Starting a vending machine business is one of the simplest ways to have a “business” that requires little effort and minimal labor. You only need to acquire the machines, fill them with products for your customers, and find a suitable placement for the machine.
Sounds doable, right? However, there are essential things that need to be done correctly at the beginning.
Here’s a step-by-step instruction on how to create your own vending machine business.
Step 1: Choose Your Vending Machine
There are many different types of vending machines. There are vending machines for candy bars, coffee, snacks, fast foods, chips, chocolate, etc. There are even vending machines for toys and hygienic products
Do you have a target market? Students? Young professionals? Families?
What do they need and what do you want to offer? Do they need snacks and refreshing drinks, or do they need something else like cup noodles, chips, or ready-to-eat sandwiches?
Some vending machines are more complex and heavy-duty. They can hold more products than simpler ones. There are also compact vending machines that are ideal for smaller spaces.
It’s best to consider where you will position your machines. – if it is in an office, then probably snacks and drinks will do best. For gyms or schools, healthier options would probably do better for sales.
Step 2: Find The Perfect Location
Make sure to put your vending machine in an area with high foot traffic. If you place your vending machine in an area with low foot traffic, you’ll be spending more than earning.
Go around your community and scout for an ideal location. Reach out to local businesses, gyms, hospitals, or schools to see if they would be open to having your vending machine on their property.
Keep in mind that you’ll most probably be required to pay a small commission or a percentage from your sales. However, it’s worth it if it means that you can put your vending machine in a high-traffic area.
Step 3: Acquiring Vending Machines
You can purchase or rent your vending machine. It’s a lot cheaper to buy your vending machine. However, it requires an upfront investment. Leasing gives you more flexibility if you’re still hesitant of long-term commitment or if you don;t have enough cash to purchase a machine.
Check your local sellers to compare prices and machine features. You might also want to consider getting second hand vending machines. They are a budget-friendly option if you don’t want to shell out a big amount of money for a vending machine.
Step 4: Stocking The Vending Machines
When you’re all set with your vending machine and location, the next thing you need to do is to fill it with products!
It would be best to know products your target customers want and need. Popular products for snack vending machines include coffee, sodas, chips, chocolates, and protein bars. If you’re targeting a health-conscious audience, consider putting granola bars, gluten-free cookies, low calorie juices, and bottled water in the vending machine.
At the end of the day, you need to take note of the products that are in demand. After a few weeks or months, you’ll have a grasp of the fast moving products as well as items that are not that saleable.
Step 5: Financing
Starting a vending machine business means you’ll need to invest in machines, products, and maintenance expenses.
Wondering how much money you’ll need? Use a business loan calculator to figure out your financing options. This smart tool helps you assess how much money you can borrow and what installment payments will be.
Business loans can help finance your business so you can get started without draining your bank account. Make sure you have a solid business plan to show your potential lenders. This way, they can see how you plan on making your vending machine business profitable.
Step 6: Legalities
There are legal considerations to consider when starting a vending machine business. First, you’ll want to form a legal entity for your business, such as an LLC (Limited Liability Company). An LLC protects your personal assets in case of any legal hitch. It’s easy and inexpensive to set up so make sure not to skip this.
Inquire about permits or licenses required to operate vending machines in your locality. Some cities or states have specific rules and regulations for vending machines, especially when there are food products involved. Check with your local government offices to make sure you are compliant with the legal requirements.
Step 7: Track Your Profits
Once your vending machines are in place, the next thing you need to do is to keep track of how much they’re making in a day. It’s a good idea to have a system for logging your daily sales and expenses.
In time, you may want to add more vending machines or explore other locations. Tracking your profits in a systematic manner will be a big help in making better decisions going forward.
Step 8: Maintenance Matters
Vending machines need regular maintenance. Machines can break down or get jammed. To avoid losing sales and inconveniencing your customers, it’s a best practice to check your vending machines regularly. Fix any problems right away to avoid it from getting worse.
If you don’t have the technical knowledge to fix the machines, hire a professional technician.
Fortunately, vending machines don’t require constant attention. A maintenance check every few weeks or so should be enough to ensure your machines are running smoothly.
Step 9: Expanding Your Vending Machine Business
After running a few vending machines, you might want to expand your business. Adding more machines to various locations can exponentially increase your earnings. Just make sure to manage your time and resources efficiently before expanding.
Consider branching out using different types of vending machines, too. If you started with coffee, you could add vending machines that sell snacks, drinks, or hygiene products.
Bottomline
Forging into a vending machine business can be greatly profitable if you just follow the right steps. From choosing the right vending machine, setting it up in the perfect location, securing the legal requirements, setting up an LLC, and preparing your budget – every detail counts.
If you’re interested in starting your very own empire and thinking about how to finance a vending machine business, it would be best to use a business loan calculator to make wise and efficient decisions.
With grit, determination, and the right planning, you’re on your way to earning a steady cash flow through vending machines.
