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Should you start an indoor or outdoorĀ  drone light show business?

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When considering whether to start an indoor or outdoor drone light show business, there is a lot to take a look at. This includes understanding the specific advantages and disadvantages of each environment, assessing the initial and ongoing costs, and planning for the operational, technical, and marketing aspects of the business.

Outdoor drone light shows generally require a larger number of drones to create an impactful display. For instance, a 150-200 drone show outdoors can create grand visual spectacles due to the expansive space available. In contrast, indoor shows typically use fewer drones, around 50-60, since the confined space requires fewer drones to achieve a similar effect.

Cost is a significant factor in deciding between indoor and outdoor shows. For an outdoor setup with 100 drones, the initial investment can be around $200,000, with yearly costs of approximately $75,000 for software, insurance, and support. Indoor shows, on the other hand, might require an initial outlay of $100,000 for 100 drones, with yearly expenses around $50,000.

Pricing for drone shows varies as well. Outdoor shows with 200 drones are usually charged between $25,000 to $40,000. Indoor shows, even with fewer drones (about 60), command prices in the range of $25,000 to $35,000. This reflects the unique value and complexity of indoor shows, despite the smaller scale.

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The size of the team needed also differs. Outdoor shows, for 200 drones, may require a crew of up to six people, including visual observers (VOs) who are responsible for maintaining visual contact with the drones to ensure safe operations. For indoor shows, a smaller team of about two people is often sufficient for a 60 drone show, and event staff can sometimes assist with setup tasks.

Insurance costs are another consideration. Outdoor drone show insurance can be quite high, ranging from $20,000 to $30,000 annually due to the greater risks involved. Indoor shows typically have lower insurance costs, around $10,000 per year, reflecting the reduced risk in a controlled environment.

From a sales and marketing perspective, drone shows currently have a unique appeal that largely sells itself due to their novelty and visual impact. Outdoor drone shows have seen stable pricing and high demand, especially during major events like July 4th celebrations where demand often exceeds supply. Governments are increasingly funding drone shows over traditional fireworks to reduce air and sound pollution, boosting the market further. However, weather and seasonal variations can limit the opportunities for outdoor shows, with winter and adverse weather posing significant challenges.

Indoor shows, meanwhile, are not affected by weather and can be performed year-round. They are particularly suited to events like indoor sports, concerts, and corporate events, offering a consistent demand. The market for indoor shows is still evolving, with prices influenced by the less competitive environment, yet they benefit from the stability and frequency of indoor events.

Regulation is a critical aspect to consider. Outdoor drone shows are subject to strict FAA regulations, requiring waivers and permits for operations. These include Part 107 waivers and authorizations specific to airspace, and the FAA often inspects shows to ensure compliance. Non-compliance can lead to fines or the revocation of permissions.

Indoor drone shows are not regulated by the FAA since they are conducted in enclosed spaces. However, venue-specific rules apply, and some venues have strict no-drone policies. Gaining approval typically involves presenting safety documents and explaining the measures taken to ensure safe operations.

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Equipment and transportation logistics also differ significantly. Outdoor drone shows often require substantial transportation infrastructure, including trailers or trucks to move equipment, which adds to the cost and complexity. Some companies establish warehouses in frequent locations to minimize transportation costs. In contrast, indoor drone light show systems are more portable, often fitting into suitcases and easily transported by plane, which significantly reduces logistical costs.

When selecting a venue, outdoor shows have the advantage of large open spaces allowing for more creative and expansive designs. However, securing suitable takeoff locations can be challenging and often involves negotiating with property owners. Indoor shows, while limited by the dimensions of the venue, can take off from the stage and perform above or in front of the audience. This requires clear communication with clients to manage expectations regarding design possibilities.

Safety is always a paramount concern. Outdoor shows, regulated by the FAA, have stringent safety protocols including perimeters around takeoff and flight areas. The potential for significant risk exists if drones fall from height. Indoor drones, being much lighter and slower, present less risk but still require careful safety planning to reassure venues and ensure safe operations.

In summary, both indoor and outdoor drone light show businesses have unique benefits and challenges. Outdoor shows offer grander spectacles but come with higher costs, regulatory requirements, and logistical challenges. Indoor shows, while smaller in scale, provide year-round opportunities, lower operational costs, and greater flexibility. Carefully considering these factors will help you make an informed decision about which type of drone light show business best suits your goals and resources.

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Make sure to check out the rest of our articles in this series below. If you think this is the right business for you, reach out at [email protected].Ā 

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