Startup cost
$500
TRUiC Business Ideas
How to Start a Virtual Tour Business
Decision Snapshot
Virtual Tour
Idea Score
74
Profit margin
25%
Break-even
4 mo–12 mo
Time to launch
2 wk–8 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Virtual Tour business - Background
Virtual tours are popular with many industries, including the hospitality and real estate industries. You will be using photo, video, and other multimedia elements in order to bring a space to life for people before they visit the physical space. While you may eventually create virtual tours of almost any space, some of the main areas you will virtually recreate are apartments, houses, hotels, resorts, and neighborhoods.
You may also be interested in additional online business ideas.
Our guide is in 3 parts:
- Part 1 - How to start a Virtual Tour business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a virtual tour business?
The costs of opening a virtual tour business depends on the amount and type of equipment you buy as well as whether you work from home or not. For instance, it is possible to start a home-based virtual tour business for $4,000 or less. This includes spending approximately $500 on a DSLR camera, $250 on a fisheye lens, $400 on a panohead, and $50 on a tripod. In terms of software, you will need to spend approximately $400 on Panoweaver Professional Edition and $900 on Tourweaver Professional Edition. The rest of that budget assumes spending approximately $500 on a professional website and $1,000 on some traditional advertisements in things like newspapers and radio, though much of your advertising will be done via your website as well as your social media presence which you can establish at no extra cost.
The cost of this business can go up if you want to offer different services that require different cameras. For instance, a professional camera that can create 4K, 360-degree video will likely be $1,000 or more, and software to edit these videos (such as Autopano) may cost up to $250.
What are the ongoing expenses for a virtual tour business?
One of the best aspects of this job is that if you work from home, you have virtually no ongoing expenses. Shooting everything digitally means that there is not an equipment cost after initial investment (until you decide to replace equipment entirely), and working from home means you do not have additional overhead, utilities, and so on to worry about. Functionally, then, you are merely paying for gas that you require to travel from place to place, and the charges to host your professional website (which should be less than $80 a year). You may also choose to advertise via traditional media from time to time, but as mentioned earlier, much of your advertising presence will be online.
Who is the target market?
As mentioned earlier, your best clients will be those from the hospitality and real estate industries. This is because they will both have numerous rooms and properties for you to create virtual tours from, all of which adds up to a bigger payday for you.
How does a virtual tour business make money?
A virtual tour business makes money by charging clients to shoot, edit, and deliver photos and/or video to create a virtual tour of a physical space. The exact amount you charge typically varies based on the requested media format, the venue, and any additional add-ons that customers may purchase.
How much can you charge customers?
Your pricing may vary based on different packages, bundled services, and so on. Typically, though, a photo-based virtual tour of a home or hotel room would be between $200 and $250 dollars, while a video-based virtual tour would be between $1000 and $1200. You may charge more for specialty services or requests (such as shooting at night, aerial photography, and so on), and you may experiment with pricing models where you charge businesses a monthly fee, such as $50 a month for a fixed number of months to produce and edit an unlimited number of listings for this business.
How much profit can a virtual tour business make?
The exact amount of profit that you can make from this business obviously depends greatly on how many clients you have and the amount of work that they provide. For instance, if you specialize in video tours and do hundred jobs in a year, this job could provide a six-figure income. Realistically, your profits will be lower when you are starting out, but the aforementioned lack of true overhead means that most of every dollar translates directly to profit.
How can you make your business more profitable?
One path to increased profitability is to offer different tiers of services at different prices. This lets customers feel like they are getting a deal while also giving you a chance to upsell them on better packages. Also, try to branch out—while hospitality and real estate are your primary industries that need virtual tours, you may find that corporations, school systems, and various city offices would also be interested in your services. Finally, make sure your social media presence constantly has a stream of new media highlighting your services, your previous work, and so on; this connects you to the community, which makes it that much likelier that the community will want your services.
Day-to-Day and Growth
What happens during a typical day at a virtual tour business?
In no particular order, your daily activities may include communicating with current clients as well as prospective clients. On busy days, you will be traveling to the areas that you must create virtual tours of and gather the necessary photos and video recordings as well as information about the space. Back at home or the office, you must edit this together into a virtual tour and send the finished product to the client, all while making any adjustments they require. When you are not doing these things, you may be working on advertising your services, investigating the competition, and staying current regarding new camera hardware and editing software.
What are some skills and experiences that will help you build a successful virtual tour business?
The most relevant skill to help you build this business is extensive practice with all of the software and hardware involved. For instance, if you are creating 360 degree videos for clients, having created and edited many of your own videos will help you understand the “do’s” and “don’ts” of this technology. Other skills include prior employment in some of the sectors that you will now service, such as real estate or hospitality, as this can help you with your initial networking.
What is the growth potential for a virtual tour business?
The growth potential for this industry is quite large. While the Bureau of Labor Statistics does not chart the virtual tour business specifically, Greenlight Insights reports that virtual reality as an industry will grow from a $7.17 billion industry in 2017 to a $75 billion industry by 2021. Virtual tours are a part of that, and as the public embraces the potential of VR, it means exciting new ways that they can check out your virtual tours.
What are some insider tips for jump starting a virtual tour business?
Make sure that your website and social media presence showcases some of the virtual tours you have already created. This is your single best advertisement, as clients can see how good this looks before agreeing to your services. Try to pitch your services in person when you can, and make sure you have research handy: for instance, testimonials from hotels and realtors about how virtual tours have improved their business are a great way to convince new clients you can do the same for them.
How and when to build a team
In order to maximize profit and minimize overhead, many virtual tour businesses remain one-person operations. It is also easy for an experienced person to do most of the shooting, recording, and editing on their own. However, if you are getting more requests than you can personally handle, you may need a partner or small team. Alternately, if you decide that your business has grown to the point that it needs a standing office, you will obviously need to hire a small staff (such as secretaries and assistants).
Part 2 - Is a Virtual Tour business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Virtual Tour business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Virtual Tour Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Virtual Tour business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.