the end of the canyon, I pulled up, climbing at about 1,000 feet per minute to get over the edge of the Mongollon Rim. My front seat passenger was nervous, but he did okay. Then more relatively uninteresting stuff to the canyon. On the way back, I took them west of Bill Williams Mountain with a stop in Prescott, then down the east side of the Bradshaws. I showed them the ruins on Indian Mesa on Lake Pleasant before heading into Phoenix.

Got jets?Cutter Aviation, my FBO of choice at Sky Harbor, was a complete mob scene when I got there at around 3PM. Jets and other large aircraft were coming in for the game — last-minute folks who hadn’t come days before to enjoy the weekend. My helicopter was an insignificant speck on the ramp among all the jets. They started leading me to parking in a “Follow Me” car, then just drove away, leaving me to set down wherever I wanted to. I found a spot in the corner of their ramp with the Swift FBO jets parked behind me. I was only planning on being there for a few minutes, so I didn’t think it mattered too much where I parked. I escorted my passengers into the terminal there, pocketed a generous tip, said goodbye, and placed my fuel order for 20 gallons. The next guy asked for 1,680 gallons. It took a long time to fuel me, probably because the idiot with the truck was trying to fit it all in one tank. Meanwhile, big planes kept coming in and the FBO person in charge was getting more and more nervous by the minute. There were at least 50 people — pilots, national guard guys, police, limo drivers — you name it — in the Cutter terminal. The place was crazed and I wanted out. It was a pleasure to get clearance from Sky Harbor tower to follow the “river bottom” and head northwest once I’d passed Central Avenue. I logged 4.3 hours yesterday, which is more than I budget for those flights. Not a loss, but certainly not the kind of hourly rate I like to earn. My fault. I charged them my north valley rate; I should have charged for south valley, which is $200 more. The tip helped.

Today, I flew my passengers from Scottsdale, which is a shorter flight. We went past Jerome instead of Sedona on our way up. I’ll overfly Sedona with a Red Rocks tour on the way back. Scottsdale was also full of jets this morning, but I expect most of them to be gone by the time we return. At least I hope so.

It’s been nice visiting the GC these past two days. I got a chance to chat with a few old friends from Papillon yesterday: Tiny, who is now a lead pilot (he started the same season I did in 2004); Mark D, who wasn’t particularly chatty; Chuck R, who seemed embarrassed to see me; Borden, who is also friends with our good friends Elizabeth and Matt; and Evelyn. I was hoping to talk to Brenda about HAI, but she didn’t seem to be in. Today, I ran into Tom (who once rescued Mike and I from Indians — long story) at GC Helicopters, where he’s a pilot.

I had lunch at El Tovar today. It feels good to sit down and relax. Things are pretty quiet here and, if I had more time, I would have attempted a nap. Last night I had trouble staying awake until 8 PM — I was so exhausted. I’ll probably sleep well again tonight.

But the good news is, Flying M Air could shut down for the rest of the month and still be in good financial shape.

As for my blog…it’s being neglected. But I’ll get back to it soon.

How to Build a “Digg Culture” on your Blog

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Some Digg tips for bloggers.

I’m not sold on Digg, but I’m certainly not going to avoid being “dugg.” That said, it might be a good idea to see how I can make the most of Digg. The way I see it, any service that can direct traffic to my site — even “fleeting” traffic — is worth looking into.

From “How to Build a “€˜Digg Culture”€™ on your Blog” on ProBlogger Blog Tips by Darren Rowse:

How do you build a “€˜Digg Culture”€™ and get repeatedly on the front page of Digg over time? In this post I’€™ll share 10 ways that top bloggers do it.

The article does indeed include those tips. But it begins by explaining exactly what Digg can do for you and your site and why you should care. If you want to be dugg, you might want to check out what Darren has to say.