Ten Minute Startup Issue #1 Vending Machines

I just release my first ten minute startup issue! Where you can get a pretty detail report on starting up a cool business. I thought you guys might be pretty interested in this! So here we are!

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Vending Machines. Let's take a deep dive into starting a vending machine business.

What'll you learn

Why should you start this idea?
Overall benefits of starting this idea
The cons of starting this idea
The true income reality of starting a Vending Machine business
How much you can expect to make when you start a Vending Machine business?
How long it takes for the first machine to produce income?
How many machines to start off with when you start your Vending Machine business?
Cost of starting a Vending Machine business
Market size
How to choose a profitable location for a Vending Machine
Location examples:
Vending Machine ideas
The 6 most crucial tips to building a profitable Vending Machine business
The top five Vending Machine business myths exposed
The top five Vending Machine business truths
The top five common traps new Vending Machine business owners tend to fall into
How long does it take to refill a Vending Machine?
Where will I find my stock to fill the machine?
Successful stories

Why should you start a Vending Machine business?

Many people are considering vending as a business as a hot idea right now. They are looking into this as way to bring in passive income with little effort. Don’t take the perceived simplicity of vending as a business for granted. There are many elements that have to take place before your vending machine business can be a success.

Overall benefits of starting a Vending Machine Business.

Meaningful business connections. You never know who you will meet as a vending machine business. This could be the start of an incredible business opportunity!
You are your own boss! Calling the shots can be empowering and liberating!
Simple business model. Vending machine business has the advantage of a simple business model, which makes launching and building the business more seamless.
Easy to scale: Scaling your vending machine business is incredibly easy. You can start off with a few vending machines, and as you become more successful, expand locations.
Relatively low startup costs: An operator can find a decent machine and buy inventory for <3k.

The cons of starting a Vending Machine business.

Crowded Space. Competition is high when it comes to your vending machine business, so it’s important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier. Most businesses in this space go the supplier/manufacturer route, which isn’t a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the “finding a supplier” section.
You might struggle financially (at first)! If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It’s important to adjust your lifestyle and set a plan for yourself so you don’t find yourself in a stressful situation.
Vending machines are an easy target when it comes to theft and vandalism. Ensure that your machine locations are located in secure and safe areas to avoid a loss in profits.

The true income reality of starting a Vending Machine business.

Most people have heard the claims that a vending machines business will earn you $100 per hour, you start doing the math and think, “Jackpot!” However, in reality, this is not possible and most people in the vending machine business will quickly tell you that these figures are way off.
First, starting a vending machine business typically means you buy one machine and strategically place it in a high-traffic area.
To start a vending machine business with success, you have to speak to the owner of the business you are targeting and work out some kind of deal for them.
Otherwise, they will not let you place you vending machine on their premises out of the goodness of their heart.

How much you can expect to make when you start a Vending Machine business?

On average, many entrepreneurs who start a vending machine business report that one vending machine in a prime location may bring in $50 to $100 per month.
In theory, if you have 100 vending machines - all in prime locations - you may be able to hit around $1000 per day, but that may not be everyday.
This is because maintaining 100 machines is a lot of work, usually much more than one person can do, which means you will need to hire someone to help you maintain and stock them.

How long it takes for the first machine to produce income?

Producing income in any vending machines business depends on many factors such as:

Your location, how much traffic your location gets.
Whether your vending machine is place in a location where people actually notice it.
Whether or not your product offering actually appeals to the people who come into contact with your vending machine.
Price of your goods.

How many machines to start off with when you start your Vending Machine business?

The worst thing you can do when you are just getting started in the vending machines business is run out and buy 200 machines.
Why? Because you have zero experience on location and now have indebted yourself with all these machines that may or may not make you any money.
Therefore, be cautious when you start your vending machines business and buy one or two, get prime location and work hard to keep these running smoothly.

Cost of starting a Vending Machine business.

The average cost of one vending machine is $500(used) to $3,000(new), which means that two would cost you as much as $6000.
General liability insurance (~$500/yr for <$100k in annual sales)
Commissions paid to locations (5-25% of revenue)
Transaction fees for card purchases (~5-6%)
Card reader analytics fees ($10/mo)
Storage space for unused machines (~$100/mo)
Gas and transportation ($50-$100/mo)
Taxes (10-37% of adjusted gross income)
Routine maintenance and vandalism repairs ($50-$250/yr).
Be especially careful for people that want to sell you several vending machines all at once, after all, their goal is to sell you the machines, they don’t care if you sink or swim after you have purchased them and are in debt with the bank.

This is just a part of the newsletter. To view the whole thing. Just click here https://www.getrevue.co/profile/TenMinuteStartup/issues/ten-minute-startup-issue-1-vending-machines-670509/86ae5e51-dc5a-4644-8751-472de45a13f5