In order to own a vending machine business, you need to be thoroughly aware of what goes on behind the scenes. Right from acquiring the license to actually making the business a success, there are a lot of aspects to be looked upon. Read the article to find tips and suggestions on how to go about it…
The reason you are here is because you’re searching for information on how to get a vending machine business license. According to Forbes.com, starting a vending machine business is one of the best decisions for someone. Managing and operating a vending route is easy and doesn’t require a lot of manpower. Ideally, that part of the business works on its own.
The potential to earn money and gain customers is really high right after the initial set ups are finished; and that is where your focus will be for the initial months/years. Once you have your first machine in place, the entire vending route can help you make a lot of cash. And the business can only be set up when you have all the priorities in order.
So what comes first in your plan? The license. Basically, while acquiring the license, the requirements will vary from state to state. Every state or even city (at times) will have specific channels that have to be covered. Which is why, you will have to go down to your local licensing agency, along with your business plan to find out what the basic documentation essentials are to be taken care of first.
But before we get into all of that, why don’t we go over the details on how exactly you can go about starting the business.
How to Start the Business
Starting a business is never easy. Now it may seem that placing these machines at certain locations is a piece of cake. However, that isn’t the case. There is a proper channel or order to follow which will give you an idea as to how things should go about. Which is why, obtaining all the necessary information for your business and license requisites is important.
In the following article, we will go over each of the necessary steps, right from choosing a location to license to estimating profits.
What’s in the Machine?
You must’ve seen many types of vending machines till date. And hence, you’re aware of the possibilities for your own business. So first and foremost, what you need to figure out is what type of machine would you like to set up? Who will be your target audience? Depending on these factors, you will be able to determine ideal locations to set up the machines.
If you are keen or interested in a certain market, then and then only will you be able to give your 100%. There are various types of machines you can set up such as snacks and beverages, meals (TV dinners, sandwiches, soups, crackers, meat, etc.), entertainment (DVDs), cigarettes, candies, toys, office supplies (writing pads, pens, pencils, USB flash drives, etc.), and cashless (requires credit and debit cards).
Location of the Machines
Now we will go over the details of where you can place the machines. This point or factor isn’t alien to us. In fact, this is one of the most basic and essential part for your business. Depending on which type of machine you wish to set up, toys, snacks, beverages, or candy machine, you can decide where your target audience will be. This will take you one step closer to achieving higher amounts of profit.
The most popular locations for the machines are malls, banks, schools, universities, laundromats, restaurants, hotel lobbies, airports, bowling alleys, big organizations, hospitals, etc. After you have selected a promising location and route, you can expect maximum sales.
Cost of the Machines
The first rule of business or you can say a major rule is to keep your expense as low as possible. This in turn will help you not only achieve break even in the initial years of business, but also help you go beyond and make some considerable amount of profit.
Now that you have decided which type of vending machine you want and its location, next is to calculate the costs. Purchasing the machine(s), supplies, and transportation are the cost for your business. But before you arrange for the funds, do read about the business reviews to understand the financial necessities.
License for the Machines
I know that the main focus of the article was to give you information on the license, however, without knowing the above mentioned points, getting to the license would be futile. Depending which state and city you live in, the licenses and special permits for the machines will differ.
So the first thing you need to do is visit your local county, city, and state licensing agency. They will give you proper information if you actually require a license or permit. After receiving the license, you will have to place the license sticker on all the machines. The only consideration is that if you’re selling items that cost less than 15 cents, you don’t require a license for the machines.
Along with the license, it is advisable that you get insurance for the machines. It is in fact a high-risk business since the machines won’t be under any surveillance by you or any other employee.
So that was all the information on getting a license and how the business should be taken forward. It is important to know that there are certain pros and cons you should be aware of. Along with high monetary opportunities, theft and vandalism are the two big concerns associated with this business. If the machines are placed in areas which has high traffic, there won’t be that many issues.