Airlines are going bankrupt, bank loans are out of the question, venture capital is drying up, which means it is a great time to start a business.
Cirrus spent $70 millions getting 2 prop planes off the ground (optional parachute available... for the PLANE) and now wants to develop a personal jet. The need space: bankrupt Northwest Airlines left Duluth airport in a lurch, so Cirrus picks up real estate dirt cheap.
R&D money has dried up so Cirrus told its customers they could take a place in line for a personal jet for $100,000 down. 541 people forked over the money, so Cirrus has $54.1 million interest free to get the job done. More on the way, no doubt.
The feds are propping up the failing companies. At the same time the fed policies are killing viable companies who rely on bank credit. If you compete on design (cirrus planes have airframe parachutes), no problem. But it is good to know right now is a great time to start a business.
Wednesday, January 7, 2009
Chute Happens
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