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.
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 Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 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 Margin | 25% | 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:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 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
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:
| Date | Milestone |
|---|---|
| [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 Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 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 | |
| PRETAX 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 1 | Year 2 | Year 3 | Year 4 | Year 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 1 | Year 2 | Year 3 | Year 4 | Year 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 |
