Why Do I Need A UAV Business Plan?
So you have an amazing, innovative idea for a new UAV Business? Great! But turning that idea into a viable, thriving reality requires a lot more than just ideas. That is where your UAV Business Plan will come in.
In order to ensure your long-term success, you need to do your research ahead of time in order to fully understand the industry and your potential customers, likely expenses and income, wise marketing efforts and customer recruitment, and how your interests and experience make you the best person to bring your hopes, plans, and goals to fruition.
Firstly, a strong, clear UAV business plan is your opportunity to provide all this information and make your case to potential lenders and investors. This template lays out essential components of a great UAV business plan. You will want to take it and make it your own, so that it reflects your personality and creativity; but be sure to cover as much of the information described in the template. As you prepare your business plan, you should be thinking about how each of the components, and all of that data, fits with your overall goals in starting or expanding your business. Also, what is motivating you as a drone entrepreneur? Who are the customers you are serving? How are you building a community around your products and services, not just selling stuff to strangers? How is what you do benefiting the community in which you live?
Finally, I recommend that you write your own UAV business plan personally, so that you can be intimately familiar with every aspect of your business and think through key decisions involved in formulating your plans.
How To Write A UAV Business Plan
I. EXECUTIVE SUMMARY
First of all, this section of your UAV business plan should be a one to two-page overview of the key ideas and features of the business plan for your business. It should engage readers and compel them to read the entire plan. If the business plan is also a financial proposal, also highlight key elements of your financing needs and purposes.
Important tip: Although the Executive Summary appears first in the final document, it is best to write it last, so you can most accurately summarize the contents of your plan.
II. BUSINESS DESCRIPTION
Secondly, your UAV business plan should have an introduction that gives an overview of your business and includes the name and location, the principal owners, the legal structure, the status (start-up, expansion, or acquisition), and the type of business.
A. MISSION STATEMENT
The Mission Statement spells out the primary purpose and objectives for your business. What is the business about? What defines it? How does it seek to impact the community? Many companies display their mission statement and try to “live up to it.”
Describe the products or services your business offers. Which services are on offer? What benefit does it provide? What need does it fill? Are there specific, definable applications for the product—now and possibly in the future? What are some of the unique features of the product or service?
C. STRATEGIC GOALS
Spell out your goals in forming the business and what you want to accomplish, including proposed timeframes for meeting these goals. This will help you to think through phases of growth and plan the development of your business strategically. And always remember that goals should be SMART: Specific Measurable Attainable Realistic Tangible
D. STRENGTHS & CHALLENGES
In addition, you can include specific strengths that your business will have or challenges it will face. Remember that every challenge should be presented as a positive opportunity, or with a solution to turn it into an opportunity.
III. MARKET ANALYSIS
Next, your UAV business plan must show that your business will be viable in your particular market. Drone industry trends, who you will be selling to and analyzing your competition are integral to knowing what your niche in your market can be.
A. INDUSTRY TRENDS
Give some background about the type of business and the products/services you are providing, relative to other similar businesses. At what stage in the drone industry’s “life cycle” are you entering (introduction, maturity, saturation, or decline)? How will your business be similar to and/or different from other businesses in this industry? Your goal in this section is to demonstrate that you have done your homework and understand the larger industry of which you are a part. This can both inspire you with ideas and forewarn you about challenges you might face.
B. TARGET MARKET
The target market consists of your most likely customers. Your drone business plan will want to discuss the size of your target market, and what percentage of that market you anticipate capturing. You can research your target market through the Internet, census data, local chambers of commerce, public and university libraries, trade associations, and other resources. That will allow you to develop a customer profile by defining your typical customers, based on:
- Demographics: geographic location, age, income, education, gender, etc.
- Personality characteristics: likes, dislikes, lifestyle, career, household, and tendencies that affect purchasing patterns.
- Shopping habits: light user, heavy user, seasonal user, etc. How will you attract and keep customers? How can you expand your market? Creating the profile and answering these questions can help you develop a strategy to reach that target market through your sales plan.
C. ANALYSIS OF COMPETITION
Every business competes for customers and customer dollars. There are primary and secondary competitors (also called direct and indirect).
- Primary competitors are competitors that offer a nearly identical product or service.
- Secondary competitors offer a substitute good or service, which might be of a lower caliber but is still related and could impact your business. How do your competitors compare to your business (sales volume, number of employees, locations, customers)? Is their business steady, increasing, or decreasing? What are their strengths and weaknesses? What have you learned by observing them?
D. PRODUCT/SERVICE DIFFERENTIATION
What makes your business stand out, and what unique niche of the market will your business fill? Has anyone attempted to fill this niche? If not, why? Where do you believe you have a business advantage over your competitors (higher quality product, lower price, superior service, quicker delivery time, more convenient locations, or other)? One of the best ways to approach this is to think about building a community around your business and the product/service you provide.
E. PROMOTIONS & MARKETING
An essential part of distinguishing yourself from your competitors is skillful promotion of your business. In this section of your business plan, you should discuss how you will create your business’s “brand”—how customers identify and perceive you.
Also highlight the key methods you will be using to promote your business and product. This can include paid advertising, Internet websites, social media, direct mail, store signs, novelties, and “free” publicity efforts.
Most of all, you should be specific about any phases of advertising you plan to follow, both at startup and throughout the course of operating your business.
IV. OPERATIONS PLAN
In addition, your UAV business plan will cover operation aspects that you may not have thought about yet. Thinking about expansion from the start will allow you to have built-in scalability.
Unless you are comfortable wearing many hats and running your own show completely, you will need to have additional help in your business, either for the daily operations or to assist with specialized tasks. So you must consider the skills required, the availability of those skills in your area.
B. FUTURE PLANS
It is a good idea to discuss any long-range plans for growth or expansion you have. Once again, be sure to make long-term goals SMART: Specific, Measurable, Attainable, Realistic, Tangible.
C. LEGAL ENVIRONMENT
Licensing and bonding requirements
We will need to show that you have all applicable City/State business licenses.
Also, that all Pilots will have a current UAV Pilots license, with the exception of a pilot in training under direct supervision of the Pilot on duty.
All jobs should be done in line with FAA regulations regarding Airspace and Air Traffic Control permission. You will have to get permission to fly within 5 miles of an airport etc.
V. MANAGEMENT PROFILE
Possibly the most important section for a potential investor. You have talked a lot about your business so far…but here you can talk about yourself! You should include the personal history of the principal owners and/or managers, including related work experiences, duties and responsibilities, salaries, and other experience that qualifies you to run the business.
A. PERSONAL HISTORY
Complete this section for each key participant in the business. Include their relevant business background and management experience as well as formal and informal education. Most importantly, relate past experiences to future success potential. Full resumes and letters of recommendation can also be included in the supporting documents (see below).
B. DUTIES & RESPONSIBILITIES OF KEY PARTICIPANTS
Who are the decision makers? Is there appropriate delegation of authority and tasks? Include job descriptions in this section as well.
Discuss, as fully as possible, the expected salaries, hourly rates, and other incentives for both management and employees of the business. The more specific you can be on these figures, the better it will be for anticipating expenses involved with running your business.
D. AVAILABLE RESOURCES
Do you and your paid staff have the marketing, management, and financial skills to do it all yourselves? If not, then show relationships that fill the gaps to create a fully capable business enterprise. Do you network with others in your industry to stay current on changes in the marketplace? Include the names of the resources you will use: attorney, accountant, insurance agent, banker, other consultants.
VI. FINANCIAL ANALYSIS
The final section! You may have an amazing idea for a business…but you also need to generate income and cover expenses to keep that idea in business. This section of your UAV business plan provides your best estimations of the costs to start and operate your business for three to five years. Be prepared to do some research and number-crunching to achieve the complete plan.
These projections will help persuade lenders and investors that your business concept is sound. The numbers can also inform your overall business plan, helping you think about your needs for marketing and balancing expenses in order to remain profitable. Your banker, accountant, and business counselor can assist you in gathering and testing the assumptions and creating the documents to support your plan.
We have a template to use in our download section!
Key financial statements to include:
- Startup Costs
- Source and Use Of Funds
- Income Statement Projection
- Monthly Cash Flow Projection and Assumptions
- Balance Sheet Projection
- Personal Financial Statement*
- Personal Income Tax Returns* * Include for loan applications and financing proposals
VII. SUPPORTING DOCUMENTS
This section may include a variety of documents that support and give detail to the plan. The documents are as varied as the businesses but may include:
- Personal Financial Statements
- Personal or Business Tax Returns
- Market Research Data
- Renovation Cost Estimates or Equipment Costs
- Sales or Lease Agreements
- Floorplan, Overhead Views, and Maps
- Brochures, Menus, Logos, or Other Promotional Items
- Resumes and Letters of Recommendation