The Ultimate Guide to Starting Your Own Drone Business

Have you ever thought about turning your love for flying drones into a business? It’s easier than you might think!

These days drones can do it all, from capturing amazing real estate photos to even inspecting tall buildings. Starting a drone business is like combining fun with making money. 

In this guide, I’ll show you everything you need to know—from getting certified to finding customers—so you can turn your drone dreams into a reality.

Key Takeaways

• Selecting a high-demand industry increases the chances of making a stable, sustainable income.
• Forming an LLC, a sole proprietorship, or a corporation each has its strengths and weaknesses.
• Getting your Part 107 license is the first step to operating a drone business legally. 
• Startup costs vary depending on the type of work you plan to do, but budget-friendly options exist. 

Is a Drone Business Profitable?

The UAS (Unmanned Aircraft Systems) industry is growing rapidly, offering many opportunities for entrepreneurs. 

Businesses that provide aerial photography, mapping, drone deliveries, and inspections are in high demand. However, success depends on choosing the right niche, setting competitive prices, and understanding the competition.

Profitable Drone Business Niches

Certain industries, such as real estate photography, agriculture, and infrastructure inspections, offer the most profitability. Conducting market research, evaluating potential clients, and analyzing industry trends can help refine your business strategy. 

Many entrepreneurs have built thriving businesses by specializing in areas like 3D mapping for construction or high-end real estate cinematography. 

Emerging Uses of Drone Technology

Drone technology is also widely used in environmental monitoring, event coverage, and search and rescue operations. Drone pilots can build sustainable and profitable businesses by continuously improving skills, investing in the right equipment, and staying updated with industry advancements.

Success Story: Zipline International

​Zipline International is a notable example of a drone company that has achieved significant success and continues to thrive. Founded in 2014, Zipline specializes in designing, manufacturing, and operating delivery drones, primarily focusing on medical supplies. 

Zipline launched its first commercial operations in Rwanda in 2016, delivering blood products to remote clinics and hospitals. This innovative approach addressed critical logistical challenges in medical deliveries.

Should You Form an LLC for Your Drone Business?

Choosing the right business structure is essential for protecting your assets and managing taxes efficiently. An LLC is a common choice for drone businesses because it provides liability protection, shielding personal assets from business debts. Additionally, it offers tax benefits and enhances credibility with clients.

Setting up an LLC involves registering with your state, obtaining an EIN (Employer Identification Number) from the IRS, and opening a business bank account

Steps to Set Up an LLC

• Register with your state.
• Obtain an EIN (Employer Identification Number) from the IRS.
• Open a business bank account.

Since requirements vary by state, consulting with an attorney or accountant ensures compliance. Business insurance is also highly recommended to cover potential liabilities and protect against unforeseen risks.

Alternative Business Structures

While an LLC is a popular option, some drone operators choose a sole proprietorship or corporation. 

Sole proprietorships are easy and (relatively) cheap to start but lack liability protection, while corporations offer tax advantages and growth potential but require more management and overhead.

Why an LLC Is the Best Choice

If you choose to go into business for yourself (or with colleagues), but want to keep your personal and business assets separate, especially in the event of a lawsuit, the wise choice would be an LLC.

Can You Start Your Own Drone Business?

Starting a drone business is an exciting opportunity for those with the right skills and certifications.

If you enjoy flying drones and have a passion for aerial photography, mapping, or inspections, you can turn that interest into a profitable business. However, before you begin, you must meet FAA requirements, including obtaining a Part 107 license.

Getting Your Part 107 License

If you already have a Part 107 license and flight experience, you can move on to setting up your business. If not, your first step is to pass the FAA’s Part 107 exam. 

Pilot Institute offers drone pilot courses to help you prepare, covering airspace regulations, safety procedures, and drone flight rules. Practicing in different conditions and gaining hands-on experience with various drone models is crucial before offering commercial services.

Additional Training and Certifications

Beyond certification, understanding airspace restrictions, registering your drone, and complying with federal and state regulations are critical. Some industries require specialized training or equipment, such as thermal imaging for inspections or LiDAR technology for mapping.

Registering Your Drone

To register your drone with the FAA, you need to pay $5. Once registered, that aircraft registration is valid for three years. Registration can be done through the FAA Drone Zone website.

 Building skills, networking with industry professionals, and staying updated on drone technology can help you grow your business and establish yourself in the field.

How Much Does It Cost to Start a Drone Company?

The startup costs for a drone business depend on the type of equipment and services you plan to offer. Professional drones range from ~$1,000 to $80,000, depending on equipment quality, flight time, and additional features. 

Choosing the right drone depends on the niche you plan to enter, as different industries require varying levels of camera resolution, flight stability, and sensor technology.

Budget-Friendly Drone Options

Technology has advanced rapidly in unmanned robotics, and drones are no exception. While professional drones used to cost several thousand dollars, they can be obtained for under $1,000 today.

Even on a strict budget, you can get an aircraft capable of professional videography, real estate photography, roof inspections, and event coverage.

Additional Costs to Consider

• Accessories: Extra batteries, memory cards, storage cases, and computers.
• Software: Image processing, 3D mapping, and video editing tools.
• Training & Courses: Investing in education can improve skills and business success.

Accessories can add to the cost, making it important to budget accordingly. Investing in software for image processing, 3D mapping, or video editing can also enhance the quality of your deliverables.

Training and online courses to improve your skills and certifications may also be beneficial expenses.

What Is Required to Start a Drone Company?

Becoming a licensed commercial drone pilot requires passing the Part 107 exam, which costs $175. Maintaining your license involves completing recurrent training every two years. The recurrent training is available for free directly from the FAA.

Compliance with FAA Regulations

The FAA provides helpful resources for those wanting to become commercial drone operators. Staying compliant with FAA regulations ensures that drone pilots operate legally and safely, avoiding fines and legal issues.

Beyond equipment and certification, business setup costs include forming an LLC, obtaining insurance, and marketing expenses. If you choose to structure your business as an LLC, typically, you will need to register your business name, file Articles of Organization, and appoint a registered agent.

For more information on establishing your business, check out this commercial drone pilot course from Pilot Institute. A successful aviation business owner created the course, containing over 100 instructional videos for those hoping to start their own drone business.

Business Setup Costs

LLC registration fees vary by state, and insurance costs range from $500 to $5000 per year. Insurance coverage is essential for protecting against potential liability claims, drone damage, or accidents.

Importance of Business Insurance

There are various types of insurance coverage for UAS operations. Liability insurance is essential for most operations, covering bodily injury and property damage to third parties caused by the aircraft. 

Also, hull insurance protects your equipment, ensuring coverage for damage or loss. Simply put, liability insurance safeguards against third-party claims, making it a critical consideration for drone operators.

Liability insurance for UAS operations often requires a minimum of $1,000,000 in liability coverage. There are several different options, but shopping around and comparing insurance rates is recommended before choosing one.

Many successful drone businesses start as side projects before transitioning into full-time operations. By carefully managing expenses and reinvesting in equipment and training, drone operators can gradually expand their business without taking on excessive financial risk.

Marketing and Growing Your Drone Business

Once you have obtained your Part 107 license and completed a few jobs, you can focus on marketing your services. 

Finding Your First Clients

• Network with local businesses.
• Leverage social media platforms like Instagram, LinkedIn, TikTok, and YouTube.
• Establish relationships with real estate agencies, construction firms, and government entities.

Building a Strong Online Presence

Attracting your first clients requires both online and offline strategies, such as networking with local businesses and leveraging social media.

Establishing relationships with real estate agencies, construction firms, government entities, and environmental organizations can open doors to long-term projects and partnerships.

A professional online presence is crucial for success in the 21st century. Creating a website that showcases your portfolio and using platforms like Instagram, LinkedIn, TikTok, Google, and YouTube can help attract more clients. 

Short-form content on these platforms enables you to gain a large number of views in a short amount of time as compared to long-form content.

High-quality video and images from past projects can serve as powerful marketing tools. Adding client testimonials, case studies, and industry-specific content to your website can also increase credibility and attract potential clients.

Expanding Your Drone Business

As your business grows, you may consider expanding by investing in additional drones or hiring other certified pilots. Offering package deals, discounts for referrals, or loyalty programs can help attract repeat customers.

Staying Competitive in the Industry

Attending industry events, joining drone associations, and staying informed about industry trends can help you stay ahead of the competition. By continuously improving your skills and reputation, you can scale your business and take advantage of new opportunities in the drone industry.

Expanding into advanced services, such as drone data analysis or 3D modeling, can also increase revenue potential and set your business apart from competitors.

Conclusion

Starting a drone business is a great way to do what you love and make money simultaneously.

Once you get your license, pick the right drone, and offer services, you’ll be ready to grow your business.

Remember that it takes time and practice to get really good at flying and running a drone business. But if you stick with it, you’ll be amazed at what you can achieve with your drone!