Side business

[waveflyer]

I know of several people that seem to do alright buying, fixing, and flipping busted up and broken cars. Buy a car with a blown motor for 1000 bucks, put a 500 dollar motor in it, and flip it for 2000 bucks. Everyone wants a 2000-3000 dollar car. Down side is that if you don't know what you are doing, you will get eaten alive in parts cost.

This kind of thing is for the car guys-
If you'd be installing motors on your off days no matter knock yourself out-
But I'll gross twice that with a premium turn- and not have to buy a car, shop and buy a motor, install it, and sell said car- and handle the tax side (which is the only real way this could be worth it $$-wise- but it's still work)
Unless you want to hire people..and get to a bigger scale..which is it's own issues.
Though meeting a payroll, should be on everyone's man card

Can't imagine Vegas to PDX and back wouldn't be easier...
That's where I agree with the previous poster.

Side businesses do compete with our ability tojust pick up a trip
Keep these kinds of businesses more as a semi paid hobby

For me, I wanted real money if I was to get involved - pay off my house money- and I've been able to-
But it would not have paid off if I hadn't been furloughed and been able to really work the foundation. And not sure id have taken the same risk today.
Very happy to be past that stage and in position to get out completely

 

[whymeworry?]

I had a R.E. business. Pretty basic in term of flipping for profit. But while I made a lot of money in some years, I equally lost a lot during others. I never had a moment of free time, I was always working on something, between the pilot gig, raising two kids, time for my wife, and working on almost endless R.E. projects. Frankly, I was burning the candle at both ends and all for what? A few extra bucks? Meanwhile, my buddies were always living unencumbered. If they weren't sitting around at home relaxing, they were traveling and enjoying more than a day at an foreign locale (far better travel experience than a pilot).

So I gave it all up and have ZERO regrets since. Like many on here have stated, you're better off just picking up a trip/ turn. Then again, that extra flying will burn you out as well. Life is a balance. The reason the FAA limits the hours we fly is so that we can properly recuperate. IOW, you can only work so much in your time off.

Most business-owners put in 80+ hr weeks in the first 5 years to make it all pay off. That's a tough thing to pull off as a pilot. I'm not saying it can't be done. I did it. But I nearly killed myself trying doing it all. I think I read a story once where it said 90% of all businesses fail in the first 2 years, and of that remaining 10%, 90% will fail in the following 5 years. Not sure whether that is true or now.

The basic premise of running a business for profit is pretty straight-forward. What a lot of people fail to take into account is that once you're a business, everyone has their hand out... practically EXPECTING a handout. From employees, to consultants, to contractors, to government bureaucrats, to insurance companies, to banks, to customers. Your job is to funnel all that into an something that is a cost-plus business model. Which works, most of the time, but when governments or insurance companies change the rules of the game overnight, sometimes it's difficult to pass on those costs to a fickle consumer.

I have a huge respect for entrepreneurs for all they have to go through.

 

[PCL_128]

Running a successful business is not really something to be done "on the side." If you're willing to give up aviation, then there are plenty of great businesses out there that you can start and run, being your own boss. But it will be a lot of work the first few years, and trying to fly full time at the same time is unrealistic.

 

[waveflyer]

So when's your yogurt shop open, pcl?

 

[PCL_128]

So when's your yogurt shop open, pcl?

Yogurt? You mean milk that's gone bad? No thanks.

 

[Ticker]

Landlord. The second oldest profession known to mankind.

I bought a rental property that I planned on owning long term. Figuring in all my expenses and allowing for future expenses like a roof every 20yrs, water heater every 10yrs etc I came up with a basic formula to figure my cash on cash return based on realistic rental rates. It's not just cash flow month to month, it's return on investment. You don't make your money when you sell the property, you make it when you buy it. I ended up with a 17% cash on cash return. I miscalculated initially and thought I was under 10%. Boy was I happy. Pay too much and you may end up praying to just break even if you have to sell early. That's what happened to the flippers. They were speculating. Gambling. Some got lucky. Many got bit.

My life took a turn and I had to sell. I did not want to be living in a different city than where my property was. Anything you have to pay somebody else to do eats in to your return. I decided to sell. I got lucky, I sold in the middle of the upswing. I made a nice 6 figure profit. I cleared my debt and had a nice cushion when the crash happened. It saved our butts!

I'm seriously considering getting back into the rental business. I had an excellent mentor who helped me along and kept me from making some big mistakes on my first purchase.

 

[Dumb Pilot]

Running a successful business is not really something to be done "on the side." If you're willing to give up aviation, then there are plenty of great businesses out there that you can start and run, being your own boss. But it will be a lot of work the first few years, and trying to fly full time at the same time is unrealistic.

Nonsense....! I'm running my real state investments without a problem, and I have properties abroad as well. Speak for yourself!

 

[PCL_128]

Nonsense....! I'm running my real state investments without a problem, and I have properties abroad as well. Speak for yourself!

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

 

[Dumb Pilot]

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

As a matter of fact, yes I could. I don't only have investments, I am running construction projects as well, and no! my wife has her own thing going.

 

[Dumb Pilot]

Several of my colleagues here have side business...! So your argument is that there is no way you can manage two or more business at a time?? A good friend of mine has 3 business ventures in three different continents and flies for a major in the US. I know several pilots that have side business, another friend of mine flies corporate and has 4 cafeterias in south Florida.

 

[PCL_128]

As a matter of fact, yes I could. I don't only have investments, I am running construction projects as well, and no! my wife has her own thing going.

I'm impressed! Good for you. Not many people would be able to pull that off.

 

[PCL_128]

Several of my colleagues here have side business...! So your argument is that there is no way you can manage two or more business at a time??

Two or more established businesses? Certainly. Two or more more start-ups? Hell no. Not a chance in hell.

 

[kf4amu]

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

I agree with this. My real estate is designed to have a little of my involvement as possible, and only then it's on my own schedule. I run it as seriously as a business, but I wouldn't call it a business.

 

[Dumb Pilot]

Two or more established businesses? Certainly. Two or more more start-ups? Hell no. Not a chance in hell.

Yeah..! Because half a month off is just too little time to use your imagination and delegate work.

 

[PCL_128]

Yeah..! Because half a month off is just too little time to use your imagination and delegate work.

In a couple of start-ups, who exactly are you delegating work to? Because unless you're starting out already wealthy, then start-ups don't have the resources to have employees sitting around who work can be delegated to. A pilot starting up a few businesses certainly isn't going to have those sorts of resources, unless he's fallen assbackwards into a massive inheritence.

Sorry, but I'm calling BS.