Vending machine businesses are currently growing in popularity as a side hustle. This popularity growth is because this business requires low-maintenance and minimal investment. Furthermore, it ensures that entrepreneurs can earn passive income.
So, how do you start this vending machine business and how much does it cost? Read on to learn more.
A Guide To Starting a Vending Machine Business
Starting a vending machine business is rather straightforward. However, there are several things that you must consider to ensure you run a successful business. Here are a few basic steps that you should take to start a vending business.
- Determine your type of vending machine
The first thing you need to do is to determine your vending machine option which may include specialty, bulk or food and drink vending. Make sure to do thorough research. The type of vending you opt for should correspond with the market’s needs.
- Determine where you will source your vending machines
When it comes to vending machines, you may opt to lease machines, buy new ones or purchase used ones. Some of the places where you can source these vending machines include:
- Online sellers and specialty retailers
- Find a good location
The location of your vending machine will impact your sales and revenue. Always consider areas where there is a significant amount of foot traffic. In addition, note that your chosen location should be a good match for the items you intend to sell. Some popular vending machine locations include the following:
- Apartment complexes
- Choose a business name
The business name you choose will be an asset to your brand. It will set you apart from the competition. Select a unique business name and conduct a corporate name search to determine whether any other business uses the same name.
- Decide on the type of business entity
Like any other business, a vending machine business requires a business structure. This structure comes with tax and legal implications. Some popular structures include partnerships, sole proprietorships or limited liability companies. Register your business with the state after you decide on the appropriate business entity.
- Obtain all business licenses and permits
Like any other retail business, the vending machine business requires licenses and permits for operation. Conduct research on local, state and federal regulations and laws so that your vending machine business will be in compliance.
- Stock your vending machine
Once you have your machine, the right location and all the necessary legal documentation, you can begin stocking your machine. Make sure you don’t over-order stock at the start of your business. Overstocking can lead to deadstock or inventory sitting on the shelves for a long period of time.
What’s the Cost of Starting a Vending Machine Business?
The cost of starting a vending machine is very affordable. On average, the start-up cost of a vending machine business can range from $500 to $5,000 for bulk machines. These start-up costs include the cost of vending machines plus stock.
However, you may incur additional business registration, marketing and licensing costs. When stocking your machines, always go for affordable products.
Starting a vending machine business is relatively straightforward and inexpensive. You can easily start this business as long as you have a business permit, a vending machine with competitive products and a good location.