Are you about starting a commercial drone delivery company? If YES, here is a complete sample commercial drone delivery business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a commercial drone delivery company.
We also took it further by analyzing and drafting a sample commercial drone delivery marketing plan template backed up by actionable guerrilla marketing ideas for commercial drone delivery companies. So let’s proceed to the business planning section.
Why Start a Commercial Drone Delivery Business?
An entrepreneur is basically someone who provides solutions in terms of products or services in exchange for a fee. It means that if you want to venture into any business, it should be a business that is set to provide solutions to people’s need. It could be people in your immediate environment, your country or on a global platform.
Commercial drone delivery business is one of the many businesses that emerged with the advent of new technology. A commercial drone delivery business involves helping your clients deliver their packages or goods via drones to any destination of their choice.
With this type of business, you can choose to own a store if you have the financial capacity to or you can choose to operate without a store. The bottom line is that you should know how to get goods delivered to your customers via drones.
The truth is that starting a commercial drone delivery business is a profitable business; it requires that you meet the licensing requirement from the country of your choice.
So, if you have decided to start a commercial drone delivery business, then you should ensure that you carry out feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.
Below is a sample commercial drone delivery business plan template that can help you to successfully write your own with little or no hassles.
A Sample Commercial Drone Delivery Business Plan Template
1. Industry Overview
Commercial drone delivery business falls under the drone technology industry and this industry is rapidly gaining prominence in the globe beyond the military circuit. Drones are unmanned but controlled aircraft used in the military during war to attack the enemy’s camp and also are used by the military for surveillance and to gather intelligence.
Drones are also used by the military to deliver food to front line troops during war. Drones come in handy when the risk and difficulty involved in any military operation is high and unsafe for soldiers. A delivery drone is an unmanned aerial vehicle (UAV) utilized to transport packages, food or other goods.
In the United States, early attempts at commercial use of UAVs, such as the Tacocopter company for food delivery, were blocked by FAA regulation. As of 2015, delivering of packages with drones in the united states is not permitted. But on the 13th March 2015, in Sheffield, FPS Distribution completed the first commercial delivery using a UAV and the first legal delivery in the United States via drone took place on July 17, 2015.
In recent time, the civilian community has started developing and making use of drones to carry out task such as surveying of vast farm lands (plantation), for delivery of parcels, to monitor and count wildlife and livestock, for geographical mapping, for search and rescue operations, for monitoring pipelines, for road patrol and for general commercial photography and motion picture filmmaking.
The commercial segment of the industry only represents an estimated 3.5 percent of industry revenue and it relies mostly on the recreational use of small UAVs. The FAA is currently working on rules for the integration of commercial UAVs into national airspace, but it missed its December 2014 deadline for rule proposals. As a result, those wanting to use UAVs for commercial applications have to apply for special FAA permission, a slow and limited process.
The commercial drone delivery business is indeed a growing sector of the economy of the United States of America and it generates several million dollars annually from several commercial drone delivery services companies scattered all around the United States of America. The industry is responsible for the employment of several people.
Research conducted by IBISWORLD reveals that the next five years will be crucial for the industry’s future. As the Pentagon proceeds with new UAV programs, spending on UAVs will rise. Therefore, in the five years to 2022, industry revenue is forecast to climb at an annualized 5.7 percent to $4.3 billion; however, operators will continue to face uncertainty.
For instance, it is still unclear if sequestration (which eased in 2013) will come back in full force during fiscal 2016. Moreover, even if sequestration ends, the Pentagon will likely remain under budgetary constraints, putting industry projects in competition with the military’s other high-priority programs.
The report further shows that that in the United States, foreign companies face relatively easy huddles, hence making it easier for them to develop and sell new UAVs. China’s SZ DJI Technology Co., for example, has already become the world’s largest consumer drone manufacturer penetrating even the US market. In response, companies like Amazon.com have increasingly moved their UAV operations overseas.
The largest US consumer drone manufacturer, 3D Robotics, already conducts development and manufacturing work in Mexico. Nonetheless, despite this uncertainty, the market potential and declining costs of UAV technology will lead to increased industry participation, with the number of industry operators expected to climb at an annualized 4.0 percent over the five years to 2022.
The commercial drone delivery services line of business is very open to any aspiring entrepreneur who has the capacity to open and run the business. Just ensure that you have all the required permits and license and you have reliable and easy to operate drones.
2. Executive Summary
Eagles Wings® Drone Delivery Services, LLC is a licensed and registered commercial drone delivery company with head office in High Street, Short North Arts District – Columbus, Ohio. We have been able to lease a facility that is big enough to fit into the design of the kind of warehouse facility we intend operating from and the facility is centrally located in the heart of town with easy delivery network.
Eagles Wings® Drone Delivery Services, LLC will deliver a wide range of parcels within our stipulate limit to locations in and around Columbus – Ohio. We will engage in transporting medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, machine components, food or other goods.
We are aware that there are several large and small commercial drone delivery companies all around Ohio, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, strong online presence and our office is well secured with the various payments of options.
Our customer care is going to be second to none in the whole of Columbus – Ohio and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our services.
Eagles Wings® Drone Delivery Services, LLC will ensure that all our customers are given first class treatment whenever they visit our office. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are.
Eagles Wings® Drone Delivery Services, LLC will at all time demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Eagles Wings® Drone Delivery Services, LLC is a family business that is owned by Chris Jeremy and his immediate family members. Chris Jeremy has a B.Sc. in Business Administration, with over 10 years’ of experience in the delivery services industry, working for some of the leading brands in the United States.
3. Our Products and Services
Eagles Wings® Drone Delivery Services, LLC is in the commercial drone delivery line of business to maximize profits, and we are going to do all that is permitted by the law in the United States of America to achieve our business goals.
We will engage in transporting medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, food or other goods via our reliable drones.
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the commercial drone delivery services line of business in the whole of Columbus – Ohio.
- Our mission is to provide faster and reliable means of delivering parcels via drones. We want to build a commercial drone delivery services company that can favorably compete with other leading brands in the commercial drone delivery services industry both in the United States of America and in other parts of the world.
Our Business Structure
Eagles Wings® Drone Delivery Services, LLC do not intend to start a commercial drone delivery business without a solid structure; our intention of starting a commercial drone delivery services business is to build a standard business that can favorably compete with leaders in the industry. Will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Eagles Wings® Drone Delivery Services, LLC;
- Chief Executive Officer (Owner)
- Warehouse Manager
- Human Resources and Amin Manager
- Sales and Marketing Manager
- Information Technologist
- Customer Services Executive
- Drone Delivery Operators
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Answerable for fixing prices and signing business deals
- Responsible for providing direction for the business
- In charge of signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for managing the daily activities in the warehouse
- Ensures that proper records of goods meant for delivery that are kept in the warehouse
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Control goods delivery and delivery chain inventory
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Helps to increase sales and growth for the company
- Manages the organization’s website
- Monitors the delivery of parcels from our office / warehouse to client’s destination
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Drone Delivery Operators
- Assists in loading and unloading drones
- Maintain a logbook of their drone flying/delivery activities to ensure compliance with federal regulations
- Keeps a record of drone inspections and make sure the drone is equipped with tracking devices
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Comply with drone delivery rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
6. SWOT Analysis
We are quite aware that people and businesses have not fully embraced the use of drones as delivery options, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Eagles Wings® Drone Delivery Services, LLC employed the services of an expert HR and Business Analyst to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Eagles Wings® Drone Delivery Services, LLC;
Our location, the business model we will be operating on, varieties of payment options, safe and reliable delivery and our excellent customer service culture will definitely count as a strong strength for Eagles Wings® Drone Delivery Services, LLC.
A major weakness that may count against us is the fact that we are new commercial drone delivery company and we may have to ride on external publicity of the reliability of drones as a safe and fast means of delivery to grow our business.
The fact that we are going to be operating our commercial drone delivery company in Columbus – Ohio, a city that is known to embrace new technology is an opportunity that we need to leverage on. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they hire our services; we are well positioned to take on the opportunities that will come our way.
A major threat that may work against us is the fact that people and businesses in the United States have not fully embraced drone as a means of delivery. So also, legal and regulatory environment can stand as a challenge to us. In essence, integrating the technologies into daily life could take a long time—or it could happen very quickly.
7. MARKET ANALYSIS
- Market Trends
If you read up stuffs from the internet about commercial drone deliveries, you will agree that with time, it will become one of the first options when it comes to the delivery of parcels that are within the required weight range. In the meantime, drone deliveries will probably get their start in remote areas, or in cases like flying vital machine components to oil rigs and mines, or by collecting data on shipping to make it more efficient.
As a matter of fact, people are already paying premiums to get their parcel delivered via drones. Companies like DHL and Amazon are already in the forefront when it comes to delivering parcels with drones and entrepreneurs that have foresight are beginning to queue behind them.
8. Our Target Market
We are aware that commercial drone delivery business is pretty much green and would require innovative marketing approaches. Our target market cuts across hospitals that need delicate blood samples or medicines, oil rigs that need replacement parts, residents in remote towns that need key supplies and companies that need timely data et al.
In view of that, we have positioned our commercial drone delivery services to service the residents of Columbus – Ohio. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to services the following people and organizations;
- Corporate Executives
- Business People
- Corporate organizations
- Grocery stores
- Fast food restaurant
- Post office
- Documentation companies
Our Competitive Advantage
A close study of the commercial drone delivery line of business reveals that the market will start experiencing growth and competition in no distance future. So, the earlier a commercial drone delivery services company is positioned for this growth, the better.
We are aware of the future of the commercial drone delivery business and we will ensure that we are one of the leaders in this industry not only in the United States of America, but also on the global stage. Our competitive advantage lies in our reliable and effective drones, swift and safe deliveries, affordable fees and of course our wide delivery network.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Eagles Wings® Drone Delivery Services, LLC is in business to deliver parcels with the aid of drones in and around Columbus – Ohio.
In essence, our source of income will be the delivery of medicines and vaccines, and retrieving medical samples, into and out of remote or otherwise inaccessible regions and transporting packages, machine components, food or other goods with the aid of drones.
10. Sales Forecast
One thing is certain when it comes to commercial drone delivery business, if your company is well – publicized and centrally positioned coupled with effective and reliable delivery services, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in and around Columbus – Ohio and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the commercial drone delivery services line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Chicago – Ohio.
- First Fiscal Year: $120,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $650,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Prior to choosing a location for Eagles Wings® Drone Delivery Services, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents and businesses in and around Columbus – Ohio. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the commercial drone delivery services line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus – Ohio.
In summary, Eagles Wings® Drone Delivery Services, LLC will adopt the following sales and marketing approach to win customers over;
- Open our commercial drone delivery services business in a grand style with a party for all.
- Introduce our commercial drone delivery services business by sending introductory letters alongside our brochure to organizations, households and key stake holders in and around Columbus – Ohio
- Make use of attractive hand bills to create awareness and also to give direction to our office facility
- Position our signage / flexi banners at strategic places around Columbus – Ohio
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our commercial drone delivery services business.
11. Publicity and Advertising Strategy
Despite the fact that our commercial drone delivery services business is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our commercial drone delivery services business.
Eagles Wings® Drone Delivery Services, LLC has a long – term plan of expanding our drone delivery services all around Columbus and neighboring states which is why we will deliberately build our brand to be well accepted in Columbus before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Eagles Wings® Drone Delivery Services, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business
- Ensure that our we position our banners and billboards in strategic positions all around Columbus – Ohio
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our commercial drone delivery services business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our drones, official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals
12. Our Pricing Strategy
At Eagles Wings® Drone Delivery Services, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in loads of parcels to be delivered via drones to their large clientele base. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Eagles Wings® Drone Delivery Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Eagles Wings® Drone Delivery Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines
- Payment via POS machines
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.
13. Startup Expenditure (Budget)
The startup expenditure for a commercial drone delivery services can be said to be moderate. The fact remains that drones are not as expensive of trucks or vans and the maintenance of drones is still within the reach of a serious – minded entrepreneurs.
You are expected to spend the bulk of your startup capital on renting a standard warehouse and paying professionals who will help you man the drones. These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
- Marketing promotion expenses for the grand opening of Eagles Wings® Drone Delivery Services, LLC 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
- The 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 months at $1.76 per square feet in the total amount of $105,600
- Cost for warehouse remodeling (construction of racks and shelves) – $20,000.
- 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 the purchase of reliable commercial drones – $50,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs – $5,000
- The cost of the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
- The cost of launching a website – $600
- The cost for our opening party – $7,000
- Miscellaneous – $10,000
We would need an estimate of $300,000 to successfully set up our commercial drone delivery services business in Columbus – Ohio.
Generating Funds/Startup Capital for Eagles Wings® Drone Delivery Services, LLC
Eagles Wings® Drone Delivery Services, LLC is a private business that is solely owned and financed by Chris Jeremy and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Eagles Wings® Drone Delivery Services, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our drone delivery services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Eagles Wings® Drone Delivery Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the warehouse: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Purchase of distribution drones: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Compilation of our routes that we will cover: Completed
- Establishing business relationship with vendors and key stakeholders: In Progress