Saving $1 from your expenses is equivalent to generating $2 of revenue and professional drones ranging from $500 to $50,000 launching a professional drone business isn’t cheap. A cost that doesn’t begin to cover software, marketing, clothing, vehicles, accountancy fees and other overheads. So using every opportunity to save money can not only helps to reduce the capital needed to start your business but also increase profits. Our guide provides a range of methods to cut costs and save money:
Finance can be a double-edged sword. Taking on a loan at 0% interest can be a great way to acquire equipment to build your business whilst improving cash flow. However, undertaking high interest loans can overwhelm you with debt which can quickly spiral out of control, leading to missed payments and potential bankruptcy. Before taking on debt it is essential that you understand the long-term costs and implications if you miss payments. When taking on finance you will undergo a standard credit check which will assess your ability to repay the loan. Some drone retailers will offer finance in partnership with a loan company who will provide the loan on behalf of the retailer. But you can also shop around for improved loan terms from a bank or business loan lender. Reducing the cost of the loan and providing improved payment terms.
Hiring drone equipment is a great way to reduce the capital needed to launch a drone services business. Having access to a range of different equipment also enables you to offer a range of services to the customer without needing to invest large sums of money in equipment. For more information on how to successfully hire drone equipment check out our detailed drone equipment hire guide.
Shopping around is essential to saving money. Different retailers and service providers will have different cost structures enabling you to find cheaper prices. However, it is essential that you compare like-for-like, check technical specs of drones and software before making your purchase. Also ensure your insurance and any other services you yes are offering the same services. You may find a cheaper price but if the quality is lower then it will cost you more in the long run.
Subcontracting work to a lower cost service is generally against the implied terms of most contracts. This means that you are forbidden from winning a customer only to then subcontract the work to someone else without informing the customer or arranging a subcontracting agreement with the customer. However, if you are able to subcontract work this could allow you to subcontract work at a cheaper cost that would normally cost you to perform. It can also be used to free up time sell your services to other customers. For example, you may win a customer to aerial photograph their home for $500 and then pay another professional pilot $400 to complete the work whilst at the same time you complete a similar job for $500 also. Generating you $600 in revenue for your time instead of $500. If you are planning to subcontract work you must ensure that the subcontractor is fully qualified, experienced and reliable or you could end up losing money in the long run.
Utilising Cashback Sites
Cashback is the process of receiving a small refund after making a purchase. Cashback websites create partnerships with a wide range of retailers who provide a small payback. This payback can range from 2% to 10% and can take up to six months to process. Some banks and credit cards also offer cash bank services on each transaction you make. Cashback can be a quick and simple way to reduce costs and increase profits but not all payments are correctly processed by the cashback site so it is important to not rely on these refunds to generate a profit for your business. They should be treated a small bonus and not a reliable method to reduce costs.
Working methods into your business which can save money can be just as good as finding a new customer and in some instances can be less work. Never overlook the opportunity to reduce costs.