More Helicopter Charter Company Advice

You need a business plan? Do it right.

I need to start this blog post by reporting that at this moment, there are 2,214 items in my email Inbox, 64 of which have not yet been read. See?

Inbox
My email inbox is really out of control.

So maybe you can understand why you’ll find this paragraph on the Contact Me page of this site:

I cannot provide career advice of any kind, whether you want to be a writer or a helicopter pilot. The posts in this blog have plenty of advice — read them. There’s a pretty good chance that I’ve covered your question here in a blog post.

Yet the contact form on that page continues to be used by pilots requesting career or business-related information. Apparently these people have failed to read or understand the paragraph right above the contact form, which says:

First, read the above. All of it. Now understand that if you contact me by email for any of the above reasons, I’m probably not going to respond.

I don’t know any way to be more clear than that.

So yes, I get dozens of email messages every month from people who either can’t read or comprehend the above-quoted paragraphs. And I delete just about every single one.

You want more about this? Read this.

So Outrageous It Needs an Answer

That said, here’s today’s question from a reader in Germany, a question I found so outrageous that I fired up my blog composition app and started typing.

Hi Maria,

i like your blog and read it nearly every week. I am a helicopter pilot too and try now to realize my own company next to my job at airbus helicopters.
I am just at the point: How can i buy a helicopter R44 like you ???

I know it is not easy but i have to create a concept for my bank.

Where do I begin?

How I Bought My Helicopter

How did I buy my R44? I sold my R22 and an apartment building I owned, took the proceeds plus a $160,000 loan from AOPA’s aircraft lending program, and handed it over to Robinson Helicopter. I then paid back that loan over eight years at about $2,100/month — while I covered my living expenses and all the costs of operating my business.

How did I buy the R22 and an apartment building? I worked my ass off as a writer, working 12-hour days, for more month-long stretches than I care to remember, writing books about how to use computers. I wrote 85 of them in 25 years and some of them did very, very well. But instead of pissing the money away on stupid things to keep up with the Joneses, I invested it in real estate and my future.

Through hard work and smart money management, I became a helicopter pilot without incurring a penny of debt and I acquired the assets I needed to build my helicopter charter company.

That’s what I did. Are you ready to do that, too?

Me and My Helicopter

First of all, I my entire guide for starting a helicopter charter business can be found in a post coincidentally titled “How to Start your Own Helicopter Charter Business.” Someone interested in doing this should probably start there. You want to know how you can do what I did? That blog post, which was written way back in 2009 and has been sitting on this blog waiting for folks to read it since then, explains exactly what I did.

So even though this person claims to read my blog “nearly every week,” this person hasn’t bothered to use the search box at the top of every single page to find blog entries that might have been missed that might have the information wanted. Instead, I’m expected take time out of my day — time that might be used to clear out some of the crap in my inbox — to explain how to write a business plan for a helicopter charter company.

Because that’s what needed here: a business plan.

Business Plan Resources

Most people can’t do what I did to start their own helicopter charter company. Those are the people who need business plans because they need a lender to give them the money that they need to acquire the assets that they need to start their business.

There are no shortcuts. Either you have the money and can spend it or you need to find a lender who will give it to you. And that lender is going to need some proof that you know everything about your business before you even start it.

That’s what business plans do: They help you understand every aspect of the business you want to start. They also prove to a lender that you’ve thought it through and that it has the potential to make a profit so they can get their money back.

There are countless sources of free information about creating business plans. Many of them are online. Google “How do I create a business plan?” and see for yourself. An especially good resource is the U.S. Small Business Administration‘s Create Your Business Plan page. These are also the folks who can help you get a loan through their own program.

Like reading books? (I hope someone still does.) A search of Amazon.com for “creating a business plan” yields a list of more than 2,900 books on the topic. Isn’t it worth investing a few dollars to help you do this right?

I Can’t Do It for You

Living the Dream?
People tell me that I’m “living the dream” and lately I think I agree. But it wasn’t luck or charity that got me here. I did it all myself, despite numerous obstacles, and I’m proud of it. When you achieve your goals through your own efforts, you’ll be proud, too.

If this post comes across as a snarky rant, it’s because that’s the way I feel about this. I’m really tired of people trying to get me to help them achieve their goals.

No one helped me. No one. In fact, too many people close to me tried to hold me back.

A professional pilot friend told me I was a fool to think I could start a career as a pilot so late in life. (I was 39 when I got my private pilot certificate.) He told me I’d never make any money.

My mother cried when I bought my first helicopter. She was convinced that I’d die in a fiery crash. (She also cried when I left my full-time job as a financial analyst to become a freelance writer.)

My wasband tried to talk me out of buying the R44. He should have know as well as I did how impossible it was to build any kind of charter business with an R22. He also tried to keep me from traveling to Washington state each summer — by endlessly trying to make me feel guilty about the trips — where I finally found the work I needed to make my company profitable. (I only wish I’d chosen my business over him about 10 years earlier.)

No one told me what I’d later learn through trial and error about advertising, getting maintenance done, finding clients, and building a niche for my services. (I’ve blogged extensively about all these things here.)

Every helicopter charter business is different. The only business I know about is mine — and I’ve shared most of what I know on this blog. It’s here for anyone willing to take the time to look for it. (Hint: there’s a Search box at the top of each page.)

I cannot be expected to cook up an all-purpose formula that will work for anyone who wants to create a business like mine where they live. And even if I could, I wouldn’t. Any business with that formula would fail. Why? Because if the business owner doesn’t fully understand his/her business, he can’t possibly make it succeed.

So my advice to those of you interested in starting a helicopter charter business is this: stop looking for someone to do the hard part for you. Do your homework. Analyze the market. Gather information about costs. Check out the competition. And then write a complete, thorough business plan.

If you can succeed at doing that on your own, you might have a shot at succeeding in your business.

Cherry Drying: Why I Won’t Work with Middlemen

It just doesn’t make sense for me or the pilots I work with.

I’m in the process of hiring pilots to work with me during cherry drying season here in Washington State. Finding and hiring good, qualified, responsible pilots is a real chore every year made even more difficult by the preponderance of middlemen — guys who want to act as brokers between pilots and people trying to hire them.

I Am Not a Middleman

Parked in an Orchard
My helicopter, parked in a cherry orchard in 2009. I’ve been doing this work for years.

Let me set things straight from the start: I have cherry drying contracts with orchard owners. I work directly with them or their orchard managers to learn the orchards and fly them. I fly as a pilot over the orchards I’m contracted to cover.

During the busiest time of the season — usually mid June to mid July — I have overlapping contracts that make it impossible for me to cover all the acreage alone if rain is widespread. So I hire other pilots with helicopters to work with me, as part of my team, to get the job done. We work together — all of us know all of the orchards in our area. I don’t assign specific orchards to specific pilots. When it rains, I dispatch pilots, including myself, to service the orchards we get calls for.

My goal is to get a helicopter over an orchard as quickly as possible, so I dispatch based on pilot location and availability. All of my pilots are based within ten minutes flight time of all of the orchards in their area so they can get to orchards quickly and get from one orchard to the next quickly. If a pilot has flown over a specific orchard once, I’m more likely to assign that orchard to him again — but that’s mostly because the more often you work an orchard, the better you know it and the quicker you can service it.

Because I hire and pay pilots, I’ve been accused of being a middleman or broker. But although I am in the middle of the transaction, the pilots I hire are working for and with me. I give them their orders, I pay them. And what the pilots seem to like most about the arrangement is that I pay them in advance for standby and I don’t wait until my clients pay me to pay pilots what I owe them. In other words, they are my contract labor and I pay them based on my contract with them — not my contract with someone else.

There are at least two other helicopter operators in my area who do pretty much what I do: contract with growers to provide coverage, then hire pilots to help them provide that coverage. I worked for an earlier incarnation of one of them. What they do is a bit different from what I do, but I think it’s because of the sheer number of orchards they have and area they cover: Instead of getting all pilots in an area familiar with all orchards and dispatching based on location and availability, they assign specific orchards to specific pilots. As a result, one guy could be flying all day while another guy sits around waiting for a call. My belief is that if good customer service is your primary objective — and it certainly is mine — this is not the best way to utilize your assets (the pilots). Get all the pilots in an area to work as a team and get the acreage covered as quickly as possible.

On Working Directly for Growers

The best situation is to work directly for a grower, but not all pilots want to do that. There are a few reasons for this.

First of all, most orchards aren’t big enough to pay enough standby money to make it worthwhile for a pilot. Aggregation is the key. Get multiple orchards and add up that standby money. If you do it right, you should bring in enough money to make it worthwhile without contracting more acreage than you can handle. This is how I started.

It isn’t easy to aggregate when the contracts are in widespread locations or have overlapping dates. It’s taken me years to fine-tune my operation and, after seven years, it still isn’t perfect. (I don’t think it ever will be.) There are days when I have — and am paying for — more pilots than I need and actually taking a loss on the standby money I have to pay them. But when I average everything out, I do okay.

And although my clients usually pay within a reasonable time, the more clients I have, the more accounting there is to deal with. Invoicing, following up, collecting money, making deposits, paying pilots, filing tax-related documents, paying taxes. If I didn’t have an accounting degree, I’d probably have to hire (and pay) someone to do this, too.

And when you consider how short the season is — one to three months, depending on the contracts you can get and the area you can cover — it’s difficult for an operator outside the area, doing other work for the rest of the year, to build a solid client base.

The pilots who work for me are glad that I do all the setup and pay them what they’re owed, per the contract, on time. The ones who come back every year know a good deal when they have one.

Enter the Brokers

Unfortunately, there are a number of helicopter operators — either current or past — who have decided that there is money to be made by acting as a middleman between the people looking for pilots — like me — and the actual pilots.

I blogged about one of them back in 2013. He contacted me, claiming he had five helicopters with experienced pilots — he said 1000+ hours PIC time — available for cherry drying contracts. The real situation — which I pieced together from our subsequent communication and discussion with another pilot — was that he had zero helicopters and zero pilots; as soon as I told him what I wanted, he’d find pilots to fill the position. Then I’d pay him and he’d pay the pilots a piece of what I paid him. The red flag went up when he told me he wanted more money than we originally agreed upon. The reason: he couldn’t find a pilot willing to take what he was willing to pay after taking his cut from what I paid him. I figure his cut was probably $25 to $50 a day on a four-week contract and maybe $100 or more per hour on flight time.

What does he do for his cut? The way I see it, two things:

  • Work as a sort of matchmaker to match a pilot with someone who needs a pilot.
  • Sit on all the money he receives from the person doing the hiring as long as he can before paying the person doing the work.

Why would a pilot take a cut in pay to work with someone like this?

And that’s just part of the problem. Another part is the qualifications of pilots the middleman finds. You see, he doesn’t really care how qualified or responsible the pilots he brokers out are. They’re not flying his helicopters. They’re not servicing his clients. If they screw up, it’s not going to cost him anything. So he’ll send any pilot and helicopter that seems to satisfy the person hiring.

And then there’s the issue of communication — possibly giving the pilot the wrong information about the job. Suggesting that there might be more flight time than what’s really possible. Or that the contract could be extended. Or that it’s okay to do training while on actual cherry drying missions.

All this results in a mismatch of expectations — and that’s never a good thing.

Isn’t that enough reason for me to avoid working with middlemen?

This Year

This year, I’m hiring four pilots for about four weeks each. I’ve filled three of the slots. The fourth slot is being difficult, with two pilots saying yes and then backing out because they were unable or unwilling to fulfill contract requirements. I’m negotiating with three pilots to fill that slot, but haven’t come to an agreement with any of them yet.

The reason it’s difficult? I’m picky. I want someone experienced and responsible, someone I know will show up over an orchard promptly and do the work as my clients expect it to be done. I want someone who takes the work seriously and understands that it requires good flying skills in any conditions and is not an opportunity to give a friend rides or do training. Safety and service are my two biggest priorities. Unfortunately, its not easy to find someone willing to come to Washington for a month who understands and respects that.

But I know things will come together in time. They always do. And I’m looking forward to working with my team to give my clients the best service possible.

No middleman required.

Kind Words from a Client

Really made my day.

These days, I make most of my living doing cherry drying work in Washington State. It’s an extremely short season — I consider myself lucky to get 10-11 weeks of work — and 2015 will be my eighth season doing it.

Each year I’ve managed to build up my client base from the handful of clients originally contracted by the guy who brought me up from Arizona to help him in 2008. I now have a total of 10 clients managing 15 orchards. At the peak of the season, I hire three pilots to help me provide adequate coverage for all of it. This year, I might hire a fourth.

Each year, as cherry season approaches, I get more and more stressed. Will last year’s clients sign up with me again? Can I get more acreage to cover? Can I find enough reliable pilots to help me? Will a late-season frost wipe out half the crop, as it did in 2008?

Even when I have all the answers to those questions — usually yes, yes, yes, and no — and cherry season is under way, the stress doesn’t stop. I watch the weather incessantly — several apps on my phone with forecasts and a very good radar app to watch storms moving around the area. I stare at the sky and watch the clouds. I worry about my helicopter being fueled, preflighted, and ready to fly. I worry about the guys working for me and I worry about their helicopters. I worry about whether I trained the new pilots well enough and whether they’ll be able to find the orchards I showed them.

And when a weather event is possible, I worry even more. Which direction is the weather moving? How hard is it raining? Is it windy, too? Will it drench all of the orchards at once? Do my clients have people on hand to monitor the moisture and call me to fly? Will it stop raining early enough in the day to finish drying before it gets dark? Are my pilots really at the airport waiting to launch? Did the pilots get the GPS coordinates for the orchards so they can get there fast enough? Can that new pilot cover the acreage I assign to him effectively in a reasonable amount of time?

Then the rain happens and the phone starts ringing. I fire up my helicopter and launch, sometimes even as I’m dispatching the other pilots. I hover over the trees, at first trying to judge how wet they are after this particular event, trying to get my speed just right to dry them enough without wasting time. I do my job, stealing glances at the radar on my iPad so I know just which client will call next and when. I listen to the radio to hear from my pilots or other pilots in the area. I answer the phone and place calls, sometimes while still hovering within 10 feet of the tops of cherry trees.

Cherry Drying

And I’m always beating up on myself if I can’t get someone to an orchard as fast as I’d like. Last year, I felt that I’d failed one of my best clients. I even worried that I would lose his contract for this year. So this year, when I emailed him to ask if he wanted my services again this year, I pointed out where I could have done better and told him how I planned to handle it.

His response made my day (names changed to protect privacy):

ABC is very pleased with the opportunity to work with Flying M Air again for the 2015 season!

I’m sure that Joe can attest to this also, when the call is made to dry cherries you or a member of your team is on site drying within 15 minutes.

That’s a relationship that I want to continue!

All the stress and worry somehow seem worthwhile now. Our work is appreciated. I have another season full of clients to serve this year.

And the cherries are early. Can’t wait to taste some!