Entrepreneurship Written Event

AmoLines Air Service

Crater DECA Crater High School 655 North Third Street Central Point, OR 97502 James Amidon January 2011

Table of Contents I. II. Executive Summary ........................................................................................1 Introduction.....................................................................................................2

III. Analysis of the Business Situation..................................................................3 A. B. C. D. Self Analysis ................................................................................................3 Trading Area Analysis .................................................................................4 Market Segment Analysis ............................................................................7 Analysis of Potential Location.....................................................................9

IV. Planned Operation of the Proposed Business ...............................................10 A. B. C. V. Proposed Organization.........................................................................10 Proposed Services ................................................................................12 Proposed Marketing Strategies ............................................................13

Planned Financing.........................................................................................15 A. B. Projected Income and Expenses...........................................................15 Proposed Plan to Meet Capital Needs..................................................18

VI. Conclusion ....................................................................................................18 VII. Bibliography .................................................................................................19 VIII. Appendix.......................................................................................................21

I. Executive Summary The Rogue Valley has a tradition of flying. The first ever airport in the state of Oregon was in built in Medford in 1926. Since, the airport has gone through renovations, renaming and a slew of commercial carriers dating to 1931 when United Airlines was founded from a local air transportation operation known as Pacific Air Transport. From those humble beginnings, Medford put itself on the map as a hub for air travel. Now, as general aviation is booming nationwide, the Rogue Valley has been left behind. Why? There are no flight schools and no forum to educate aspiring pilots. All the fixed base operators in the area abandoned the loss leading education operations in favor of the bottom line. AmoLines will use outreach as part of our promotional activities to earn the loyalty of our community. With our education division, we will teach young and old the joys of flying, and reap the rewards of a true FBO with communal ties. Our three company divisions have three separate markets, appealing to many types of people. The estimated target market for our educational programs totals around fifty-eight thousand with a demographic multiplier derived ETM of close to fifteen hundred. If we can reach just ten percent of that available market, we will not only have a successful educational program, but dramatically increase our customer base for aviation services. The derived ETM for our aviation services market totals 12,600, a hefty customer base if we can effectively reach them and fulfill all their aviation needs. Our air charter division, encompassing the smallest market segment, will undoubtedly be our most profitable due to the inherent expense of luxury air travel. We will also reach the general aviator with our air charter services by offering plane rentals (currently non-existent in the Rogue Valley) and hangaring and tie-down storage services. Other services AmoLines will offer include fueling and aircraft maintenance, including avionics installation. To ensure the utmost standard of quality we will have an Avionics technician on staff as well as an Airframe and Powerplant Mechanic who can, when assisted by the both general aircraft maintenance technicians, completely overhaul any aircraft in a timely manner. With a unique mix of promotions including an open house, airshow and iPhone app AmoLines is poised to earn the respect of the community and gain the business of our competitors through hard work and honest means. We will continually review ourselves alongside our competition to ensure the most complete and satisfying experience for every single customer. Organizationally, with a triumvirate of owners and Aviation (General) Manager, we will strive because of teamwork and effective management. There exists clear paths and hierarchy through which communication can be transferred and used effectively to improve upon our business operations. When analyzing a young company, a realistic financial projection is essential. AmoLines will lose money over the course of a few slower months; but, in the course of the first three years we will earn in upwards of $1.6 million net profit with gross sales totaling approximately $6 million annually. In order to achieve this, we need capital investment. We are seeking a business loan of $2 million amortized over five years at 4.75 A.P.R. In addition, AmoLines is offering a 49% in exchange for $2 million. This venture capital will be returned over the course of eight years while retaining 49% ownership in a successful aviation based company: AmoLine Air Service.

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II. Introduction AmoLines Air Service is a full-service fixed base operator (FBO) to be located at the Rogue Valley International Airport in Medford, Oregon. By opening AmoLines, we will offer services for the leisurely general aviator, professional business transport and commercial airlines as well as everyone in between. Our mission is to be the premier aviation services provider for the region between Portland and the San Francisco Bay Area, serving airmen with a wide array of amenities to fulfill their flying needs. With three different company divisions: Education, Air Charter, and Aviation Service, we offer a full range of services for general aviation and commercial airlines. Through the educational division, AmoLines will provide ground school, flight school and all the other support to satisfy FAA certifications for pilots, therefore increasing the target market for its other services. The air charter division of AmoLines will provide aircraft rentals, hangaring, airplane tie-downs and flight charters for patrons. Lastly, the most profitable market is aviation services which encompass aviation fueling, aircraft mechanics and avionics. Informational resources for the research of this business plan include a number of entrepreneurship and business journals, personal interviews, other companies in the aviation industry and a local demographics firm, Southern Oregon Regional Economic Development Inc. (SOREDI). For this entrepreneurship written event, my mentors include: my business teacher Mike Rogan, who helped me with business operations as well as financials; Bart Lewellyn, a financial advisor who helped with the legality, financials and requisite business regulations; lastly, my uncle Vic Olson played a large

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part in the development of this project as he has a history in business, aviation and marketing. III. Analysis of the Business Situation A. Self Analysis I have a broad array of business experience. I am a four-year member of the Crater School of Business; this program integrates business and technology with studies in history, economics and English. Through the School of Business, I have also gained invaluable hands-on knowledge with internships at Thornton Engineering, Lewellyn Financial Management and Fidelity Print Quick all in my local area. At Thornton, I learned the value of business organization and gained a background in engineering and commercial design. With Lewellyn Financial, I was trained in a number of financial tools and investment vehicles, gaining a basic understanding of the economics of running a business. Lastly, at Fidelity I was taught how to effectively communicate goals and promote a business through the production of ad posters as well as company stationary. I have a background in aviation: my father, two of my uncles and my grandfather are all pilots, flying is in my blood. I am currently logging hours in my Pilot Log so I can take my check flight and attain pilothood. Concurrently, I have been assessing the region trying to answer why flight training is so hard to come by in the Rogue Valley. The answer, as I found, was, by itself, pilot education is not profitable; however, when coupled with other aviation services often found at an FBO, a business can be quite profitable.

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Lastly, the most important asset I have is my will. I do not give up; I will always find a way to get the job done. Also, I take healthy risks but never too much as I like to protect myself against the inevitable. I have the drive to succeed. My business experience, internships, background in aviation, and drive to succeed have honed me to found and lead AmoLines to be the premier fixed base operator in the Rogue Valley, possibly the West Cost. B. Trading Area Analysis Nestled between the Cascade Range, the Siskiyou Mountains, and the Coastal Mountains is the Rogue Valley, a beautiful home to nearly a quarter of a million Southern Oregonians. Commonly viewing themselves as separate from the rest of the state, the people of the valley are active in the outdoors with year-round recreation afforded by the seasonal climate and distinct terrain. Located at the halfway point between Portland, Oregon and San Francisco, the Rogue Valley is the only intermediate market other than Redding, California and Eugene, Oregon along the Interstate 5 corridor linking the two large markets. This area has a regional hub of Medford, with many suburbs: Ashland, Talent, Phoenix, Jacksonville, Central Point, White City, Eagle Point, Gold Hill, Rogue River and Grants Pass, roughly following I-5 from south to north (SOREDI). With several small private airports dotting the area, the Rogue Valley has an active flying community focused at Medford Airport (MFR). There are three enterprises with charter services and fuel services; however, there exists no flight school or airplane rental services at Medford Airport. The people of the Rogue Valley, nearly 275,000 according to SOREDI, can be dissected into many partitions such age group, sex, marital status, income and education

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levels when carving out an estimated target market. When analyzing the demographic data for Jackson County, the estimated target market using mean methods and derived estimated target market using multiplicative methods for AmoLines Educational division would be 58,000 and 1500 fifty-eight thousand and fifteen hundred, respectively. In the same way, our Air Charter market would be ETM = 52,000 and a dETM = 115 and the Aviation Services market would span ETM = 78,000 and dETM = 13,000 (Factsheet). Although small, the nature of an expensive marketplace still allows for a favorable business situation. For more information on the demographics and estimated target market see Appendix: Market Segments. Being the high price points and inherent expense among the industry, the gross income and economics statistics of the Rogue Valley show what should prove to be a successful venture. More specifically, according to US Census data, a median family income of fifty-five thousand dollars, allowing monies for spending on leisure and possibly vocational training. Additionally, the workforce of nearly 98,000 with 88 per cent having earned a high school diploma (SOREDI), the human resources for AmoLines are more than existent. As proof of success of the aviation industry in the Medford area, more than 600 are employed in aviation ventures, most notably the heavy lift helicopter company Erickson Air-Crane (SOREDI). In many ways isolated from the rest of Oregon, the region of the Rogue Valley in the south of the state is a strong community for a new business such as AmoLines Air Service because of the strategic location midway between two large west coast markets, its people and their interests, and most importantly economically, the Medford area can financially support our company.

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AmoLines Air Service will provide a number of services to their customers: aviation fueling, aircraft maintenance, avionics, air charter, aircraft rentals, hangaring and tie-downs, and the loss leader of aviation education. As can be seen in the proposed marketing strategies section, this service of FAA education and certification will only add to the customer base of the company and earn a loyalty before the competition can engage the customer. Company Medford Air Service Products & Services: Address Phone 4002 Cirrus Drive, (541) 779-5451 Medford, Oregon (800) 427-0290 Medford Airport Aviation Fuel & Oil Aircraft Maintenance Hangaring/ Tie-down storage Website http://www.medfordairservice.com/

(Medford Air Service) Medford Air Service will be the toughest competition as they currently have the largest market share. The strength of their business is a near monopoly in providing aviation fuel services. By entering with lower price point we can leverage the market segment in favor of AmoLines. Company Million Air Products & Services: Address
2040 Milligan Way,

Phone

Website http://www.millionairmfr.com/

Medford, Oregon (541) 842-2254 Medford Airport Air Charter Aviation Fuel & Oil Hangaring/ Tie-down storage

(Million Air) Million Airs appeal is to the air charter and private business transport market; offering the tie-down storage for visiting bizjets and refueling services. Otherwise, many of Million Airs accommodations are through partnership with Superior Air Charter. Company Address Phone Website

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Superior Air Products & Services:

2040 Milligan Way,

(541) 842-2250 Medford, Oregon (541) 842-2254 (888) 842-0550 Medford Airport Air Charter Aircraft Sales Aircraft Maintenance

http://www.flysuperior.com/

(Million Air) Superior Air Charter has a niche market stemming from its venture in aircraft sales. By providing post-transaction maintenance services for their customers, Superior Air Charter holds on to their established market share in an otherwise bland aviation services competition. Our disadvantage is a lack of name recognition and market share. The educational division of AmoLines Air Service will be the niche through which we gain our market share. Instead of only fighting for the customers of our competition, we will increase the market itself relying on our FAA certification programs. Additionally, we will earn a market share for fueling by offering the superior products of Chevron Global Aviation, introduced at competitive price points. Our greatest advantage as a company will be the wide array of products and services we offer when compared to the competition. C. Market Segment Analysis With the three distinct divisions, AmoLines is poised to enter the Rogue Valley marketplace, secure a market share and reap the benefits of a successful venture into the aviation services market. Educational Market Demographics Age: 18 - 25 Sex: Male Marital Status: Single

Psychographics Experiencers: Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers,

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Income: $20K to $30K Education: HS, some College Occupation: Student Air Charter Market Demographics Age: 30 - 55 Sex: Male Marital Status: Married Income: $200K+ Education: College Graduate Occupation: Administrative Aviation Services Market Demographics Age: 25-55 Sex: Male Marital Status: N/A Income: $40K to $80K Education: HS, some College Occupation: Professional, Pilot

Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.

Psychographics Innovators: Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services.

Psychographics Experiencers: Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.

When analyzing the demographic statistics for the educational market and comparing with Jackson County totals the estimated target market totals 58,000 with a derived number of 1500 using the methods described in the Trading Area Analysis section. Similarly, the air charter ETM = 52,000 and dETM = 115 and aviation services ETM = 78,000 and dETM = 13,000. When looking at these market segments, the success my fall into question because of relatively small numbers; however, two other factors which will play vital roles in AmoLines success are the inherent expensive nature of the

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industry as well as the 80/20 Rule which suggests eighty per cent of profits come from only 20% of the clientele. With the derived target market we are just honing in on the specific twenty per cent to focus business promotions toward. D. Analysis of the Potential Location Location, location, location. Often referenced as the key to success, AmoLines Air Service is no different. With several private airstrips, two small airports and one controlled airport with commercial flights, locating our business at Rogue Valley International Airport will be vital to our success because of both the commercial air traffic and general aviation the hub attracts. Specifically, AmoLines will be strategically placed on the east side of the main runway, 32-14. The west side, being fully developed and without room to expand, is quickly becoming outdated. The future of the airport is to the east side, land is cheap and easy to come by with grand easements given by non-aviation based businesses. The parcel itself is an expansive 88.9 acres located at 4700 Industry Drive, a spur from the arterial Vilas Road which carries nearly thirteen thousand cars everyday (City of Medford). Currently owned by Airport One, LLC this vacant lot is valued at $180,000 (Jackson County). This not only allows us to build exactly what AmoLines will require; but, because of the property limitations on the west side, the east side of the airport will soon be booming. We can purchase this lot now inexpensively and reap the rewards as the value undoubtedly increases, possibly in upwards of $800,000. The site will be both an investment in the business because of location as well as for the business because of the strategic position for the future of the airport.

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IV. Planned Operation of the Proposed Business A. Proposed Organization AmoLines Air Service will be the function of two Oregon Limited Liability Corporations: Olson Property Management LLC and Amidon Aviation LLC. Olson Property Management will be a joint venture with my uncle Vic Olson, who will have the controlling 51% share. The role of OPM LLC we will be the development of the parcel aforementioned. Vic, with his background in property management and General Contractor License, will be responsible for negotiating the purchase, constructing the buildings, paying real estate insurance and property taxes. Amidon Aviation will own the business itself, including, but not limited to, the company rights, furnishings, equipment, signage, and inventory. Similar to OPM this will be a joint venture; however, I, James Amidon, will have the controlling 51% share; I am looking to offer 49% in exchange for capital. Amidon Aviation will be responsible for leasing and paying rent to Olson Property Management LLC in addition to maintenance and leasehold improvements. I, James, will secure the capital investment needed to commence business operations. Benefits of forming the described dual corporations (Lewellyn): Tax advantages no company tax filings, avoids double taxation. Limited liability partners free from personal liabilities, separation between property and business liability. Stock options either LLC can sell stock to generate income. Operations flexibility less regulated than standard corporations, treated like a partnership.

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AmoLines Air Service Organizational Chart

At the peak of the organizational pyramid is the triumvirate of the two owners and Aviation Manager. The position of Aviation Manager, a GM like position with specialization in the aviation industry, will be salaried at $156,000 DOE and will be expected to work with the owners to effectively communicate the ownerships visions. Heading the Education division is a Chief Certified Flight Instructor (CFI) who will be responsible for hiring, training, and working alongside both the classroom and in-flight CFIs to ensure a complete educational experience. To lead the core of our business, the Aviation Services division we will employ an Administration Supervisor who will be responsible for hiring all positions in their division. In addition to aviation services, this division will be responsible for payroll, ordering, scheduling, and building maintenance. Lastly, running the Air Charter division of AmoLines will be the Charter Director whose individual duties include, but are not limited to, hiring, training, and securing clientele for our air charter market. Company wide marketing will be assigned to the Aviation

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Manager and the owners. For more information on individual salaries and labor costs see Appendix: Labor Costs. B. Proposed Services AmoLines is poised to be successful because of our strategic mix of services currently unavailable in the Rogue Valley alongside a number of services which are easily accessible. We have a wide range of services with accompanying products, broken down by company division: Education Ground School o Fixed-Wing o Rotorcraft (helicopters) Private Pilot o Single-engine o Multi-engine o Land o Sea o VFR o IFR Commercial Pilot (All Classes) o Pilot-for-hire o Commercial Passenger Pilot Air Charter Piloted Charter o Business Charter o Single/ Family Charter o Group Charter Airplane Rental o Day Rental o Trip Rental Aircraft Storage o Hangaring o Tie-down Aviation Services Maintenance o Annuals o Airframe/ Powerplant Repair o Avionics Installation

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o General maintenance Fuel Service o 100LL o Jet-A o aviation engine oil With such a wide array of products and services, it is essential to AmoLines

success to have honest, high-quality suppliers. For our fuel services, we have chosen Chevron because of their superiority in the petro-energy industry; AmoLines will be the only FBO on the west coast to offer this brand. For our education and much of our aviation services we will be buying from Aircraft Spruce. This is a well known company with a commitment to quality and product offerings from avionics and aircraft mechanisms to pilot supplies for all aircraft, manufactured or homebuilt. Because of the nature of the business, our inventory policies will be basic as most of our products will be ordered from our suppliers at the point of sale. Less costly items, such as educational materials, may be held in some stock which will increase in accordance with promotional activities. For more info, see Appendix: Suppliers. C. Proposed Marketing Strategies When establishing pricing policies for AmoLines, we will closely consider the pricing of our direct competition. Our general product mark-up will be around 30% plus labor for installation; this is on par with our local competitors. Sample Prices Product Lotus Amphibious Floats Garmin Avionics Panel Tempest Carbuerator Bendix Magneto VFR Sectional Chart 100LL Fuel (per gallon) Jet-A Fuel (per gallon)

AmoLines Price Top Competitors Price $28590.00 $26480.00 $7835.00 $8120.00 $1376.00 $1429.00 $787.00 $756.00 $9.50 $11.00 $3.69 $3.83 $3.97 $4.09

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(Medford Air Service, Million Air) Market availability is subject to change as are our corresponding prices. Most products ought to stay relatively stable with small inflation-based increases in price; however, fuels are subject to fluctuation depending upon oil prices, we will compensate accordingly. AmoLines promotional program will mainly focus on our Education and Aviation Services market segments because they are so closely aligned. For our Air Charter division, most promotional activities will be personal meetings with local business partners. We plan to implement a unique program of nonpersonal promotion alongside public relations events to gain renown. First, we plan to run 15 seconds advertisements on the Radio Medford network of stations: Lite 102, My Mix 93, KBOY Classic Rock, Hank FM Country. A 15 second clip with 600 plays per month will run around $480 (Radio Medford). AmoLines will consult with local web designers to produce a small airport directory, FBO search app for a Blackberry or iPhone which will increase sales among airmen for a small price of around $1000 (iPhone). We have elected to also paint a billboard atop our main hangar showing our services for pilots on the final approach. Lastly, AmoLines will employ the masses of social media with a fan page and similar company profile on Facebook and LinkedIn, respectively. Throughout the year we will reach out to all of our customers through a number of events beginning with a grand opening open house to present our business to the community. Over the weekend leading to Independence Day, we will put on an acrobatics air show, the first time in the Rogue Valley in more than ten years. Our most

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emotional exhibit will be our Veterans Day Military Showcase in honor of those who have served their country at home and abroad. A complete list of events is below: First Year Promotional Program Occasion Event Open, press release April 1 Grand Opening, Open House April 30 Airport Awareness Day, Kids Day Memorial Day weekend th Acrobatics Airshow July 4 weekend Country Fly-in Labor Day weekend Military Showcase, USAF, Air National Guard Veterans Day weekend Flight School (discounted) New Year (January) Spring Fling St. Patricks Day With the number of competitors we have, it will be quintessential through our promotional activities we show what we offer that our competition cannot: Pilot education; we also need to focus on the community and earn their respect and trust through our personal promotional activities. V. Planned Financing A. Projected Income and Expenses Projected sales of $5.4 million in the first year show the modest optimism for the venture. With a conservative growth of 7% annually, and a stable cost of sales around 35%, over three years Amidon Aviation LLC will have netted more than $1.6 million. See the following Projected Income tables and Balance Sheet (Industry):

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AmoLines (Amidon Aviation LLC) Projected Income Statement for First Year Month 04/2011 05/2011 06/2011 07/2011 08/2011 09/2011 10/2011 11/2011 12/2011 01/2012 02/2012 03/2012 Sales 378260 446010 465320 508490 494950 485370 463860 445690 448510 419890 409670 424580 Cost of Sales 156450 148690 162440 182230 169960 162890 165340 153020 147230 138980 139410 147620 Gross Margin 221810 297320 302880 326260 324990 322480 298520 292670 301280 280910 270260 276960
74664 10370 40000 480 25000 37513 29036 41000 258063 39257 10000 29257 34817 54197 57407 10000 10000 10000 44817 64197 67407 64897 10000 54897 258063 262063 257583 257583 41000 41000 41000 41000 41000 257823 40697 20000 20697 29036 29036 29036 29036 29036 37513 37513 37513 37513 37513 25000 25000 25000 25000 25000 480 4480 240 240 25000 37513 29036 41000 257823 34847 20000 14847 40000 40000 40000 40000 40000 40000 10370 10370 10370 10370 10370 10370 74664 74664 74664 74664 74664 74664 74664 10370 40000 480 25000 37513 29036 41000 258063 43217 20000 23217 25000 37513 29036 41000 257583 23327 20000 3327 25000 37513 29036 41000 257583 12677 20000 -7323 74664 10370 40000 74664 10370 40000 74664 10370 40000 240 25000 37513 29036 41000 257823 19137 20000 -863

74664

10370

40000

1480

25000

37513

29036

Salary/ Wages Benefits/ Pensions Lease Advertising Equip. Depreciation Amortization Payroll Tax Other SG&A

41000

259063

Operating Expenses Operating Income

-37253

Owner Draws

10000

Net Profit

-47253

AmoLines (Amidon Aviation LLC) Projected Income Statement for Three Years Fiscal Year Q2 2011 - Q1 2012 Q2 2012 - Q1 2013 Q2 2013 - Q1 2014 Sales 5390600 5772400 6135700 Cost of Sales 1874260 2010980 2289610 Gross Margin 3516340 3761420 3846090 Salary/ Wages Benefits/ Pensions Lease Advertising Equip. Depreciation Amortization Payroll Tax Other SG&A Operating Expenses Operating Income Owner Draws Net Profit
895968 124440 480000 8120 300000 450156 348432 492000 3099116 417224 180000 237224 895968 124440 480000 6880 300000 450146 348432 540000 3145866 615554 240000 375554 895968 124440 480000 6880 300000 450156 348432 594000 3199876 646214 240000 406214

AmoLines (Amidon Aviation LLC) Projected Balance Sheet December 31, 2011 Assets Liabilites & Equity Current Assets: Current Liabilities: Cash Accounts Payable 4569 28560 Receivables Accrued Payroll Taxes 45870 261324 Inventory 37650 Long Term Liabilities: Loan Payable Fixed Assets: 1913163 Equipment 3465900 Owners Equity: Depreciation Owners Draw 225000 120000 Furnishings Business Net Worth 245400 1585825 Depreciation 27600 Other Assets: Deposits 242083 Total Assets:
3788872

Total Liabilities & Equity:

3788872

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B. Proposed Plan to Meet Capital Needs AmoLines is a high capital business, and with high risk comes great reward. Startup capital required will be $4 million, which I plan to raise through two means: $2 million venture capital investment for a 49% share; $2 million business loan amortized over five years. This venture capitalist earn back investment over eight years using progressive drawing techniques; in addition, they will have a 49% share in Amidon Aviation, a business grossing in upwards of $6 million in three years. The monthly amortization of the loan has been figured into both projected income statements as well as the end of the year balance sheet. VI. Conclusion AmoLines will re-invent the idea of a fixed base operator in Medford, Oregon. We have a sound target market for each division and we will constantly be increasing our customer base in all phases because of our pilot education and certification programs. Employing unique media for our advertising we will reach a broader market, increasing our market segment further, therefore increasing our revenue streams. As an experienced aviator and well versed businessman, I request a $2 million business loan to be repaid over five years at a fair 4.75 A.P.R. Additionally, I ask for a $2 million investment in exchange for a 49% share in my company which has incredible growth potential alongside high value assets with low depreciations.

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VII. Bibliography Aircraft Spruce. 2009. 15 April 2009. <http://www.aircraftspruce.com/>. Average Salary Information. Salary.com. Kenexa. 31 Jan. 2011. <http://www.salary.com/salary/index.asp>. Aviationwise. 2009. 22 April 2009. <http://www.aviationwise.org/>. Aviation Supplies & Academics. 2009. 15 April 2009. <http://www.asa2fly.com/>. Barker, Emily. The Bulletproof Business Plan. Mansueto Ventures LLC. October 2001. 1 April 2009. <http://www.inc.com/magazine/20011001/23484.html>. Chevron Global Aviation. 2008. 15 April 2009. <http://www.chevronglobalaviation.com/>. City of Medford Oregon. 2009. 30 April 2009. <http://www.ci.medford.or.us/index.asp>. The Entrepreneurship Test. Liraz Publishing. 2009. 15 April 2009. <http://www.liraz.com/webquiz.htm>. Fact Sheet: Jackson County, Oregon. U.S. Census Bureau. 2007. 22 April 2009. <http://factfinder.census.gov/>. Farmers Commercial Real Estate Insurance. Farmers Insurance. 31 Jan. 2011. <http://www.farmers.com/commercial_real_estate_insurance.html>. Google Maps. TeleAtlas. 2009. 30 April 2009. <maps.google.com/>. Gumpert, David E. The Basics of Business Plans: Sell, Sell, Sell. Mansueto Ventures LLC. October 2000. 1 April 2009. <http://www.inc.com/articles/2000/10/14871.html>. Hosting Details. Project A. 15 May 2009. <http://www.projecta.com/Page.asp?NavID=31>. Industry Financial Profile (Fixed Base Operator). Camp Hill, PA: BizMiner, Nov. 2010. iPhone Developer Program. 15 May 2009. <http://developer.apple.com/iphone/program/>. Jackson County Front Counter Application. Jackson County Oregon. 30 April 2009. <http://web.jacksoncounty.org/fca/index.cfm>.

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Lewellyn, Bart. "Small Business." Personal interview. 21 May 2010. LLC Advantages - LLC Disadvantages - Why Form an LLC - Entrepreneurial Resources - Tips for Entrepreneurs - Gaebler Ventures - Chicago, Illinois. Entrepreneur Resources. Gaebler Venture Capital. 31 Jan. 2011. <http://www.gaebler.com/LLC-Advantages.htm>. Medford Air Service. 2006. 21 April 2009. <http://www.medfordairservice.com/>. Methods For Determining Price. American Express: Small Business. 2009. 12 May 2009. <http://www133.americanexpress.com/osbn/Tool/biz_plan/description/ pricing_tool.asp>. Million Air. 27 Jan. 2011. <http://www.millionair.com/FBO/mfr.aspx>. Pricing Strategies. Marketing Teacher. 2009. 12 May 2009. <http://www.marketingteacher.com/Lessons/lesson_pricing.htm>. Radio Medford. 31 Jan. 2011. <http://radiomedford.com/Index.asp>. Seven Low-Cost Marketing Ideas. AllBusiness. 13 May 2009. <http://www.allbusiness.com/marketing-advertising/internet-marketing/ 868-1.html>. Small Business Advertising Basics. AllBusiness. 13 May 2009. <http://www.allbusiness.com/marketing/advertising/1417-1.html>. Southern Oregon Regional Economic Development, Inc. 2009. 22 April 2009. <http://soredi.org/>. The VALS Segments. SRI Consulting Business Intelligence. 2008. 17 April 2009. <http://www.sric-bi.com/VALS/types.shtml>.

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VIII. Appendix Market Segments: Education Market Demographic Total Population of Jackson County Age: 18-25 Sex: Male Marital Status: Single Income: $20K to $80K Education: HS, some College Estimated Target Market Derived Target Market Population Percentage 207,745 100% 18,533 9% 100,988 49% 39,370 48% 49,586 59% 81,209 57% 57,937 28% 1,480 0.712% (SOREDI)

While the Estimated Target Market is 28% of the population, the expected customer base (derived ETM) is set as 0.7 % (1480) after compilation of all demographics accounted.

Air Charter Market Demographic Total Population of Jackson County Age: 30-55 Sex: Male Marital Status: Married Income: $200K+ Education: College Graduate Estimated Target Market Derived Target Market Population Percentage 207,745 100% 71,072 34% 100,988 49% 42,962 52% 1,502 2% 44,058 31% 52,116 25% 112 0.054% (SOREDI)

The Estimated Target Market is 25% of the regional population, however the derived ETM is 112, a small number; the product is very expensive (as income suggests) which makes up for the small customer base.

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Aviation Services Market Demographic Total Population of Jackson County Age: 25-55 Sex: Male Income: $40K to $200K Education: HS, some College Estimated Target Market Derived Target Market Population Percentage 207,745 100% 84,201 41% 100,988 49% 44,749 53% 81,209 57% 77,788 37% 12,608 6.069% (SOREDI)

The Estimated Target Market is 37% of the Rogue Valley; when all factors are combined, the derived ETM is 12,608 leaving quite a hefty market from which profits can be gained. Labor Costs: Monthly Labor Costs Position Aviation Manager Chief CFI Classroom CFI In-Flight CFI Administrative Supervisor Administrative Professional x2 Airframe & Powerplant Mechanic Avionics Technician Fuel Technician x2 Aircraft Maintenance x2 Air Charter Director Crew Chief (Pilot) x2 Co-Pilot x2 Flight Attendant x2 Chauffer

Base Hourly Average Average Salary Wage Hours Compensation $13,000 N/A 160 hrs. $13,000 $7,500 N/A 120 hrs. $7,500 $5,900 $20.00 60 hrs. $7,100 $5,500 $12.50 60 hrs. $6,250 $3,200 $11.25 160 hrs. $5,000 N/A $15.00 120 hrs. $1,800 $2,750 $8.75 160 hrs. $4,150 $2,650 $6.25 160 hrs. $3,650 N/A $12.50 120 hrs. $1,500 N/A $12.50 160 hrs. $2,000 $3,000 $20.00 160 hrs. $6,200 $5,650 $40.00 60 hrs. $8,050 $5,150 $25.00 60 hrs. $6,650 $3,000 $20.00 60 hrs. $4,200 $1,250 $30.00 40 hrs. $2,450 $103,700 Monthly Labor Costs Annual Labor Costs $1,244,400 (Average Salary)

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Salaries and hourly compensation are subject to change as business progresses to allow for more consistent paychecks. Suppliers: Company Address Phone Website Chevron 1500 Louisiana St (832) http://www.chevronglobalaviation.com/ Corp. Houston, TX 854-5927 Productmm Chevron provides its customers with the highest quality aviation fuel Offerings: available. AmoLines will be the only FBO on the west coast to offer both Chevron Jet-A and 100LL fuels. (Chevron) Company Address Phone Website Aircraft Spruce 225 Airport Circle (951) http://www.aircraftspruce.com/ & Specialty Co. Corona, CA 372-9555 Productmm Aircraft Spruce wholesales any part required for nearly any Offerings: maintenance or installation project for manufactured aircraft; also, they supply a number of products for home- and kit-built airplanes. In addition Aircraft Spruce offers pilot supplies of all types for our Education market. With Aircraft Spruce, AmoLines will offer the best product line alongside first-rate installation to our customers. (Aircraft Spruce)

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