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The drone industry offers loads of opportunity – but with all this potential there are also many pitfalls. Entrepreneurs jump into the drone market pondering they’ll fly, but then they’re stricken by errors they never expected.
So what are these missteps? And more importantly, how do you avoid them? Whether you are recent to the sport or a seasoned business owner, it is important to acknowledge the risks before they hinder your progress. Here are five of essentially the most common mistakes that would wreck your drone business before it even gets off the bottom.
Related: How this student got her drone business off the bottom
Mistake 1 – Ignoring regulatory requirements
Drones are eye-catching, futuristic and open up a world of possibilities for your enterprise. But let’s not forget the elephant within the room – regulations. If you’re thinking that you possibly can just fly your drones wherever you would like without having to fret about legality, reassess. The FAA (or whatever regulatory agency oversees your region) is monitoring the situation closely. There are airspace restrictions, licensing requirements, and privacy concerns that you ought to be aware of. Ignoring them can have serious financial consequences.
Compliance just isn’t a one-time investment. You’ll have to budget for ongoing training, certifications, and even perhaps hiring a compliance skilled. The smartest entrepreneurs plan ahead by securing financing to cover these costs. With unsecured financing, you do not have to tie up collateral, supplying you with the flexibleness to take care of changing regulations without slowing down your enterprise.
You’ve just invested in a fleet of drones and suddenly you are fined for failing to comply with a regulation. This just isn’t only embarrassing, but additionally expensive. And the regulations are consistently changing. This is where flexible financing really pays off, because it keeps your enterprise flexible in adapting to compliance updates without dipping into your day-to-day money flow.
The takeaway? Don’t compromise on compliance. Invest upfront and leverage financing to guard your growth.
Mistake 2 – Falling behind in technological advancements
Drone technology is advancing faster than you possibly can think. What’s current today? It will probably be obsolete tomorrow. If you’re thinking that you possibly can just put money into a drone fleet once after which ignore it, you are in for a rude awakening.
As Commercial UAV News recently reported: “The rapidly evolving drone market is characterized by considerable complexity and uncertainty.” It’s not only inconvenient to fall behind in technology. It makes your enterprise irrelevant.
Drones aren’t just concerning the hardware. There are AI systems, autonomous flight controls and advanced sensors that may determine your competitiveness. While you are hesitating and waiting for the subsequent big leap to hit the market, another person is already taking the plunge. Don’t let that be you. By securing the proper funding up front, you will be able to move into recent technologies before your competition even knows what to anticipate.
Related: Here’s what you’ll want to know to enter the $30 billion drone industry through franchising
Mistake 3 – Skipping market research
Many people think they will just jump into the drone market without doing their homework. Spoiler alert: you are flawed. Too many entrepreneurs buy drones without fully understanding their market. Suddenly they’re stuck with expensive equipment that they do not know find out how to use profitably.
Market research is your guide. Here you could find out who’s buying, which industries use drones and which specific technology is in demand. Without this information, you can’t make informed decisions. You just throw money at an issue and hope something sticks.
Good market research just isn’t low cost. But that is where funding comes into play. Hire consultants, collect reports and conduct surveys. Do whatever you’ll want to do to get a transparent picture of your market. Trust me, this upfront investment in knowledge pays off tenfold in the long term.
Mistake 4 – Not securing the proper financing
Let’s be honest. Drones are expensive. Whether you are purchasing equipment, upgrading technology, or scaling operations, the prices add up quickly. And when you’re attempting to finance the whole lot from money flow to assembling patchwork loans, then you definitely’re asking for trouble.
Traditional financing is usually slow and rigid. What you wish is flexible financing that permits you to benefit from opportunities as they arise. Unsecured financing specifically allows you quick access to funds without the effort of collateral.
In an industry as fast-moving as drones, access to the proper funding could be the difference between scaling quickly and falling behind.
Mistake 5 – Ignoring risk management
Drones are exciting, but let’s not kid ourselves. They involve risks. Technical failures, changing regulations, and fluctuating market demand can derail your enterprise faster than you may think. And yet too many entrepreneurs plunge into crisis without an appropriate risk management strategy. Big mistake.
What’s the plan if a drone crashes or regulations suddenly tighten? What happens if demand for drone services collapses? You need insurance, an emergency plan, and solid emergency strategies to weather these storms.
Risks are inevitable in every business, but ignoring them just isn’t an option.
Related: The Duke of Drones: Agnishwar Jayaprakash
The drone industry is on the rise, but only those that are prepared will really take off. The mistakes we have discussed—failing to comply, underestimating technology, neglecting market research, failing to secure adequate financing, and ignoring risk management—can cost you dearly. But when you avoid these pitfalls, you’ll thrive on this ever-evolving industry.
Success doesn’t just rely on having the very best drones. It’s about the proper strategy, the proper funding and the foresight to adapt as things change. So are you ready for smart flight?
