Business in the real world

[Skyfall-0D2]

Hi fellow Pilots,
I wonder if you would mind if I could ask some personal questions. Covid has destroyed my current business, so I’m considering a drone business.

My greatest concern making a business plan is;

1/. I go to a construction site or estate agent and the jobs are a great success. So they train their own employees. How often does this happen cross-sector.

2/. How many bookings can’t be fulfilled i.e. weddings, due to rain/weather/KPI?

3/. How many businesses fail in their first 2 years (in your opinion), since there no data available anywhere.

3/. How much of the work is seasonal?

4/. What was your greatest hurdle starting up in business?

5/. What was your greatest unexpected expense (I have included equipment, PfCO, website, SEO, Google Ads)?

Given that this is a global network, hopefully the answers will serve others well in the future.

Many Thanks for your time answering & Stay Safe!

 

[R Martin]

Hi fellow Pilots,
I wonder if you would mind if I could ask some personal questions. Covid has destroyed my current business, so I’m considering a drone business.

My greatest concern making a business plan is;

1/. I go to a construction site or estate agent and the jobs are a great success. So they train their own employees. How often does this happen cross-sector.

2/. How many bookings can’t be fulfilled i.e. weddings, due to rain/weather/KPI?

3/. How many businesses fail in their first 2 years (in your opinion), since there no data available anywhere.

3/. How much of the work is seasonal?

4/. What was your greatest hurdle starting up in business?

5/. What was your greatest unexpected expense (I have included equipment, PfCO, website, SEO, Google Ads)?

Given that this is a global network, hopefully the answers will serve others well in the future.

Many Thanks for your time answering & Stay Safe!

Might get a more accurate response with a general local provided. Are you in Europe, North America???

 

[Skyfall-0D2]

I’m in the UK ??. Is there a particular thread that you suggest?

 

[R Martin]

I’m in the UK ??. Is there a particular thread that you suggest?

This will work fine. Just helpful to tell everyone where you are located so you can get the information you need.

 

[Fred Garvin]

...I’m in the UK ??...

I thought Skyfall was in Scotland?

 

[dirkclod]

I thought Skyfall was in Scotland?

Skyfall is his handle he said UK was where he was at. You must have
misunderstood. ?

 

[prodigal27]

1/. I go to a construction site or estate agent and the jobs are a great success. So they train their own employees. How often does this happen cross-sector.

Haven’t had this yet for construction but real estate agents are either interested and cheap or use a “friend” who isn’t licensed...

2/. How many bookings can’t be fulfilled i.e. weddings, due to rain/weather/KPI?

I’m in Kentucky, so far this year, maybe 1 in 8.

3/. How many businesses fail in their first 2 years (in your opinion), since there no data available anywhere.

In my area, about 80%. I have a primary job and look at this as supplemental income.

3/. How much of the work is seasonal?

For me because of my primary job, Daylight Savings kills me except for weekends. Winter slows down little on top of that.

4/. What was your greatest hurdle starting up in business?

Advertising and convincing (mainly real estate) people to use me vs someone who is unlicensed. I wish the FAA enforced their rules and started fining more people.

5/. What was your greatest unexpected expense (I have included equipment, PfCO, website, SEO, Google Ads)?

Software. I have a basic DroneDeploy account which runs me 1100 a year and that was the cheapest cloud option. I really want pix4d but can’t afford it.

Hope this helps.

 

[BIGAL65]

I am in the USA (Minnesota), semi-retired and have only been doing this for a few years so my experience may not be comparable to yours. For what it's worth:

1. After seeing the amount of time necessary to do all that's involved in doing these jobs, most (especially small businesses) realize it would not be cost effective to develop their own individual department or have a cross-trained employee doing this occasionally to get the results available from an reputable independent contractor. Larger companies that can have a team of people who specialize in all areas of inspections will often develop their own teams for several reasons (control, possible cost savings, constant availability, specialization, specific equipment to match their needs, etc.).

2. Here there are many weather related conflicts and rescheduling is a problem. I don't do weddings generally because of that. If I were to do weddings, I would want to begin taking photos prior to the wedding day to be flexible and get the best conditions possible. Lots of monkey business for the income I think. Being mostly retired gives me an advantage in solving scheduling problems.

3. I know several drone businesses have faded away in our region. Most failed ( I believe) for the same reasons all businesses fail. Failure to plan. I was in business for 45 years and saw many businesses fail for that reason. People think a business looks exciting and go for it not having thought it through. You are asking good questions and will likely make a good decision based on your findings.

3/b. We have 4 distinct seasons here. Some jobs are more seasonal like real estate, some construction, recreational and others (inspections) are year around. Coldest winter months have been the slowest.

4. The greatest hurdle has been getting business to understand the benefits of drones to their business. This is a rural area and many businesses have not been directly exposed to this technology, but are beginning to see how others use it. If it's not currently in their budgets they are reluctant to jump in until they see more need. Often, competition using something encourages the vision of need for something new. It has been slow and frustrating at times.

5. I haven't had any disturbing unexpected costs but, rather, as in item 4, slow income generation.

Again, my age and situation, make me less intense about making this a super successful adventure. I too went through having to restart a business, but at age 40. It was difficult to start over and look back at all the work I had done and know I had to do it again. However, I had no choice and found it was easier because of my experience in business and I did a better job then the first time. It allowed me to retire at 63 and do some bucket list things. The drone thing was one of those things. If any of this helps...good. If not, I hope you enjoyed my story. First time I have actually shared it .....

 

[Skyfall-0D2]

I thought Skyfall was in Scotland?

You are correct. Skyfall (Glen Etive) is in Scotland, UK and one of our favourite places. Starting a business, we had to use the name, but the ‘fall’ part is hopefully not a jinks before we begin...

 

[Skyfall-0D2]

1/. I go to a construction site or estate agent and the jobs are a great success. So they train their own employees. How often does this happen cross-sector.

Haven’t had this yet for construction but real estate agents are either interested and cheap or use a “friend” who isn’t licensed...

2/. How many bookings can’t be fulfilled i.e. weddings, due to rain/weather/KPI?

I’m in Kentucky, so far this year, maybe 1 in 8.

3/. How many businesses fail in their first 2 years (in your opinion), since there no data available anywhere.

In my area, about 80%. I have a primary job and look at this as supplemental income.

3/. How much of the work is seasonal?

For me because of my primary job, Daylight Savings kills me except for weekends. Winter slows down little on top of that.

4/. What was your greatest hurdle starting up in business?

Advertising and convincing (mainly real estate) people to use me vs someone who is unlicensed. I wish the FAA enforced their rules and started fining more people.

5/. What was your greatest unexpected expense (I have included equipment, PfCO, website, SEO, Google Ads)?

Software. I have a basic DroneDeploy account which runs me 1100 a year and that was the cheapest cloud option. I really want pix4d but can’t afford it.

Hope this helps.

Thank you for that, I didn’t take the daylight saving time into account, nor extra software. I expected winter to be quieter, but it’s budgeting that’s always the hurdle.
80% unsuccessful is a huge amount! I think the problem is that (as others also say), there’s not enough regulation, which means we are seen as ‘hobbyists’ and not professionals. Therefore, you really have to sell your product.

 

[Mavic Mac]

If you have not already seen it check out ----> THIS <---- video posted by Russ Still of Gold Seal. It is Drone Business Boot Camp

 

[Skyfall-0D2]

I am in the USA (Minnesota), semi-retired and have only been doing this for a few years so my experience may not be comparable to yours. For what it's worth:

1. After seeing the amount of time necessary to do all that's involved in doing these jobs, most (especially small businesses) realize it would not be cost effective to develop their own individual department or have a cross-trained employee doing this occasionally to get the results available from an reputable independent contractor. Larger companies that can have a team of people who specialize in all areas of inspections will often develop their own teams for several reasons (control, possible cost savings, constant availability, specialization, specific equipment to match their needs, etc.).

2. Here there are many weather related conflicts and rescheduling is a problem. I don't do weddings generally because of that. If I were to do weddings, I would want to begin taking photos prior to the wedding day to be flexible and get the best conditions possible. Lots of monkey business for the income I think. Being mostly retired gives me an advantage in solving scheduling problems.

3. I know several drone businesses have faded away in our region. Most failed ( I believe) for the same reasons all businesses fail. Failure to plan. I was in business for 45 years and saw many businesses fail for that reason. People think a business looks exciting and go for it not having thought it through. You are asking good questions and will likely make a good decision based on your findings.

3/b. We have 4 distinct seasons here. Some jobs are more seasonal like real estate, some construction, recreational and others (inspections) are year around. Coldest winter months have been the slowest.

4. The greatest hurdle has been getting business to understand the benefits of drones to their business. This is a rural area and many businesses have not been directly exposed to this technology, but are beginning to see how others use it. If it's not currently in their budgets they are reluctant to jump in until they see more need. Often, competition using something encourages the vision of need for something new. It has been slow and frustrating at times.

5. I haven't had any disturbing unexpected costs but, rather, as in item 4, slow income generation.

Again, my age and situation, make me less intense about making this a super successful adventure. I too went through having to restart a business, but at age 40. It was difficult to start over and look back at all the work I had done and know I had to do it again. However, I had no choice and found it was easier because of my experience in business and I did a better job then the first time. It allowed me to retire at 63 and do some bucket list things. The drone thing was one of those things. If any of this helps...good. If not, I hope you enjoyed my story. First time I have actually shared it .....

I really appreciate the time you took to share your personal experience and story. Your climate sounds similar to mine and very unpredictable.

I am so eager to have my current business celebrate its ‘20yr anniversary’ in April, but its the health risk if there’s a Covid spike in the winter (I’m high risk) and if we go back into lockdown. The next 2 decades of recession and austerity will be the ‘new normal’ and it’s finding a way to have a business that will survive in that normal, whilst staying alive.

As I said in another comment, I really didn’t consider the darker nights and restrictions on time. However there are too many people who are not even classified as hobbyists who spoil it for the rest of us and why we are not seen as professional. It’s certainly going to be an up hill battle for business.

Many thanks for sharing and I will add these answers to my pro’s & con’s list.

 

[Skyfall-0D2]

If you have not already seen it check out ----> THIS <---- video posted by Russ Still of Gold Seal. It is Drone Business Boot Camp

Thank you for that. Very helpful. I’ve seen a few specific to the UK that are very encouraging, but few that show the reality, hence why I asked here. I hope the answers help others in the future too.

 

[HAWK-i.us]

Software. I have a basic DroneDeploy account which runs me 1100 a year and that was the cheapest cloud option. I really want pix4d but can’t afford it.

Hope this helps.

1. The $1100 Drone Deploy "Pro" level account doesn't let you do much that is useful for higher tech construction work. You can make an orthomosaic map, but you can't process GCP's.

2. Pix4D has a month-at-a-time plan. You don't have to subscribe until you have a paying customer, then you can buy a months' worth. The Pix4D subscription lets you have the full boat of features, unlike DD.

3. WebODM (Open Drone Map) has a pretty full featured offering that is free. It's more technically demanding on the user and on the PC, but it's FREE. It does a good job and will process GCP's and thermography. (they've also recently added a cloud service that is fee-based, but it's much more affordable than anything else you'll find that does what it does)

Drone Mapping Software - OpenDroneMap™

Drone mapping software. Generate maps, point clouds, 3D models and DEMs from images, any orientation, any camera.

www.opendronemap.org

bob r

 

[R.Perry]

I think many that have had some success may have began by using a drone as a tool for their existing business. I had a home and commercial property inspection business. I got tired of climbing on roofs and under raised foundations so I purchased a drone (Phantom 4) for roof inspections, and a small RC crawler for crawl space inspections. It didn't take long before the value of the drone was realized, that experience led me to a long term contract (2 1/2 years) doing construction documentation, and that has brought a few more requests for services.
Since I dealt with so many realtors doing the home inspection business it didn't take long for them to start asking for Aerial videos of their listings, problem was they didn't want to pay decent money for the service, one even asked me to a aerial site video while I was at the site performing a home inspection, thing is he wanted it for free, I asked him if his sales commission was going to be free, I don't think we are friends any more.

One of the things was the learning curve with flying the drone and doing it in a professional manner. Learning the photographic and video capabilities is another learning process that I'm still working on.

 

[Skyfall-0D2]

Yeah I’m beginning to see there’s many parts to this.
• The UAV’s $$$
• Flying control
• Learning to be a videographer/photographer
• Editing package $
• Specialised Software $$
• Learning the software
All whilst setting up ($$$$) & running a business.
The Con’s are beginning to outweigh the Pro’s. It’s not just financial, but the time investment. However, to start part time, maybe another option...


Many thanks, very helpful.

 

[R.Perry]

When I started my home inspection business the first year I made five grand, it took three more years to make it profitable. My grandson now runs the business and is doing very well. It takes money to start a business, and their is no guarantee of success. I'm sure many on this forum have a lot better understanding of business startup and development than I do.

I wish you the best of luck.

 

[HAWK-i.us]

My first year revenue was a little better than R.Perry described, but not much. Each year I've been in business has seen revenue roughly double from the prior year. But it was about 3 years before the bank account increased much beyond expenses.

SkyFall-OD2, one more item for your list is the difficulty (and time) for market research. You'd better not be someone who needs feedback, 'cause you won't get much. Mostly when I ask questions by email I get silence. When I drop by businesses for face to face (exponentially more difficult now with Covid-19), I usually can't get past the receptionist. Leave cards and you get silence. Offer steep get acquainted discounts, and you get a few takers with little continuing business. Leave flyers at real estate offices -- nada. Droppng by a work site and talking to the on-site manager gets the friendliest reception and occasional business.

Also don't neglect back ups. Just about everything necessary in the workflow to get a job done, from equipment, accessesories, software, transportation, and communication needs a backup. Even a backup contingency plan for the pilot. I know this from experience.

You'll want a web site too. That isn't my super-power, but it had to be done. Mine doesn't drive traffic, but it gives me a way to demonstrate portfolio: www.HAWK-i.us (never miss an opportunity )

 

[HAWK-i.us]

One suggestion -- there is no substitute for being out in the field doing a job, even a non-paying job. Meet everyone you can and give/get cards, names, contact info, and remember their names the next time you're on that site. Copy selected ones with deliverables if it doesn't create conflicts. If you have to do a job for free as a demo or proof of concept, make it count. Most of my first year paying jobs came this way. One good client can feed into another who becomes another, etc. Keep in touch with anyone who will communicate with you, but don't pester them. A good client is a precious thing. Over-serve him/her.

When you're in the field flying, you're gaining experience and exposure. Both are really important.

 

[Jeepaholic]

Some really great feeback folks. I appreciate the information you all are willing to share.