Provo, Utah : Today we study a business that was working to overcome past losses: Rocky Mountain Helicopter (RHC). This story goes up and down several times. It is fascinatingly painful reading.

But most importantly, the final outcome of the story: this business was sold. Air Methods Corporation, the country's largest helicopter air-ambulance services, acquired Rocky Mountain Helicopters for $28 million.

Rocky Mountain Helicopters was founded by Jim Burr. As a very young man, just 14 years old, he would dream of getting from his home town of Moab to Salt Lake City without the use of roads. As a college student in 1961 he bought his first helicopter -- a used one was all he could afford -- then landed a contract with the state park service. The business went up. Then it came down. Jim sold. That business went up. Then it came down.

With investors, Jim bought it back! Then the business went up and the business came down.

Then, a new management team is brought in by the key investors. When we picked up the story, Russ Spray, the new CEO, talked about rescuing the company and he then showed us how Jim's dream had become a reality -- helicopters were picking up people in life-threatening situations every day.

2001 report - National Mediation Board: "Currently, Rocky Mountain operates approximately 75 aircraft, including eight fixed wing aircraft in 25 states and the Commonwealth of Puerto Rico. It employs approximately 560 employees, including 215 active pilots and 130 active mechanics, all of whom are Federal Aviation Administration (FAA) certified, as well as 50 flight nurses and 70 flight paramedics."

"Rocky Mountain flies approximately 40,000 missions annually. In 1997, Rocky Mountain logged approximately 31,000 flight hours and had revenues of approximately $54 million, of which approximately $53 million came directly from its air operations."

Though Jim Burr was consistently first to market with new helicopter services, he lost control of his company.

GO FURTHER: We start our business with a "big idea" but we sustain our business with "key ideas." There are links (just above in the green box) to the key ideas from this episode of the show. Because these case study materials are now published as part of over 40 leading college textbooks in business schools, these materials are being used daily in virtually every college and university throughout the country. So, please, spend some time with the case study guide and each of the related transcript segments.

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REVIEW THE EPISODE ENTITLED, STAYING POWER. You see may places on this website where it reads, "Creating something of value makes a life worth living. When it's sustainable, it's a legacy." Over 70% of all businesses fail in their first year; and then whatever remains standing after 20-to-30 years, over 70% fail to transition to new ownership and leadership. Understanding people and understanding equity and liquidity are keys to staying power.

• For more about the helicopter industry, study Air Methods Control: http://www.airmethods.com/ That business was founded in 1982 with a single helicopter and now operates with over 70 helicopters around the country.

• Failed twice and Came Out on Top: The business owner who failed twice and is now one of the most highly acclaimed chefs in the world is Thomas Keller, founder/owner of Napa Valley's The French Laundry.

• MORE ABOUT FINANCES. We have a section about money and it can be useful. BUT -- and this is a big one — we all need to know about RMA — The Risk Management Association. This is real insider information on your financials so take note.
  
  This organization is the banker's banker. They know more about key critical ratios than anybody on earth. Over 3000 banks and 16000 other kinds of financial organizations contribute the essential financial data from their loan inventory to RMA's "Annual Statement Studies" to calculate key critical ratios for every major industry type (and for most subsets of business vis-a-vis the SIC and NAICS). With over 150,000 loans per year, that is statistical relevancy.
  
  Do you know the average key ratios within your industry? We haven't learned ours yet for the TV/Production Industry, so we all need to ask our banker. To really make a study of it, keep an eye out for the next seminar by RMA in your area. It'll be the best money you'll spend to understand the organic nature of your business, and learn what it is that your banker so quickly knows about your industry. For more, read online: RMA seminars, RMA history, and their small business scoring (i.e. used by the SBA for their Low Docs).

• FIRST PRINCIPLES: Starting a business is the road to economic independence for most of us average people. Read a little more to see why incorporating a business keeps the passion of the American revolution alive!

• LOOK AT STEP 7: SUSTAINABILITY. Congratulations if you have returned from a failure or major setback with even greater strength and staying power. Also, review stories within your business type and those stories within Steps 6 & 8.

• CASES BY BUSINESS TYPE. Click on the heading to find all the business types and then click on your type of business to check out those case studies. This episode contributes insights into Health care services and Transportation.

• TRADE ASSOCIATIONS: JOIN, JOIN, JOIN Your professional associations in your industry are your key to continuing education, market research, collaborations, strategic partnerships, capital and so much more ... often you'll find that you enjoy like-minded people and many will become friends for life.

• LOOK AT OTHER STORIES ABOUT BUYING A BUSINESS. Jim Burr and Russ Spray both sold this business. To check out other episodes where the business was sold, click here.

• SUPPORT PUBLIC TELEVISION:
  Become a member of your local station. If you are already, great. If not and your business is doing well, consider joining the Producers' Club ($1000). Too much? Get a twenty employees, customers and/or suppliers to join en masse with you at $50 per person.
  
  Get on the inside of your local station and learn how to become a producer.