VENDING MACHINE BUSINESS PLAN SAMPLE
Vending machines have been automated to provide vending services to customers. It works only when money is being slotted into it.
Millions of these machines are in the United States and worldwide, each providing a specific 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, and 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 eliminates the shopkeeping time, allowing the business owner to do other equally important things with their time, leading to more productivity.
Also, there are lesser cases of mistakes, as the entire system is automated. There are little to no instances 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
As with other businesses, starting a vending machine business requires adequate planning. This is more so with an automated company.
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, considering if the idea is practicable after bringing up your vending machine business plan is essential.
If it is achievable, 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 essential that you carefully consider the niche that most interests you. You cannot start a vending machine business in just about any place.
Randomly choosing a niche that comes to mind may likely lead to failure. This is because by choosing a place of particular interest, you may have good knowledge of how that specific area of vending machine business works.
In a situation where you do not understand things well, learning will be easy as your interest will fuel your zeal to know more. Choosing a niche that comes more naturally to you positively impacts the business.
- Choose Your Vending Machine Locations
Selecting the locations for your vending machines is an essential criterion for starting this business. Sites have a significant impact on the profitability of vending machines.
Hence, you may want to choose areas with a lot of human traffic. Locating a vending machine in such regions will likely increase patronage/sales. Also, carefully selecting locations for your vending machine business can contribute to the security of the vending machine.
- Your Products
Product selection is essential. 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.
Planning your vending machine business out to the minute detail can immensely benefit the company.
- Low Set Up Cost
By starting a vending machine business, high startup costs are eliminated. These costs are primarily associated with renting/buying a business outlet.
While providing a high-yield business opportunity, the costs associated with starting a vending machine business make it very attractive to investors who do not have the resources to invest in significant portfolios.
- Freedom of Time
If the human race cherishes anything, 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 only needs to load the products into the vending machine and return to collect the money later!
The device does every other work. This is impressive as you could use your spare time to do other things that benefit you.
Vending machine businesses have become attractive ventures to investors the world over. Today, the number of vending machines continues to increase due to this growing popularity in the United States and worldwide.
Also, there is minimal waiting time as there has been immense success in reducing the waiting time.
Customers using vending machines for purchases now spend lesser time waiting for services.
With the advances in innovation, services have become increasingly automated, improving 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, most people will quickly replace any activity that requires some effort with activities that require no effort.
This implies that most individuals will get their drinks and snacks from a vending machine instead of entering 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.
This, therefore, makes the vending machine business one that is worth going into.
If you want to start a reverse vending machine business, you should know all the requirements by now. Like every other business, a business plan is one of the requirements for starting a vending machine business.
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
- Conclusion
Executive Summary
Jojo and Tata vending machine Company is a business that dispenses an extensive range of products. It is a business that will be located in Dallas, Texas.
It is owned by Josephine and Taylor, two very prolific businesspeople with over twenty years of experience in the business world. Jojo and Tata vending machine Company already has a relatively large warehouse to house all our machines.
At Jojo and Tata vending machine Companies, we want to make all edibles available to our potential customers. However, we will put more focus on the provision of drinks.
We will ensure that everyone who 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 want to give our customers the best service that can be obtained in the vending machine industry. We want 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 Companies are;
- Drinks
- Snacks
- Fruits
- Vegetables
- Groceries
- Flowers
Vision Statement
At Jojo and Tata’s vending machine business, our vision is to set up a company that will be well-known in Texas and the entire United States. Beyond the United States, we also intend to have a strong presence in key cities in Canada.
Mission Statement
Our mission at Jojo and Tata vending machine Company is to set up an enterprise providing a broad range of products to those residing in Dallas, Texas.
We intend to also make these products available at prices everyone can afford.
Business Structure
At Jojo and Tata vending machine Companies, we are not just interested in starting a vending machine business; we are interested in becoming one of the biggest in this industry.
We also want to spread the vending business from Texas to other major cities in the United States and beyond.
Unlike being average in this business, being a huge success requires much work. Therefore, to make this happen, we will start by ensuring that we have the needed structures for this to occur.
We will employ only those we consider qualified to run businesses at the highest level. We will also provide a conducive working environment for all our workers.
Market Analysis
Market Trend
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 increase 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 make life easier for people and offer lower 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, we have chosen a target market to achieve our aim of starting up this business.
Those that make up our target market include;
- Children
- Tourists
- Business Executives
- Sportsmen
- Adults
Here is how to secure contracts in this industry.
Financial Plan
Source of Startup Capital
We are looking to start 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.
Competitive Advantage
This business has a high level of competition because not very much is needed to start it.
We will stock our vending machines with an extensive range of products to stand out from the crowd. Our prospective customers will always get whatever they need from our vending machine.
Conclusion
This is a vending machine business plan sample for Jojo and Tata vending machine Company. It will be located in Dallas, Texas, and set up with $100,000.