8 Ways Small Businesses Can Tap Into the Power of Drone Deliveries

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How can small businesses capitalize on drone delivery technology?

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses. 

1. Start Small

Cody McLainIf you’re keen on integrating this relatively niche technology into your business’ logistics strategy, my recommendation is to start small. Test the product on short distances (and low premium products) first and get educated about regulations in your area to avoid any potential legal action taken against you for utilizing the technology in would-be protected “no-fly” zones.

– Cody McLain, SupportNinja

2. Ask Yourself If You Really Need It

Ismael WrixenCertainly, it is cool. But you need to be thinking about how it makes a difference in your specific business. Product delivery might be one area. Delivering relevant and targeted ads might be another. But if you have no use for it, it’s just an unnecessary expense.

– Ismael Wrixen, FE International

3. Tout Fast Deliveries

Andy KaruzaNow local businesses can compete with the logistics abilities of large corporations. Customers can, and will, order local because they will get the products they desire more quickly. Drones could allow you the opportunity to market this capability as a unique value proposition, allowing customers to get products faster, rather than waiting for a product to arrive from somewhere further away.

– Andy Karuza, FenSens

4. Put Your Warehouse Near a Hub

Diego OrjuelaDrone deliveries as we imagine it today are far from becoming a reality. Instead, a first approach to drone delivery will be large shipments to a central hub and smaller, local deliveries made by drones. By setting up near freight hubs, you will be the first to benefit from faster, same-day drone deliveries, both procuring items from suppliers such as Amazon as well as shipping to customers.

– Diego Orjuela, Cables & Sensors

5. Outsource Drone Management

Ben LeeDrone delivery sounds really sexy, but you have to be cautious – there are real logistical risks that can ruin your investment. Drone delivery is a major waste of money if you buy a drone only to have it knocked out of the sky by a red-tailed hawk (which does happen, especially in California). It’s a better idea to outsource to a company like Flirtey, so they’re handling the inherent risks. 

– Ben Lee, Neon Roots

6. Set Up in Underserved Areas

Adam SteeleTechy metropolises will see drone delivery quickly, but this will be less so for smaller cities and residential areas. By serving these areas first, you could open yourself up for healthy business, and to the possibility of being bought if a national partner does show up in the area. 

– Adam Steele, The Magistrate

7. Partner with Other Companies to Share the Technology

Angela RuthWhile it may be too expensive to adopt as a small business, more local businesses can consider a cooperative model where they share the delivery technology, investing together to build a local delivery service for those within their cooperative.

– Angela RuthDue

8. Hold Off, but Be Ready to Be First

Andrew SaladinoA small business shouldn’t be spending hours of their time or money right now thinking about drone delivery. That tech is years away and will be great when it lands. Stay up-to-date on developments, but don’t waste too much time on it. Be ready to invest your time and money early, when possible, to offer a competitive edge.

– Andrew SaladinoKitchen Cabinet Kings

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Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year, and have created tens of thousands of jobs.