How to Start a Drone Repair Business

Start a Drone Repair Business by following these 10 steps:

1. Plan your Drone Repair Business
2. Form your Drone Repair Business into a Legal Entity
3. Register your Drone Repair Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Drone Repair Business
6. Get the Necessary Permits & Licenses for your Drone Repair Business
7. Get Drone Repair Business Insurance
8. Define your Drone Repair Business Brand
9. Create your Drone Repair Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Drone Repair Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Drone Repair Business?

To start a drone repair business, you can expect to need about $25,000. You must have a point of sale system to accept payments. You will have to pay for the formation of your business, including licenses and attorney fees. Finally, you must have specific software and equipment.

What are the ongoing expenses for a Drone Repair Business?

You may need a storage facility or a store where you can have customers bring drones to you and you can stock parts. Additionally, up-to-date equipment is a must. 

Who is the target market?

The ideal market for your business is anyone that owns and uses a drone.

How does a Drone Repair Business make money?

A new drone business can earn about $60,000 in its first year. However, overtime you could increase your earnings by hiring employees to allow you to handle more work at one time.

How much can you charge customers?

You should consider charging an hourly rate to repair drones. For example, you could charge about $65 an hour unless you know the work is going to be incredibly complicated. You could also provide a list of services and associated prices for those specific services.

How much profit can a Drone Repair Business make?

A new drone business can earn about $60,000 in its first year. However, overtime you could increase your earnings by hiring employees to allow you to handle more work at one time.

How can you make your business more profitable?

You can expand your business beyond repairing drones by also selling drones. Consider renting drones to people who are interested in using a drone to photograph a special event.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Drone Repair Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A drone is an aircraft that is controlled remotely. With the increasing use of drones in photography, vlogging, security, and agriculture, there has been a high need for the repair and maintenance of drones. This is a growing field, and with the development of 3D printing, drone repair businesses can be easier to start than you may think. Continue reading to learn more about starting your own drone repair business and find out if it is right for you.

What happens during a typical day at a Drone Repair Business?

You will spend most of your days handling errands related to your business. This may include repairing drones, searching for pieces of equipment, and picking up those pieces. You must keep an inventory of what you have. You will also have to answer phones and respond to emails. You may spend a significant amount of time traveling to and from jobs, and you may have to repair drones at customers’ location and not yours.

What are some skills and experiences that will help you build a successful Drone Repair Business?

You must know how to fix and repair drones. There are specific tools that you must be able to use such as an electronic digital tap hammer and hot bonders. You must have extensive knowledge of welders, gauges, and pumps. There are many other tools that you must be willing to learn how to use in order to repair a drone properly.

What is the growth potential for a Drone Repair Business?

The growth potential for drone repair is extensive. Drones are becoming more affordable and more commonly used for recreational purposes which will increase the demand for repair services. In addition, there are ways to expand your business beyond just repairing them.