Drone Business Plan Template

Written by Dave Lavinsky
drone business plan template
Table of Contents
Table of Contents

Drone Business Plan Template

If you want to start a drone business or expand your current drone business, you need a business plan.

The following Drone business plan template gives you the key elements to include in a winning Drone business plan.

You can download our Drone business plan template (including a full, customizable financial model) to your computer here.
 

Drone Business Plan Example

I. Executive Summary

Business Overview

[Company Name] is a drone business located in [Location]. We specialize in using drones to capture high-quality photography and videography around the city. Our drones can provide footage for live streams, cinematography, and still photos. We work with several local industries (such as the film, real estate, and advertising industries) but also offer our services to individuals. So whether a client needs live footage of their team’s match or a stunning view of the city, our drones can get them the footage they need.

Products Served

[Company Name] provides drone aerial footage for numerous industries. Some of these industries include:

  • Film
  • Real estate
  • Tourism
  • Sports
  • Advertising
  • Construction

Customers can request footage in the form of live streams, videos, or photographs.

Customer Focus

[Company Name] serves residents and businesses living in the [Location] area. The demographics of this area are as follows:

  • 100,000 residents
  • 5,000 businesses
  • Average income of $68,000
  • 58.9% married
  • 49.6% in Mgt./Professional occupations
  • Median age: 38 years

Management Team

[Company Name] is led and founded by [Founder’s Name]. [Founder’s Name] has worked with drones for [X] years both as a pilot and a sales professional at a local drone shop. He has captured aerial photography for many personal projects as well as for his clients on a freelance basis. After working for [X] years as a freelancer, he is ready to incorporate his business and hire other drone pilots to help him out.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • There are very few drone businesses in the area that provide aerial photography services.
  • The management team has a track record of success in the drone business.
  • Market trends such as growth in demand for high-quality drone photography services and the increasing value customers place on drones support our business opportunity.

Financial Highlights

[Company Name] is currently seeking $450,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Drone purchase and upkeep: $100,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a drone business located in [Location]. We specialize in using drones to capture high-quality photography and videography around the city. Our drones can provide footage for live streams, cinematography, and still photos. We work with several local industries (such as the film, real estate, and advertising industries) but also offer our services to individuals. So whether a client needs live footage of their team’s match or a stunning view of the city, our drones can get them the footage they need.

[Company Name]’s History

Upon surveying the local customer base, and finding a potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on the property and the local market to assess whether it will be the most desirable location.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo, and website located at [website]
  • Created the list of services
  • Determined equipment requirements
  • Began recruiting key employees

[Company Name]’s Products/Services

[Company Name] provides drone aerial footage for numerous industries. Some of these industries include:

  • Film
  • Real estate
  • Tourism
  • Sports
  • Advertising
  • Construction

Customers can request footage in the form of live streams, videos, or photographs.

 

III. Industry Analysis

Drones have become an essential tool for many industries. Their ability to soar to great heights and reach areas that humans cannot have made them invaluable. Their popularity has only soared since they first became publicly available and there is no sign that that popularity will fizzle out.

However, many businesses cannot afford their own drones or only need to use them every once in a while. This creates a great demand for drone services, such as aerial photography. According to Fortune Business Insights, the global drone services market is projected to grow to $232.8 billion in the next 10 years. The industry will grow at a compound annual growth rate of 42.8% from now until the end of the decade. This is substantial growth seen in very few industries. These statistics show just how essential drones have become in such a short time. Their uses are numerous and their popularity is bound to only increase.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the local businesses and community residents of [Location] and its surrounding areas.

The area we serve is affluent and has the disposable income/profits required to demand drone services.

A demographic profile of the area is as follows:

WilmetteWinnetka
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

We will primarily target the following customer segments:

  • Commercial Businesses: Numerous industries have many uses for drone photography and videography. We expect much of our business to come from the local film, construction, real estate, and advertising industries.
  • Local Sports Teams: There is increasing demand for live footage of local sports games. Drones are the perfect way to capture these games, so we expect to serve many local sports teams.
  • Local Residents: Residents can use drone services to capture special events and images for personal projects. Therefore, we will offer our services to individuals as well.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following establishments are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Dave’s Drones
Dave’s Drones is the best spot in town to buy drones for one’s business or personal projects. Dave’s offers a large inventory that consists of numerous models. The store is staffed by drone pilots and experts who can help customers find the perfect drone for their needs. While Dave’s Drones does not offer direct competition with us, they are an indirect competitor since they sell drones to local residents and businesses.

Skye Photography
Skye Photography is a local photographer who works weddings, sports events, and other special occasions. It is run by Skye, who has been a professional photographer for [X] years. Though she primarily uses regular cameras and equipment for her work, she is also an experienced drone operator and offers drone photography in her list of services.

Riverside Drone Services
Riverside Drone Services is the only other drone photography business in [Location]. They provide drone photography and videography for multiple businesses in the area. So far they have primarily partnered with real estate and construction businesses, but haven’t touched other industries that can benefit from this work. Therefore, we can reduce competition with Riverside by marketing to these underserved industries.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Service Customization: [Company Name] offers extensive services and offers customizations and special requests.
  • Management: Our management team has years of drone photography experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for [X] years, [Founder’s Name] knows all of the local leaders, newspapers, and other influences. As such, it will be relatively easy for us to build branding and awareness of our drone business.

 

VI. Marketing Plan

You can download our Drone business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

  • Offering extensive drone services
  • Providing high-quality aerial photography and videography
  • Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be individuals and businesses located within a 10-mile radius of our location. The company’s promotions strategy to reach these individuals includes:

Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other enticements for people to try our services.

Public Relations
We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].

Advertising
[Company Name] will initially advertise in local newspapers and local tv shows, and sponsor community events in order to gain awareness.

Social Media
[Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.

Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers.

Website/SEO
[Company Name] will invest in developing a professional website that displays all of the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Pricing Strategy

[Company Name] pricing will be moderate, so customers feel that they are getting great value when purchasing our services.

 

VII. Operations Plan

Functional Roles

In order to execute [Company Name]’s business model, the company needs to perform many functions including the following:

Administrative Functions

  • Social media management
  • Website management
  • Bookkeeping
  • Marketing
  • Hiring and training staff
  • Maintenance functions
  • Other general administrative functions

Service Functions

  • Purchase and maintain drones
  • Provide excellent customer service
  • Operate drones to take aerial photography and videography footage

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is led and founded by [Founder’s Name]. [Founder’s Name] has worked with drones for [X] years both as a pilot and a sales professional at a local drone shop. He has captured aerial photography for many personal projects as well as for his clients on a freelance basis. After working for [X] years as a freelancer, he is ready to incorporate his business and hire other drone pilots to help him out.

Hiring Plan

[Founder’s Name] will be the Owner and CEO of [Company Name]. In order to launch [Company Name], we need to hire the following personnel:

  • Drone Pilots (3 to start)
  • Administrative Staff (1 to start)

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from charging for drone services.

The major costs for the company will consist of marketing expenses, the purchase and upkeep of the drones, labor, and the cost of the lease.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $450,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Drone purchase and upkeep: $100,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of ClientsAverage
FY 1120
FY 2150
FY 3180
FY 4200
FY 5220

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRE-TAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389
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