By owning a vending machine business, you can be a part of the ever growing billion dollar retail industry, which has proved to be a boon for both - people associated with the industry as well as the customers. By starting a vending machine business, you can earn good amount of money, even if you are not physically present at your business premises. The success of this vending machine business depends on the quality of service you provide your customers. Now the big question is - 'Is vending machine business profitable'? Given below are some vending machine business plans, which will be useful to achieve your business targets and answer all your queries.

The answer to the question -
how to start a vending machine business, is by following a properly designed and well executed vending machine business plan. This vending machine business plan will consist of setting realistic targets for your enterprise, planning well in advance for its future, inventing new business strategies, understanding purpose and future growth prospects of the business by setting right objectives and mission and arranging for initial business capital. Here is a well chalked out vending machine business plan to start vending machine business.

Buying The Vending Machine

For buying the vending machine, you have two choices - either buy a vending machine machine which is doing very well and is making good profit, or buy a new vending machine. Buying a running vending machine business, if it is located in a good area, from the business point of view, is a good idea because you get a ready and well established customer base. While, if you buy a new one, it takes time to win the customers confidence. Once you buy an established vending machine business, your only job is to provide good service to retain existing customers and attract new customers.

For starting a vending machine business, you also get the option of buying old or already used vending machines at much lower costs as compared to the new machines. My advice in this regard will be to take along a technician and take his suggestion, whether to buy the vending machine or not. As buying a machine, with bad quality will be a big loss for you.

Arranging Capital

Arranging for sufficient initial capital for a business is one of the biggest challenges you might have to face. Before approaching any bank or financial institution for a cash credit facility, you need to estimate the costs for starting a vending machine business. Business financing from banks will not be difficult if your planning is perfect and you are aware of all legal formalities to start vending machine business. The capital will be used to buy the machine and other parts associated with it and buying the products to be sold, employing a person to look after the maintainance (if necessary).

Choosing A Good Location Choosing the right location, is the most important factor of the vending machine business plan, as the location plays an important role in the success of this business. Crowded and frequently visited places by people such as airports, shopping malls, departmental stores, restaurants, busy streets, are the ideal places for starting a vending machine business. The location of your business should be easily accessible for people and should most probably be in the heart of the city. Do not be afraid of competition even though your business rivals eat up your business in the initial stages. Deciding the Product to Sell Vending machines sell a wide range of products such as soft drinks, gumball, candy, soda, cigarette, ice creams etc. Decide what product to sell based on a detail market survey and by knowing which product will give you larger business margin. Choose products which have a long expiry date as this will add to your profits. There is a connection between the product to be sold and the location of the vending machines - a cigarette vending machine will do well in adult flocked areas, while ice-cream vending machines will do well in kids and student flocked areas. Marketing Strategy Your marketing strategy will change as your business grows. After studying the market and your growth over the years, you can adopt a more and more aggressive business marketing strategy to increase your turnover. Try to pay-off all the debts taken to start the vending machine business, and decide expansion policies such as making acquisitions, starting the same business in some other city, etc. 
Importance of Maintenance and Insurance It is very important to take good care of the machine, by ensuring that all the parts are functioning well. If you come across any problem, do not neglect it and immediately contact a mechanic or service engineer. Rough handling and lack of maintenance can cause the machine to stop functioning - thus causing you a financial loss. Seeking business insurance is essential to protect your business from suffering a financial from the damages and accidents, if they occur.


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