Over the last few years, we’ve seen an uptick in the use of unmanned aerial vehicles, also
known as drones.
They’re used by hobbyists, filmmakers, and military personnel alike.
You might have seen them at the beach, at the park, or flying through your neighborhood.
Drones are fun, unique in what they can do, and useful across a number of fields.
Is there an opportunity for you to start a drone business, then?
I’m Eric Goldschein, editor at Fundera, here to talk to you today about starting a
business related to drones.
What do you need to get started?
How can you be successful?
Let’s find out.
The first thing we should talk about is familiarity, experience, and licensing.
Any business you start, you should probably be fairly passionate about the product or
service you’re selling.
Have no idea what a drone is?
You won’t get very far in starting a drone business.
So let’s assume that you know a bit about drones—you love the technology, you’ve
used different models in your spare time, you understand the value of a device that
can take photos, survey large areas, deliver packages, etc.
That takes care of familiarity and experience.
Now, what kind of licensing and paperwork do you need to worry about?
You’ll need to obtain your Remote Pilot Certificate under the rules outlined by the
FAA in what’s known as Part 107.
There are a few steps to this process, and they are:
One: Learn the regulations.
There are certain rules around flying drones, such as not flying at night or not flying
multiple drones at once.
There are also waivers you can obtain from the FAA if you need to make an exception for
a job.
Learning what you can and can’t do as a drone operator is crucially important if you
want to make a business of it.
Two: Register your drone.
Any drone used commercially needs to be registered with the FAA, which you can do online.
We’ll drop the link to do that in the description below.
Registering a drone costs a cool $5.
Three: Pass the knowledge test.
The last step in obtaining your Remote Pilot Certificate is passing the aeronautical knowledge
test, which tests your understanding of things like emergency procedures, aviation weather
sources, inspection procedures, and more.
Once you pass, your certificate is valid for two years.
Now you’re legally able to fly drones commercially.
What’s next?
If you want to start a business surrounding your drone capabilities, you’ll need to
take some of the steps that anybody takes when they want to start any kind of business.
Some basics of starting your own small business include: Choosing a business name, choosing
a business entity, such as LLC or C-Corp, registering for taxes by obtaining an EIN,
which is required if you want to hire employees, writing a business plan, obtaining funding,
such as a startup business loan or a business credit card, and ppening a business bank account
For help with starting your business, Fundera as a complete step-by-step guide you can check
out on our blog, The Ledger.
The link is in the description below.
Okay, so, if you’re starting a drone business, you probably have a good idea of what exactly
you want to do with your drones.
There are some pretty specific uses for these machines, such as photography and videography,
building inspections, security, advertising, and more.
You have a couple of options here when it comes to operating a “drone business,”
then.
You can incorporate your new drone capabilities into an existing business, like an existing
photography or surveying business.
Or you can build an entity completely around the concept of drones.
The former might be a bit easier to get off the ground and remain solvent.
The latter, unless you are able to hustle and make connections in your industry, will
be harder to source consistent jobs for.
When writing your business plan, do your research in regards to how you’ll find new customers
and clients.
But either way, having a niche or specialization of some kind will help when it comes to marketing
and promoting your business.
Finally, make sure that you have the proper insurance.
Drone services will likely require that you have hull insurance (which covers damages
to your drone) and liability insurance, which covers damages to any third party that results
from your operations.
If you damage someone’s property or, in the worst case, harm someone, insurance will
cover your costs and likely save your business.
From here, it’s all about marketing your business and yourself.
That means creating a website, attending conferences or trade shows, networking with others in
your industry, and otherwise getting the word out about your business.
Get creative and stay positive in this regard.
That does it for our rundown of starting a drone business.
You can read more about this topic on our blog, the Fundera Ledger, at fundera.com/ledger.
Learn more about starting and growing all kinds of businesses by subscribing to our
channel.
See you next time, and thanks for watching.