Flight schools play a vital role by training the pilots of the future. But they often struggle to stay in business due to tight profit margins, huge monthly expenses, and the inability to devote more cash to attracting students. Like any other business, the high amount of money flight schools take in is merely a notion of the high costs of keeping them open.
Insurance policies for the typical aircraft used by flight schools cost around $5,000, and repairing them can cost even more. Since most of the school’s planes are likely of the same age and model, there’s a good chance multiple planes will need repairs at the same time. This eats up funding that would have otherwise been spent on upgrades, which are crucial for maintaining a technologically up-to-date reputation.
As if there wasn’t enough pressure on revenue, an unforeseen bout of bad weather can cancel training sessions that were needed to cover upcoming expenses. Cash flow might not be as big of an issue if flight schools could easily attract new students. But you can’t expect pilots and aviation experts to be marketing wizards as well. And they are usually too busy teaching to scour the industry for cheap parts and other ways to save money.
At Fundture Capital, we are very proud to provide Small Business Loans for Flight Schools. Contact us today for your FREE business funding consultation!