You will need about $350,000 to start a drone photography business (Small Scale). Here is a detailed cost analysis for starting a drone photography business and raising finance.
If you are considering starting a drone photography business in the united states of America, then you should look towards raising capital to undergo the required training and then purchase the required drone photography gadgets / kits.
The truth is that it could cost several thousands of dollars to set – up a small scale drone photography business in the United States of America. Small scale drone photography business could be limited to a city or a region.
Estimated Cost Breakdown for Starting a Drone Photography Business
When it comes to starting a small scale drone photography company, the following expenditure should guide you;
- The Total Fee for Registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of the business in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for the facility and remodeling (construction of racks and shelves) – $70,000.
- The cost for the purchase of aerial drones, cameras and accessories (a 3D Robotics’ Iris or DJI’s Phantom series, GoPro Hero3 Black Edition, built-in WiFi for downloading your footage and maximum compatibility with OEM and third-party accessories, a video transmitter, such as the Immersion RC 5.8 GHz 600mw, which greatly increases the range of a 5.8GHz link, and then you can pair it with a Duo5800 or Uno5800 receiver on the ground to get noise-free video.) – $150,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking with printing and photography supplies) – $100,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $80,000.
- The cost of Launching a Website: $600
- The cost for opening party: $7,000
- Miscellaneous: $10,000
Going by the report from the market research and feasibility studies, you will need about $350,000 to set up a small scale drone photography business in the United States of America. You will need well over $500,000 U.S. dollars to successfully set – up a medium scale drone photography company in the United States.
If you are considering starting a large scale international drone photography company with standard color lab and a wide range of business network, then you should look towards budgeting from two million United States dollars and above.
Having said that, here are some of the general factors that will influence the cost of opening a drone photography business in the United States of America;
Factors That Determine the Cost of Opening a Drone Photography Business
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The Choice of Location
A major factor that will determine the cost of opening a drone photography business in the United States of America is the location of the business.
In business, location is key part of what determine the success of the business. There are business consultants cum realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability. So, you will now agree that location can influence the cost of starting a drone photography business.
For example, renting or leasing a drone photography business office facility in a location that is off the city center will be less expensive when compared to renting or leasing an office facility in a business district; a location along a major road with high vehicular and human traffic, a location in a metropolitan city with people who have the capacity to hire and pay for your services.
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The Required Licenses and Permits
In the United States of America, you cannot open a drone photography business without first applying for the mandatory license and permits. You would need FAA (Federal Aviation Administration) permit and certification, Certified Drone Pilot (CDP), building license, zonal permits, and signage permits amongst others.
These licenses and permits cost money and it will influence the overall cost of opening your drone photography business. Please note that there may be several inspections you must pass before you can be issued your licenses and permits and this will also cost you money.
In order to get the overall cost of licensing and permits associated with opening a new drone photography business in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.
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The Type of Facility
The type of facility you want to run your drone photography business from is also a major factor that will determine the overall cost of opening this business in the United States of America. As regards the facility, you have the options of renting, leasing or constructing your own office facility from the scratch.
With renting and leasing a facility, you might just have to spend extra to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your office facility from the scratch.
It means that you will buy the land or a property, construct and equip the office facility to fit into what you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility. This indeed will greatly influence the overall cost of opening your drone photography business.
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Additional Service Offerings
Another key factor that will determine the cost of opening a drone photography business in the United States of America is the additional service offerings of the business. The fact that a company registers as a drone photography business does not in any way restrict the company from offering any other drone related services.
A standard drone photography business usually offers related services such as surveying of vast farm lands (plantation), delivery of parcels, monitoring wildlife and livestock, geographical mapping, search and rescue operations, monitoring pipelines, road patrol and general commercial photography.
Of course, it will be more expensive to open such drone photography business when compared to the cost of opening drone photography business that only offers limited services.
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The Number of Offices they Want to Start With
Another very important factor that will determine the cost of opening a drone photography business in the United States of America is the number of offices they intend starting with. No doubt, there are new businesses that start big hence they may want to open two or more offices in different locations at the same time or within a short interval.
Aside from the cost of renting or leasing the office facilities in such situation, it will also cost you more to furnish the offices and the more the locations, the more the money that you are expected to spend.
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The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, comprehensive SWOT analysis, and other advisory services.
Also, an attorney will help you with registering the business, drafting contract documents and offering you all the legal expertise that will help you start the business on the right foundation. These services will cost you money and it will indeed influence the overall cost of opening a drone photography business in the United States of America.
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The Cost for Branding, Promotion and Marketing of the Drone Photography Business
The cost for branding, promoting and marketing the drone photography business is yet another key factor that will determine the overall cost of opening the business in the United States of America.
Trust me, if you want to win a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing of your new drone photography business. It is not cheap to come by an expert in branding and promotion that will help you compete with brands that are already determining the market direction of the drone photography services industry in your city.
So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your drone photography business.
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The Cost for Furnishing and Equipping the Administrative Office
Another factor that will determine the cost of opening a drone photography business is the cost for furnishing and equipping the office facility. You will quite agree that aside from the basic facilities that are found in an office, an investor may decide to spend more to furnish and equip the business office to look unique.
Before you can open a drone photography business, you should budget and buy platforms that are used for aerial photography which include fixed – wing aircraft, unmanned aerial vehicles (UAVs or “drones” as they are commonly called), balloons, blimps and dirigibles, rockets, pigeons, kites, parachutes, stand – alone telescoping and vehicle – mounted poles et al., projectors, laptops, computers, printers, flat screen TVs, sound system,
DVD players, Satellite dish and decoder, office furniture (table, stools and sofas), telephones, filing cabinets), office equipment (cash register, security and fire alarm and protection gadgets, CCTV, ventilation, signage), required software apps and fancy lightening amongst others.
All these will cost money and it will influence the overall cost of opening a drone photography business in the United States of America.
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The Cost for Insurance
Paying for insurance is yet another important factor that will determine the overall cost of opening a drone photography business in the United States of America. In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
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The Cost for Registering the Business
The cost for registering the drone photography business is yet another cost that will influence the overall cost of opening the business in the United States of America. Although, the cost of registering a business is affordable, it will no doubt add to the overall cost of opening a drone photography business in the United States of America.
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Cost of Recruiting and Training Your Staff
The fact that you are opening your drone photography business as a new business means that you are expected to recruit and train your staff to conform to the kind of business you want to operate. The training will help you sell the corporate culture of your organization to the new employees.
As expected, it will cost you money to hire trainers that will help you train and bring your new hires up to speed and that will add to the overall cost of opening the business.
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The Cost of Purchasing and Customizing of Uniforms for Your Employees
Another factor that will determine the overall cost of opening a drone photography business in the United States is the cost of purchasing and customizing of uniforms.
Your drone operators, front desk/payment attendants and security personnel should all have uniforms and these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a drone photography business in the United States of America.
Financing Your Aerial Drone Photography Business
No doubt when it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not have to labor yourself too hard before convincing your bank, investors or your friends to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your drone photography business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for Loan from your Bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.
In Conclusion,
These are some of the factors that will determine the overall cost of opening a drone photography business in the United States of America.
Please note that there are other factors not listed above that will sure influence the overall cost of opening your drone photography business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide as regards the overall cost of opening your drone photography business in the United States of America.