Have you ever given a thought about buying a vending machine? If you are in search of a business opportunity that can be done as a home-based or part-time thing and demands no special talents or training, a vending machine business is just what you need. The fun factor in this business is that you can involve the entire family in it. So, without any delay, let us find out all about this business idea.
Advantages of being a part of the vending machine industry:
- Scalability- You can begin with a few vending machines and then expand the business once you start making good money.
- Simplicity- Another amazing advantage is the simplicity of the business. Once the vending machines are in proper place, your only task will be to maintain them, restock them on time, and collect all the money.
- Flexibility- The business is perfect for families. You can train your children or partner to assist you with stocking, purchasing, accounting, bank deposits and several other tasks.
- Low costs- Other than buying the vending machines, the capital costs are not much. You also do not need to build up an office space. A garage, a basement or any other utility space will be sufficient. All you need is a vehicle for servicing your route and you are ready.
- Cash-based and electronic transactions- The business involving vending machines is still primarily cash-based. However, vending machines these days also accept online payment via mobile wallets or credit cards.
Doing your research before you begin:
No matter what type of business you plan to do, market research along with proper planning are mandatory. There are several ways of commencing a vending machine business and they are:
- Beginning from scratch- This means doing everything on your own. You have to buy machines and source locations. This gives you flexibility in all respects. The best idea is to buy some machines and think about expanding the business when your finances permit. You also have to find locations for placing the machines. If you buy it from a machine distributor who provides locations along with selling machines, your job becomes easier.
- Purchasing a franchise- This is the easiest and the most common way to get into the business. A franchise offers you a well established model depending on vending a specific product. One disadvantage is that the franchisor gets a certain percentage of your monthly profit. As a franchisee, there are also restrictions when it comes to renting products or machines.
- Purchasing an existing business- This option promises immediate profit as you are purchasing an existing business. However, it is necessary to determine the reason why the owner wants to sell it. You need to run a detailed background research involving checking the accounts, examining the contracts, inspecting the vending machines and having a look at the locations. Only then you can make the purchase.
Whatever business you establish, research well, keep the cash ready, chalk out a plan and implement it to achieve success.