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The victors aren’t always victorious in the ways that we think. There aren’t always bloody battles with one (wo)man standing carrying a flag shouting “victory!” because they fought valiantly and for a just cause and won.  The “just” don’t always prevail in the standard sense and sometimes getting out of the line of fire to try another time is all that can be asked for.

So what happens when the ones telling the story are the only ones who wouldn’t be covered by confidentiality laws and who are unhappy about how things went?  This is something I have been struggling with.

Leadership is lonely at times, especially when you have had to make tough decisions.  We all have our failings and it turns out most people will point their finger somewhere else when things go awry.  Don’t be deceived, when times are tough, the leader is the one answering for those they placed their trust in, invested resources in, and planned the business around.

Sometimes, the wearied soldier with the flag is the only one you won’t hear from.

In my previous blog post, I reflected on one of the two major issues that lead to the decision to sell my aviation company.  Having covered the extended closure of the main runway at the McMinnville Municipal Airport as the first factor, now I’ll touch on the other… maintenance on a major piece of equipment.

One of the most challenging issues working in aviation is the enormous amount of capital needed to start and run your business.  Whether you are leasing or owning the equipment, aircraft that meet the more stringent maintenance requirements for commercial applications are quite an investment.  Most maintenance follows a strict schedule established by aircraft manufacturers, regulators, and company policy so that the majority of maintenance issues are found upon inspection, not in flight.

The challenge then becomes timing of major maintenance with the ebb and flow of the seasons, mandated intervals, and the maintenance provider’s workload.  We had been planning to have the helicopter in for overhaul for two years.  We carefully priced and promoted services to ensure that we got the most money out of the helicopter before it went in for overhaul.  Our pilot landed the helicopter on the maintenance ramp the moment it was due for maintenance, without a minute to spare.  Every moment paid for.

I spent six months securing the funds for this overhaul and we did everything we could to ensure the maintenance shop would have what they needed to keep to the 3 month timeline.  While we pursued leasing options for a replacement helicopter, the rates these leasing companies wanted meant we would need to practically double the price to our customers which didn’t make sense in the current, more competitive market.   So we cut the helicopter program for the summer.  Not a big deal, once the runway reopened in 3 months we’d be generating enough revenue and the helicopter would be back shortly after securing our position.

It took 6 months (instead of 3) for the helicopter overhaul, and while the revenue from the helicopter operations represented less than 25% of our total revenue, the cash generated from it’s operations might have bought us some time…  if the runway project had an end in sight.

There were several reasons I decided to sell my business but, if I’m completely honest, it was a necessity.  In the end it was two big factors that affected the need to sell;  1) an extended construction project practically eliminating fuel revenue in the off-season and 2) major maintenance on a key piece of equipment.  Neither of these issues were contingencies in the original plan and, despite our best efforts to offset their impact,  at some point it was clear selling the business was the best option.

A 6 month main runway closure was included in the original business plan.  There were enough cash reserves for 6 months and City Staff had assured me that there was language in the contract that would allow for an accelerated timeline. What I didn’t plan for was the indefinite extension of the project.

That promise made to me by City Staff to pursue accelerating the timeline quickly vanished when I approached the topic 7 months prior to the start of the project (after hearing nothing about the progression of the project plans).  When I tried to exercise my role as Airport Manager and advocate for review and  acceleration of the project timeline at the Airport Commission, it became painfully clear to me what people thought of my role as Airport Manager.

The indifference of the people with the power to influence what was going on was mind boggling.  Community leaders would diminish my role when I challenged them to take a closer look at the project that had bypassed their approval.   One went so for as to minimize the significance of a $7m grant funded project saying “it’s free money.” Later, I would receive the scripted phrase “it’s allowable by contract” when challenging the contractors lack of progress.  What was becoming a joke to the contractors, project managers, and City Staff was literally destroying my business.

 

After a test flight in aviation, I am getting back to my roots!  It was a great experience learning the challenges small business owners face.  Balancing the demands of managing financials, employees, vendors, and regulatory issues is no small task. Add to that industry dynamics and local politics, the small business owner needs all the help they can get.

Sometimes, even when all the plans, educated decisions, and financial resources are in place, the odds seem stacked against us.  It’s all we can do to keep an eye on the horizon and keep moving forward.  With all the obstacles, the way forward isn’t always what we intended but it gets us closer to the end goal… financial progress and renewed opportunity.  I’ll take it!

So now I’ve decided to start a blog to talk about my experiences in business planning, financial management, business etiquette, and other topics.  I thank you for joining me in this new venture, may you find tidbits of wisdom to help you in your journey.