[5150dhbiker]

So, like usual I'm here to waste your time with my random rants/questions etc.

Anyways, so I actually stepped up and have started my own business. I'm sick of working for a big company and realized I love aviation a lot so need to do something with it. Sooooo, I'm starting an aircraft sales company with the help of my dad (no, not any financial help).

So, I registered as an LLC, got my EIN # and most of the other paperwork is being filed right now. My problem is....anyone have any suggestions for creating a consignment agreement? I really need to create one since my business is based on sales by consignment.

I've found random templates for them but everything I find has to do with auctions and have no clue how to word it. Last night I created a purchase/sales agreement and that went fine but am stumped with this consignment thing.

Finally, any suggestions or things to avoid with starting your own business? I offer more services then any other aircraft sales company within about 350 miles from here so got that part covered....

Any suggestions would be awesome!!

 

[gonefirefightin]

let me guess.......a worm store?

 

[Quo Fan]

Seriously, contact a local lawyer specializing in the kind of business you are going into. They will have all the CORRECT answers for you. The money you spend on them now will be well spent when something goes wrong with a deal and you have a signed contract that was drafted by a lawyer.

 

[5150dhbiker]

Seriously, contact a local lawyer specializing in the kind of business you are going into. They will have all the CORRECT answers for you. The money you spend on them now will be well spent when something goes wrong with a deal and you have a signed contract that was drafted by a lawyer.

True, only problem is my budget but I'll look into it anyways. I figure there's gotta be certain phrases to say, etc and especially when it pertains to selling airplanes.

 

[buildyourown]

Yeah, you need a real lawyer to make sure your documents have teeth. And then you need insurance to make sure when you get sued you don't loose your business. The most important thing about starting your own business? CASH.
I wouldn't consider ANY type of business w/o $100k seed money. Unless you're flush, you'll need a solid business plan to get that kind of LOC.
There is only one reason businesses fail. They run out of money.

 

[Serial Midget]

Every LLC needs a legal budget - not all lawyers are ambulance chasers, many are capable of providing sound business advise.

True, only problem is my budget but I'll look into it anyways. I figure there's gotta be certain phrases to say, etc and especially when it pertains to selling airplanes.

 

[DirtyMike]

True, only problem is my budget but I'll look into it anyways. I figure there's gotta be certain phrases to say, etc and especially when it pertains to selling airplanes.

Here is my simple yet effective advice.....

Draw up a proper business plan as to expected income, expected costs etc... get a small busines sloan, and use the cash from that to get all your legal inline.

The advice on the lawyers is the best you can have. Just fit that into your business plan expenses and you should be good

 

[mantispf2000]

Seriously, contact a local lawyer specializing in the kind of business you are going into. They will have all the CORRECT answers for you. The money you spend on them now will be well spent when something goes wrong with a deal and you have a signed contract that was drafted by a lawyer.

Besides a lawyer, a bookkeeper/CPA will help with the finances, unless you're good in that field. If I may (shameless plug time), my dad is a CPA/business adviser, and is always looking for business. IF, and this is a big IF, you're interested, I can give you his number. He's in Lancaster, and does a fair amount over the 'net.

Just a friendly offer from one monkey to another........

 

[valve bouncer]

let me guess.......a worm store?

Lollolita
You set fire to that boy's dreams! Someone hit up this battle scarred sob with +rep.

 

[5150dhbiker]

Yeah, you need a real lawyer to make sure your documents have teeth. And then you need insurance to make sure when you get sued you don't loose your business. The most important thing about starting your own business? CASH.
I wouldn't consider ANY type of business w/o $100k seed money. Unless you're flush, you'll need a solid business plan to get that kind of LOC.
There is only one reason businesses fail. They run out of money.

Well my dad is involved with it so we have a decent amount of cash behind it. Even though I'm paying everything up front he said he can always bail it out and take it over if I fail

But I think I have a connection with a pretty good lawyer. The nice thing about this business is the fact that it (except for the lawyer costs) is a stupidly cheap one to start. Insurance is kind of expensive but really not that bad.

I'm all done with my business plan minus the financial aspect. That part I'm working on right now at work (stupidly slow today). Also, I've noticed that a lot of aircraft sales companies take a 10% comision here in California. Do you think it would be smart to draw people to me by offering a lower rate at first? I'm talking like 8% or even 7.5% for the first few people just so I can get a reputation going, etc.

 

[DirtyMike]

Well my dad is involved with it so we have a decent amount of cash behind it. Even though I'm paying everything up front he said he can always bail it out and take it over if I fail

But I think I have a connection with a pretty good lawyer. The nice thing about this business is the fact that it (except for the lawyer costs) is a stupidly cheap one to start. Insurance is kind of expensive but really not that bad.

I'm all done with my business plan minus the financial aspect. That part I'm working on right now at work (stupidly slow today). Also, I've noticed that a lot of aircraft sales companies take a 10% comision here in California. Do you think it would be smart to draw people to me by offering a lower rate at first? I'm talking like 8% or even 7.5% for the first few people just so I can get a reputation going, etc.

Well, as someone who has worked on starting their own business, had their own business, stepped away, working on going back I will tell you this.... Your business plan is completly useless without the financial aspect. Only part of the plan that means anything about anything when starting up is the financial. The license is the easy part, just go pay the fee and your set.... But to get your financial backing the only thing that matter at all is the financial business plan. In fact that was the only thing I did when I was running my audio business, Its truly the only thing the bank even gives any care about. They didnt care how I was going to run it, they just want to know the cost to run it, and the estimated income from it.... and all money in between


As for your percentages, I will tell you this much... Alot of companies will set what your final sell price will be for you, they wont let a new little guy come in and undercut other people. Its one of those thing you have to think about when you start up a new business. Even when your not franchising, your an approved dealer, they will control your pricing more than you think. Don's bikes here in rialto had this issue, they decided to undercut Cyclery's pricing on anything and everything.... both Trek and Specialized wnet in and removed every peice of product from their store for undercutting other dealers on set prices....... Just something to think about

 

[drkenan]

After owning a business for 7.5 years and going from just me to a staff of 25, I can without a doubt say that the cash flow forecast is your most important tool. Not the "statement of cash flows" built into Quickbooks but a real forecast. Learn about it and update frequently.

Also, treat people like people deserve to be treated. Those two things will put you light years ahead of other business owners.