How To Start a Drone Business That Will Last And Succeed. 7 Tips From A Former UAV Operator
Hello.
My name is Ben Lovegrove and in this video I want to talk about how to start a drone
business and how to earn money as a drone pilot and aerial photographer.
My advice is derived from the experiences I had between 2013 and 2016.
In 2013 I noticed drones were becoming increasingly sophisticated and popular and I noticed the
rapid growth of companies like DJI Innovations.
Consequently I registered several domain names and got involved in this burgeoning industry.
I sold DJI Phantoms using a site called CopterDrones.co.uk, I blogged about drones and unmanned aviation
on DronesUAV.co.uk, and I ran my own aerial photography business under the name WessexAerialPhotography.com.
I did all this in my spare time while employed full time as Network Engineer.
It was a busy period!
Too busy in the end.
I sold the business and the collection of websites to an aviation partnership.
It became clear to me that in order to fully exploit the potential in this industry it
would take more time than I could give it.
So what I'm about to tell you is based on my own experiences.
The opportunities are huge and if you're ready then you can look forward to a long and lucrative
career in the world of unmanned aviation.
I'd be very interested to know more about you and your business, and if any of what
I'm about to say is of use to you.
So please, watch to the end and leave me some feedback in the comment section below.
We can all help each other by sharing information.
This is a two-way process so let's hear what you have to say.
First I need to make some assumptions about you.
I'm going to assume that you are already familiar with the technology and your particular models
of drone, and the laws and legislation surrounding the flying of drones in your particular country.
It is of course essential that you comply with all the laws and stick rigidly to all
the safety recommendations when operating UAV.
The reason I want to set aside the technical aspect and the subjects related to training
is because plenty of people have explained this already.
I can see from articles and videos already published that there's plenty of advice about
the practical side of flying a drone and getting the required training for a commercial operator's
licence.
Instead, I would like to pass on my advice about running a small business on your own,
planning ahead, and gaining new clients.
You might be very adept at UAV flying, aerial photography, and video editing but you need
more that these practical skills to make a success of a drone business.
The tips that follow apply to any drone business whether your speciality is aerial photography,
videography, mapping, thermal imagery, or whatever.
1.
Preparation and planning
Your first task is to consider your market.
Who are your clients likely to be?
How will you find them?
Having found them how will you persuade them to use your services as opposed to any other
UAV operator?
How far are you prepared to travel?
Is all your business going to be locally based, in your home country, or abroad as well?
This may seem obvious but it's suprising how many people rush into business without considering
this in detail.
Even if you already have ten people who have promised to hire your drone business services
you will need ten more, and ten more after that for years ahead.
Are they likely to be one-off clients or is any chance of repeat business with them?
Obviously it will be a bit harder if all your clients are only going to hire you just the
once.
Repeat business and upsells will make life a little easier.
2.
Create a business plan
If you've ever watched the TV show Dragons' Den (and I recommend you do) you will probably
know that it is essential to know the figures for your business.
It doesn't matter how good the product or service, if it doesn't show a reasonable profit
in a given timeframe then it's never going to succeed.
So your first task is to create a business plan.
This doesn't have to be a complicated PowerPoint presentation with pretty pictures and multimedia
(unless you intent to pitch for some investment) but you should at least compile one or more
spreadsheets that remind you of what your capital costs and expenditure are likely to
be in the first 12-24 months.
There are plenty of free Excel templates online.
Just google for 'business plan templates Excel' or similar phrases.
You should know the answers to basic questions like, What's your CODB?
(cost of doing business).
You need to understand for your own benefit and be able to explain to anyone who might
be an investor or a lender of funds.
You need to be certain how many clients and how much business you need per month to break
even and go into profit.
I cannot stress enough how important this is for your success.
Many business fail in their first two years because the owners just don't know what to
charge for their products or services.
Set the right price at the start.
3.
Controlling your budget
The second point I want to emphasise to keep a tight rein on your budget.
You might thing that you need every new gadget, tool, and software for your business.
It's very easy at the start when you're flushed with enthusiasm (and you've still got money
to spend!) to buy all the latest kit.
Just remember that for every pound or dollar you spend you will have to replace it with
several pounds or dollars.
Do you really need that gadget or software today?
Don't get bitten by the softare bug and suffer from upgradeitus.
A lot of software tools are filled with features we don't use.
Stick to the essentials.
While there will always be a need to maintain your equipment and some online tools will
help your marketing you need to be certain that everything you buy earns a good return
on investment.
4.
Set the right price
Imagine the scenario; you've quoted for a job but your client hesitates and tells you
that they can only pay a proportion of your price.
They may even hint that they will hire you again if they can secure a discount this time.
My advice is to stick to your original price and don't be talked into a discount that results
in you working at a loss.
You should know from your business plan what your break even price is so you'll know there
will a point at which it's just not worth taking the job.
The contrary argument to this is that some work is better than none but once you let
a client agree to a discount it's much harder to obtain your full price later on.
You need to explain to them that your price is set in accordance with the going market
rate and that, just like them, you need to make a fair profit just to stay in business.
Remember also that a small discount for them is a much bigger loss to you than they imagine.
For example, if you need to take £300 to break even so you add £150 profit and your
quoted price is therefore £450.
If they persuade you give to them a 10% discount then you'll lose £45, but that's £45 off
the total price.
By giving them a 10% discount you've just lost 30% of your profit!
So brush up on your negotiation skills.
Eventually it will pay off.
People tend to respect those who show confidence in their own abilities and pricing.
If your work is of sufficient quality then people will respect you and your prices.
5.
Reinvestment and further training
Following on from the point about profit there is the need for reinvesting in your business.
You didn't think that £150 was going to go into your back pocket, did you?
Drone technology is evolving rapidly.
I like to think that these years are similar to the early years of mobile phones or the
world wide web.
We are beginning to see the potential but no one is really sure just how big this technology
is going to be.
You're going to need to reinvest some of your profits in new equipment and perhaps external
training courses for yourself.
As your business grows you may need to send employees on training courses too.
Training is the usualy the first budget to be cut when a business experiences a downturn
in sales but it's essential if you and your employees are to maintain currency in their
respetive skills and certifications.
All this needs to be considered while still keeping in mind the points mentioned previously
about your budget.
You will have to discern between what is sound reinvestment and what is non-essential.
6.
Marketing
Even the most talented people can fail in business by not attracting new clients.
If you've got excellent drone piloting and other skills then you are off to a great start
but you need to feed your business with new clients.
There are some businesses that do well simply by word of mouth.
Good work is referred to others and the orders continue to flow in but they are rare.
Most businesses need to budget for marketing every month.
Presumably you added a marketing budget to your business plan.
If not then do so now because it will have an impact on your prices.
Don't imagine that marketing is something you can do just on rainy days when there's
no flying.
You will need to put some effort into it every week, come rain or shine.
You can do a lot yourself to save on costs but what you save in pounds in spent in hours
so you'll need to decide whether or not some or all of this task can be outsourced.
There is a lot you can do to attract potential clients online.
We are all familiar with websites and the various social media accounts that can be
set up for free but it takes time and doesn't always work.
If you rely on this method alone and no new clients find you then your business will start
to fade before it's fully begun.
You can showcase your work in a website or YouTube channel but if your potential clients
don't find you there, then what?
You can add your drone business details to one of the many UAV directories but if the
website isn't being promoted enough to bring you new clients then your subscription could
be wasted.
You can start tweeting, create a Facebook page, and upload shots to Instagram.
You can open as many social media accounts as you like but how much time can you spare
each week to spend on these tasks?
Do you know the best times to post?
I've been checking lots of drone business websites and social media accounts.
It's apparent that a lot are underused and left neglected.
Nothing says 'don't bother' more than a dead social media account that hasn't seen a tweet
or update for six months.
You're going to need to combine the efforts in attracting organic traffic via your website
and social media accounts with the more direct approach of paid advertising.
Once again, this refers back to your business plan.
Knowing where to spend your budget depends on your target market.
Is print advertising still a good choice for reaching them?
Perhaps a quarter page advert in a specialist trade magazine is a productive choice.
Or should you do what more and more businesses are doing and pay for clicks using Google
Adwords, Bing, or Facebook ads?
Don't forget you can also try the old fashioned method of cold calling.
However, I strongly suggest you research this first.
Take the time to find out what the best format is for an email.
Learn about the best heading, opening line, second line, and signature in your emails.
Keep a record of what emails you send out and note the responses.
Research your clients and show a genuine interest in them and their business and they may return
the favour by responding to your unsolicited email.
Send a follow up if you like but whatever you do don't spam people.
7.
Time management
Yes, this old chestnut.
It crops up in every list of tips for would-be millionaires but it does so for a very good
reason.
If you've ever read any autogiographies written by successful people you may have spotted
two bits of advice that they all want to pass on.
The first is that we all only have 24 hours in a day.
No one gets any more.
The second is that it pays dividends if you spend your time wisely.
It's a precious commodity and it's not infinite.
So develop the habit of spending 90 minutes each day doing your essential tasks.
I suggest you spend 90 minutes on marketing
Do this before you check your email, Facebook, or Twitter.
Don't read the news or faff about with online distractions.
Do your 90 minutes of marketing then at least if the rest of the day becomes unproductive
you have at least succeeded in achieving that much.
This concludes my list of seven tips for starting a drone business.
If you need any help with your website, social media management, pay per click advertising,
or internet marketing videos then please get in touch.
I hope I've demonstrated knowledge of both the market and running a business so I would
be glad to quote for your online marketing needs.
You can find out more about my business and what I can offer at www.redspan.com.
Go there now and sign up for the mailshots.
If you found this video of interest or helpful in any way I would be grateful if you'd give
it a like and add a comment below.
Even better, please share it!
Thank you, and good luck with your drone business.