Chapter 5, Damn – The Invisible Factor:
SOM is an investor term for the Serviceable Obtainable Market which is information that investors are looking for to know and understand the problems and the profit potential with any business, especially the business of business aviation. However, unlike other businesses, TAM (Total Addressable Market) and SAM (Serviceable Addressable Market) and SOM (Service Obtainable Market), in business aviation, none of these markets have ever been correctly identified or harnessed. That is simply, because to date, no one has known enough to, or how to tap into the actual available business aviation related marketplace. But we know exactly what it is, where it is, and how to maximize its profit potential.
Ideally, TAM – SAM – SOM is readily available as it is typically used by, and easily understood by, investors, to understand the risk and potential profits of the market from which he or she is looking to reap returns. Unfortunately, in Business aviation there is only DAMN (Denouement Available Market Numerator) meaning the market is fundamentally unknown. Some call it the “invisible factor.”
Therefore, TAM – SAM – SOM does not work effectively for business aviation. The reason TAM – SAM – SOM is not understood or is sneered at by investors is simply because the real marketplace for business aviation has never been identified. Therefore, currently no one in business aviation knows what the actual market is, how to interrupt it, tap into it, or how to benefit from it, so we have an industry that is extremely expensive, highly regulated and has no discernible market. And currently that is the environment we find business aviation in, but it seriously does not to be that way. Not at all.
Personally, I have created, founded, and developed two billion-dollar plus business aviation markets that no one even knew were there until I made them happen. They are both still out there, although none of the Dunning Kruger wannabes remotely understand what they have. Although, recently one Dunning Kruger did his best to sink one of my creations (simply through ignorance), however, it still survives.
Just because no one has yet to identify the real market does not mean that the market is not there, so whoever does identify it will own it all. Ask William Horton, CEO of Western Union in 1876. When the patent was offered to him for Alexander Graham Bell’s invention for the telephone for $100,000, big chief Horton turned it down and he personally wanted the pleasure of telling Bell that they had no use for an electronic toy. A few years later Bell evolved into AT&T, which is why today no one knows or remembers the name Horton.
Smart businessmen sense what I know to be true, that there is indeed a massive marketplace available for business aviation. The problem is and always has been that the real market has never been tapped into, or developed
correctly, to access its massive potential. Well, fortunately, there is an easy answer available now, a solution that will totally dominate the entire available marketplace while expanding it beyond anyone’s wildest imagination, something that can easily be done if you know what it is, and how to dominate it.
Having gone on now ad nauseam about TAM – SAM – SOM significantly in my last posts, and while I would like to say something brilliant about TAM – SAM – SOM, unfortunately at this time it is not possible, because there is nothing brilliant or good to say about the business aviation market that has never been truly defined and is absolutely misunderstood.
The truth is, that the business of business aviation has never successfully evolved. Granted, aviation has been around now for 120 years, and being stifled in its evolution, implies that the basis of the industry has never developed. But facts be facts.
First, there were the Wright Brothers, then WWI and WWII which sped along the development of aircraft reaching into the jet era. But none of that had anything to do with the business of business aviation. The actual business of business aviation as a profit generator first was attempted in 1962 that I am aware of. 1962 is also the specific point at which business aviation “stalled out” (to use an aviation metaphor), and forward sustainable movement ceased.
Understanding that there were zero innovative ideas, “developing” operators defaulted to mimicking and characterizing each other to the point where the business effectively began parroting the latest version of the last version. So, round-and-round it has gone, without ever maturing, without achieving real growth, development, evolution, or profitability. Therefore, there is no real SOM to evaluate -until someone generates a significant business aviation model.
What I can tell you is that there is a clearly defined market waiting to be tapped. It is prodigious in scope and offers profitability beyond current comprehension.
Additionally, and most importantly, the business aviation market is not one market, but a consortium made up of a range of factors that can be combined in a single feedback loop that will assure and generate massive profits with none of the usual liabilities, risks, or unknowns that currently plague business aviation.
Those expectations can be projected and met in a rational and coherent system. It is available, but that is going to require an NDA to take that beach. Today, people in the business aviation sector are not, and cannot be looking for solutions to opportunities, because they do not even know what the opportunities are or why they even exist. But it does exist, and it goes far beyond simply existing. We have the very elusive solution that changes everything. And to change something you need to know what it is and what needs to be changed.
Since 1962, the business of business aviation has been around as a business, yet nothing has changed. Well, two things did; one was Midwest Air Charter known today as DHL and the other is Jet Support Services Inc., aka JSSI. Midwest and JSSI are one-off operations, and I created them both.
The SOMs for those markets did not even exist until I created the systems, and like MidWest and JSSI the SOMs for them were unknown until we created them. And when we create our next evolution in the business aviation marketplace, and by the time everyone “gets it,” we will own it all. I know exactly how to create a system that will change the industry. In the process business aviation will grow up and we will own the SOM, instead of fighting for a piece or a scrap as is the standard of business aviation model today. We will own it all. And at that point we are talking some real money, Amazon kind of profits, Malcolm McClean kind of profits, and industry-changing kinds of profits by changing the industry.
To learn how it can work contact me at rick.erikse@cox.net or Dan Mack at mackassoci@aol.com to get an NDA and the information. Thank you.
