Date
Milestone
(MM/DD/YY)
(Milestone 1)
(MM/DD/YY)
(Milestone 2)
(MM/DD/YY)
(Milestone 3)
[Sender.Company] will serve residents, businesses, and schools in the (Enter location) area.
The demographics of the town in which our location resides are as follows:
| (Enter location) | (Enter location) |
---|---|---|
Total population: | | |
Area size: | | |
Population density: | | |
Males: | | |
Females: | | |
Based on age group | ||
18-24 | | |
25-34 | | |
35-44 | | |
45-54 | | |
Target population based on income | | |
Income $50,000 to $74,999 | | |
Income $75,000 to $99,999 | | |
Income $100,000 to $124,999 | | |
Income $125,000 to $149,999 | | |
Based on the industry analysis, we will target the following segments:
(List the market segments your vending machine will target).
Competition within the vending machine industry is not very extreme. [Sender.Company] ’s top competitors include:
(Enter the name of competitor)
[Sender.Company] enjoys several advantages over its competitors. These advantages include:
Excellent service
Relationships
The strengths that will set [Sender.Company] apart from competitors include:
(List strengths)
These milestones underscore [Sender.Company] 's unwavering commitment to consistently making tangible and measurable advancements in its pursuit of success within the (Industry Name).
Here are the products that [Sender.Company] vending machines will offer:
Snacks: Biscuits, bread, chips
Sweets: Candies, chocolates, ice cream
Drinks: Canned juice and soda, small bottled water
Travel essentials: Batteries, flashlights, toothbrush, toothpaste, sanitizer, tissue paper, etc.
Security camera and emergency button: Add-on feature that connects the vending machine to the nearest police station for emergency calls
The [Sender.Company] brand will focus on the Company’s unique value proposition:
(Enter your company’s unique value proposition)
[Sender.Company] will target businesses, schools, and other public locations to secure locations for its vending machines. [Sender.Company] ’s promotions strategy to reach these businesses includes:
Telephone Marketing
Direct Mail
Social Media
[Sender.Company] headquarters will offer 24-hour maintenance and repair services.
The Company intends to employ (Enter number) admin staff, (Enter number) technicians, and (Enter number) delivery personnel.
To execute [Sender.Company] ’s business model, the Company needs to perform sales, supply, and maintenance of vending machines. [Sender.Company] anticipates using the services of (Enter number) employees, divided into the following roles:
Technicians
Delivery personnel
Customer service representatives
General & administrative functions, including marketing, bookkeeping, etc.
[Sender.FirstName] [Sender.LastName] is a business consultant who has (Enter number) years of experience in the industry. He/She works for a company that helps businesses grow and attract more investors.
[Sender.Company] ’s team will consist of highly skilled technicians. These technicians will be responsible for repairing, maintaining, and upgrading the vending machines.
Annual income / profit/loss statement.
Income Statement / Profit/Loss Statement | |||||
---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Total revenue: | | | | | |
Cost of services sold: | | | | | |
Gross profit: | | | | | |
Operating income: Interest expense | | | | | |
Pretax income: Taxes: | | | | | |
Net income: | | | | | |
Cash Flow Statement | |||
---|---|---|---|
| Jan ‘24 | Feb ‘24 | Mar ‘24 |
Starting cash balance: | | | |
Cash received: Cash from operations: Cash from sales: | | | |
Subtotal cash received: | | | |
Additional cash received: (List sources) | | | |
Subtotal additional cash received: | | | |
Total cash received: | | | |
Expenditures: (List all expenditures) | | | |
Total cash spent: | | | |
| | | |
Net cash flow: | | | |
Ending cash balance: | | | |
Assets and Liabilities | |||||
---|---|---|---|---|---|
Current Assets: | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Cash | | | | | |
Accounts receivable | | | | | |
Inventory | | | | | |
Prepaid expenses | | | | | |
| | | | | |
Fixed Assets: | | | | | |
(List all) | | | | | |
| | | | | |
| | | | | |
Total Assets: | | | | | |
| | | | | |
Liabilities | | | | | |
(List all) | | | | | |
| | | | | |
| | | | | |
Total Liabilities: | | | | | |
| | | | | |
Equity | | | | | |
(List all) | | | | | |
| | | | | |
| | | | | |
Total Equity: | | | | | |
The confidential information and trade secrets described above shall remain the Company’s exclusive property. They shall not be shared or removed from the Company’s premises under any circumstances whatsoever without the express prior written consent of the coaching business.
Please find listed below any additional addendums related to [Sender.Company] :
(Add any relevant addendums)
[Repicient.FirstName] [Repicient.LastName]
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Expert business plan and financial models
Creating a comprehensive business plan is crucial for launching and running a successful vending machine business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your vending machine business’s identity, navigate the competitive market, and secure funding for growth.
This article not only breaks down the critical components of a vending machine business plan, but also provides an example of a business plan to help you craft your own.
Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your vending machine business concept into reality. Let’s dive in!
Our vending machine business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the business’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.
Fully editable 30+ slides Powerpoint presentation business plan template.
Download an expert-built 30+ slides Powerpoint business plan template
The Executive Summary introduces your vending machine business plan, offering a concise overview of your business and its services. It should detail your market positioning, the variety of products offered through the vending machines, their locations, and an outline of day-to-day operations.
This section should also explore how your vending machine business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.
Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your business’s financial plan.
Business overview.
For a vending machine business, the Business Overview section can be concisely divided into 2 main slides:
Briefly describe the vending machines’ physical setup, emphasizing their modern design, ease of use, and the convenience they offer to customers. Mention the specific locations of the vending machines, highlighting their accessibility and strategic placement in high-traffic areas such as shopping centers, office buildings, schools, or public transportation hubs. Explain why these locations are advantageous in attracting your target clientele.
Detail the operational aspects of the vending machine business, including inventory management, restocking schedules, and maintenance routines. Explain how you will ensure machines are always stocked with fresh products and are functioning properly. Highlight any technology used for inventory tracking, payment processing, and remote monitoring to enhance efficiency. Additionally, outline your customer service approach, ensuring customers have a seamless experience and can easily report any issues or provide feedback.
Examine the size of the vending machine industry and its growth potential. Discuss the current market size , revenue generation, and projected growth rates to understand the market’s scope and expansion opportunities.
Highlight recent market trends , such as the demand for convenient, 24/7 access to products, healthier snack options, and the use of technology in vending machines (e.g., cashless payments, touchless interfaces). Note the rising interest in eco-friendly products and specialized vending machines catering to specific needs.
A competitive analysis is not just a tool for gauging the position of your vending machine business in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your vending machine business’s unique selling points, essential for differentiating your business in a competitive market.
In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
The initial step in a competitive analysis is to identify your competitors. Start by listing other vending machine operators in the area. If your focus is on healthy snack options, your direct competitors include other vending machines offering similar products as well as larger food service providers that may have vending machines in strategic locations. Additionally, consider indirect competitors like convenience stores or small eateries offering quick snack options.
Use online tools such as Google Maps for a geographical overview of where competitors are located. Platforms like Yelp and other customer review sites can provide insights into the strengths and weaknesses of these competitors through consumer reviews. For example, if a competitor is frequently praised for the variety and freshness of its offerings in a high-traffic location, these are significant strengths.
Analyzing the strategies of these competitors involves various aspects:
Consider what makes your vending machine business unique. Maybe you provide an exclusive selection of imported chocolates, or perhaps your machines are located in underserved rural areas.
Explore market gaps through customer feedback and industry trends. For instance, a growing interest in cashless and contactless payment options could be a market opportunity if not widely offered by competitors.
Think about your locations: Vending machines in high-traffic areas like airports and shopping malls might focus on quick snacks and drinks, while those in office buildings could offer more substantial meal options or specialty beverages.
First, conduct a SWOT analysis for the vending machine business, highlighting Strengths (such as strategic locations and 24/7 accessibility), Weaknesses (including high initial setup costs and maintenance requirements), Opportunities (for example, increasing demand for healthy and organic products), and Threats (such as economic downturns that may decrease consumer spending on non-essential items).
Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, and community involvement.
Utilize diverse marketing channels to reach potential customers and promote your vending services effectively.
Leverage digital platforms:
Connect with communities:
Attract attention through promotions:
Optimize sales strategies for vending success:
Focus on retaining customers and maximizing sales.
Stay ahead with innovation and modern solutions.
Finally, create a detailed timeline that outlines critical milestones for the vending machine business’s setup, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.
The Management section focuses on the vending machine business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the vending machine business toward its financial and operational goals.
For your vending machine business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.
The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your vending machine business’s approach to securing funding, managing cash flow, and achieving breakeven.
This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.
For your vending machine business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).
Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds
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Free Vending Machine Business Plan Template
Matthew Khalili
13 Min Read
While munching on a snack or sipping a drink from a vending machine, have you ever wondered, “How can I get into this lucrative business?”
If yes, you’re at the right place. The vending machine business can be a very fascinating and rewarding venture with the right planning.
In the USA, the vending machine industry size was valued at $6.24 billion in 2023 and is estimated to reach $11.95 billion by 2032, expanding at a CAGR of 7.50% from 2023 to 2032.
That’s enough reason to launch a network of vending machines, each like a mini-store, operating for you around the clock with minimal supervision.
If you’re aiming to earn a little extra money or want to run a bigger business, this step-by-step guide will help you start your very own vending machine business.
From choosing the right vending machines and understanding legalities and financing options, we provide all the details you need to start and succeed in your journey.
But before that, it’s time to discover the positive aspects of the vending machine business.
Low initial investment.
As you know, most of the startups need a high capital in the beginning. But in a vending machine business, you don’t need to rent office space and hire employees. So, there’s no worry about overhead costs compared to traditional brick-and-mortar businesses.
You may solely focus on the primary expenses of machine acquisition, stocking them with products, and necessary repairs. To further minimize costs, consider buying items in bulk at wholesale prices.
The vending machine business is highly flexible and scalable. You can easily start with one or two machines. And it’s not more difficult to restock or change products and locations to meet various consumer preferences.
Also, you can scale your business by increasing the number of vending machines and scouting potential locations.
Once set up, vending machines can make sales 24/7 without actively requiring any supervision. And this allows business owners to generate passive income as the profits will roll in on their own.
So, placing vending machines at high-traffic locations is a great way to run your business and make money from home , either as a full-time job or as an extra source of earnings.
Now, without further ado; let’s get started on how you can turn coins into gains with your own vending machines!
Many people often think that vending machines can be of only standard snack-and-soda type.
But if you’ve thought of starting a vending machine business, the first thing you have to do is familiarize yourself with the different types of machines available.
Generally, there are four main types of vending machines available. So, while selecting from these categories, think about whose products would be the most popular with your target market and location preferences.
Here’s a list of different vending machine types:
Some of the standard food and beverage vending machines come into this category, commonly seen in public places like motels, gyms, and airports. These machines with snacks, soda, and candy make up a promising vending market share in the US.
Also, you can get variations in this standard machine that just provides snacks, drinks, or snacks-and-soda combinations.
Few vending machine owners prefer to buy different types of machines for one location, while some choose only one kind of machine for multiple locations.
Electronic vending machines are the most expensive and modern type of vending machines. They often come with the latest technology, such as touch screens and real-time tracking. You can also use credit cards for payments.
These vending machines are not just limited to snacks and drinks. They also stock things, like phone accessories, hot beverages, tobacco, laundry stuff, makeup, or lucrative travel items.
Bulk vending machines carry a large quantity of single products, including stickers, gumballs, toys, or rubbers. Usually, these machines are mechanical devices that don’t require electricity or batteries.
Also, some candy or toy vending machines might need little repairs if you purchase older ones. So, they are an excellent option to test the vending machine market as their operational costs are very low.
You may consider buying a franchise if you don’t want to start your vending business from scratch. So, as a franchisee, you will join an established framework to set up your vending business. You will also get extra support and training.
But remember that you have to share some of your profits with the franchisor.
Once you have explored vending machine types, it’s time for solid business planning—the most crucial step of the entire list.
A comprehensive business plan helps you develop business strategies tailored to your vending machine business and makes you confident in every aspect of your business venture.
This business document covers all the details of your business, including your big ideas, vending machine products, financial statements, and more. Here are a few sections you must include:
To help you plan like a pro, we’ve developed a sample Vending Machine Business Plan Template just for you. This step-by-step guide will help you to stay focused and make your business plan writing process much easier.
Not very good at writing? Need help with your plan?
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Deciding where you will place the vending machine is the most crucial factor for earning a profit from your business.
So, you need to look for an exact location where people need quick, convenient access to products. Also, consider answering the below questions:
Next, create a list of high-foot traffic areas that provide more chances for a sale. So, you may think about ideal locations, including:
While securing a vending machine location, it’s important to contact property owners or tenants, explain to them your business idea, and understand their needs and the needs of their patrons.
Before launching your vending machine business, you need to address some legal requirements and a lot of paperwork to stay compliant.
The legal regulations and business registration process may vary depending on the state in which you wish to operate. Still, consider the following steps to register your business:
First, you have to select a unique and catchy business name for your vending machine business, as you cannot start a new business without a name.
So, find an easy-to-pronounce and memorable business name. Also, get the most suitable domain name, preferably with the “.com” extension.
Here, you have to note one thing—your business name cannot be identical to another registered business in your state. Also, it should not be the same as another service or trademark registered to the USPTO(United States Patent and Trademark Office).
You can also consider DBA (Doing Business As) or a fictitious name if you plan to operate under a name different from your legal business name.
Choosing the right type of business entity is a crucial step. It is the legal structure of your business that directly impacts your business operations, liabilities, the amount of taxes you owe, and other business aspects.
So, try to understand the different types of business structures and their advantages and disadvantages. This will help you decide on the most ideal one for your vending machine business.
Here is a list of common types of business entities:
Once you have selected the business name and type of business entity, you may start the official business registration process. You may begin by filling out forms with the secretary of state’s office.
As a part of the registration process, you’ll even need to hire a registered agent to receive legal documents and answer them on behalf of your company.
Complete the legal documentation, and then the secretary of state’s office will send you the registration certificate to apply for professional licenses, tax registration, and EIN(Employer Identification Number) .
You must obtain your EIN from the IRS portal. A Federal Tax ID Number is a security number of your vending machine business that is necessary while applying for business bank accounts and credit cards.
After registration, take further steps to identify the licenses and permits that will be required to run your vending machine business legally.
Every state has different regulations and permits for various types of vending machines, so it’s wise to start early and avoid delays.
Now, depending on the scope of your business operations and your vending machine location, you might require the specific type of licenses and permits.
Furthermore, any vending machine you set in a public place may be subject to certain general vendor standards , and it’s a good idea to keep accessibility in mind while thinking of vending machine options.
You may also communicate with local business associations or the Chamber of Commerce to understand the specific requirements for your business.
Now that we have covered the registration part, it’s time to focus on making the business profitable.
So, thoughtfully invest in the necessary equipment and technology to establish a strong foundation for your vending machine business. Here’s what you should consider:
Depending on your business operations, location, and products you want to sell, select the vending machines that suit your needs. Decide whether to invest in new machines or save expenses with refurbished machines.
You should search for both local and national manufacturers or wholesale vending suppliers, secondary market sellers, or online platforms like Craigslist or eBay to get a better idea about different machines.
As you start your search, you’ll understand that vending machines come with several features and capabilities, all at different price points. Here are some of those special features:
While looking at vending machine prices, you may also consider the cost of inventory and vending machine offerings.
The vending equipment has pre-programmed management software depending on the technology in your machine. This management software is used to streamline operations and track inventory.
In most of the standard machines, you need to manually manage inventory, which might be possible for a few vending machines. But if you have 5-10 separate machines available, it’s great to invest in the vending management system.
VMS software helps you monitor your machines, record sales, track inventory remotely, and provide real-time updates on sales patterns and customer preferences.
The right equipment and technology will assist you in the long run through efficient operations, better customer service, and increased sales.
So, you may invest in maintenance tools and modern payment systems depending on your vending machine. Also, consider including security features if you put your machines in less secure or high-traffic areas.
Once you have invested in vending machines, now you have to stock up on them with inventory. Carefully select the products that cater to local, site-specific needs to increase sales.
You may start with a moderate stock or avoid over-stocking in the beginning. Regularly refresh and adjust your offerings based on what sells best and customer reviews.
Likewise, you have to restock your machines as and when needed if your business is underway.
You may streamline this process and reduce your travel time by choosing an ordered sequence of sites instead of random locations in the town. Selecting similar products for multiple machines will also help you in this.
Remember, if you stock up vending devices with food or perishable items, ensure you replace them in time according to the expiry date.
If you’ve considered the above steps and created a solid business plan, you’ll have a better understanding of your financial requirements.
However, starting a vending machine business requires low startup capital compared to other small businesses. Still, a few thousand dollars isn’t just pocket change.
If you need financial assistance to start a vending machine business, consider options like:
Similar to traditional term loans, short-term loans provide a lump sum of money directly into your business bank account. And you’ll pay back your loan with interest over a set period.
Compared to long-term loans, these loans have higher interest rates, usually 18 months or less. Securing a short-term loan might be easier if you have a good financial history and personal credit.
Here, you should note that lenders will examine your vending machine business’s financials before approval.
An equipment financing loan can be ideal if you need a little help starting a vending machine business. Also, the terms of these loans are based on the value of the equipment you’re purchasing.
Vending machines can last over 10 years, which might help assure lenders of securing a loan. If you are applying for an equipment loan, you’ll need to provide quotations for machines and your financial details.
Furthermore, this is a good option if you need funds to buy inventory for your vending machines.
That was the ultimate guide on how to start a vending machine business. Follow these steps and get ready for a profitable business journey.
But before that, you have to take the first step and start preparing your vending machine business plan to achieve your desired goals and milestones in the vending industry.
So, what are you waiting for? Download our vending machine business plan sample and turn your business idea into reality!
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks, AI-assistance, and automatic financials make it easy.
Is it better to buy new or used vending machines.
Newer machines offer the latest technology and reliability but are more pricey. While used machines will most probably not have the same features and benefits as new machines. But if you’re working on a tight budget, a used machine might be more affordable.
Yes, the vending machine business can be profitable. If your vending machines are well-stocked and placed in a high-traffic location, you can earn a good amount of money with minimum investment.
Certifications vary depending on the vending machine’s operations and location. You should have following:
Generally, the vending machines located in high-traffic areas and satisfying specific customer needs are the most profitable. It includes snack & beverage vending machines in offices or schools or specialty machines in malls and airports.
About the Author
Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more
Creating a business plan is essential for any business, but it can be especially helpful for vending machine businesses that want to improve their strategy and/or raise funding.
A well-crafted business plan not only outlines the vision for your vending machine company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every vending machine business owner should include in their own vending machine business plan.
What is a vending machine business plan.
A vending machine business plan is a formal written document that describes your company’s strategy and feasibility. It documents the reasons you will be successful and your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
A vending machine business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
The following are the key components of a successful vending machine business plan:
The executive summary of a vending machine business plan is a one-to-two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
This section should include a brief history of your vending machine business. Include a short description of how your company started, the legal structure , and provide a timeline of milestones your company has achieved.
If you are just starting your vending machine business, you may not have a long company history. Instead, you can include information about your professional experience in the vending industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your vending machines business, mention this.
You will also include information about your chosen business model and how, if applicable, it is different from other vending machine businesses in your industry. For example, you will mention the types of vending machines you operate (e.g., snack machines, drink machines) and what type of accounts you serve (e.g., colleges, nursing homes, manufacturing plants, all of the above, etc.).
The industry or market analysis is an important component of your vending machine business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
You should also include sources for the information you provide, such as published research reports and expert opinions.
The customer analysis section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, and interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, a vending machine business’ customers may include:
You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.
Develop a strategy for targeting those potential customers who are most likely to buy from you, as well as those that might be influenced to buy your products or vending machine services with the right marketing.
The competitive analysis helps you determine how your product or service will be different from direct competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each of your direct and indirect competitors, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or competitive advantages; that is, in what ways are you different from and ideally better than your competitors?
This part of the business plan is where you determine and document your vending machine marketing plan . Your plan should be clearly laid out, including the following 4 P’s.
This part of your vending machine business plan should include the following information:
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a vending machine business include reaching $X in sales. Other examples include installing X number of vending machines or gaining a certain percentage of market share.
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific vending machine industry. Include brief biography sketches for each team member.
If you are seeking funding in particular, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire in the future.
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Your income statement, also called a profit and loss statement, should include:
Revenues | $ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 |
$ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 | |
Direct Cost | |||||
Direct Costs | $ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 |
$ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 | |
$ 268,880 | $ 360,750 | $ 484,000 | $ 649,390 | $ 871,280 | |
Salaries | $ 96,000 | $ 99,840 | $ 105,371 | $ 110,639 | $ 116,171 |
Marketing Expenses | $ 61,200 | $ 64,400 | $ 67,600 | $ 71,000 | $ 74,600 |
Rent/Utility Expenses | $ 36,400 | $ 37,500 | $ 38,700 | $ 39,800 | $ 41,000 |
Other Expenses | $ 9,200 | $ 9,200 | $ 9,200 | $ 9,400 | $ 9,500 |
$ 202,800 | $ 210,940 | $ 220,871 | $ 230,839 | $ 241,271 | |
EBITDA | $ 66,080 | $ 149,810 | $ 263,129 | $ 418,551 | $ 630,009 |
Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
EBIT | $ 60,880 | $ 144,610 | $ 257,929 | $ 413,351 | $ 625,809 |
Interest Expense | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 |
$ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 | |
Taxable Income | $ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 |
Income Tax Expense | $ 18,700 | $ 47,900 | $ 87,600 | $ 142,000 | $ 216,400 |
$ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 | |
10% | 20% | 27% | 32% | 37% |
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
Cash | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
Other Current Assets | $ 41,600 | $ 55,800 | $ 74,800 | $ 90,200 | $ 121,000 |
Total Current Assets | $ 146,942 | $ 244,052 | $ 415,681 | $ 687,631 | $ 990,278 |
Fixed Assets | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
Accum Depreciation | $ 5,200 | $ 10,400 | $ 15,600 | $ 20,800 | $ 25,000 |
Net fixed assets | $ 19,800 | $ 14,600 | $ 9,400 | $ 4,200 | $ 0 |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 | |
Current Liabilities | $ 23,300 | $ 26,100 | $ 29,800 | $ 32,800 | $ 38,300 |
Debt outstanding | $ 108,862 | $ 108,862 | $ 108,862 | $ 108,862 | $ 0 |
$ 132,162 | $ 134,962 | $ 138,662 | $ 141,662 | $ 38,300 | |
Share Capital | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Retained earnings | $ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 |
$ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 | |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 |
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:
Below is a sample of a projected cash flow statement for a startup vending machine business.
Net Income (Loss) | $ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 |
Change in Working Capital | $ (18,300) | $ (11,400) | $ (15,300) | $ (12,400) | $ (25,300) |
Plus Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
Net Cash Flow from Operations | $ 21,480 | $ 82,910 | $ 152,629 | $ 256,551 | $ 380,709 |
Fixed Assets | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Cash Flow from Investments | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Debt financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow from Financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow | $ 105,342 | $ 82,910 | $ 152,629 | $ 256,551 | $ 271,847 |
Cash at Beginning of Period | $ 0 | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 |
Cash at End of Period | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
You will also want to include an appendix section which will include:
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your vending machine business. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
Be sure to include all the key components discussed in this article and tailor it specifically to your business. And, most importantly, remember that your business plan is a living document; meaning it should be updated regularly as your business grows and changes.
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BUSINESS STRATEGIES
Starting a business , especially in the vending machine sector, demands careful planning. While promising, the vending machine sector is not without its challenges. Therefore, it's important to adopt a thoughtful and well-structured approach to maximize your chances of success.
In this article, we'll talk about the the intricacies of creating a business plan tailored specifically to the vending machine business . From conducting comprehensive market research to crafting a strategic financial outlook, this guide with cover all the basic steps to developing a strong, future-proof business plan.
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A vending machine business plan is a strategic document that can help you raise money for your business , crystallize your vision and set realistic goals. A business plan for this type of business typically includes sections addressing market research, competitive analysis, marketing strategies , operational logistics, financial projections and risk management. By addressing each of these element, a vending machine business plan can help with:
Resources planning: Crafting a business plan requires you to conduct thorough research. It forces you to develop a comprehensive understanding of the resources, supplies and staff needed to establish your vending machine business. Including also cost to start an LLC or other business model. By outlining the equipment, inventory and personnel required upfront, you can more accurately estimate startup costs and ongoing operational expenses.
Strategic roadmap: A detailed business plan helps you set achievable goals, establish milestones and better gauge progress. Moreover, the plan can highlight potential challenges and propose solutions, providing a proactive approach to navigating obstacles and uncertainties.
Competitive edge: Creating a business plan will require you to dig deep into customer demographics, consumer preferences and market trends—which you'll then want to use to inform your product strategy or other business decisions. Moreover, you'll find yourself analyzing competitors' strengths and weaknesses to pinpoint your brand's differentiators.
Risk mitigation: A well-structured business plan includes detailed financial projections that outline expected revenues, expenses and profitability over a specified period. These projections can help you understand the financial feasibility of your new business and make informed decisions. Furthermore, by identifying potential risks and outlining risk management strategies, you can safeguard your business against unforeseen challenges.
So, what are the essential elements of a business plan? Here are several to keep in mind as you work through your own plan.
Executive summary
Business and domain names
Market analysis and research
Operations plan
Marketing and advertising plan
Financial plan
Your executive summary is a concise overview of your entire vending machine business plan. It serves as an introduction that encapsulates the key points of your plan, providing readers with a quick understanding of your business concept, objectives, strategies and projected outcomes. While it appears at the beginning of the plan, it is often written after the rest of the plan is complete to ensure all crucial details are included.
Writing a clear executive summary for a vending machine business involves distilling the most essential information while maintaining clarity and enthusiasm. It should cover the following aspects:
Briefly introduce your vending machine business, explaining what products you will offer, your target market and the unique value you bring to the industry.
Outline your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).
Mention your key strategies for achieving your goals. This could include market penetration, product diversification or innovative technology utilization.
Highlight what sets your vending machine business apart from competitors. This could be a unique product offering, advanced technology, exceptional customer service or strategic locations.
Provide a brief overview of your financial projections, including revenue estimates, expenses and profitability forecasts.
Introduce key members of your team and their relevant expertise.
Indicate how much capital you are seeking or have secured and how you plan to use it.
Executive summary example:
"VendoTech Ventures aims to revolutionize the vending machine industry by offering a diverse range of healthy and innovative snacks tailored to the on-the-go lifestyle. Our SMART objectives include achieving a 15% market share within the first two years, expanding our product line to include beverages and establishing a network of 100 high-traffic vending locations. Our competitive edge lies in our AI-powered machine selection system and partnerships with local health-conscious suppliers. We seek an initial investment of $500,000 to fund product development, machine deployment and marketing initiatives. Our team boasts combined expertise in technology, food science and business management, ensuring successful execution. With a projected revenue of $800,000 and a 30% profit margin by Year 3, VendoTech Ventures is poised to become a leader in vending machine innovation."
Before you register your business , you need to figure out what to name the business . Your company name should reflect your brand's identity and resonate with your target audience. It's the first impression customers and investors will have of your business. Similarly, your domain name is your digital address and a critical aspect of your online presence.
Consider using a business name generator to brainstorm ideas for your company name. Aim for a name that's memorable, easy to spell and evokes a positive impression related to your vending machine business.
Your domain name should reflect your small business's name or core offerings. This ensures consistency and makes it easier for customers to find you online. Keep it concise and avoid using complex words or special characters that can lead to confusion. If possible, include relevant keywords in your domain name to improve search engine optimization (SEO) and make your business more discoverable online. Verify that your chosen domain name is available by checking domain registration platforms. Aim for a .com domain, as it's the most recognized and commonly used extension.
The market analysis and research section of your business plan provides insights into the competitive landscape and consumer behavior. This data is essential for crafting a well-informed business strategy.
Start by defining your target audience based on demographics, psychographics and behavioral factors. Understand their preferences and needs. At the same time, evaluate your competitors' strengths, weaknesses, pricing strategies and market positioning. Identify gaps in the market that your vending machine business can fill.
Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis to gain a holistic view of your business's internal and external factors. Research industry trends, technological advancements and emerging consumer preferences. This information will help you stay ahead of the curve.
The operations plan in your vending machine business plan outlines the practical aspects of running your business efficiently. It covers aspects such as your location, premises, equipment and staffing needs.
Location : Detail how you'll identify high-traffic locations for your vending machines. Consider factors like foot traffic, target demographics and proximity to competitors.
Equipment : Specify the types of vending machines you'll use, including their features and capabilities.
Staffing : Determine the number of staff members required to manage inventory, restocking, maintenance and customer inquiries.
Example of an operations plan
"Location selection will be guided by thorough demographic analysis and foot traffic assessment. Our initial focus will be on office complexes and university campuses, where our target audience of busy professionals and students is likely to frequent. Our vending machines, equipped with state-of-the-art touchscreens and cashless payment systems, will offer an array of healthy snack options. We'll employ a dedicated team of two technicians for regular machine maintenance, ensuring optimal functionality and product availability."
The marketing and advertising plan elucidates how you'll promote your vending machine business to attract customers and build brand awareness. You’ll need to define your marketing channels, such as your business website , social media, content marketing, email campaigns and partnerships.
Then detail your specific marketing campaigns designed to resonate with your target audience and drive engagement. Describe how you'll use these campaigns and strategies to establish your brand identity through consistent messaging and visual elements. You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use Wix’s free logo maker to get a professional logo in minutes.
Example of a marketing strategy for a business plan
"Our marketing strategy includes a combination of online and offline channels. We'll leverage social media platforms like Instagram and Facebook to showcase our diverse snack offerings and engage with our audience through interactive posts and contests. Additionally, we'll collaborate with local gyms and wellness events to position our brand as a champion of healthy snacking. Our 'Snack Smart, Live Better' campaign will emphasize the nutritional benefits of our products and the convenience they offer."
The financial plan section of your business plan outlines the financial aspects of your vending machine business, including startup costs, revenue projections and funding sources.
Detail the expenses required to launch your vending machine business, covering equipment, inventory, location setup, legal fees and marketing. Then provide an estimate of your projected revenue based on sales volume, pricing and market potential. Make sure to always list ongoing expenses, such as restocking, maintenance, rent (if applicable) and staffing costs.
You’ll need to indicate how you plan to fund your business ideas or idea initially, whether through personal savings, loans, investments or grants. Finish by outlining when you expect your business to become profitable based on your projected financials.
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If you want to start a new vending machine business or expand your current vending machine company, you need a business plan.
The following vending machine business plan template gives you the key elements to include in a successful vending machine business plan.
You can download our Vending Machine Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of a vending machine business plan example:
Click below to see each section of our free vending machine business plan template. You can also click here to get our vending machine business plan pdf . This plan will equip you with the tools and framework to build a thriving vending machine business.
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Vending Machine Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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1. describe the purpose of your vending machine business..
The first step to writing your business plan is to describe the purpose of your vending machine business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a vending machine business:
Our mission is to be the leading provider of convenient and reliable vending machines, bringing quality snack and beverage products to our customers in an efficient and cost-effective manner. We strive to provide exceptional customer service and a positive user experience with our machines, while also setting a standard of excellence in the industry.
The next step is to outline your products and services for your vending machine business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your vending machine business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your vending machine business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
To run a Vending Machine business, the following equipment, supplies, and permits may be needed:
The second part of your vending machine business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a vending machine business varies based on many different variables, but below are a few different types of startup costs for a vending machine business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your vending machine business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your vending machine business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your vending machine business plan:
Why do you need a business plan for a vending machine business.
A business plan for a vending machine business is important because it provides an outline of the goals and objectives of the business, as well as a detailed plan to reach those goals. It also helps determine a budget, identify potential areas of risk, and provide a timeline for launching and expanding the business. Additionally, having a business plan can help secure financing from investors or lenders.
When creating a business plan for a vending machine business, it is best to seek the help of an experienced professional, such as an accountant or business consultant. Additionally, seeking out help from friends and family who have experience in the industry may be beneficial as well. Additionally, there are many reputable online resources and websites offering resources and advice for creating business plans.
Writing a vending machine business plan is a complex process that requires research, analysis, and careful planning. Writing your own plan requires an in-depth understanding of the vending industry, a detailed knowledge of business fundamentals such as accounting, marketing strategies and start-up costs. It is also important to consider the location and type of vending machines that you are going to use when developing your plan. If you don't feel confident enough to write a business plan on your own, then it is recommended that you seek professional help from someone who has expertise in this field.
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Published Mar.28, 2024
Updated May.10, 2024
By: Alex Silensky
Average rating 3.1 / 5. Vote count: 30
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Table of Content
As we enter 2024, the demand for convenient and accessible snacks and beverages continues to rise. As highlighted in our restaurant business plan , the vending machine business is an attractive opportunity for entrepreneurs seeking passive income streams.
This article everything you need to know about starting a vending machine business, including:
By the end, you’ll understand what it takes to start a successful vending machine business and how to navigate the challenges with our vending machine business plan example.
Like any new business venture, the vending machine industry has its pros and cons:
While the vending machine business presents attractive opportunities for entrepreneurs, it’s essential to carefully weigh the pros and cons of a vending machine startup business plan before moving ahead.
The vending machine industry undergoes continuous evolution. As per our business plan for the vending machine company, key trends influencing this sector include:
According to an analysis by Grand View Research, the global retail vending machine market was valued at $51.91 billion in 2021. From 2022 to 2030, the vending machine market is expected to reach $129.40 billion , exhibiting a compound annual growth rate (CAGR) of 10.7% .
Source: Grand View Research
As per an analysis by Starter Story, the average cost of starting a vending machine business is about $19,267 . This includes the cost of vending machines, initial stock, and other potential expenses.
For your better understanding, here’s a breakdown of typical startup costs for a new vending machine business:
Vending Machine (Refurbished) | $1,200 – $3,000 | $2,100 |
Vending Machine (New) | $3,000 – $10,000 | $6,500 |
Initial Stock | $1,500 – $2,500 | $2,000 |
Supplies | $250 – $750 per month/machine | $500 |
Machine Management and Maintenance | $100 – $500 per year/machine | $500 |
Insurance | $500 – $1,100 per year | $1,200 |
Location Royalties/Commissions | Up to 20% of sales (typically 5% to 10%) | Assumes 10% of sales |
Transaction Fees | Varies between 5 – 10% | Assumes 5% of sales |
Fuel and Vehicle Maintenance | Varies based on vehicle type and usage | $500 |
Taxes | Varies by location and applicable rates | Assumes 25% of profits |
These are average estimates, and actual costs can vary based on your vending machine location, specific business model, and other factors. Also, some costs like royalties/commissions and taxes are sales percentages and will fluctuate with revenue. So, plan accordingly or check our business plan for selling snow cones.
On average, a well-placed and properly stocked vending machine can generate between $300 to $600 monthly profits per machine, with some high-traffic locations generating even higher returns.
Let’s consider a detailed example to understand the profitability of a single vending machine:
Assumptions:
Revenue Calculation:
Item | Quantity | Value |
Average monthly revenue per machine | $1,200 | |
Number of vending machines | 10 | |
Total monthly revenue | $12,000 | |
Cost Breakdown:
Cost Category | Monthly Cost (10 machines) | Annual Cost |
Supplies ($500*10) | $5,000 | $60,000 |
Location Royalties/Commissions (10% of sales) | $1,200 (0.1 × $12,000) | $14,400 |
Transaction Fees (5% of sales) | $600 (0.05 × $12,000) | $7,200 |
Fuel and Vehicle Maintenance | $500 | $6,000 |
Machine Management and Maintenance | $500 | $5,000 (10 × $500) |
Insurance | $100 | $1,200 |
Profitability Calculation:
Item | Value |
Total monthly revenue | $12,000 |
Total monthly expenses | $7,900 |
Profit (monthly) | $4,100 |
Annual profit before taxes | $49,200 |
Taxes (25%) | $12,300 |
Therefore, with 10 vending machines generating an average monthly revenue of $1,200 per machine and considering the associated costs, you can earn an annual profit of approximately $36,900 ($307.5 per machine per month) from your vending machine business after taxes.
Aspiring vending machine entrepreneurs may face many unforeseen barriers that make entry in the market challenging. Here are some barriers that entrepreneurs might face:
These formidable barriers highlight the complexities of the vending machine business, requiring aspiring entrepreneurs to carefully assess their resources, strategies, and commitment via a professional vending machine business plan.
Create a vending machine business plan.
A well-researched business plan, like a lemonade stand business plan , is critical if you want to start and grow your vending machine business profitably. It helps attract potential investors, guides your operations, and navigates challenges. Here’s a breakdown of key sections to include along with components and tips:
The executive summary concisely outlines the key elements of your water vending machine business plan. It provides an overview of your business concept, target market, competitive advantages, management team, financial projections, and funding requirements.
What to Include:
Management Team
The business overview section of a business plan provides a concise yet comprehensive introduction to the coffee vending machine business. It lays the groundwork for the more detailed sections that follow.
The market analysis section of your healthy vending machine business plan examines the industry landscape, market trends, growth potential, competitive landscape, and the overall market environment in which your vending machine business will operate.
This section of your snack vending machine business plan provides a comprehensive overview of the specific products and services you plan to offer to your customers. It covers the details of your products, including descriptions, pricing strategies, sourcing, and quality control measures.
The target market segments section defines the specific customer groups you aim to serve and outlines tailored strategies for reaching and engaging each segment effectively. This section ensures that your business aligns with customer demands and maximizes its reach.
The organization and management section outlines the structure, leadership, and operational framework of your company. It provides details about who is responsible for key decisions.
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The financial projections outline your company’s anticipated financial performance over a specific period. It provides a roadmap for revenue, expenses, profits, and cash flow.
To illustrate how all of these sections come together, we’ve put together a comprehensive sample business plan for a vending machine for a fictional company SnackWave that you can use as a template for your own business.
SnackWave Vending is a startup vending machine operator. SnackWave aims to revolutionize the snacking experience in major metropolitan areas. Founded by seasoned entrepreneurs Michael Smith and Emily Wilson, SnackWave will launch operations in New York City in 2024.
SnackWave’s unique competitive advantages include:
SnackWave projects $3.2 million in revenue by Year 3 with a machine network of 150 units across New York City’s five boroughs. SnackWave has also secured $1.2 million in seed funding.
SnackWave is a limited liability company (LLC) established in New York in 2024. Our core business is:
We will be offering a diverse range of consumable products through our modern vending machines. Our product line will include:
Healthy Options
We will work with reputable suppliers and distributors to ensure that our vending machines are consistently stocked with fresh, high-quality products. Additionally, we will regularly rotate our product offerings to introduce new and seasonal items, keeping our customers engaged and satisfied.
The U.S. vending machine market was valued at $23.5 billion in 2022 and is expected to grow at a 5.8% CAGR. Key growth drivers include:
SnackWave’s initial target market is the New York City metropolitan area, specifically:
With only 30,000 vending machines currently in NYC, there is substantial white space opportunity for an innovative, tech-savvy operator like SnackWave.
SnackWave will offer a diverse range of products to cater to the varying preferences and dietary needs of our customers. Our product line will be divided into the following categories:
Hot Beverages (in select locations)
To ensure product freshness and quality, we will work with reputable suppliers and distributors to consistently stock our vending machines.
All our vending machines will feature:
Beyond vending, SnackWave will offer 24/7 customer support, handling inquiries, and complaints and resolving machine issues in real-time.
SnackWave will initially focus on the following key market segments within the New York area:
By targeting these market segments, SnackWave can leverage the high foot traffic, captive audiences, and specific snacking needs of each location to maximize the potential for vending machine sales and revenue generation.
Ownership and Legal Structure
SnackWave is a limited liability company registered in New York. The company is owned and operated by co-founders Michael Smith (60% ownership) and Emily Wilson (40% ownership) .
Initially, SnackWave will employ a lean team of 10 full-time employees to support its operations:
As the business grows and expands its reach, we will increase our workforce to meet the increasing demand for our services. Additional roles, such as regional managers, customer service representatives, and inventory specialists, will be added to support our operations effectively.
SnackWave is seeking $1.2 million in seed funding to launch operations, comprised of:
Based on our market analysis and conservative estimates, we have prepared the following financial projections for the first three years of operations:
Vending Machines | 75 | 125 | 200 |
Average Revenue per Machine (Monthly) | $1,500 | $1,600 | $1,800 |
Total Revenue | $1,350,000 | $2,400,000 | $4,320,000 |
Cost of Goods Sold (30%) | $405,000 | $720,000 | $1,296,000 |
Gross Profit | $945,000 | $1,680,000 | $3,024,000 |
Operating Expenses | $600,000 | $800,000 | $1,100,000 |
Net Profit (Before Tax) | $345,000 | $880,000 | $1,924,000 |
These projections demonstrate a strong potential for growth and profitability. By the end of the third year, we expect to generate an annual revenue of $4.32 million and a net profit of $1.92 million, representing a substantial return on investment.
Till now you might have already understood that to start or expand your business, having a comprehensive vending machine business plan documentation is crucial. At OGSCapital, our team of experienced consultants specializes in helping entrepreneurs like you develop winning business plans.
With our expertise, we can provide:
Don’t leave your vending machine business plan success to chance. Partner with OGSCapital’s consultants who have extensive experience in crafting actionable business plans across industries. For example, our hot sauce business plan . Contact us today to write your business plan vending machine business that sets your venture up for long-term success.
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Is a vending machine business profitable?
Yes, a vending machine business can be profitable. On average, a single vending machine generates more than $300 monthly. The global vending machine market is expected to be worth $146.6 billion by 2027. (Source: Research and Markets)
Do reverse vending machines make money?
Reverse vending machines can make money by preparing a professional reverse vending machine business plan first. They collect fees for items deposited and sell recycled materials. Collection fees and profits from selling these materials can be substantial. These machines promote recycling while providing an income stream.
What is the best business structure for a vending machine business?
The best business structure for a vending machine business is often an LLC (Limited Liability Company). It limits personal liability, allows pass-through taxation, and protects assets from business debts and
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
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A vending machine company is run by a business owner, often called a vending machine operator. The vending machine operator purchases one or more vending machines, scouts out locations to place them, negotiates with property owners, and maintains the stock inside of the machines themselves. The operator doesn’t always restock the machines themselves; they may hire employees for that, but it depends on the scale of the vending business.
A successful vending machine business depends on your goals. You may not want to go full-time. Owning a vending machine business can also be a lucrative side hustle. Small business loans and credit cards can help with upfront costs, but the initial vending machine costs don’t have to be huge. You can choose refurbished equipment and start with a single machine to keep costs reasonable.
You don’t have to sell soda if you don’t want to — you have options. Although drink machine sales still tend to be the most profitable , there are countless kinds of vending machine businesses you can run. Here are the four main categories of vending machine businesses:
Specialty vending.
It’s important to research the hurdles of each type of business before you decide which route you want to go. Choosing one kind and sticking to it in the beginning can make ramping up your business easier and decrease how much you have to learn as you go. What you choose to sell will impact the type of machine you buy, as some products need refrigeration and electricity while others only need a quarter and a turn.
We go into more detail about each vending machine business type in the next section.
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The type of machine business you choose should be easy for you to manage, sell well in your area, and fit within your budget. Feel free to use your imagination. For example, the company SouveNEAR brings locally made gifts to airports and travel hubs that customers can purchase out of vending machines while they’re on the go. Keep in mind that inventory costs money, so make sure you can afford to restock.
Many vending machines sell drinks or food. For beverage vending machines, you can choose to partner with and sell a specific brand, like Coca-Cola. Or you can stock it with what you want to sell. It’s best to choose drinks only or snacks only in the beginning to limit the amount of education you need from the start.
With food or snack vending machines, you also have options on what you can sell. For example, placing a healthy snacks vending machine in a private gym might be a success. As long as you do your market research and place the machine in the right location, it has a good chance of creating income.
Bulk vending is often the most affordable type of vending to get into since you’re selling nonperishable items like small toys, stickers, or gumballs. You don’t need to worry about keeping your stock refrigerated. And many bulk vending machines only need the customer to put in a quarter and turn the knob, so you also may not have to worry about electricity. These machines are typically cheaper to buy and stock than other options, as well.
Specialty vending machines run the gamut. You can sell anything from local gifts to portable electronics to laundry products (placed in laundromats or dorms). Selling coffee and hot chocolate from a hot beverage vending machine is another option. These types of vending products may be more complicated if you’re new at running a vending machine business, but that doesn’t mean it’s impossible.
If you’d prefer more support and training than starting your own business, you can look into franchising a vending machine business. You’ll be able to take a business model that works and run with it rather than starting from scratch. However, keep in mind that you’ll have to pay part of your income to the franchiser, which may not make the higher support worth it.
There are positives and negatives to starting any business. Here’s a breakdown of what to think about before starting your own vending machine business.
Your profit margin per vending machine will depend on the type of machine, the cost of your inventory, and the vending machine location. A good location and a desirable product that fits into your budget make it more likely that you’ll be successful.
Your overall profits depend on how many machines you operate. You typically need quite a few machines to be able to take this business full time. Owning a vending machine business is not a get-rich-quick scheme. Each machine brings in between $5 and $100 per week , on average. You might only be making $20 per month on a single vending machine, but remember that it’s passive income. If your business has many vending machines, you’ll have a lot more work on your plate — but also the potential to make up to $400 per month on average on every one.
The cost of starting a vending machine business can vary widely depending on several factors, including the type and number of machines, the products you plan to sell, the location of the machines, and other related expenses. Here are some key components to consider when estimating the cost of a vending machine business:
As you can see, the cost of starting a vending machine business can range from a few thousand to tens of thousands of dollars, or even more, depending on the scale and complexity of your venture. Before starting, you’ll want to create a detailed business plan and budget to understand the initial investment and ongoing expenses better.
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The method you choose to fund your vending machine business depends on your personal circumstances and the type of machines you want to operate. If you have savings, you might be able to fund a standard machine from your own money. For mechanical machines, you’ll spend an average of $2,000 to $3,000, while an electronic machine will usually cost more than $3,000. You can often find refurbished machines for less than that, too.
If you don’t have savings, however, you can still start a vending machine business. There are business credit cards and small business loans that you may qualify for to fund your vending machine startup or expansion costs.
You might prefer to buy an existing vending machine business — which can be a great way to enter the world of entrepreneurship with an established and potentially profitable venture. Here are the steps you’ll want to follow.
Remember that buying a vending machine business is a significant investment, so take your time to research, evaluate, and make an informed decision. Seek professional advice when needed to ensure a successful purchase and smooth transition into the vending machine business.
Yes. You can use business credit cards to fund a vending machine business. Because the price of a single vending machine is relatively low, the credit limit on business credit cards can often cover the cost. You may even be able to get a credit card with a limit high enough to cover multiple machines at once.
Your credit limit depends on factors like your personal credit score, however, so make sure to check yours before applying.
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Here are some of the best credit card options for your vending machine business. Work with Nav to get personalized card recommendations based on the details you enter securely about your business. The more information you provide, the better your recommendations.
Business loans are another option when you’re looking to fund your vending machine business. Typically, business loans are used for larger purchases, but you may be able to qualify for a loan if you want to purchase multiple vending machines at one time.
Here’s a shortlist of items you’ll need before you apply:
It is usually difficult for a brand-new business to get a traditional bank loan, but there are alternative lenders (see the list below) that require only six months to one year in business.
Some lenders also look at your business credit. Learn how to establish business credit in this guide from Nav.
Here are some of the best small business loan options to use to launch or upgrade your vending machine business.
Yes, having a vending machine business plan is often essential if you’re seeking funding from investors, lenders, or financial institutions. A well-prepared business plan serves as a roadmap for your venture and demonstrates to potential investors that you have a clear vision and a solid understanding of how to make the business successful.
A business plan outlines your business model, target market, competitive analysis, and financial projections. It helps investors understand the viability of your vending machine business and its potential for profitability. It also shows financial projections, which provide insight into how you plan to use the funds, when the business is expected to become profitable, and the potential return on investment (ROI) for investors.
Additionally, your business plan should address potential risks and challenges to demonstrate that you have thoroughly analyzed the industry and are prepared to navigate uncertainties. This builds credibility and shows that you have thought through all aspects of the business, which can instill confidence in potential investors that you are a responsible and capable business owner.
Furthermore, even if you don’t need external funding, a business plan is beneficial as it serves as a roadmap for your business operations, guiding you through your goals and strategies.
Before diving into your own vending machine business, there are a few things you need to understand. You’ll need to research local regulations to see how to remain compliant. You’re technically a vendor, so check with your local Chamber of Commerce to learn how your state regulates vendors. You’ll probably need to obtain a vending machine license — and one for each machine. This shouldn’t be a dealbreaker because they’re inexpensive and relatively easy to get, but it is one more to-do item on your list. You’ll want to make sure you have your machines licensed so you are operating legally. Additionally, your machine must follow ADA standards, so make sure the machines you buy are accessible to all.
Also, you’ll likely pay sales tax on everything you sell. The amount of sales tax you’ll owe will depend on your location, but it can eat into your profits.
Finally, you’ll usually pay part of your commission to the person or company that owns the property or properties you choose for your vending machine location. The property owner wants to get something in return for allowing you to use their property, as well as cover any electricity costs that add up from your machine. Expect to pay 10% to 25% of your profits to the property owner.
Buying a vending machine is daunting. Whether or not you might choose a refurbished machine or a new machine depends largely on which stage your business is in. Used vending machines are a good place to start for new businesses. You’ll decrease your investment, and therefore your risk, because refurbished machines cost less. They may or may not require fixes before you use them, so be sure to inspect it carefully and ask for demonstrations from the vendor.
Meanwhile, experienced vending machine business owners might choose a new machine if they have access to the capital. New vending machines are more expensive but will probably require less frequent maintenance.
There are several places where you can find vending machines for sale, both new and used. Here are some options to consider:
Several websites specialize in selling vending machines. They offer a wide range of options, from snack and beverage machines to specialty machines for specific products. Some popular online retailers include:
Reach out to vending machine manufacturers directly, as many of them also sell machines to individual buyers. Some well-known vending machine manufacturers include:
Keep an eye on local business auctions or liquidation sales, as vending machines may be available at discounted prices when companies close or upgrade their equipment.
Check online classified ads platforms like Craigslist, Facebook Marketplace, or eBay for individuals or businesses selling vending machines in your area.
Look for vending machine distributors in your region. They often have a selection of machines available for purchase and can also provide guidance and support for your vending machine business.
Some local suppliers or repair shops that service vending machines may have used machines available for sale.
Connect with other vending machine operators in your area through industry events, trade shows, or online forums. They may know of opportunities to buy machines from businesses looking to exit the vending industry.
You might be brand new to buying something like a vending machine and aren’t really sure where to start. Here are the questions you’ll likely need to ask when starting a vending machine business:
Sometimes it’s easier to buy a business that already exists. If you want to start a vending machine business and are looking for one to buy, there are a few places to check. First, you can look online on websites that sell businesses or business listings. There, you might find vending machine businesses that are up for sale.
You can also ask around in your local community — sometimes people put up signs or share information about businesses they want to sell. Learn more in our complete guide to buying an existing business .
If you want to buy a vending machine business and talk to the owner, here’s a friendly way to do it:
Remember, it’s essential to be open and honest about your intentions when you’re approaching someone about their business.
When figuring out potential locations for where to put your vending machine, look at foot traffic. High-traffic areas like airports or train stations are more likely to be successful than locations that don’t get as many people walking by. These locations may be more difficult to get into, but it could be worth trying.
You’ll also want to consider what you’re selling. If you’re selling bulk items like small toys, outside of grocery stores and convenience stores could be a good spot since children often accompany parents to these places. On the other hand, if you’re selling hot coffee, looking into office buildings and motels might be a good idea. Get creative with your location scouting and don’t be afraid to pitch your vending machine to the property owner.
Additionally, consider the safety of your location. Vandalism and theft are issues for vending machines since they are often left out in the open, so try to make sure the spot is well lit and in a populated area. You could even choose to place your machines inside of buildings that are locked at night if vandalism is a big concern.
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Vending machines can be placed in various locations where people frequent or need quick access to products. Here are some common and uncommon places to put a vending machine:
Some common places include:
On the other hand, here are some less common places to think about putting your vending machine:
When choosing a location for your vending machine, consider foot traffic, target audience, and the products you plan to sell. Get permission from the property owner or manager before placing your machine in any location. Additionally, ensure the area is safe and secure to protect your investment and provide a positive experience for customers.
Keeping up with your inventory is essential for your business’s success, so come up with a plan to track it. Rather than personally driving around to each of your vending machines (which would take a lot of time), you can use inventory management software to stay on top of your restocking needs. Then you’ll know when you need to go back and replenish your inventory — and you’re never losing out on a potential sale. There are also specific vending management systems that are worth looking into since they specialize in vending machines.
You may want to hire employees to do the physical restocking for you, or you may be happy to do the work yourself (at least while it’s manageable).
Starting a vending machine business involves several legal considerations to maintain compliance with regulations, as well as to protect both the business owner and customers. Here are key legal aspects to consider:
Before launching a vending machine business, it’s essential to register the business with the appropriate authorities. This includes getting the necessary licenses and permits to operate vending machines in specific locations. The requirements may vary based on the city, state, or country, so thorough research is crucial.
If you’re placing vending machines in locations owned by others (like businesses or public spaces), you’ll need to write up a legal agreement. These contracts outline the terms of the arrangement, including any revenue-sharing agreements and responsibilities of each party.
Vending machines must comply with the Americans with Disabilities Act (ADA) requirements and make them accessible for people with disabilities. This includes considerations such as accessible height, reach, and controls on the machines.
Understand and pay taxes related to your vending machine business. This includes sales tax, income tax, and any other applicable taxes. Keep accurate financial records to stay compliant.
Consider getting insurance coverage to protect the business from potential risks, like theft, vandalism, or liability claims. Liability insurance can be particularly important in case of any accidents or injuries related to the vending machines.
If your vending machines collect customer data through cashless payment systems or loyalty programs, make sure you have proper data protection. Implement secure practices to protect customer information and stay informed about relevant regulations.
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There are a few things that are important to plan for before starting your own small business. Keep in mind: Even if you only run one vending machine, you’re legally a small business and must file business taxes if you make over $400 per year .
First, you’ll need to think about what business entity you want to run as. If you want to protect yourself from personal liability as a vending machine owner, it’s best to not operate as a sole proprietorship. Becoming a limited liability company (LLC) gives better liability protection and more options for how you’re taxed than a sole proprietorship. You can also consider becoming an S-corp or a C-corp .
Setting up an LLC is much easier when you use a business formation service . These services know the laws based on where you’re located and make sure you’re compliant — without you having to do all the research yourself. Use Nav to find the best business formation service for your business quickly and efficiently.
You’ll probably have to pay sales tax on what you sell out of your vending machines, unless you’re stationed in one of the five states that doesn’t charge sales tax . The percentage of tax you pay depends on the sales tax rate in the state. Turning to a professional to file your business taxes can help you stay compliant with all local, state, and federal laws, as well as get you the highest possible return.
Additionally, having an organized accounting system from when you form your business is ideal (although it’s not too late to organize it if you’re already up and running). Bookkeeping and accounting on a spreadsheet for all of your vending machine sales can quickly get out of hand. Instead, use accounting software to keep everything in one place and to be able to pull financial statements quickly that tell you how your machines are performing.
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You have several choices in how you accept payments: coins only, cash and coins, and credit cards. Accepting cash means you’ll have to keep your machine stocked with change.
Allowing credit card payments is a great way to boost your sales since most customers expect to be able to pay for items with a card. Machines with card readers cost more up-front, but it may be worth it to increase sales. You will have to sign a contract with a payment gateway and pay various fees to the payment gateway provider, so do your research before choosing one to make sure you’re paying a fair amount.
The location of your vending machines and the items you’re selling are the biggest indicators of how well your products will sell. If there is a lot of foot traffic — and it’s the right kind of foot traffic — you’re likely to make money. Think about who the regular clientele is in the area and make sure it matches up to what you’re selling, like to-go snacks in dormitories and coconut water in a gym.
Additionally, make sure you negotiate a fair rate with the property owner so you aren’t giving up too much to place the machine in that location. If the property owner isn’t willing to work with you, it may be worth looking elsewhere. Ensuring you aren’t overpaying for your payment gateway (if you have one) is another way to maximize your take-away income.
Owning a business is inherently risky, and a vending machine business is no different. Business insurance can provide you with protection and peace of mind so you can get back to operating your business. Having insurance covers you if one of your vending machines is vandalized or there is a liability claim against your business. Nav partners with Mylo to provide personalized business insurance tailored to your unique business’s needs.
The vending machine industry is great for new or first-time business owners, because the overhead and startup costs are smaller than many other businesses and each machine shouldn’t require daily attention. Opening a vending machine could provide passive income on the side — or become a full-time business. Whether you use business funding or open it with your savings, a vending machine business could be a great path to making more income.
Is the vending machine business still viable in 2023?
Yes. Vending machines are a profitable business idea that can provide passive income or become a full-time gig. You can have one machine or 100+ machines — how much you scale is completely up to you. A single vending machine alone will not make you a ton of money (the average is between $5 and $100 per week), but if you don’t have much time or you want to add multiple machines, it could be worth it.
How to handle vandalism to a vending machine?
The first consideration for vandalism is to choose the right location. Picking a spot that has a lower crime rate and is in a well-lit or populated area is a good defense against vandalism. However, nothing is foolproof, so your best bet is to get business insurance in case vandalism does happen.
Is a vending machine business considered passive income?
Yes. Operating a vending machine does require work, but it is considered passive income, because you won’t have to work on it full time. How often you have to restock inventory depends on the location and what you’re selling, but you’ll probably have to restock between once a week and once a month.
What credit score do I need to get a business credit card for a vending machine business?
Business credit card providers usually want your personal credit score to be above 600, and sometimes higher. It depends on the credit card, but they are typically looking for a good to excellent credit score. Credit card companies don’t usually look at your business credit score when determining whether you qualify for the card. If you need to build up your personal credit score, you can do so by making on-time payments and lowering your debt. Over time, this can help improve your credit.
How much does a vending machine cost, on average?
The cost of a vending machine can vary significantly depending on various factors, including the type of machine, its size, features, brand, and condition (new or used). Snack and candy machines can cost anywhere from $500 for a used model to $6,000 for a new model. Specialized machines can cost $15,000 or more.
Can you buy a vending machine and put it anywhere?
You can’t put your vending machine anywhere you would like. You usually have to negotiate a contract with the land or property owner stating that you’ll pay them part of the profit before you can place a vending machine. There are some locations, like office buildings, that may negotiate a contract with you without charging you to house the machine.
Do vending machines make good money?
Vending machines can be profitable and quite hands-off, but it often requires having a lot of machines to make a significant amount of money. You’ll probably need to have a full-time vending machine business to make enough money to live off of, but it can also be an excellent source of side income.
This article was originally written on February 7, 2023 and updated on January 9, 2024.
This article currently has 33 ratings with an average of 4.5 stars.
Tiffany Verbeck
Tiffany Verbeck is a Digital Marketing Copywriter for Nav. She uses the skills she learned from her master’s degree in writing to provide guidance to small businesses trying to navigate the ins-and-outs of financing. Previously, she ran a writing business for three years, and her work has appeared on sites like Business Insider, VaroWorth, and Mission Lane.
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Are you about starting a vending machine business like breathalyzer & reverse coffee? If YES, here’s a complete sample vending machine business plan template & feasibility report you can use for FREE . Consumers mostly settle for convenience in their purchases, this means that rather than walk to a retail store for a snack, they would prefer to use a vending machine.
This is especially why most vending machine operators are constantly coming up with niche ideas that would be of convenience to the consumer, while making the operator money in the process.
Simply put; a vending machine business is a retail business that does not require face to face interaction with customers, and can be run for 24 hours a day depending on the location. A vending machine dispenses items such as beverages, snacks, lottery tickets, alcohol, cigarettes, perfumes, toys, candy and so much more.
There are very strict laws regarding the sale of alcohol and cigarettes through vending machines due to concerns regarding underage buyers. In the uk for instance; cigarette vending machines have been banned, and in Japan, Germany and Italy, age verifications have been made mandatory.
Anyone can possibly start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.
As a result, for those who own one or few vending machines within the same locality, operating cost will be at a minimal. This means that the owner of a few or even one vending machine can compete with those that have several vending machines in different locations.
The leverage in the vending machine business for any competitor is in strategically placing the vending machine at a location that has the right amount of traffic, as well as ensuring that the vending machine has the right product for the traffic. Starting a vending machine business also requires that you have a business plan in place.
The vending machine business without a doubt has come to stay. This is because of the various ways through which people can be served. According to a market research report on Vending Machine Operators, the industry has revenue of $8 billion to $20 billion, and has an annual growth of 0.7%.
The number of operators in the business were 24,110; with 65,137 people being employed. According to the united states Bureau of Labor Statistics, 70.5% of industry establishments consisting of sole operators, partnerships, small businesses and medium-sized companies employ less than 5 workers. These statistics covers small, medium and large scale operators and franchises.
Those operators who are into generic snack and soda vending machines, have seen their revenue decrease even though beverages and snacks still lead in the vending machine industry, because customers have changed consuming priorities to wanting healthier snacks and products.
An industry survey reports that 83% of vending operators have request from customers requiring healthier products. This customer consuming change will keep the industry from growing as it should, and expanding aggressively.
The vending machine operators in the United States in 2015 have been characterized by a moderate level of market share, with three top operators taking 46% of the market share. Small sized operators on the other hand with a revenue range of under $1million, make up 51% of the industry’s total operations.
According to the National Automatic Merchandising Association (NAMA), only 18% of vending machine operators make between $1 million and $5 million yearly. This is as costs of operation have continued to rise, and the operating environment is more favorable to small and large vending operators, while the medium-sized operators with $5 million to $10 million in sales have lost more of their market share.
In other countries such as Hong Kong, Vending machines were introduced due to high labor cost and limited space, with majority of the machines being stocked with drinks or snacks. Niche ideas have been for mobile phones and camera, umbrellas, and so on.
It is interesting to note that more retail shops especially lager retail outlets have started to include vending services as part of their business offerings. It creates conveniences that appeal to consumers; the average customer would not want to stay longer on queue in a retail shop buying or paying for good purchased.
Majorly the similarity across operators of the vending machine industry is the machine itself, regardless of the peculiar product the machine will dispense. This means that the niche services that will be offered by the machine, depends on the owner of the machines. This is of importance in this trade, especially as it is an industry that is limited only by the ideas from the entrepreneur.
Over and above, the vending machine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in one or two public facilities or you can chose to start on a large scale with several outlets in key cities. However, if it very important that as you choose to launch out, that you are well versed in the business.
Fizzy ‘n’ Crunchy Vending Company is a business enterprise in the retailing industry that will specialized in leveraging the vending machine retailing model. Although our business will be based in Bay – Orleans, Massachusetts where we were able to secure a 40 by 40 feet warehouse, we have the plans to spread across major cities in the United States and Canada.
Our vending machine business will retail / dispense a wide range of durable goods and non – durable goods at affordable prices from different brands. We will retail goods such as groceries, drinks, snacks, children’s toys, beauty products and cosmetics, fruits, vegetables, handkerchiefs, towels, and flowers et al.
We are aware that there are several large and small retail outlets and businesses all around Bay – Orleans who are into vending machine business as well, which is why we spent time and resources to conduct our feasibility studies and market survey so as to position our vending machines in strategic places in and around Massachusetts and also to offer much more than our competitors will be offering in terms of products and of course customer service.
Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is going to be second to none in the whole of Bay – Orleans, Massachusetts. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they make use of any of our vending machines and also to become our loyal customers and ambassadors.
Fizzy ‘n’ Crunchy Vending Company will ensure that all our customers are given first class treatment whenever they purchase products from our vending machines. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on the racks of our vending machines and also when making some business decisions.
We are aware of the trend in the vending machines cum retail industry and we are not only going to operate a system where our customers would just make purchase from our vending machines without getting useful data from them that will help us serve them better.
We will also go ahead to ensure that we position money changers in some of our busiest vending machines locations so that our customers will not find it difficult looking for change to make purchase from our vending machine.
We have but plans in place to operate a mini but standard call center / customer complaint center that will operate on a 24 hours a day and 7 days a week for the sole purpose of resolving customer’s complaints as fast as we can within the scope of our business.
Fizzy ‘n’ Crunchy Vending Company is a family business that is owned by Rev. George Canton – Freeman and Family. The business will be managed by his son Marco Canton – Freeman a graduate of Business Administration who has extensive experience working with one of the leading retailing outlets with several vending machines in the United States of America.
He will bring his experience and expertise to help build and grow Fizzy ‘n’ Crunchy Vending Company to compete favorably with other leading vending machine business in the United States of America.
Fizzy ‘n’ Crunchy Vending Company is in the vending machines cum retailing industry for the purpose of making profits and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.
We will have available in our vending machines a wide range of durable goods and non – durable goods at affordable prices. Here are some of the goods that will be available in our vending machines;
Our Business Structure
Fizzy ‘n’ Crunchy Vending Company do not intend to start a vending machine business whose vending machines can only be find in few outlets in Bay – Orleans; our intention of starting a vending machine business is to build a standard vending machine business with vending machines in strategic position in key cities in Bay – Orleans, Massachusetts and of course other key cities spread across the United States and Canada.
We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.
In view of that, we have decided to hire qualified and competent hands that will be able to really carry out the duties that will solve the problems of the people, as well as cause more money to come to us. So, we have hired the following people to occupy the following positions;
Merchandize Manager
Sales and Marketing Manager
Information Technologist
Chief Executive Officer – CEO:
Admin and HR Manager
Warehouse / Store Manager:
Client Service Executive
Our intention of starting our vending machine business with a dozen vending machine installed in strategic locations around Bay – Orleans, Massachusetts is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install 50 vending machines first all – around Massachusetts before spreading to key cities in the United States and Canada.
We are quite aware that there are several vending machines all over Massachusetts and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well – equipped to confront our threats.
Fizzy ‘n’ Crunchy Vending Company employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Fizzy ‘n’ Crunchy Vending Company;
The strategic locations we intend installing our vending machines, the business model we will be operating on, ease of payment, wide range of products and our excellent customer service culture will definitely count as a strong strength for Fizzy ‘n’ Crunchy Vending Company.
A major weakness that may count against us is the fact that we are a new vending machine business and we don’t have the financial capacity to compete with multi – billion dollars retail outlets that also runs a vending machines business when it comes to retailing at a rock bottom prices for all their goods.
The fact that we are going to install our vending machines in some of the busiest streets in Bay – Orleans, Massachusetts, provides us with unlimited opportunities to sell our products to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our vending machines locations; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet or new vending machines in same location where ours is located.
Retailing business has been in existence for as long as human started trading goods, but one thing is certain, the retailing industry is still evolving especially with the advent of technology. The introduction of technology is of course what gave birth to vending machines. In recent time, you can find vending machines designed specifically to dispense several goods ranging from snacks to drinks to groceries and to even cigar et al
It is now a common phenomenon for vending machines companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their vending machines to meet their needs; in essence, the use of technology help vending machines businesses to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help vending machine businesses serve them better.
Another common trend in the retailing industry of which vending machine falls under is the pricing system. Aside from having varieties of products in a vending machine, one of the easiest ways for vending machines and retail stores to sell the goods on their racks or vending machines as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere.
For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. As smaller as the price difference, consumers are likely going to be swayed to make purchase because of that. Lastly another common trend is that major retail stores are now leveraging on vending machines to sell their products.
We so want to reach those we have set out to meet their needs, hence, we will leave no stone unturned in identifying who they really are. Perhaps the vending machines business / retailing industry have the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop or from a vending machine. It is difficult to find people around who don’t patronize retail shops or vending machines when they come across one.
In view of that, we have positioned our vending machines in strategic locations to service the residence of Bay – Orleans, Massachusetts and every other location our vending machines will be located all over Massachusetts and other key cities in the United States of America and Canada.
We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products via our vending machines to the following groups of people;
Our competitive advantage
The competitions that exist in the vending machine line of business is stiff simply because anyone can start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.
Fizzy ‘n’ Crunchy Vending Company is launching a standard vending machine business that will indeed become the preferred choice of residence of Bay – Orleans, Massachusetts and in every other location where our vending machines will be installed.
One thing is certain; we will ensure that we have a wide range of products available in our vending machines at all times. It will be difficult for customers to visit our vending machines and not see the product that they are looking for. One of our business goals is to make Fizzy ‘n’ Crunchy Vending Company a one stop shop for all our customers.
Our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our vending machines will serve as a competitive advantage for us.
Fizzy ‘n’ Crunchy Vending Company is established with the aim of maximizing profits in the retailing industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of customers.
Fizzy ‘n’ Crunchy Vending Company will generate income by retailing the following products via our vending machine;
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with vending machine business, if you have your vending machines installed in locations that are prone to high traffic; the easier it is for you to make sales.
So also, the more the variety of the products you have in your vending machines, the more costumers you are going to attract.
This is why we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in all our vending machine outlets. Below are the sales projections that we were able to come up with for the first three years of operations;
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and or major competitors positioning their vending machines in same locations where ours are. Please note that the above projection might be lower and at the same time it might be higher.
Before choosing locations for installing our vending machines, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Bay – Orleans, Massachusetts. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the vending machine business / retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay – Orleans, Massachusetts and every other city we intend installing our vending machines.
In other to continue to be in business and grow, we must continue to sell the products that are available in our vending machines which is why we will go all out to empower or sales and marketing team to deliver. In summary, Fizzy ‘n’ Crunchy Vending Company will adopt the following sales and marketing approach to win customers over;
We are quite aware of the enormous returns a good publicity strategy can bring back to our business. So, despite the fact that our vending machines will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our vending machine business.
Fizzy ‘n’ Crunchy Vending Company has a long term plan of installing our vending machines in various locations in major cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Fizzy ‘n’ Crunchy Vending Company;
Pricing is one of the key factors that gives leverage to vending machine business, it is normal for consumers to go to places (vending machines outlets or retail outlets) where they can get goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.
We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.
Due to the nature of vending machines, there are no options when it comes to payment for items purchased other than to insert your money in the vending machine and then the machine will dispense what you paid for. We will ensure that we position money changers around our busiest vending machine locations so as to make change available to our customers.
When it comes to starting a vending machine business the major areas that you look towards spending the bulk of your cash is in the purchase of vending machines and of course renting or leasing warehouse facility. Aside from that, you are not expected to spend much except for paying of your employees and the purchase of vans.
This is the key areas where we will spend our start – up capital;
We would need an estimate of $500,000 to successfully set up our vending machine business in Bay Orleans, Massachusetts. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funding / Startup Capital for Fizzy ‘n’ Crunchy Vending Company
Just like every other business that exists in America, we want to spell out the means through which we want to generate our funds. Therefore, Fizzy ‘n’ Crunchy Vending Company is a private business that is solely owned and financed by Rev. George Canton – Freeman and Family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.
Fizzy ‘n’ Crunchy Vending Company will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.
We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
Check List / Milestone
By: Author Tony Martins Ajaero
Home » Business ideas » Wholesale and Retail Industry » Vending Machine
A vending machine business entails owning and operating vending machines that distribute a variety of products such as snacks, beverages, coffee, and other items.
The business owner buys or leases vending machines and positions them in high-traffic areas, such as office buildings, schools, hospitals, or shopping malls, where people can easily access them.
The vending machine collects money from clients, usually in the form of coins, bills, credit cards, or mobile payments, and then dispenses the specified product.
Executive summary.
Go Grab® Vending Machine, Inc. is a vending machine business based in Los Angles, California and with an active presence in key cities all across California. We are well-equipped and trained to serve high-quality products to customers of all ages.
Our target market includes families with young children, college students, and individuals of all ages looking for drinks and snacks on the go.
We plan to operate primarily in offices, hospitals, hotels, residential areas, parks, and popular public facilities to maximize our exposure and customer reach.
To support our business, we have secured fully equipped and customized vending machines, licensed by local authorities and compliant with all health and safety regulations.
Our team consists of experienced and friendly staff who are passionate about creating a memorable experience for our customers. Mildred Merrick is the founder and CEO of Go Grab® Vending Machine, Inc.
A. our products and services.
At Go Grab® Vending Machine, Inc., our menu features a variety of snacks, drinks, and bottled water. We also offer dairy-free and vegan options to accommodate customers with dietary restrictions. To guarantee the quality and freshness of our products, we will work with local suppliers and distributors.
Our vending machine business will operate the business-to-consumer business model.
Go Grab® Vending Machine, Inc. will operate in the vending machine and retail industry.
Our mission at Go Grab® Vending Machine, Inc. is to give our customers more accessible food and beverage options while promoting healthy and sustainable lifestyle choices.
Our vision at Go Grab® Vending Machine, Inc. is to become a leading vending machine business in the United States, offering a wide range of snacks, drinks, and bottled water.
Go Grab® Vending Machine, Inc. – Bring Snacks and Drinks to You!
Go Grab® Vending Machine, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.
A. strength.
The vending machine industry is indeed a big industry. The global vending machine market was valued at $18.28 billion in 2019 and is expected to reach $25.25 billion by 2027, growing at a 6.7% CAGR between 2021 and 2027. From 2019 to 2027, the market is predicted to generate an additional $6.97 billion in sales.
Yes, the vending machine industry is growing and available data shows that more entrepreneurs and even conglomerates are venturing into the vending machine retail business to reach out to a specific target market.
As consumers continue to prioritize healthier and more diverse drinks and snack options, vending machines may need to adapt their menus to meet these changing preferences. This could include offering more options. Vending machines may increasingly integrate technology into their operations, such as touchless payments and digital screens to enhance the customer experience.
Yes, there are existing niches when it comes to vending machine business, and here are some of them;
Go Grab® Vending Machine, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.
Yes, there are franchise opportunities for vending the machine business, and some of them are;
Yes, there are county or state regulations and zoning laws for vending machine businesses in the United States. Before they may operate, many counties and states require vending machine businesses to get a business license. Municipal zoning restrictions may limit the location of vending machines. Vending machines, for example, may be outlawed in residential areas or confined to specific types of commercial zones.
Vending machine firms in some counties or states are required to get permits for each machine they operate. Vending machine firms may be subject to health and safety standards, such as food handling, storage, and temperature control requirements.
Depending on the region and type of products sold, vending machine firms may be liable to sales tax or other taxes. Businesses that sell vending machines must follow the Americans with Disabilities Act (ADA), which requires accessible design for individuals with disabilities.
A. who is your target audience, i. age range.
Our target market comprises people of all ages.
We don’t have any restrictions on the level of education of those who will make use of our vending machines.
There is no cap on the income level of those who will make use of our vending machines.
There is no restriction when it comes to the ethnicity of the people who will make use of our vending machines.
There is no restriction when it comes to the language spoken by the people who will make use of our vending machines.
Anybody from any geographical location is free to use our vending machines wherever they are located.
Go Grab® Vending Machine, Inc. will not restrict any customer from purchasing drinks and snacks from us based on their lifestyle, culture, or race.
When working out our pricing strategy, Go Grab® Vending Machine, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;
A. sales channels.
Our sales channel strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the retail industry, the public facility management industry, and freelancers to help refer customers to us.
Go Grab® Vending Machine, Inc. will also use marketing’s four Ps: place, pricing, product, and promotion. We will create visible, in-demand products that are competitively priced and advertised to our clients by carefully integrating all these marketing methods into a marketing mix.
The fact that we will need regular supplies of drinks, snacks, and bottled water, means that Go Grab® Vending Machine, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.
We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Go Grab® Vending Machine, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
Here are the payment options that Go Grab® Vending Machine, Inc. will make available to her clients;
At Go Grab® Vending Machine, Inc., our customers are our top priority, hence our vending machine business offers a 30-day return policy for all purchases. If you are not satisfied with your purchase, please contact us within 30 days of the purchase date to arrange a return.
Returned items must be in their original packaging, unused, and in the same condition as when they were received. Please note that the customer is responsible for the return costs. Go Grab® Vending Machine, Inc. also offers various incentives to our customers, including loyalty programs and discounts for bulk purchases.
For example, customers who make frequent purchases from our vending machines can join our loyalty program, which provides exclusive discounts, special offers, and rewards for their continued business. Additionally, we offer discounts for bulk purchases, such as buying multiple items at once.
Customers’ feedback will be sought as part of our customer service strategy. This will help us provide excellent customer service to our clients. We will work in partnership with stakeholders by using a good CRM platform to do this.
Our operational plan will cover the day-to-day operations of the business, including procurement, vending machine restocking, equipment maintenance, staffing, and customer service.
There is no production process for vending machine business.
The service procedure for a vending machine business is focused on maintaining the machines in good working order, keeping them stocked with desirable products, and providing excellent customer service to ensure customer satisfaction and repeat business.
The supply chain for our vending machine business includes working with suppliers, transportation providers, and distributors to ensure that products are efficiently and effectively procured, loaded into the vending machines, and delivered to customers. Effective communication and planning are essential for managing the supply chain and meeting consumer demand.
Go Grab® Vending Machine, Inc. will make money from selling drinks, water, and snacks.
A. amount needed to start your vending machine business.
To successfully set up our vending machine in the United States of America, Go Grab® Vending Machine, Inc. would need an estimated $150,000 in funding. Please keep in mind that this figure covers all of our employees’ salaries for the first month of operation.
Go Grab® Vending Machine, Inc. will not build a new facility for our vending machine business because by nature the vending machine business leverages public facilities to install their vending machines.
A. how much should you charge for your product/service.
We will usually charge based on the products in stock in our vending machines.
The ideal profit margin we hope to make for Go Grab® Vending Machine, Inc. will be between 15 and 35 percent depending on the type of products retailed.
A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.
Go Grab® Vending Machine, Inc. will grow our vending machine business by expanding to major cities in the United States and by selling franchises not just in the United States, but also in Canada and the United Kingdom.
Go Grab® Vending Machine, Inc. plan to expand to the following cities;
We are expanding to these cities because, these cities have large populations, a thriving business environment, and a diverse consumer base that may be receptive to new and innovative vending retailing concepts.
The founder of Go Grab® Vending Machine, Inc. Mrs. Mildred Merrick plans to exit the business via family succession. Go Grab® Vending Machine, Inc. has placed structures and processes in place that will help the company achieve its plan of successfully transferring the business from one family member to another and from one generation to another without any difficulties.
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Whether you want to start your own vending machine business or expand an existing one, you need a business plan. the following vending machine business plan template lets you know what elements you need to include in a successful vending machine business plan., fill the form to download business plan templates.
To ensure your vending machine business success in this highly competitive market, you need a properly structured vending machine business plan. With over 12 years of experience in business plan writing , we have helped over 5,000 entrepreneurs create business plans to start and grow their vending machine businesses. Using the following vending machine business plan template, you can put together an effective business plan.
Vending machine operators provide and service automated machines that sell snacks, soft drinks, cigarettes, newspapers, and other products.
In the five years to 2023, the Vending Machine Operators industry has experienced slight growth. Although there have been challenges, increased per capita disposable income and consumer spending have supported industry revenue during the period.
Thus,acording to IBIS-World over the five years to 2022, industry revenue is expected to increase by an annualized 0.8% to $10.2 billion, including an increase of 3.8% in 2022 alone.
Among the major products and services in this industry are
Despite the challenges of the Vending Machine industry, We have identified five factors that can help you boost profitability, efficiency, and ultimately success.
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A business plan for a vending machine business is a written document that sets your company’s financial goals and discusses how you’ll reach them.
A solid, comprehensive plan will serve as a road map for the next three to five years of the vending machine business. Any bank or investor you approach will require a vending machine business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a vending machine business or pitching to investors or venture capitalists.
A business plan gives a picture of your vending machine as it currently stands and outlines your growth strategy for the following five years. It describes your company’s aims and plan for achieving them. Market research is also included to back up your goals.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a vending machine business idea, and may help you better understand your company’s finances and competition.
Vending machine business owners who have a business plan grow 30% faster than those who don’t, and 71% of fast-growing businesses have one.
A vending machine business plan is a living document that should be updated annually as your company grows and changes.
Here are some possible funding options for your vending machine business:
Short-Term Loan
Entrepreneurs who wish to enter into the vending machine business might benefit greatly from short-term business financing. Lenders will normally consider your personal or company credit, the latter of which may need you to already be a business owner before entering into vending machines.
These criteria may restrict businesses without prior vending machine expertise from obtaining short-term loans. However, if you qualify, short-term business loans are a wonderful fit for this line of company.
Equipment Financing
Because vending machines classify as equipment, equipment financing may be a viable option for you to get capital for your business. The terms of these loans are determined by the worth of your equipment, which serves as collateral for the loan in the event that you default on your payments.
Personal and Business Credit Cards
Considering how inexpensive it is to acquire new or old vending machines compared to starting other types of small companies, using credit cards to fund your business is a viable option. Look into some of the best business credit cards for establishing a business to determine whether this is a viable option for you.
Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .
To write a vending machine plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a vending machine business plan, or you can just download our proven sample business plan pdf to get a better idea.
Download our vending machine business plan in PDF and Word here.
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of vending machine business you have and what stage you’re in; for example, are you a startup, do you have a vending business company that you want to expand, or do you have a lot of vending machine businesses?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
Check out these executive summary examples to help you write a perfect one for your vending machine business plan.
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
You need to include an overview of the vending machine in the industry analysis you performed before sitting down to write your vending machine business plan.
While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.
Furthermore, market research can improve your strategy, especially if it identifies market trends. For example, if there is a trend toward selling advertising on vending machines, make sure your strategy includes a variety of ad formats and sizes.
The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
The first condition for a vending machine business is to identify its target customers clearly. Customers can be categorized into the following segments: Households, office buildings, Business People, Sports Men and Women, Students, Children, Adults, Tourists hotels,, correctional facilities, etc.
The customer analysis section is an important part of any vending machine business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the product will meet those requirements.
Customer analysis may be divided into two parts: psychosocial profiles (why your vending machine suits a customer’s lifestyle) and demographic profiles (descriptions of a customer’s demographic qualities).
With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more.
4 Use competitor analysis to:
The first step in competitive analysis is to determine who your direct and indirect competitors are.
The direct competition consists of other vending machine businesses that offer essentially the same services or to the same people as you do.
Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.
This includes grocery stores, pharmacies, and quick-service restaurants.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your vending machine business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer excellent customer service culture, highly competitive prices, reliable and easy to use payment option or Will you provide superior products?
Consider how you will outperform your competitors and include them in this portion of your vending machine business plan.
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Creating a marketing plan for a vending machine involves identifying the target demographic and finding products that suit their preferences.
As part of your marketing plan for a vending machine company, you should include:
Pricing and Product Strategy
Your vending machine business must offer products that are different from those of your competitors. Research what your competitors offer and how they price their vending machine products. Unique products identifies your vending machine business as the place to go for unique services and differentiates it from others.
Placing and Promotions
The position of your vending machine is referred to as place. Record your location and explain how it will affect your success. Is your vending machine, for example, in a high-traffic office building or gym? Discuss how your site may deliver a continuous stream of consumers.
Promoting your vending machine business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your vending machine business. A few marketing methods you could consider are:
You should also think about your vending machine company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other vending machine businesses. Ensure that your USP is reflected in your marketing.
Pro Tips: Learn how to create a marketing plan in a business plan by pros!
While the previous sections of your vending machine business plan described your goals, your operations plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan in a business plan should be divided into two individual parts, as seen below.
Daily short-term processes include all the tasks involved in operating your vending machine, including purchasing products, delivering and restocking, keeping the machines clean, etc.
Long-term goals are milestones you hope to reach. It may be the date when you expect to place your 5th vending machine or when you hope to reach $X in sales. Another example would be when you expect to hire your Xth employee or start a new location.
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When writing a vending machine business plan, the management section in a business plan ‘ outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
Ownership Structure
Internal Management Team
External Management Resources
Human Resources
This section outlines your vending machine business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your vending machine business. Ideally, you and/or your team members have direct expertise in the vending machine business. If this is the case, highlight your experience and skills.
Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with vending machine business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your vending machine company. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running vending machine.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
The final topic to consider in the management area of your vending machine business plan is your human resource needs.
In your financial plan of a business plan , you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.
Income Statement
A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. Will you serve 70 customers per day or 150? Will sales grow by 3% or 15% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.
Want to learn how to make an income statement? Download our free income statement templates to make a stunning one for you.
Create a financial statement for your business by downloading our free income statement templates.
Balance Sheet
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your vending machine business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your vending machine business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $15,000 to build out your vending machine business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $5,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Want to learn how to make an balance sheet? Download our free balance sheet templates to make a beautiful balance sheet template .
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your vending machine business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vending machine business:
Create a financial statement for your business by downloading our free balance sheet templates.
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Bonus Tip : Find out what to include in a business plan appendix when writing a vending machine business plan.
A vending machine business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the vending machine business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your vending machine business.
Wouldn’t it be nice if your business plan could be completed faster and easier?
With wise business plans Business Plan Template , you can finish your vending machine business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!
OR, we can create your vending machine business plan for you
Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.
We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.
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It is important to write a good executive summary, especially if you are expecting to get funded. As a vending machine business, you should include your range of products and target audience, preferable locations, financial summary, and pricing strategy in your executive summary. 2. Company Summary.
Vending Machine Business Plan Template. Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their vending machine businesses. On this page, we will first give you some background information with regards to the importance of business planning.
The breakout of the funding is below: Vending machines: $50,000. Inventory: $10,000. Three months of overhead expenses (payroll, sales, and marketing): $30,000. Working capital: $10,000. The following graph below outlines the pro forma financial projections for Healthy Snacks Vending.
How to Start a Vending Machine Business: Cost, Tips, ...
How To Start A Vending Machine Business
August 25, 2023. You've looked into the steps of starting a vending machine business, but you haven't developed business plans. We'll help you create a vending machine business plan. Adam Hill has owned and operated Hill Vending since 2014, when he bought a $120 vending route. Now he's making over $600K in annual sales.
Dress professionally, bring information about your vending machine idea, and answer any questions. As noted before, you can expect to pay 5%-25% of your gross income to the location owner. Negotiate with them on what cut of your profits you can give, using the range as a guide. 3. Pick an optimal machine.
Presents a general overview of the industry, its trends, and growth potential. - Example: The healthy vending machine industry is experiencing significant growth, driven by the increasing demand for healthier snack options and a growing emphasis on wellness and nutrition. 3.2. Competitor Analysis.
Objectives. [Sender.Company] 's long-term goal is to become the premier vending machine business in (Enter city). We seek to be the standard by which other providers are judged. Step 1: (List step) Step 2: (List step) Step 3: (List step) The following are a series of steps that lead to our vision of long-term success.
For your vending machine business plan, list the core team members, their specific responsibilities, and how their expertise supports the business. Financial Plan. The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your vending machine business's approach ...
Plans starting from $7/month. 3. Find high-traffic locations for your vending machines. Deciding where you will place the vending machine is the most crucial factor for earning a profit from your business. So, you need to look for an exact location where people need quick, convenient access to products.
This part of the business plan is where you determine and document your vending machine marketing plan. Your plan should be clearly laid out, including the following 4 P's. Product/Service: Detail your product/service offerings here. Document their features and benefits. Price: Document your pricing strategy here.
A vending machine business plan is a strategic document that can help you raise money for your business, crystallize your vision and set realistic goals.A business plan for this type of business typically includes sections addressing market research, competitive analysis, marketing strategies, operational logistics, financial projections and risk management.
Sample from Growthink's Ultimate Vending Machine Business Plan Template: The following industry statistics bode well for [Company Name]. According to the recent report entitled, "Vending Machine Operators in the U.S." by Vending Market Watch, the industry's annual revenue is approximately $7.0 billion, with an estimated gross profit of ...
Sample Business Plan for Vending Machine Operators. Below are links to each of the key sections of a vending machine business plan example: Executive Summary - In the Executive Summary, briefly introduce your vending business, highlight your value proposition, and summarize your financial projections.
How to Write a Vending Machine Business Plan in 7 Steps: 1. Describe the Purpose of Your Vending Machine Business. The first step to writing your business plan is to describe the purpose of your vending machine business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Vending Machine Business Plan Sample [2024 UPD]
by Tiffany Verbeck January 9, 2024. 32 min read. The vending machine industry is booming and expected to reach over $25 billion value by 2027, according to Allied Market Research. Vending machine businesses have low startup costs and can be highly profitable if managed effectively.
A Sample Vending Machine Business Plan Template 1. Industry Overview. The vending machine business without a doubt has come to stay. This is because of the various ways through which people can be served. According to a market research report on Vending Machine Operators, the industry has revenue of $8 billion to $20 billion, and has an annual ...
Add initial vending machine inventory - September 25, 2022. Open for business — September 29, 202. Take professional photos of the vending machines — September 29, 2022. Create a website and google/yelp accounts — October 1, 2022. Make initial employee hire for Inventory upkeep - November 5, 2022.
The vending machine industry is indeed a big industry. The global vending machine market was valued at $18.28 billion in 2019 and is expected to reach $25.25 billion by 2027, growing at a 6.7% CAGR between 2021 and 2027. From 2019 to 2027, the market is predicted to generate an additional $6.97 billion in sales. ii.
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
With wise business plans Business Plan Template, you can finish your vending machine business plan in just 6 hours or less with a 30-Day Money-Back Guarantee! In addition, you can download our 300+ free business plan templates covering a range of industries. OR, we can create your vending machine business plan for you.
A business license and sidewalk vending permit are required for all vendors. Most vendors selling food items will also need a City Health Permit, dependent upon the type of business. ... candy and/or ice cream will pay $300 for the annual health permit and a one-time $250 plan check fee; People who sell food items such as hot dogs, popcorn ...