Is Vending the Right Business for You?
If you are considering getting into the vending machine business, you might be wondering “Is vending the right business for me?”. Well, before you do, you must weigh up the pros and cons and decide how dedicated you are to it in order to decide if it is right for you. Within this article, we will discuss different factors that could sway you to either get into the business or to avoid it.
All You Need to Know
Vending machines can be found everywhere - in an office, school, gym, waiting rooms, and so on - these machines are in high demand and the industry is booming (making a revenue of $23 billion in 2018). The vending business is very appealing as it requires little training or specialized knowledge and has low-startup costs with little involvement, whilst offering huge profit margins and options for growth.
Starting a vending machine business can be rather straightforward, but like any new business idea, you must vigorously plan before on the basis of personal finances, choosing your market, setting pragmatic goals, and placement.
Prior to any business venture, you must examine your personal finances, and how much you are able to invest straight-up and if you will be able to afford to not receive any profit for a few months or even a year! After picking apart your situation, you can figure out how much you can afford to invest upfront as well as what business funding you can access.
Furthermore, you must choose a market that you will concentrate on, this choice will determine the placement of the vending machine and the supplies you will need. An advantage of getting into the vending business is the amount of flexibility you have with what you are supplying to people, you can either choose something you particularly enjoy or are passionate about such as providing healthy snacks or if you have spotted a location without a vending machine then deciding what would make you the most money in that location.
What to Really Think About
Once you have decided on the market you are focusing on, you must consider the optimal location based on the clientele. For example, if you are focusing on healthy drinks and snacks, then the best placement would be somewhere you will find health-focused clients such as gyms or sports centers. However, if you were to place a vending machine filled with sweet treats in a gym, it is unlikely you will make much of a profit.
In addition, you must set pragmatic goals regarding the money you will have to invest, how much return you will actually get, and the time you will have to put into this venture. You can start up a vending machine business for as little as $2000, but you will need to have enough money to restock it a few times before you make a profit.
The vending machine industry is worth billions of dollars and can put a percentage of that in your pockets if your venture is properly executed. If you think vending is the right business for you after reading this article - we wish you the best of luck on your entrepreneurial journey!