VENDING MACHINE BUSINESS PLAN TEMPLATE
Vending machines are machines that have been automated to provide vending services to customers. It works only when money is being slotted into it.
There are millions of these machines in the United States and across the world, each providing either specific services or a range of services.
Some products sold on vending machines include coffee drinks, chocolate bars, and film rental services.
Others include newspaper and book vending machines, photo booths among several other uses.
Benefits of a Vending Machine Business
The advantage of having a vending machine is the low cost of operation. A vending machine business eliminates the shopkeeping time which allows the business owner to do other equally important things with his or her time, thereby leading to more productivity.
Also, there are lesser cases of mistakes, as the entire system is automated. There are little to no cases of underpaying or overpaying for particular services. These and so many other benefits are accruable to users of vending machines.
Things to Consider When Starting a Vending Machine Business
Starting a vending machine business, as with other businesses requires adequate planning. This is more so with an automated business.
Hence there are several factors to consider before commencing the business. We will start with the following;
- Ensure it is Compatible with Your Business Idea
Why so? Because there are business ideas that are not compatible with vending machines. In other words, certain services cannot be offered using vending machines.
Hence, after bringing up your vending machine business plan, it is important to consider if the idea is practicable. If it is practicable then you have satisfactorily answered an important question that can lead to the success of your business idea or its failure.
- Selecting a Service Niche
Here, it is very important that you carefully consider the niche that most interests you. You cannot start a vending machine business with just about any niche.
Randomly choosing a niche that comes to mind may likely lead to failure. This is because by choosing a niche of particular interest, chances are that you may have good knowledge of how that particular area of vending machine business works.
In a situation where you do not have a good understanding of things, learning will be easy as your interest will fuel your zeal to know more. Choosing a niche that comes more naturally to you tends to impact positively on the business.
- Choose Your Vending Machine Locations
Selecting the locations for your vending machines is an important criterion for starting this business. Locations have a huge impact on profitability for vending machines.
Hence, you may want to choose areas with a lot of human traffic. Locating a vending machine in such areas will most likely result in increased patronage/sales. Also, carefully choosing locations for your vending machine business can contribute to the security of the vending machine.
- Your Products
Product selection is important. This is similar to having a niche. The only difference, however, is the particular product you may want to vend. For example, if you want to start a book vending machine business, the book (novel for instance) will belong to the same niche as the newspaper. You may want to choose your particular product for your vending machine business to make all your activities streamlined.
Having your vending machine business all planned out to the minute detail can be of immense benefit to the business.
- Low Set Up Cost
By starting a vending machine business, significant startup costs are eliminated. These costs are mostly associated with renting/buying a business outlet.
While providing a high yield business opportunity, the costs associated with starting a vending machine business makes it very attractive to investors who do not have the resources for investing in big portfolios.
- Freedom of Time
If there is anything cherished by the human race, it is time to do what they love to do. Starting a vending machine business affords you that opportunity. The freedom of having to control your own time and destiny is priceless! Being a fully automated business venture, the business owner needs only to load the products into the vending machine, and come back to collect the money later! The machine does every other work. This is impressive as you could use your spare time to do other things that will be of benefit to you.
Vending machine businesses have become an attractive venture to investors the world over. Today, the number of vending machines continues to increase due to this growing popularity in the United States and the world over.
Also, there is minimal waiting time as there has been an immense success in the reduction of the waiting time.
Customers using vending machines for purchases now spend lesser time waiting for services.
With the current advances made in innovation, services have become increasingly automated making way for improved service delivery. The vending machine business is a perfect example of this trend. It is believed that with the information provided here, significant success will result if these tips are followed.
VENDING MACHINE BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a vending service business.
Technology has made the world a very comfortable place to live in. As a result of this, most people will easily replace any activity that requires some effort on their part with activities that require no effort. This implies that most individuals will choose to get their drinks and snacks from a vending machine instead of going into a retail store.
This might appear very simple. However, it is very significant. The fact that people would choose convenience over effort means there is a high demand for vending machines. The, therefore, makes the vending machine business one that is worth going into.
If you are looking to startup a reverse vending machine business, by now, you should know all the requirements. Just like every other business, a business plan is one of the requirements for starting a vending machine business. This article contains a vending machine business plan sample.
That said, below is a comprehensive business plan sample for a vending machine business.
How do I start a vending machine business?
Business Name: Jojo and Tata Vending Machine Company
- Executive Summary
- Our Products and Services
- Vision Statement
- Mission Statement
- Business Structure
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Competitive Advantage
Jojo and Tata vending machine Company is a business that is concerned with dispensing a very broad range of products. It is a business that will be located in Dallas, Texas. It is owned by Josephine and Taylor, two very prolific business people with over twenty years of experience in the business world. Jojo and Tata vending machine Company has already gotten a fairly large warehouse that will house all our vending machines.
At Jojo and Tata vending machine Company, we are interested in making all types of edibles available to our potential customers. However, we will put more focus on the provision of drinks. We will make sure that everyone that patronizes us gets a treatment that is second to none.
Our Products and Services
Jojo and Tata vending machine Company is in this industry to make gains. Although we are looking to make gains, we do not intend to do this at the expense of our customers. We intend to give our customers the best service that can be obtained in the vending machine industry. We intend to stock our vending machine with products from some of the top brands in the United States.
Some of the products that we will offer at Jojo and Tata vending machine Company are;
At Jojo and Tata vending machine business, our vision is to set up a vending machine business that will be well known in the whole of Texas as well as the entire United States. Beyond the United States, we also intend to have a strong presence in key cities in Canada.
Our mission at Jojo and Tata vending machine Company is to set up a vending machine enterprise that will provide a broad range of products to those residing in Dallas Texas. We intend to also make these products available at prices that everyone will afford.
At Jojo and Tata vending machine Company, we are not just interested in starting a vending machine business, we are interested in becoming one of the biggest in this industry. We are also looking to spread from Texas to other major cities in the United States and beyond.
We know that unlike being average in this business, being a huge success requires a lot of work. Therefore, to make this happen, we will start by making sure that we have the needed structures for this to take place.
We will employ only those that we consider qualified to run businesses at the highest level. We will also provide a conducive working environment for all our workers.
The retailing industry is not new to anyone. However, there is rapid innovation in this industry. This rapid innovation is a result of the rapid rise in technology. The rise in technology has brought about the prominence of vending machines in the retail industry.
Vending machines are not just prominent at the moment, they have also come to stay. This is because they do not only make life easier for people, they also offer cheaper prices. This makes people spend less money in the long run.
Our Target Market
The vending machine industry is an industry that caters to the needs of virtually everyone. This, therefore, means that we can offer our services to almost everyone. However, to achieve our aim of starting up this business, we have chosen a target market.
Those that make up our target market include;
- Business Executives
Here is how to secure contracts in this industry.
Source of Startup Capital
We are looking to startup our vending machine company on a large scale. As a result of this, we will need $100,000 to set up our vending machine company. We already have half of this amount. We are looking to get the remaining amount from the bank.
There is a high level of competition in this business because not very much is needed to start it. To stand out from the crowd, we are going to stock our vending machines with a very broad range of products. With this, our prospective customers will always get whatever they need from our vending machine.
This is a vending machine business plan sample for Jojo and Tata vending machine Company. It will be located in Dallas, Texas, and will be set up with $100,000.