How to Start a Drone Security Company

Start a Drone Security Company by following these 10 steps:

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

We have put together this simple guide to starting your Drone Security Company. 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 Security Company?

Initial costs for this business range from $50,000 to over $200,000 and will depend on the clients you plan to serve and the number of employees needed for each contract. At the very least, you will need several drones, which range in price from $1,900 to over $18,000. You will also need to invest in software, additional hardware, computers, and your own on-site security system. With the exception of your drone investment, payroll will represent your largest startup expense. You will need to hire experienced drone operators, employees to man the live feed, and personnel on-site to address any security and/or mechanical issues that arise while performing surveillance.

What are the ongoing expenses for a Drone Security Company?

Like many businesses, payroll will represent your largest ongoing expense. Beyond that, you’ll need to consider the following when formulating your monthly budget:

• Routine maintenance, repair, and replacement of drones and related equipment
• Rent/mortgage, utilities, phone, and internet
• Website maintenance
• Travel expenses
• Taxes and insurance

Who is the target market?

Drones can be used to help monitor parking lots, corporate campus perimeters, college campuses, detention centers, outdoor venues, and events. Your marketing strategy should include all possible business opportunities. Sales pitches and literature should be educational and relatable for key decision-makers.

How does a Drone Security Company make money?

Your drone security business will generate revenue from each property that you monitor. Some clients will require your services regularly, while others will only need security for a special event.

How much can you charge customers?

Pricing for your services will vary depending on the number of drones needed, required personnel, the length of the event, and the length of the contract. When negotiating your price with potential customers, you will want to consider your business’s ongoing expenses, including planning time and personnel needs.

How much profit can a Drone Security Company make?

Since this is still a relatively new sector of the security industry, there is not a lot of information regarding potential profits. However, your standard security company generates between $40,000 and $60,000 annually per security unit. If you use eleven drones at your startup, you stand to clear over $600,000 in revenue. Your annual net profit will vary depending on labor and other ongoing expenses.

How can you make your business more profitable?

If you enjoy working with drones and are looking for ways to expand your business and maximize profits, consider additional ways to utilize your drones when they aren’t surveilling a property or event. Drone operators have found success as filmmakers, photographers, and inspectors. 

Offering a drone repair service or hosting drone flying courses could also be effective ways to scale your business. Additionally, given the profitable nature of the security business, you will want to consider expanding the security services your agency offers.

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 Security Company 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?

An individual who is passionate about flying drones and is looking for innovative ways to turn their hobby into a profitable business venture is best suited for this profession.

What happens during a typical day at a Drone Security Company?

As a drone security business, your duties will be split between servicing your clients and marketing to new customers. When your marketing efforts convert a prospective client into a new contract, you will sit down with key personnel to identify their specific needs. One client may need 24/7 surveillance, while another may need your services for a special event. 

Regardless of the parameters of a particular contract, it is important that you walk the property and identify any potential weaknesses. This ensures you identify potential problems and that your client has time to fortify the property based on your recommendations. This also informs your security team of any particular areas that may require special attention.

What are some skills and experiences that will help you build a successful Drone Security Company?

If you are considering this unique business venture, you will first want to enroll in an FAA-approved aeronautical training program. At the end of your training, you will be armed with your Remote Pilot Certificate, which is a requirement for anyone planning to use a drone commercially. While not required, a background in security services will help solidify your reputation and ensure you understand the various requirements for launching and managing a successful drone security business.

Individuals hoping to build a successful security business would also benefit from excellent communication and interpersonal skills, business development, and marketing techniques. As with any great leader, it is important that you analyze your strengths and weaknesses and surround yourself with a team that adds value in areas you might be lacking.

What is the growth potential for a Drone Security Company?

The drone security industry is still in its infancy stages. However, its expected annual growth is 20.5%, leaving substantial growth and profit opportunities for entrepreneurs considering this business venture.