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Business Planning

Vending Machine Tips – Starting a Vending Machine Business

How to Break into the Vending Machine Business

While the vending machine business may no longer be a novel idea, it can still be a profitable venture. 

Learning how to invest in vending machines can open up passive revenue streams that many may overlook in specific locations. 

If you’ve been looking into different opportunities to enter a market as a new company owner, starting a vending machine business may be the right option for you. Investing in vending machines has all of the benefits of running a successful business without the risks associated with a brick-and-mortar store. 

Today, we will discuss how to get into the vending machine business while providing some helpful vending machine tips.

Advantages of Investing in Vending Machines

The vending machine business is booming, with a compounding growth of 9.4% expected to continue until 2025. 

By learning how to start a vending machine business, you’ll be entering a market that requires little start-up capital, has built-in flexibility, and provides an opportunity for passive income. 

As an owner of a successful vending machine business, the initial equipment necessary to run it will come down to a computer, printer, and phone. 

You’ll have the freedom to dictate your working hours as you manage and organize routes from the convenience of your phone. 

The vending machine business can be extremely lucrative while, at the same time, easily manageable. Many owners find that they want to learn how to start a vending machine business for free time and flexibility in their schedules. 

Here are some vending machine tips that can help you start your journey toward financial independence. 

Do Your Market Research

Breaking into the vending machine business doesn’t require an MBA or years of complex training. However, several aspects will require thorough analysis for the business to become a success. 

By conducting market research, you will be able to break down the costs associated with starting the business, the necessary time commitment, and when you can expect a profitable return on your investment. 

Decide on the Perfect Location

As the real estate mantra goes, location is everything. The difference between a well-trafficked site and one off the beaten path has a quantifiable impact on your sales figures.  

For optimal results, you will want to locate your vending machines in areas with robust walking traffic, such as:

  • Strip malls and shopping centers
  • Apartment complexes
  • Cafeterias 
  • Schools and universities
  • Hospitals and care centers
  • Hotels and motels
  • Laundromats
  • Transportation centers; airports, train stations, bus stations

Keep in mind that certain locations may require you to comply with regulations pertaining to the Americans with Disabilities Act (ADA.)

You will also want to secure a well-lit location, to avoid potential vandalism and theft. Having to replace merchandise or machinery can significantly impact your bottom line. 

Find Your Vending Machine

When the average American imagines a vending machine, it’s mostly relegated to drinks and snacks. However, if countries such as Japan have taught us anything, vending machines can dispense a variety of merchandise, and some are technical marvels. 

There are several options when choosing between the different types of available vending machines. Many of them provide unique forms of functionality, including:

  • Accepting various forms of payment
  • Enhanced user experience through interactive touch or voice-activated screens
  • Bulk candy dispensers
  • Full-line vending

One of the most profitable types of vending machines business models is to offer full-line vending.

This model will have several types of vending machines that offer a wide range of products, including:

  • Snacks
  • Coffee
  • Fresh fruit
  • Canned and bottled soda
  • Cold food
  • Frozen food, such as ice cream

Stock Your Inventory

Once you’ve found the perfect location and decided what you want to sell as a new business owner, it’s time to actually stock your inventory. 

Ensuring that your vending machines are consistently stocked is the key to a profitable business. However, you need to keep track of which items are performing well and which may not be suitable for the location’s demographic. 

For instance, if you have a beverage dispensing machine outside of a gym, you may notice that one sports drink brand significantly outperforms another. In this case, it’s a simple adjustment to what inventory you’ll reorder. If the trend continues in favor of a particular brand, you can begin negotiating with the distributor to better deal with bulk purchasing.  

Explore Your Financing Options

While the financial threshold of breaking into the vending machine business isn’t set very high, purchasing any equipment will require upfront capital. 

There are several different routes you can take when it comes to financing your business venture.

Vending Machine Equipment Financing

Equipment financing is a method of purchasing specific business equipment to get your company operational. The benefit of equipment financing is that it allows you access to modern technology without having to pay for it upfront, out-of-pocket.  It also comes with the advantage of being easier to obtain than a traditional small business loan issued by a bank since the equipment itself will be used as collateral. 

Equipment Leases

An equipment lease shares similar characteristics with equipment financing. The major difference is that you have the option to either re-sign the lease when the term is over or move on to another piece of equipment. 

L3 Funding

One of the easiest ways to secure the funding needed to start and operate a vending machine business is by contacting L3 Funding. We offer a wide range of merchant funding solutions, and we’re invested in the success of your business, as our success depends on yours. Apply for the small business working capital you need today!

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Business Planning

How to Start a Shoe Company: A Step-By-Step Guide

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Business Planning

Partnership vs Corporation: Similarities & Differences

Any small business owner needs to decide on a legal entity when they incorporate. The decision is a big one because it impacts your structure, legal obligations, taxes, and bottom line. There’s considerable debate over partnership vs. corporation and which one works best. If you’re struggling to decide on the right legal entity for your new venture, here’s what you need to know.

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Business Loans Business Planning

How to Secure Heavy Equipment Financing

A Guide to Heavy Equipment Financing

Heavy machinery financing can be hugely beneficial to businesses that rely on heavy equipment for their day-to-day operations. Heavy equipment leasing companies rent out machinery at a set price, saving businesses thousands of dollars they would spend buying new equipment.

Alternatively, heavy equipment financing companies set construction equipment financing rates to make machinery affordable and attainable for businesses. Massive machines can be challenging to finance out of pocket, and in most cases, purchasing equipment upfront is not pragmatic.

There are many advantages of leasing your building machinery or working with construction equipment finance companies. We’ll discuss these benefits shortly. First, we’ll share some information about construction equipment loans and leasing.

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Business Loans Business Planning

Guide to Opening a Marijuana Dispensary

Now that marijuana use is permitted in most of the USA and Canada, a green rush has swept through the nation. Cannabis is now legal to some degree in over 95% of the U.S., whether for medical or recreational use. 

Savvy entrepreneurs across America are acquiring their dispensary license and working out how to start a dispensary. Opening a marijuana dispensary requires time, effort, and planning, whether you’re looking to create a recreational or medical marijuana business.

New businesses in the marijuana industry are popping up all over the U.S. and Canada, making this a lucrative time for opening a marijuana dispensary. In this post, we’ll discuss how to start a weed dispensary, what licenses are needed to start a dispensary, and what kind of budget you’ll need to start a cannabis business.

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Business Planning

How Much Does It Cost To Open A Bar

How much does it cost to start a bar? It seems straightforward: get a liquor license, find a space to rent, hire some staff, buy some inventory, and let the libations flow. However, the items listed here are a bit more complex than they may seem. Plus, there is more to running a successful bar than just having all the correct pieces in place—they have to work together to be profitable.

In the right circumstances, opening a local pub or bar can be a great investment. If you’ve been interested in pursuing a new business endeavour by opening a bar, read on. In this post we’ll go over how much money is needed to open a bar, so that you can start your business well-equipped with the information you need to be successful.

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Business Planning

Accounts Payable vs Accounts Receivable

Many business owners don’t understand the difference between accounts payable and accounts receivable, but these are key terms related to your company’s finances. Despite their importance, accounts payable vs. receivable still becomes a source of accounting confusion for some. 

Although both accounts receivable and accounts payable are items on your balance sheet that are crucial for business operations, it’s essential to differentiate between accounts receivable vs. payable. You must know which of these accounts is for assets and which deals with liabilities, or your business could end up in debt and overextended.

In this post, we’ll answer the question, ‘what are accounts payable and accounts receivable?’, discuss accounts payable vs. accounts receivable, and explain the importance of receivables and payables.