If you want your money to work for you and you can sit and relax at home. Then start a vending machine business. Just start with purchasing a few machines, even at a low budget, you can become a successful entrepreneur.
Have you ever wondered about those big giants owners in the business world who started from scratch? how did they reach there? They took the opportunity and got their money to work for them. You can do that too, but every business opportunity requires a superb plan.
What makes your plan work? The complete guide for you is here, start with this plan. You will see the future returns in a quick time frame.
Go through this list, to know a detailed process.
Know your skills
Every business works based on skills, either you must know some part of the business or you could come up with great business ideas. Before that understand what a vending machine business requires.
We are here to suggest some important skills required to start a vending machine business in India.
- Operation of vending machines
- Critical thinking skills
- Repairing of vending machines
- Monitoring operations of vending machines
- Quality control analysis
- Market research
- Problem-solving skills
It is well known, Jack of all trades but master of none. If you go for learning every skill at its core then it will be impossible for you. But you can master one thing and make it a success.
How to set up your business legally? How to start paperwork? How to identify legal structure? How to get certified licenses? How to get funding? All these questions usually come into the mind of those investing in a vending machine business.
Think about them carefully before moving into this business. Here is everything that you need to know.
Legal Permits Required
FSSAI License: The most basic license that every food seller requires is a permit from a food corporation. It will also help to build trust among customers.
Gst Registrations: Every good has applied a tax on its sale. This tax registration is mandatory in India.
Trade License: You are trading food to your customers. Then you are eligible for the trade license.
Click on the links above to apply directly and get the legal formalities done. You will additionally be provided with detail information on these registrations.
Starting Your Own Business: You can get the funding from investors by pitching your plan to them. This will require details of business analysis and market research. Once You get the funding you are ready to get immediate cash. You will have the advantage of getting continuous cash flow in the business.
Franchising: If you are not into the business then purchasing a franchise is a good way. You won’t require any skills. You are already getting the brand image. You are saving on marketing costs and promotions.
Equipment and machines
Choosing the best machines
While choosing a machine you have two options:
- Rent them out: While starting a business by way of investor funding, you are at the option of choosing whichever option suitable to you. Most of the time investor funding attracts renting options.
- Purchasing: This option is suitable for those who are thinking about a franchise. If you are buying a big brand franchise then it is important to purchase vending machines of the same brand.
What kind of machines you should choose?
Depending upon the kind of products you choose, you can identify the kind of machines. Vending machines are generally specifically used for specific products.
This machines are used usually when the products are heavy and purchased at high costs. Bulk vending machines dispense products in large quantities. These are small in size.
The high tech machines are used to give the option of credit cards and bills. It is a convenient way of buying quickly. These are a bit costly than others.
Choosing the kind of Products
The best part that gives you the highest returns in a vending machine business is the kind of products that you choose. Consider these points while choosing the products.
- Research the market and understand the preferred taste of customers.
- What additional value your products give than your competitors?
- Are your products healthy enough, consider increasing popularism of healthy food
- Do you have enough customers to reach your profit goals?
- Can those customers pay the worth of the services?
- Are your products reliable to customers?
- How innovative you are with the services you are providing?
Here is a list of top 15 vending machines, popular around the world.
- Pharmacy medicine dispenser
- Snacks dispensing machine
- beverages dispensing machines
- Chocolate dispensers
- Fries vending machine
- Popcorn vending machines
- Clean water vending machines
- Milk vending machines
- Pizza vending machine
- Cupcake vending machine’
Sourcing of products
You are renting or purchasing high-quality equipment, But the services you provide are also the main part. You need to consider the quality of your products. Now the main question is who can provide you the best quality resources.
Consider these important points while choosing the perfect vendor to source your products.
- Quality is the main reason to choose a vendor. You may not give the best prices, but if the quality is what you offer. Then you are a success.
- Clean and hygienic food is a must. If there is any doubt on the vendors’ side then just clear it before you give an order. It may affect you later.
- Damaged and defective products are big no. Do check your products before they are supplied.
- Don’t fall for great discounts by vendors. They may try to attract but not every cheap service pays off its worth.
- Ensure that the vendor is quick with the orders. Any delay in supply can damage your reputation in the market.
- You must ensure that the vendor is within your reach or you have a proper transportation facility.
Location for a vending machine gives you an edge from your competitors. It takes a good amount of time to decide on the locations of the vending machine. Due to the multiple locations of the vending machine you are reachable to most of the crowded market places.
What are the most profitable places in your town to have vending machines? To answer this you need to go through with these following points.
- Match the product with the place such as in the food markets chocolate or cupcake vending machines are much more attractive than a medicine vending machine.
- Think about something you required at a market and you didn’t find that shop such as a food vending machine at the airport.
- Get to know about the customers in the market. Think about their choices. Do they prefer what you offer?
Some of the most and common places for vending machines are malls, airports, supermarkets, large companies, and food markets.
Choosing your services’
What kind of services you are going to offer depends on the skills you have. What if you start selling the chocolates but you don’t even know which company manufactures them? We all know some of the big brands but apart from it, there is a huge market.
You can start by using your skills to research in that area. Come up with a business idea that completes the needs of customers. You can use statistics available online or your reasoning skills.
Check out these popular vending machines to be on top.
What happens once the products are sold? What if customers are not satisfied? What if they want to know about your company? Or maybe you want to boost your sales. Then this calls for the additional value you are adding as a service provider.
The most basic additional value that is generally provided by every business is the after-sale service. You must have seen the pizza guy that asks you to rate the service or the customer care services provided by the companies.
These are all part of after-sale services. What unique value you add to the experience matters most to the customers.
- Repair services
- Exchange and return policy
- Credit card facility
- Customer care services
- Giving feedback to complaints
- Ecological machines
Which business doesn’t require marketing? Every one of them is based on effective marketing. If you are not good at it then just hire someone or if you are franchising then you need to show off your brand.
At any point, you will require a kind of marketing to boost sales. Consider these points before you foil with it.
- Offer discounts on the products.
- Approach to new customers
- Change your strategy of marketing
- Build connections and tell them about your business
- Give something innovative
- Provide what customer needs
- Associate with charity programs
- Collaborate with brands
- Go for expansion
A small change in your way can make huge profits. Try to change your perspective and find something which customers want. If you give them what they require, they will be ready to pay the price.
Sticking to a plan can make huge returns even for those who are weak, without a plan stronger people can fail too. It is just a matter of the strategy that you choose to reach your goal.
Well planned future always avoids those hurdles which are meant to occur for all. Talent may not guarantee success but hard work does. If you put in something you will get in some way or another.
Be focused on the way and find your niche in the vending business. The above lists of various popular vending businesses are a great addition to your knowledge.