simple business plan for vending machine

Vending Machine Business Plan Template

Written by Dave Lavinsky

Vending Machine Business Plan

You’ve come to the right place to create your vending machine business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their vending machine companies.

Below is a template to help you create each section of your Vending Machine business plan.

Executive Summary

Business overview.

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona, a growing Phoenix suburb. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Now that Chris has obtained his degree, he is equipped with the skills and know-how to start his new company, Healthy Snacks Vending. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

As its name implies, Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target several proprietors in a new commercial development that has just been built in a growing area of town. New developments include an array of corporate offices, a high school, a hospital, and several retail establishments. 

Product Offering

The following are some of the healthy snack products that Healthy Snacks Vending will carry:

• Bottled Water
• Fruit Juice
• Fresh Fruit 
• Granola Bars
• Cereal Bars
• Nuts and Seeds

Customer Focus

Healthy Snacks Vending will target all proprietors in the new Buckeye commercial development. It will target the owners of the commercial buildings as well as the school and the hospital. Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

Management Team

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations to place vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in Business Administration and is skilled in purchasing, budgeting, and controlling inventory. Chris relies on Stephen’s ability to source the most cost effective healthy snack products as well as his ability to ensure there is the right amount and mix of products available to ensure profitability. 

Success Factors

Healthy Snacks Vending will be able to achieve success by offering the following competitive advantages:

• First-mover advantage in this new Buckeye development. There are currently no other vending machines in or near these recently built establishments. 
• Healthy snack options will be offered, giving people a healthier option over typical vending machine snacks. 
• Healthy Snacks Vending is investing in new vending machines that will take multiple forms of payment including credit cards, debit cards, and contactless payment options to give people more flexibility in the way they can pay. 

Financial Highlights

Healthy Snacks Vending is seeking $100,000 in debt financing to launch its vending machine    business. The funding will be dedicated towards purchasing the initial vending machines and inventory. Funding will also be dedicated towards three months of overhead costs to include payroll, sales, and marketing costs. The breakout of the funding is below:

• Vending machines: $50,000
• Inventory:  $10,000
• Three months of overhead expenses (payroll, sales, and marketing):  $30,000
• Working capital:  $10,000

Company Overview

Who is healthy snacks vending .

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target all proprietors in a new commercial development that has just been built in a growing area of town. New establishments include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending History

Healthy Snacks Vending is a new vending machines business that will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. 

Since incorporation, Healthy Snacks Vending has achieved the following milestones:

• Registered Healthy Snacks Vending, LLC to transact business in the state of Arizona. 
• Reached out to multiple proprietors in the area to initiate the process of negotiating contracts to put vending machines in their buildings. 
• Has secured contracts with two proprietors. 
• Recruited Stephen Smith to be the Inventory Manager and Kim Miller to be the Accountant. 

Healthy Snacks Vending Services

The following are some of the healthy snacks that Healthy Snacks Vending will provide:

Industry Analysis

The U.S. Vending Machine Operators industry is a $8.9B market in 2022 and is expected to increase by 3.5% this year. Rising per capita disposable income and increased consumer spending have helped drive industry growth. 

The primary challenge for industry operators is high competition. If there are multiple vending machines in a small area, a company’s ability to differentiate its products, pricing, or payment options will be the key to success. 

Changes in consumer behavior have posed a challenge for many industry operators. A growing number of consumers are seeking healthier snack choices. For this reason, vending machines that offer junk food items are seeing less revenue than those offering healthy alternatives. Additionally, less consumers are carrying cash, while a growing number prefer contactless payment options. New vending machines that take card and contactless forms of payment are likely to bring in more revenue for industry operators than cash-based machines. 

Customer Analysis

Demographic profile of target market.

Healthy Snacks Vending will target proprietors in a new commercial development that has just been built in Buckeye, Arizona. Establishments in the area include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

The precise demographics for Buckeye, Arizona are:

Customer Segmentation

Healthy Snacks Vending will primarily target the following customer profiles:

• Proprietors of businesses in the area
• Staff and visitors of corporate offices, the hospital, and retail establishments
• Students, teachers, and administration staff at the school

Competitive Analysis

Direct and indirect competitors.

Healthy Snacks Vending will face competition from other companies with similar business profiles. A description of each competitor company is below.

Snack Food Vending, LLC

Snack Food Vending, LLC is an established vending machine company that operates in Phoenix, Arizona and surrounding areas. Snack Food Vending, LLC provides a wide variety of snack options in vending machines throughout the region. Most of Snack Food Vending, LLC’s vending machines are located in busy retail locations, schools, and hotels. This vending machine company stocks traditional snacks and healthy snacks. Snacks include soda, water, candy, chips, apples, granola bars, gum, tea, fruit cups, and energy drinks. Most of Snack Food Vending, LLC’s machines have been in service for several years and are cash-based machines. 

SNACKS! Vending 

SNACKS! Vending is a Phoenix-based vending machine company that stocks healthy snack food options including applesauce, sandwiches, tea, water, crackers, and fresh fruit. SNACKS! Vending machines are primarily placed in areas around downtown Phoenix including hospitals, office parks, and shopping malls. SNACKS! Vending has established itself as the reliable source for healthy snack options in the city. 

Healthy Eating Vending Machine Co. 

Healthy Eating Vending Machines Co. offers a wide variety of healthy snacks for patrons on-the-go. Snacks include fresh fruit and vegetables, salads, sandwiches, juice, tea, water, and sunflower seeds. Healthy Eating Vending Machine Co. is a fairly new establishment with just a handful of machines placed in a few commercial locations in Buckeye, Arizona. This vending machine company offers premium healthy snacks at relatively higher prices than competitors. 

Competitive Advantage

Healthy Snacks Vending will be able to offer the following advantages over its competition:

• All Healthy Snack Vending machines will be the newest models, with multiple payment options including credit, debit, and contactless payment choices. 
• Healthy Snack Vending will offer patrons a wide range of affordable, healthy alternatives to traditional junk food available in most vending machines. 
• Healthy Snacks Vending will target all proprietors in the new commercial development in Buckeye, Arizona enabling the company to have the first vending machines placed in these buildings. 

Marketing Plan

Brand & value proposition.

Healthy Snacks Vending will offer the unique value proposition to its customers:

• The only vending machines offering affordable, healthy snacks in the area. 
• Multiple forms of payment accepted including credit, debit, and contactless pay for flexibility in payment options. 
• Moderate pricing that is on par or slightly less than the competition. 

Promotions Strategy 

The promotions strategy for Healthy Snacks Vending is as follows:

Word of Mouth/Referrals

Chris Garcia will leverage his effective communication and word of mouth marketing skills to create interest among local proprietors to get his vending machines placed in their buildings. He has already obtained commitments from two such proprietors who will spread the word to others. 

Professional Associations and Networking

Healthy Snacks Vending will become a member of the local vending association and participate in industry events to network and build relationships with other industry professionals in the area. 

Print Advertising

Healthy Snacks Vending will invest in professionally designed print ads to display in local magazines, newspapers, and direct mailers targeting local business owners that could benefit from putting a vending machine with healthy snacks in their establishments. 

Website/Social Media Marketing

Healthy Snacks Vending will create and maintain an informative website that will list the products that Healthy Snacks Vending is able to provide and the locations of its vending machines. The website will also list their contact information for proprietors that may be interested in putting a Healthy Snacks Vending machine in their establishment. 

In addition to the website, Healthy Snacks Vending will maintain an active social media presence on multiple channels including Facebook, Instagram, Twitter, YouTube, and TikTok to promote its business. 

The pricing of Healthy Snacks Vending will be moderate and on par or slightly below that of competitors to ensure Healthy Snacks Vending won’t be overlooked as being too expensive if other vending machine operators place their machines nearby.  

Operations Plan

The following will be the operations plan for Healthy Snacks Vending.

Operation Functions:

• Chris Garcia will be the Owner and Marketing Director of the company. He will oversee all marketing and sales efforts as well as manage all contracts and client relations. Chris has spent the past year recruiting the following staff:
• Stephen Smith – Inventory Manager who will source, purchase, and stock all vending machine inventory. 
• Kim Miller – Accountant/Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting for the company. 

Milestones:

Healthy Snacks Vending will have the following milestones complete in the next six months.

7/1/2022 – Finalize contracts with two initial proprietors to place vending machines in their establishments. 

7/15/2022 – Finalize personnel employment contracts for Stephen and Kim. 

8/1/2022 – Purchase initial vending machines for the first two locations. 

8/15/2022 – Install vending machines in the first two locations. 

8/22/2022 – Source products and stock the vending machines. 

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations for his vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in business administration and is skilled in sourcing and budgeting. Chris relies on Stephen’s ability to source the most cost effective healthy snack products and ensure there is the right amount and mix of products available to increase profitability.

Financial Plan

Key revenue & costs.

The revenue driver for Healthy Snacks Vending is the payment received for each product purchased from one of its vending machines. Prices will range from $1.00-$5.00 per healthy snack item. 

The cost drivers will be the fees paid to proprietors. Each proprietor contract will have its own fee schedule. However, in general, Healthy Snacks Vending will pay between 5%-15% of its revenue per vending machine to the proprietor. The expenses will be the payroll cost, vending machine maintenance cost, and marketing materials.

Funding Requirements and Use of Funds

• Inventory: $10,000
• Three months of overhead expenses (payroll, sales, and marketing): $30,000
• Working capital: $10,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Vending Machines in Operation: 10
• Total Average Revenue from All Machines Per Month: $5,000
• Average Fees Paid to Proprietors Per Year: $6,000

Financial Projections

Income statement, balance sheet, cash flow statement, vending machine business plan faqs, what is a vending machine business plan.

A vending machine business plan is a plan to start and/or grow your vending machine business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your vending machine business plan using our Vending Machine Business Plan Template here .

What are the Main Types of Vending Machines Businesses?

There are a number of different kinds of vending machines, some examples include: Candy Vending Machines, Snack Vending Machines, Ice Cream Vending Machines, Beverage Vending Machines, Coffee Vending Machines, Specialty Vending Machines, Custom Vending Machines, and Bulk Vending Machines.

Other vending machine businesses include beauty, video game, water, beer and other unique items.

How Do You Get Funding for Your Vending Machine Business Plan?

Vending Machines are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well crafted vending machine business plan is essential for securing funding from any type of potential investor.

What are the Steps To Start a Vending Machine Business?

Starting a vending machine business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Vending Machine Business Plan – The first step in starting a business is to create a detailed vending machine business plan that outlines all aspects of the venture. This should include market research on the vending machine industry and potential target market size, information on the services and/or products you will offer, marketing strategies, pricing details and a solid financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your vending machine business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your vending machine business is in compliance with local laws.

3. Register Your Vending Machine Business – Once you have chosen a legal structure, the next step is to register your vending machine business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your vending machine business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Vending Machine Equipment & Supplies – In order to start your vending machine business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your vending machine business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a vending machine business:

• How to Start a Vending Machine Business

Where can I get a Vending Machine Business Plan PDF?

You can download our example vending machine business plan PDF here. This is a business plan template you can use in PDF format.

Vending Machine Business Plan: The Ultimate Guide

• 8 months ago

You’ve looked into the steps of starting a vending machine business, but you haven’t developed business plans. We’ll help you create a vending machine business plan.

Adam Hill has owned and operated Hill Vending since 2014, when he bought a $120 vending route. Now he’s making over $600K in annual sales. He’ll share vending machine tips so you know how to estimate vending machine profits and other costs.

We’ll explain everything you need to know to communicate your business plan. These vending machine business links will send you directly to the section of the blog you want to read:

What Is a Vending Machine Business Plan?

Why you need a vending business plan, how to buy vending machines, vending machine business plan template, executive summary, company analysis, vending machine industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, income statement, balance sheets, cash flow statement, how much are vending machines, how to start a vending machine business, how much does a vending machine make, what do i need to start a vending machine business, write your vending machine business plan.

A vending machine business plan provides a snapshot of where your business is, where it’s going, and how you will achieve the business goals over the next three to 10 years.

Vending business plans will include market research on the vending machine industry, local vending machine associations, a marketing plan, an operations plan, and a financial plan to provide a clear path of how you expect your vending machine company to make money and grow.

Your chances of starting a successful vending machine business double by writing and following a vending machine business plan. Plus, companies that follow their business plans grow nearly 30% faster and get more funding than those without a business plan.

Make sure to update your vending machine business plan annually as your company grows and achieves its goals.

The main ways to buy a vending machine business are personal savings, credit cards, private loans from the current business owner, bank loans, and angel investors.

Private Loans

One of the top ways to get into the vending machine industry is to buy an existing vending machine business. Business owners will often agree to owner financing, where you pay 0-20% down and then pay off the remainder over one to five years.

Banks will want to review your vending machine business plan and decide whether they believe you can accomplish the goals you’ve included. More specifically, a loan officer will want to see a professional vending machine business plan to verify that your financial assumptions are reasonable.

Angel Investors

Another way to fund a vending machine business is by taking a loan or equity deal from angel investors. An angel investor is just a wealthy individual who helps people start businesses in exchange for a share of the profits.

Learn more about buying a vending machine .

You’ll want a business plan template for your vending machine business. Download our free vending machine business plan template below.

You’ll also get our How to Start a Vending Machine Business PDF.

Check out our other business plan templates for more resources or watch our interview with a business owner who started one of the fastest growing franchises in North America to learn how he writes a business plan.

What Should I Include in a Vending Machine Startup Business Plan?

A business plan for a vending machine company should include:

• Competitor Analysis
• Vending Machine Marketing Plan
• Vending Machine Operations Plan
• Vending Machine Financial Plan

Keep reading to learn what vending machine operators should include in their business plans. We’ll also provide examples of what key parts of a vending machine business plan might look like.

Vending machine operators should start their business plan with an executive summary. All an executive summary does is summarize what the rest of the document is about.

The executive summary should be under a page long and should include a sentence or two about each section so that people can get the main points quickly.

This section of your vending machine business plan should include:

• An introduction to your company
• Your company’s mission and values
• The vending machine services you’ll offer
• Your competitive advantage

In your industry analysis, you need to provide an overview of the vending machine business. Your research will help you understand the market, improve your strategy to utilize market trends, and prove to readers you know what you’re talking about.

Your vending machine business plan should answer the following questions about the vending industry:

• How much do vending machines make a month? (Both as an industry and per machine)
• How much of the industry revenue is in the local market? Use the industry revenue multiplied by your location divided by the U.S. population.
• Is the market growing or shrinking?
• Who are the market leaders in the industry?
• Who are the primary vending machine manufacturers and suppliers of products?
• What vending machine business trends will impact the industry?
• What is the vending industry’s 5-10 year growth forecast?

I suggest using the IBIS World report we linked to earlier because it includes all the information about the U.S. vending machine market. You may need to purchase a local plan as well.

Industry Analysis Example

The vending machine industry makes $10 billion per year across 17,739 vending operators in the U.S. That means they make an average of $563,729 per year.

The average monthly revenue of a vending machine is approximately $2,000, which means a company needs 24 machines to earn the average across the industry.

The Las Vegas vending machine business market is approximately $69,343,972.03, and there are 99 vending machine operators , which means each vending machine operator is making approximately $140K per year more than the national average.

The market is expected to slightly decline in revenue, but companies that capitalize on existing trends like Apple Pay, Google Pay, and specialized vending machines are able to see growth by creating new markets in high-traffic areas.

According to ThomasNet , the major vending machine equipment manufacturers and suppliers are:

Adam suggested two manufacturers of vending machines he prefers to use.

In addition, snack foods and drinks are available from stores like:

• Coke distributors
• Pepsi distributors
• Other distributors

Your vending machine business plan should describe the target market you will be providing vending.

Your target market will impact the pricing and product options you carry. Make sure to understand the demographics of the customers in each type of facility you serve. You won’t want to offer the same vending machine products in a gas station as you would a cardiac wing in a hospital.

Analyze customer demographics. You’ll want to discuss the age, gender, location, and income levels of decision-makers, their customers, and where you want to place your vending machines .

You’ll also want to include psychographic profiles, meaning the details of your customers’ wants and needs. You wouldn’t want to offer all candy and soda in a yoga studio vending machine because the students will probably want water and healthier snack choices.

Your vending machine business plan should include a competitive analysis that shows your understanding of the direct and indirect competitors you will be competing with for your target customers.

Direct competitors are limited to vending machine operators in the local area, while indirect competitors are any type of business where your target customers can get the same products.

A vending machine business will have indirect competitors, including grocery stores, convenience stores, delivery apps, pharmacies, and fast food restaurants.

Not mentioning these vending machine competitors may show lenders that you don’t realize there are other places where someone can buy the same products even when in a rush.

You want to describe in greater detail the other vending machine businesses you’ll compete with. Your direct competitors will be other vending machine locations within a mile of your machine.

Create an analysis of each local vending machine company that answers the following:

• What locations does each business serve?
• What items do they sell in the vending machines?
• How do they price each item?
• What are the machine owners’ competitive advantages?
• What opportunities do they leave open?

After you’ve done this, you should be able to answer questions like:

• How can I provide superior products?
• What products can I offer that competitors do not?
• How can I create an excellent customer service culture?
• Can I beat their pricing?

Finding ways to provide better customer service at a similar or lower cost will provide a competitive advantage. Just make sure the pricing is correct for your vending machine business to be successful.

Have you ever heard of the 4Ps of marketing?

Every vending machine business should include them in its marketing plan.

This section of your vending machine business plan should remind the reader what type of vending machine business you are. Make sure to be specific about the products you’ll be offering in your vending machines. You’ll want to keep the product list consistent across vending machines.

You should have already analyzed how other vending machine businesses sell their products. Now it’s time to create your pricing guide. Adam suggests pricing the products at twice what you pay for them.

If you buy a 12-pack of soda from Sam’s Club for $12.99, then your vending machine company should be selling each can for $2.25 if the market will allow it. At the very least, factor in 50 cents profit per item.

Where will you be placing your vending machines? Document every location, the types of vending machines at the location, and how often you’ll need to check it.

You should also explain why each location is a good spot for a vending machine in your vending machine business plan. Learn more about vending machine placement .

The promotion section of a vending machine marketing plan documents how you will help people find your vending machine company and the locations where you have placed a vending machine.

Some promotional methods you might use for a vending machine company include:

• A vending machine website
• Adding your branding to your vehicle
• Creating brochures for business owners
• Focusing on vending machine experience and user experience (UX)
• Keeping your vending machines clean and branding them to help people recognize your brand
• Placing vending machines in strategic locations
• Providing maps that show where your vending machine business is located
• Sharing cool features of your vending machines on social media

You could also create a course to help other people learn how to start a vending machine business. That’s one of the ways that Adam has built upon his vending machine business. Check out our free vending machine training .

An operations plan is part of your vending machine business plan that explains your daily operations. Your operations plan should include two sections:

• Long-term goals
• Processes for operational excellence

Long-Term Goals

What milestones do you want to achieve in your vending machine company?

Your long-term goals might include the number of machines you want by a certain date, when you want to hire employees, and how much revenue you want within five years.

Make sure to add these details to your vending machine business plan.

Processes for Your Vending Machine Business

Your processes are the steps you will take during the day to keep your vending machine business running smoothly. Your main tasks will include:

• Buy vending machine products
• Store vending machine products
• Deliver machines
• Restock vending machines
• Clean vending machines
• Buy new vending machines
• Secure contracts for vending machine placement
• Buy vending machine routes
• Provide customer service

You should also include your management team and business structure in your vending machine business plan. Planning for a team shows that you have thought through starting a vending machine business and realize that you can’t do everything.

While vending machine businesses are typically able to be run by a single person, that doesn’t mean you won’t need help from other professionals including:

• Vending Machine Repair Person
• Sales and Marketing

Hiring people to manage portions of the company you don’t understand will make starting a vending machine business much easier. Emphasize how your leadership team is going to make you more successful by touting their past experience.

Direct experience in the vending machine business is best, but if your team has experience in other areas that are related, it works well, too. An advisory board familiar with vending machines is also an option.

Financial Plan

When you own vending machine business assets, you need a financial plan. Your financial plan should cover one to five years from your vending machine business starting.

Three financial statements should be included with your business plan:

• Income statement
• Balance sheet
• Cash flow statement

A Profit and Loss statement, P&L, or income statement shows your revenues and expenses to show how much money you made or lost.

You’ll have to make some assumptions when you create an income statement. Vending machine owners will need to make and document assumptions that answer the following:

• How many products will you serve?
• What will inflation be?
• How much will revenue grow each year? How?

Example Vending Machines Income Statement

Let’s assume the following:

• We bought 10 vending machines for $20,000 with $0 down and one year to pay $25K.
• Revenue is $2K/month per machine .
• Gross margins are 50% .
• Taxes are 20% .
• Marketing costs $1,000 annually .

Note: EBITDA = Earnings before interest, tax, depreciation, and amortization

Balance sheets are used to compare your assets and liabilities. Your balance sheet will show five sections:

• Current Assets: Cash and items that can be turned into cash within a year, including accounts receivable, inventory, prepaid expenses, and marketable securities.
• Long-Term Assets: Items that cannot be sold fast, like land, patents, brands, trademarks, goodwill, and vending machine equipment.
• Current Liabilities: Any debt due within a year, including accounts payable, debt financing, payroll, rent, utilities, and other accrued expenses.
• Long-Term Liabilities: Any debts that last longer than a year, including bonds payable, deferred taxes, leases, loans, and pensions
• Shareholder Equity: Shares, reserves, and retained earnings are all parts of owners’ equity

Effectively, you are aiming to balance the equation:

Current Assets + Long Term Assets = Current Liabilities + Long-Term Liabilities + Shareholder Equity

Learn more about balance sheets .

Your cash flow statement shows how much money you need in your business bank account to cover startup costs and operating expenses until you are fully self-sustaining.

Your cash flow statement adjusts the net income to add:

• Depreciation
• Decreases in accounts payable
• Increases in taxes payable
• Increases in accounts receivable

Then you’ll want to subtract the cost of any inventory to get the cash from operations. You’ll also want line items for any investment or financing you need for the following items:

• Cost of equipment like vending machines, refrigerated delivery trucks, etc.
• Cost of maintaining an adequate amount of inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

The final part of your vending machine business plan should be an appendix that includes all the supporting documentation for your business plan. You’ll want to include tables, links, and citations so that anyone reviewing your vending machine business plan can verify your facts.

For the sake of brevity, in this Example Appendix, I am only including the formula I used for the Las Vegas Vending Machine Industry calculation.

Vending Machine Business FAQs

Buying a vending machine will cost anywhere from $100 for a small candy vending machine to a few thousand dollars for new and used drink or snack machines. The custom vending machine cost can reach $20,000.

Starting a vending machine business requires:

• Establishing if the vending machine business will be profitable
• Creating financial projections
• Writing a vending machine business plan
• Forming your vending machine business
• Buying a vending machine
• Getting products to fill your vending machine
• Finding a location for your vending machine
• Storing vending machine products
• Maintaining vending machines
• Restocking and collecting money from your vending machine investment

According to Adam, most vending machines make around $2,000 per month if they are in good locations.

Market research may show that other vending machines can have even better results, but use $2,000 a month per machine in financial projections for your business plan unless you can document that your machines will have better returns.

Of the $2,000, approximately 30% should be profits or wages.

The vending machine business model normally requires a:

• Vending machine
• Business license and LLC
• Location for the vending machine
• Way to handle refunds

Whether you decide to offer ice cream vending machines, coffee vending machines, or bulk vending machines, a vending machines business plan will help you make the most out of your new venture.

If you haven’t already, don’t forget to download your free business plan.

What will be your vending machines business model?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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ZenBusinessPlans

Home » Sample Business Plans » Wholesale & Retail

A Sample Vending Machine Business Plan Template

Are you about starting a vending machine business like breathalyzer & reverse coffee? If YES, here’s a complete sample vending machine business plan template & feasibility report you can use for FREE . Consumers mostly settle for convenience in their purchases, this means that rather than walk to a retail store for a snack, they would prefer to use a vending machine.

This is especially why most vending machine operators are constantly coming up with niche ideas that would be of convenience to the consumer, while making the operator money in the process.

What is a Vending Machine?

Simply put; a vending machine business is a retail business that does not require face to face interaction with customers, and can be run for 24 hours a day depending on the location. A vending machine dispenses items such as beverages, snacks, lottery tickets, alcohol, cigarettes, perfumes, toys, candy and so much more.

There are very strict laws regarding the sale of alcohol and cigarettes through vending machines due to concerns regarding underage buyers. In the uk for instance; cigarette vending machines have been banned, and in Japan, Germany and Italy, age verifications have been made mandatory.

What It Takes to Own a Vending Machine Business?

Anyone can possibly start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

As a result, for those who own one or few vending machines within the same locality, operating cost will be at a minimal. This means that the owner of a few or even one vending machine can compete with those that have several vending machines in different locations.

The leverage in the vending machine business for any competitor is in strategically placing the vending machine at a location that has the right amount of traffic, as well as ensuring that the vending machine has the right product for the traffic. Starting a vending machine business also requires that you have a business plan in place.

1. Industry Overview

The vending machine business without a doubt has come to stay. This is because of the various ways through which people can be served. According to a market research report on Vending Machine Operators, the industry has revenue of $8 billion to $20 billion, and has an annual growth of 0.7%.

The number of operators in the business were 24,110; with 65,137 people being employed. According to the united states Bureau of Labor Statistics, 70.5% of industry establishments consisting of sole operators, partnerships, small businesses and medium-sized companies employ less than 5 workers. These statistics covers small, medium and large scale operators and franchises.

Those operators who are into generic snack and soda vending machines, have seen their revenue decrease even though beverages and snacks still lead in the vending machine industry, because customers have changed consuming priorities to wanting healthier snacks and products.

An industry survey reports that 83% of vending operators have request from customers requiring healthier products. This customer consuming change will keep the industry from growing as it should, and expanding aggressively.

The vending machine operators in the United States in 2015 have been characterized by a moderate level of market share, with three top operators taking 46% of the market share. Small sized operators on the other hand with a revenue range of under $1million, make up 51% of the industry’s total operations.

According to the National Automatic Merchandising Association (NAMA), only 18% of vending machine operators make between $1 million and $5 million yearly. This is as costs of operation have continued to rise, and the operating environment is more favorable to small and large vending operators, while the medium-sized operators with $5 million to $10 million in sales have lost more of their market share.

In other countries such as Hong Kong, Vending machines were introduced due to high labor cost and limited space, with majority of the machines being stocked with drinks or snacks. Niche ideas have been for mobile phones and camera, umbrellas, and so on.

It is interesting to note that more retail shops especially lager retail outlets have started to include vending services as part of their business offerings. It creates conveniences that appeal to consumers; the average customer would not want to stay longer on queue in a retail shop buying or paying for good purchased.

Majorly the similarity across operators of the vending machine industry is the machine itself, regardless of the peculiar product the machine will dispense. This means that the niche services that will be offered by the machine, depends on the owner of the machines. This is of importance in this trade, especially as it is an industry that is limited only by the ideas from the entrepreneur.

Over and above, the vending machine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in one or two public facilities or you can chose to start on a large scale with several outlets in key cities. However, if it very important that as you choose to launch out, that you are well versed in the business.

2. Executive Summary

Fizzy ‘n’ Crunchy Vending Company is a business enterprise in the retailing industry that will specialized in leveraging the vending machine retailing model. Although our business will be based in Bay – Orleans, Massachusetts where we were able to secure a 40 by 40 feet warehouse, we have the plans to spread across major cities in the United States and Canada.

Our vending machine business will retail / dispense a wide range of durable goods and non – durable goods at affordable prices from different brands. We will retail goods such as groceries, drinks, snacks, children’s toys, beauty products and cosmetics, fruits, vegetables, handkerchiefs, towels, and flowers et al.

We are aware that there are several large and small retail outlets and businesses all around Bay – Orleans who are into vending machine business as well, which is why we spent time and resources to conduct our feasibility studies and market survey so as to position our vending machines in strategic places in and around Massachusetts and also to offer much more than our competitors will be offering in terms of products and of course customer service.

Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is going to be second to none in the whole of Bay – Orleans, Massachusetts. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they make use of any of our vending machines and also to become our loyal customers and ambassadors.

Fizzy ‘n’ Crunchy Vending Company will ensure that all our customers are given first class treatment whenever they purchase products from our vending machines. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on the racks of our vending machines and also when making some business decisions.

We are aware of the trend in the vending machines cum retail industry and we are not only going to operate a system where our customers would just make purchase from our vending machines without getting useful data from them that will help us serve them better.

We will also go ahead to ensure that we position money changers in some of our busiest vending machines locations so that our customers will not find it difficult looking for change to make purchase from our vending machine.

We have but plans in place to operate a mini but standard call center / customer complaint center that will operate on a 24 hours a day and 7 days a week for the sole purpose of resolving customer’s complaints as fast as we can within the scope of our business.

Fizzy ‘n’ Crunchy Vending Company is a family business that is owned by Rev. George Canton – Freeman and Family. The business will be managed by his son Marco Canton – Freeman a graduate of Business Administration who has extensive experience working with one of the leading retailing outlets with several vending machines in the United States of America.

He will bring his experience and expertise to help build and grow Fizzy ‘n’ Crunchy Vending Company to compete favorably with other leading vending machine business in the United States of America.

3. Our Products and Services

Fizzy ‘n’ Crunchy Vending Company is in the vending machines cum retailing industry for the purpose of making profits and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our vending machines a wide range of durable goods and non – durable goods at affordable prices. Here are some of the goods that will be available in our vending machines;

• Children’s toys
• Beauty products and cosmetics
• Handkerchiefs

4. Our Mission and Vision Statement

• Our vision is to build a vending machine business that will have active presence all over Bay – Orleans, Massachusetts and other key cities both in the United States of America and Canada
• Our mission is to establish a vending machines business that will make available a wide range of goods and products from top manufacturing brands at affordable prices to the residence of Bay – Orleans, Massachusetts and other key cities in the United States and Canada

Our Business Structure

Fizzy ‘n’ Crunchy Vending Company do not intend to start a vending machine business whose vending machines can only be find in few outlets in Bay – Orleans; our intention of starting a vending machine business is to build a standard vending machine business with vending machines in strategic position in key cities in Bay – Orleans, Massachusetts and of course other key cities spread across the United States and Canada.

We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

In view of that, we have decided to hire qualified and competent hands that will be able to really carry out the duties that will solve the problems of the people, as well as cause more money to come to us. So, we have hired the following people to occupy the following positions;

• Chief Executive Officer (Owner)
• Warehouse / Store Manager

Merchandize Manager

• Admin and Human Resources Manager

Sales and Marketing Manager

Information Technologist

• Client Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Warehouse / Store Manager:

• Responsible for managing the daily activities in the warehouse
• Ensures that proper records of goods are kept and our vending machines does not run out of products
• Ensures that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls goods distribution and supply inventory
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our vending machines
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represent the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization vending machine network and website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of vending machines, computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the school coordinator in an effective and timely manner
• Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries

6. SWOT Analysis

Our intention of starting our vending machine business with a dozen vending machine installed in strategic locations around Bay – Orleans, Massachusetts is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install 50 vending machines first all – around Massachusetts before spreading to key cities in the United States and Canada.

We are quite aware that there are several vending machines all over Massachusetts and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well – equipped to confront our threats.

Fizzy ‘n’ Crunchy Vending Company employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Fizzy ‘n’ Crunchy Vending Company;

The strategic locations we intend installing our vending machines, the business model we will be operating on, ease of payment, wide range of products and our excellent customer service culture will definitely count as a strong strength for Fizzy ‘n’ Crunchy Vending Company.

A major weakness that may count against us is the fact that we are a new vending machine business and we don’t have the financial capacity to compete with multi – billion dollars retail outlets that also runs a vending machines business when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to install our vending machines in some of the busiest streets in Bay – Orleans, Massachusetts, provides us with unlimited opportunities to sell our products to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our vending machines locations; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet or new vending machines in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Retailing business has been in existence for as long as human started trading goods, but one thing is certain, the retailing industry is still evolving especially with the advent of technology. The introduction of technology is of course what gave birth to vending machines. In recent time, you can find vending machines designed specifically to dispense several goods ranging from snacks to drinks to groceries and to even cigar et al

It is now a common phenomenon for vending machines companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their vending machines to meet their needs; in essence, the use of technology help vending machines businesses to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help vending machine businesses serve them better.

Another common trend in the retailing industry of which vending machine falls under is the pricing system. Aside from having varieties of products in a vending machine, one of the easiest ways for vending machines and retail stores to sell the goods on their racks or vending machines as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. As smaller as the price difference, consumers are likely going to be swayed to make purchase because of that. Lastly another common trend is that major retail stores are now leveraging on vending machines to sell their products.

8. Our Target Market

We so want to reach those we have set out to meet their needs, hence, we will leave no stone unturned in identifying who they really are. Perhaps the vending machines business / retailing industry have the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop or from a vending machine. It is difficult to find people around who don’t patronize retail shops or vending machines when they come across one.

In view of that, we have positioned our vending machines in strategic locations to service the residence of Bay – Orleans, Massachusetts and every other location our vending machines will be located all over Massachusetts and other key cities in the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products via our vending machines to the following groups of people;

• Corporate Executives
• Business People
• Sports Men and Women

Our competitive advantage

The competitions that exist in the vending machine line of business is stiff simply because anyone can start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

Fizzy ‘n’ Crunchy Vending Company is launching a standard vending machine business that will indeed become the preferred choice of residence of Bay – Orleans, Massachusetts and in every other location where our vending machines will be installed.

One thing is certain; we will ensure that we have a wide range of products available in our vending machines at all times. It will be difficult for customers to visit our vending machines and not see the product that they are looking for. One of our business goals is to make Fizzy ‘n’ Crunchy Vending Company a one stop shop for all our customers.

Our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our vending machines will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Fizzy ‘n’ Crunchy Vending Company is established with the aim of maximizing profits in the retailing industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of customers.

Fizzy ‘n’ Crunchy Vending Company will generate income by retailing the following products via our vending machine;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with vending machine business, if you have your vending machines installed in locations that are prone to high traffic; the easier it is for you to make sales.

So also, the more the variety of the products you have in your vending machines, the more costumers you are going to attract.

This is why we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in all our vending machine outlets. Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $100,000
• Second Year-: $250,000
• Third Year-: $550,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and or major competitors positioning their vending machines in same locations where ours are. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing locations for installing our vending machines, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Bay – Orleans, Massachusetts. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the vending machine business / retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay – Orleans, Massachusetts and every other city we intend installing our vending machines.

In other to continue to be in business and grow, we must continue to sell the products that are available in our vending machines which is why we will go all out to empower or sales and marketing team to deliver. In summary, Fizzy ‘n’ Crunchy Vending Company will adopt the following sales and marketing approach to win customers over;

• Print handbills about our vending machine and its location, and also give our vending machines unique look, by painting them with bright colors or putting a large neon sign on it, so that it is easily recognizable to customers.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need products that we retail
• Creating a basic website for our business, so as to give our business an online presence (list the locations of our vending machines)
• Directly market our vending machine business.
• Join local vending machine associations for industry trends and tips
• Provide discount days for our customers
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

We are quite aware of the enormous returns a good publicity strategy can bring back to our business. So, despite the fact that our vending machines will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our vending machine business.

Fizzy ‘n’ Crunchy Vending Company has a long term plan of installing our vending machines in various locations in major cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Fizzy ‘n’ Crunchy Vending Company;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Columbus, Ohio
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our vending machines are located.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to vending machine business, it is normal for consumers to go to places (vending machines outlets or retail outlets) where they can get goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.

• Payment Options

Due to the nature of vending machines, there are no options when it comes to payment for items purchased other than to insert your money in the vending machine and then the machine will dispense what you paid for. We will ensure that we position money changers around our busiest vending machine locations so as to make change available to our customers.

13. Startup Expenditure (Budget)

When it comes to starting a vending machine business the major areas that you look towards spending the bulk of your cash is in the purchase of vending machines and of course renting or leasing warehouse facility. Aside from that, you are not expected to spend much except for paying of your employees and the purchase of vans.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Ohio – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for the Warehouse remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of products) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for the purchase of 2 fairly used delivery vans- $20,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of vending machines, furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $50,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our vending machine business in Bay Orleans, Massachusetts. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Fizzy ‘n’ Crunchy Vending Company

Just like every other business that exists in America, we want to spell out the means through which we want to generate our funds. Therefore, Fizzy ‘n’ Crunchy Vending Company is a private business that is solely owned and financed by Rev. George Canton – Freeman and Family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Fizzy ‘n’ Crunchy Vending Company will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Vending machines: In Progress
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility for warehouse and remodeling : In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our vending machines / warehouse: Completed
• Establishing business relationship with vendors – suppliers of all our needed products and vending machines: In Progress.

More on Wholesale & Retail

Vending Machine Business Plan Guide + Example

July 6, 2023

Adam Hoeksema

Welcome to our definitive guide on crafting a robust vending machine business plan, complete with a real-world example to get your entrepreneurial gears turning! Vending machines are silent salespeople that work around the clock, presenting a lucrative business opportunity that often requires minimal upkeep.  In this blog post, we will explore the ins and outs of developing a comprehensive strategy, covering key considerations such as location analysis, product selection, and financial planning. 

After talking to customers who purchased our vending machine financial projection template , we realized that many customers also needed a business plan to be able to present to a potential funder, so I decided to take a deeper dive on the topic. 

Here is what I plan to cover in this article:

• Why write a business plan for a vending machine business?
• What to include in a vending machine business plan?
• Vending machine business plan outline

How to determine what type of vending machine to buy?

• How to find a good location for a vending machine?
• How to find a high foot traffic area for a vending machine?
• How to create financial projections for a vending machine?

Example Vending Machine Business Plan

Vending machine business plan faqs.

With that as a plan, let’s dive in!

Why write a business plan for a vending machine business? 

If there was ever a simple business that didn’t require a strategic business plan it would be a vending machine business right?  You just have to buy a machine, fill it with candy, place it in a high foot traffic location and watch the money roll in right?  What is there to plan?  

If that is your attitude I actually don’t think you are too terribly far off, BUT the real reason to write a business plan for a vending machine startup is because your potential investors or lenders have asked you for projections and a business plan.  If that is the case, then you really just have to get it done right?  

What to include in a vending machine business plan? 

I think a vending machine business plan can really be quite simple.  Below you will find the outline from our free vending machine business plan template . 

Vending Machine Business Plan Outline

• Executive Summary
• Company Description
• Market Analysis
• Marketing and Sales Strategy
• Operations and Management
• Financial Plan

There are at least 10 types of vending machines that you could choose from.  There is also the question of whether you should decide on a location first or decide on a type of vending machine first and then find the right location for that machine.  We are going to take a look at the process for finding the right machine to buy first.   

The best choice for you depends on your budget, target market, location, and your personal preferences. Here are some steps to guide you in making the right decision:

• Define Your Budget: The first step is to determine how much you're willing to invest in this business. Vending machines come in a range of prices, from a few hundred to several thousand dollars. Your budget will dictate whether you start with used or new machines, as well as the number and type of machines you can afford.
• Understand Your Target Market: Understanding your customers is key. Conduct a market research to find out what products are in high demand in your desired locations. Are you targeting office workers who'd appreciate a quick snack or drink? Students who might need stationery or school supplies? Understanding the needs and wants of your prospective customers will guide you on the type of vending machine to invest in.
• Analyze Location: The success of your vending machine business largely depends on where your machines are located. If you're planning to place your machine in a gym or health center, a vending machine selling healthy snacks or drinks would be ideal. For a location with lots of kids, a toy or candy machine could work well.
• Maintenance and Operation: Certain types of vending machines require more maintenance and restocking than others. Consider how much time and effort you can invest in the maintenance of your vending machines. Some machines, like those selling perishable goods, require more frequent restocking and cleaning.
• Supplier Relationships: Your choice might also depend on the suppliers you have access to. If you have a good relationship with a supplier of a certain product, it might be profitable to focus on that type of vending machine.
• Profitability: Lastly, analyze the profitability of each type of vending machine you're considering. Some machines may cost more but have a higher profit margin, while others may be cheaper but have lower returns. Look at both the initial cost of the machine and the potential ongoing income it can generate.

Now that we have decided on a type of machine, we need to find a good location.  

How to find a good location for a vending machine? 

The location of your vending machine plays a critical role in determining the success of your business. Here's a step-by-step guide on how to find a promising location:

• Identify High Traffic Areas: A good vending machine location is somewhere with high foot traffic. Look for places where people gather or pass by frequently. These could include shopping malls, office buildings, universities, airports, hotels, and busy street corners. However, remember that high traffic doesn't always mean high sales, as it depends on the needs and preferences of the people frequenting that area.
• Understand Your Target Market: Knowing who your target customer is will help you choose the right location. If you're targeting office workers, you might want to place your vending machines in or near commercial buildings. If students are your target market, universities and colleges would be ideal.
• Consider Location Compatibility: The type of products you plan to sell should align with the location. For instance, a vending machine selling protein bars and healthy drinks will likely perform well in or near gyms and health clubs. Likewise, a machine selling toys or school supplies might do well in a family-friendly mall or near a school.
• Research Existing Vending Machines: Analyze the performance of existing vending machines in potential locations. Are they doing well? If so, similar products might succeed in that location. But be cautious about placing a similar machine too close, as it might lead to fierce competition.
• Negotiate with Property Owners: Once you've found a potential spot, approach the property owner or manager to discuss installing your vending machine. Some might charge a flat fee, while others may ask for a percentage of the profits. Be ready to discuss why your vending machine would benefit their location, whether it's by providing a service to their customers or staff or offering them a share of the profits.
• Review Legal and Zoning Requirements: Be sure to understand any legal or zoning requirements for vending machines in your chosen location. Some cities may have restrictions on where machines can be placed, so you'll need to check this out in advance.

Finding the right location takes time, research, and sometimes a bit of trial and error. But with careful planning and consideration, you can find a location that's a great fit for your vending machine business.

How to find a high foot traffic area for a vending machine? 

It can be difficult to find potential high foot traffic areas for your vending machine.  We have a foot traffic report that will allow you to select an address and receive a foot traffic estimate for that specific location.  As an example, I looked up an office building that I used to work at and can see it has roughly 18,000 visitors per month.    

These reports can be incredibly helpful in identifying potential target locations for your first vending machine.  

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the vending machine business has its unique factors that impact financial projections, such as location selection, product assortment, and consumer foot traffic. Utilizing a vending machine financial projection template can simplify the process and boost your confidence. Creating accurate financial projections goes beyond showcasing your vending machine's ability to generate sales; it's about illustrating the financial path to profitability and the realization of your business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your vending machine business, including machine acquisition or leasing, product inventory, installation, permits, and initial marketing efforts.
• Forecast revenue based on projected sales volume, product pricing, average transaction value, and anticipated foot traffic or demand in chosen locations.
• Project costs related to product sourcing, machine maintenance and repair, and restocking expenses.
• Estimate operating expenses like machine rental or location fees, utilities, insurance premiums, marketing, and administrative costs.
• Calculate the capital needed to launch and sustain your vending machine business, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a critical component of your vending machine business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about market trends, consumer preferences, and emerging vending technologies to ensure your financial plan aligns with your goals and positions your business for long-term success.

Below, you will discover the content of our vending machine business plan. For your convenience, you can access and edit this vending machine business plan template in Google Doc format by downloading it from this link. Additionally, we have provided a helpful video walkthrough to guide you in customizing the business plan to suit your unique vending machine concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: FitFuel is a leading provider of convenient and nutritious snack options in Nashville, Tennessee. Our vending machines offer a wide range of healthier alternatives, including granola bars, nuts, dried fruits, and low-sugar beverages, to individuals seeking wholesome and satisfying on-the-go snacks.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish a strong presence in key locations throughout Nashville, securing partnerships with high-traffic areas like office buildings, gyms, schools, and community centers.

    - Example: Long-term: Expand operations to neighboring cities and regions, introducing FitFuel  as a recognized and trusted brand in the healthy snacking industry

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At FitFuel, our mission is to make nutritious snacks easily accessible to individuals in Nashville, empowering them to make healthier choices in their busy lives. We are committed to promoting wellness, providing exceptional customer experiences, and supporting our local community's health and well-being.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example:  Our success hinges on offering a diverse range of high-quality, healthier snacks to accommodate diverse dietary needs, strategically placing vending machines in high-traffic areas for maximum convenience.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: FitFuel was founded by Jo McClain, an entrepreneur passionate about promoting healthy snacking options. Inspired by personal wellness journeys, Jo established FitFuel in Nashville, Tennessee, to offer a range of nutritious snacks to health-conscious individuals seeking convenient and nourishing choices.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: FitFuel operates as a sole proprietorship, with Jo McClain as the owner and responsible for the business's operations and management.

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: FitFuel sets itself apart by providing a diverse selection of high-quality, healthier snack options that cater to various dietary needs and preferences. With an emphasis on granola bars, nuts, dried fruits, and low-sugar beverages, FitFuel offers a convenient and satisfying snacking experience that supports a healthy lifestyle.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: FitFuel caters to busy professionals, fitness enthusiasts, students, and anyone seeking wholesome on-the-go snacking options that align with their dietary goals.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The healthy vending machine industry is experiencing significant growth, driven by the increasing demand for healthier snack options and a growing emphasis on wellness and nutrition. 

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Nourish-N-Go: Known for their wide variety of organic and gluten-free snacks, Nourish-N-Go has established a strong presence in the healthy vending machine market.

        - Example: Indirect competitors: Traditional Vending Machines: While not solely focused on healthy snacks, traditional vending machines still pose a competitive challenge by offering a broader range of convenience snacks.

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: FitFuel's target market comprises health-conscious individuals in Nashville, Tennessee, who prioritize nutritious snacking options. This includes fitness enthusiasts, working professionals, students, and individuals actively seeking healthier alternatives. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: FitFuel has several growth opportunities in the healthy vending machine market, including expanding into high-traffic locations, partnering with local health and wellness initiatives, leveraging technology for personalized recommendations, and establishing strategic alliances with local snack manufacturers and suppliers.

• Example 1: Conduct a survey or order a market research report of potential locations to determine the foot traffic and identify high-traffic areas for placing FitFuel vending machines. (e.g., Location A records 500 people passing by every hour during lunchtime, indicating a prime spot for a vending machine)
• Example 2: Contacting every gym in the area to determine if they have or would be open to having one of our vending machines. Compile that list.
• Example 3:  Analyze the demand for healthier snack options in the target market by surveying employees in office buildings and educational institutions. (e.g., 80% of surveyed employees express a preference for healthier snacks and beverages in vending machines)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: FitFuel offers a diverse range of healthy snack options, including granola bars, nuts, dried fruits, and low-sugar beverages. Our products are carefully selected to cater to various dietary needs and preferences, providing customers with convenient and nutritious on-the-go options

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: FitFuel adopts a competitive pricing strategy that reflects the value and quality of our healthier snack offerings. Our pricing is designed to be affordable and accessible to a wide range of customers, encouraging regular purchases and promoting healthier snacking habits.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build customer relationships.

        - Example: FitFuel's sales strategy focuses on establishing strong partnerships with local businesses, gyms, and wellness initiatives to expand our customer reach. Additionally, we prioritize customer satisfaction by maintaining a well-stocked inventory of fresh and enticing snack options.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: In addition to placing our vending machines in high-traffic areas such as office buildings, gyms, and educational institutions, we also partner with local retailers and wellness centers to make our products easily accessible to a broader audience.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: FitFuel employs a targeted marketing approach that includes social media campaigns, and collaborations with influencers in the health and wellness space. We also implement promotional offers, and strategic partnerships to incentivize customer engagement and attract new clientele to our healthier snack options.

• Example 1:  Partner with local fitness centers, gyms, and wellness events to offer promotional discounts on FitFuel vending machine products, attracting health-conscious customers. (e.g., 200 customers redeem promotional discounts within the first month)
• Example 2:  Create a list of local gyms that have agreed or opted into housing one of our vending machines.
• Example 3: Perform a pilot test at a few gyms by selling or giving away the snacks and drinks at a display using the honor system or manning the booth yourself and take note of gym member feedback on the snacks themselves and if they’d like to have a vending machine on site

5. Operations and Management

5.1. vending machine placement:.

Involves identifying suitable locations and securing contracts for the strategic placement of vending machines 

        - Example: FitFuel will strategically acquire and place vending machines in high-traffic areas such as office buildings, gyms, universities, and shopping centers. We will negotiate agreements with property owners to secure prime locations that offer maximum visibility and convenience for our target customers.

5.2. Inventory Management and Restocking:

  Refers to the systems used to monitor and replenish product inventory

        - Example: FitFuel will utilize an advanced inventory management system that tracks product levels in real-time and generates automated alerts for restocking. We will establish strong partnerships with trusted suppliers to ensure a consistent supply of high-quality, healthier snack options.

5.3. Maintenance and Service:

Highlights inspections, repairs, and cleaning to maintain vending machine functionality

        - Example: FitFuel will prioritize the maintenance and upkeep of our vending machines to ensure uninterrupted service. We will implement a proactive maintenance schedule, conducting regular inspections and cleaning to maintain cleanliness and functionality.

• Example: The FitFuel's founding team, led by Jo McClain comprises nutritionists, health professionals, and business experts who collectively possess extensive knowledge of the vending machine industry, nutrition, and customer preferences. This expertise enables FitFuel to curate and offer the most suitable and appealing healthy snack options for its customers.

5.4. Technology Integration and Data Analysis:

Describe the technology and systems that will be utilized to streamline operations and enhance efficiency.

        - Example:  FitFuel will integrate cutting-edge technology into our vending machines, offering cashless payment options, touch-screen interfaces, and remote monitoring capabilities. This will enhance the customer experience and provide valuable insights into machine performance and product popularity.

All of the unique Vending Machine projections you see here were generated using ProjectionHub’s Vending Machine Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

 Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of FitFuel. We have already raised $75,000 through a personal investment from the owner and we are working with a financial institution to secure a business loan of around $50,000 to $100,000 for working capital and to purchase a truck. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for FitFuel.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  FitFuel projects $500,000+ in revenue in year 3 and break –even during year 2. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: FitFuels expenses include property lease, accounting, advertising, maintenance, utilities, and fuel costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: FitFuel  expects to achieve profitability within the first two years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: FitFuel’s cash flow projections account for seasonal fluctuations in sales and expenses.

  Determines the point at which the company's revenue equals its expenses.

        - Example: FitFuel anticipates reaching its break-even point early in year 2 of operation.

Watch how to create financial projections for your Vending Machine Business

Key Point  4 

• Example 1: Research industry benchmarks for vending machine businesses to estimate projected revenues, expenses, and profit margins. (e.g., The average annual revenue per vending machine in the industry is $10,000, aligning with FitFuel's projected revenue)
• Example 2: Consider factors such as machine maintenance costs, product spoilage, and product demand fluctuations to create a comprehensive financial projection. (e.g., Accounting for a 10% annual maintenance cost and a 5% spoilage rate in the financial projections)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: As the owner and entrepreneur behind FitFuel, Jo McClain has invested a significant amount of personal capital into the business, demonstrating a strong commitment and dedication to its success. By leveraging personal resources and assuming financial risk, Jo showcases a vested interest in the growth and profitability of FitFuel.

How do I start a vending machine business?

To start a vending machine business, identify profitable locations, choose the right vending machine types and products, secure necessary permits and licenses, find reliable suppliers, establish agreements with location owners, monitor inventory and sales, and market your vending business.

What types of products can I sell in vending machines?

Vending machines can sell a variety of products depending on the target market and location. Options can include snacks, beverages (soda, coffee), healthy food options, convenience items, personal care products, electronics, or even specialized products like toys or pet supplies.

How can I find suitable locations for my vending machines?

Finding suitable locations for vending machines involves identifying high-traffic areas such as office buildings, schools, hospitals, shopping centers, and recreational areas. Consider approaching location owners or working with vending machine placement companies to secure locations.

How can I optimize sales and profits in my vending machine business?

To optimize sales and profits, ensure your vending machines are well-stocked and regularly serviced, regularly analyze sales data to understand popular products and adjust inventory accordingly, price products competitively, consider upselling or cross-selling strategies, and provide excellent customer service.

What are the maintenance requirements for vending machines?

Vending machines require regular maintenance, including restocking products, cleaning and sanitizing, performing routine maintenance on the machine's mechanisms, troubleshooting and repairing any malfunctions, and ensuring proper cash handling and accounting procedures.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Business Plan Template for Vending Machine

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a vending machine business can be an exciting venture, but without a solid plan in place, it's easy to get lost in the shuffle. That's where ClickUp's Business Plan Template for Vending Machines comes in handy!

With this template, entrepreneurs and small business owners can outline their goals, strategies, financial projections, and marketing plans specific to the vending machine industry.

Here's how ClickUp's Business Plan Template for Vending Machines can help you succeed:

• Create a clear roadmap for your business, ensuring you stay on track and meet your objectives.
• Attract potential investors or lenders by showcasing your well-thought-out business plan.
• Streamline your planning process and save time by utilizing a ready-made template designed specifically for vending machine businesses.

Ready to take your vending machine business to the next level? Get started with ClickUp's Business Plan Template for Vending Machines today!

Business Plan Template for Vending Machine Benefits

Starting a vending machine business can be a lucrative venture, and using a business plan template specifically designed for vending machines can provide numerous benefits, including:

• Clear roadmap for success: A business plan template helps outline your goals, strategies, and financial projections, ensuring a clear roadmap for your vending machine business.
• Attract potential investors or lenders: A well-crafted business plan can attract potential investors or lenders by showcasing your vision, market analysis, and growth potential.
• Strategic marketing plans: The template allows you to create marketing plans that target your ideal customers, helping you reach your target market effectively.
• Financial projections and budgeting: With a business plan template, you can accurately project your financials, including startup costs, revenue, and expenses, enabling better budgeting and financial management.

Main Elements of Vending Machine Business Plan Template

If you're looking to start a vending machine business, ClickUp's Business Plan Template for Vending Machine is here to help you create a comprehensive plan for success.

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Include important information such as references, approval status, and section details to ensure your business plan is organized and easily accessible.
• Custom Views: Utilize different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize your business plan from different angles and stay on track.
• Financial Projections: Use ClickUp's advanced features like Gantt charts, task dependencies, and time tracking to create accurate financial projections and timelines.
• Collaboration and Feedback: Share your business plan with team members, stakeholders, or potential investors for collaboration and feedback, ensuring a solid foundation for your vending machine business.

How To Use Business Plan Template for Vending Machine

If you're looking to start a vending machine business and need help creating a business plan, you're in luck! Use the Business Plan Template for Vending Machine in ClickUp and follow these 6 steps to get started:

1. Define your business goals

Before diving into the details, take some time to think about the goals and objectives of your vending machine business. Are you looking to maximize profits, provide healthy snack options, or target a specific niche market? Defining your goals will help shape the rest of your business plan.

Use Goals in ClickUp to set and track your business objectives.

2. Research the market and competition

It's important to have a solid understanding of the vending machine industry and your competition. Research market trends, customer preferences, and the types of products that are in demand. Identify your target audience and determine how you can differentiate yourself from other vending machine businesses in your area.

Use the Gantt chart in ClickUp to create a timeline for your market research and competitor analysis.

3. Determine your product offerings

Decide what types of products you want to offer in your vending machines. Consider factors such as popular snacks, beverages, healthy options, and any specialty items that may appeal to your target market. Pricing and product variety are important factors to consider in order to attract customers and generate revenue.

Use Board view in ClickUp to organize and categorize your product offerings.

4. Develop a marketing strategy

A strong marketing strategy is crucial for the success of your vending machine business. Determine how you will reach your target audience, promote your products, and attract customers. Consider using social media, local advertising, partnerships with businesses, or even offering special promotions to drive sales.

Use recurring tasks in ClickUp to schedule and track your marketing activities.

5. Create a financial plan

A comprehensive financial plan is essential for any business. Calculate your startup costs, including the purchase or lease of vending machines, inventory, maintenance expenses, and any necessary permits or licenses. Determine your expected revenue, projected expenses, and create a budget to ensure the financial viability of your business.

Use the Table view in ClickUp to create a financial spreadsheet and track your income and expenses.

6. Review and revise your business plan

Once you've completed your business plan, take the time to review and revise it. Make sure all the information is accurate, concise, and aligned with your goals. Seek feedback from trusted advisors or mentors and make any necessary changes to improve the overall quality and effectiveness of your plan.

Set a recurring task in ClickUp to review and update your business plan periodically to adapt to market changes and keep it up to date.

Get Started with ClickUp’s Business Plan Template for Vending Machine

Entrepreneurs or small business owners looking to start a vending machine business may use this Business Plan Template for Vending Machine to outline their goals, strategies, financial projections, and marketing plans, ensuring a clear roadmap for success and attracting potential investors or lenders.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, and Marketing Strategy.
• The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• The Timeline View will allow you to set deadlines and milestones for each section, ensuring you stay on track.
• The Business Plan View will give you an overview of your entire business plan, allowing you to easily navigate and make edits.
• The Getting Started Guide View will provide you with step-by-step instructions on how to use the template and create a successful business plan.
• Utilize the custom fields like Reference, Approved, and Section to add additional information and track important details.
• Collaborate with team members to brainstorm ideas, gather data, and refine your business plan.
• Regularly review and update your business plan to reflect changes in the market or your business goals.
• Share your business plan with potential investors or lenders to attract funding and support for your vending machine business.
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How to Write a Winning Vending Machine Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for vending machine businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your vending machine company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every vending machine business owner should include in their own vending machine business plan.

Download the Ultimate Vending Machine Business Plan Template

What is a vending machine business plan.

A vending machine business plan is a formal written document that describes your company’s strategy and feasibility. It documents the reasons you will be successful and your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Vending Machine Business Plan?

A vending machine business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Vending Machine Business Plan

The following are the key components of a successful vending machine business plan:

Executive Summary

The executive summary of a vending machine business plan is a one-to-two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your vending machine business
• Provide a short summary of the key points in each section of your vending machine business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your vending machine business. Include a short description of how your company started, the legal structure , and provide a timeline of milestones your company has achieved.

If you are just starting your vending machine business, you may not have a long company history. Instead, you can include information about your professional experience in the vending industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your vending machines business, mention this.

You will also include information about your chosen business model and how, if applicable, it is different from other vending machine businesses in your industry. For example, you will mention the types of vending machines you operate (e.g., snack machines, drink machines) and what type of accounts you serve (e.g., colleges, nursing homes, manufacturing plants, all of the above, etc.).

Industry Analysis

The industry or market analysis is an important component of your vending machine business plan. Conduct thorough market research to determine industry trends and document the size of your market.

Questions to answer include:

• What part of the vending machine operators industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your vending machine business)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

The customer analysis section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, and interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a vending machine business’ customers may include:

• Office workers who need a quick snack or drink during their break
• Students who want a convenient place to buy snacks and drinks in or near their school
• People who are looking for a healthier alternative to fast-food restaurants

You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.

Develop a strategy for targeting those potential customers who are most likely to buy from you, as well as those that might be influenced to buy your products or vending machine services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from direct competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each of your direct and indirect competitors, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or competitive advantages; that is, in what ways are you different from and ideally better than your competitors?

Marketing Plan

This part of the business plan is where you determine and document your vending machine marketing plan . Your plan should be clearly laid out, including the following 4 P’s.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your direct competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may develop marketing materials such as flyers and business cards to hand out in person or launch a direct mail campaign. You could also use digital marketing methods including social media, write blog posts, create an email marketing campaign, or use pay-per-click advertising. Or you may promote your vending machine business via word of mouth, or via PR.

Operations Plan

This part of your vending machine business plan should include the following information:

• How will you conduct business to develop and secure new accounts? For example, will you do it in person or only over the phone?
• How will you install vending machines in the new locations?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a vending machine business include reaching $X in sales. Other examples include installing X number of vending machines or gaining a certain percentage of market share.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific vending machine industry. Include brief biography sketches for each team member.

If you are seeking funding in particular, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).

This includes the following three financial statements:  

Income Statement

Your income statement, also called a profit and loss statement, should include:

• Revenue : how much revenue you generate.
• Costs : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Vending Machine Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets: All of the things you own (including cash).
• Liabilities: This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity: The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Vending Machine Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup vending machine business.  

Sample Cash Flow Statement for a Startup Vending Machine Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Vending Machine Business Plan Summary

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your vending machine business. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Be sure to include all the key components discussed in this article and tailor it specifically to your business. And, most importantly, remember that your business plan is a living document; meaning it should be updated regularly as your business grows and changes.

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Vending Machine Business Plan Template

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We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Vending Machine Business Plan Template & Guidebook

Opening a vending machine business can be a great way to turn your entrepreneurial dreams into reality. To make sure you get off to the best start with the venture, having a comprehensive business plan is critical. Consider using the The #1 Vending Machine Business Plan Template & Guidebook to streamline the process of creating your plan and ensure you have all the important elements included. With this template and guidebook, you'll have all the tools and resources you need at your fingertips to get your business off the ground.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Vending Machine Business [11 Steps]
• 10+ Best & Profitable Vending Machine Business Ideas [2023]
• 25 Catchy Vending Machine Business Names:

How to Write a Vending Machine Business Plan in 7 Steps:

1. describe the purpose of your vending machine business..

The first step to writing your business plan is to describe the purpose of your vending machine business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a vending machine business:

Our mission is to be the leading provider of convenient and reliable vending machines, bringing quality snack and beverage products to our customers in an efficient and cost-effective manner. We strive to provide exceptional customer service and a positive user experience with our machines, while also setting a standard of excellence in the industry.

2. Products & Services Offered by Your Vending Machine Business.

The next step is to outline your products and services for your vending machine business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your vending machine business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your vending machine business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your vending machine business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a vending machine business?

To run a Vending Machine business, the following equipment, supplies, and permits may be needed:

• Vending Machine(s)
• Small business license
• Permit to operate the vending machine (may vary depending on location)
• Products/Inventory to stock the vending machine
• Money drawer/Cashbox
• Change-making machine
• Card reader (if applicable)

5. Management & Organization of Your Vending Machine Business.

The second part of your vending machine business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your vending machine business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Vending Machine Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a vending machine business varies based on many different variables, but below are a few different types of startup costs for a vending machine business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your vending machine business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your vending machine business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your vending machine business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Vending Machine Business Plans:

Why do you need a business plan for a vending machine business.

A business plan for a vending machine business is important because it provides an outline of the goals and objectives of the business, as well as a detailed plan to reach those goals. It also helps determine a budget, identify potential areas of risk, and provide a timeline for launching and expanding the business. Additionally, having a business plan can help secure financing from investors or lenders.

Who should you ask for help with your vending machine business plan?

When creating a business plan for a vending machine business, it is best to seek the help of an experienced professional, such as an accountant or business consultant. Additionally, seeking out help from friends and family who have experience in the industry may be beneficial as well. Additionally, there are many reputable online resources and websites offering resources and advice for creating business plans.

Can you write a vending machine business plan yourself?

Writing a vending machine business plan is a complex process that requires research, analysis, and careful planning. Writing your own plan requires an in-depth understanding of the vending industry, a detailed knowledge of business fundamentals such as accounting, marketing strategies and start-up costs. It is also important to consider the location and type of vending machines that you are going to use when developing your plan. If you don't feel confident enough to write a business plan on your own, then it is recommended that you seek professional help from someone who has expertise in this field.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Sample Vending Machine Business Plan

Writing a business plan is a crucial step in starting a vending machine business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring vending machine business owners, having access to a sample vending machine business plan can be especially helpful in providing direction and gaining insight into how to draft their own vending machine business plan.

Download our Ultimate Vending Machine Business Plan Template

Having a thorough business plan in place is critical for any successful vending machine business venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A vending machine business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The vending machine business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your vending machine business as Growthink’s Ultimate Vending Machine Business Plan Template , but it can help you write a vending machine business plan of your own.

Vending Machine Business Plan Example – SnackSpot Vending

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to SnackSpot Vending, your new go-to option for vending machine snacks and drinks in Stockton, CA. We aim to revolutionize the local vending machine market by filling the gap with our high-quality, diverse product selection. From satisfying your snack cravings with our wide range of options to quenching your thirst with our assortment of beverages and hot drinks, our machines are designed to cater to everyone’s needs. Our strategic location in Stockton not only enables us to serve our community more effectively but also to stay ahead of market trends, ensuring a continuously evolving and satisfying customer experience. With our commitment to convenience and quality, we are poised to become the leading vending machine business in the area.

Our path to becoming a leading vending machine business in Stockton is paved with several key success factors and notable accomplishments. Leveraging the extensive industry experience of our founder, we’ve established a solid foundation that differentiates us in the competitive market through our unparalleled variety of products. Since our inception, we’ve made significant strides, including developing a unique brand identity, securing an ideal location, and laying down the groundwork for our operations. These steps not only signify our commitment to excellence but also position us favorably against competitors, ensuring our long-term success and growth in the community.

The Vending Machine industry in the United States, currently valued at over $7 billion, is on a steady growth path, with projections indicating a 2.7% CAGR from 2021 to 2026. This growth is fueled by the rising consumer demand for convenient, on-the-go food and beverage options. A significant shift towards healthier snack and beverage choices, coupled with technological advancements like cashless payments and interactive screens, is reshaping the industry. SnackSpot Vending is well-positioned to capitalize on these trends with our focus on healthy and delicious options, and by incorporating technology to enhance customer experiences, setting us apart in the Stockton market.

SnackSpot Vending targets a wide array of customers in Stockton, starting with the local residents in search of convenient snacking options. Our strategic placement in high-traffic areas such as schools, hospitals, and office buildings caters to the needs of busy students, healthcare workers, and office employees who require quick refreshments. Additionally, travelers and commuters at public transport facilities represent a significant customer segment for us, as they often seek fast, energizing snacks and drinks. By addressing the diverse needs of these groups, we aim to be the preferred choice for anyone looking for a quick, satisfying snack or drink.

Our main competitors include Dennis Vending Service, ABC’s Enterprises, and PVS Vending, each offering a range of vending machine options and targeting similar customer segments. Despite their strengths, SnackSpot Vending differentiates itself with an extensive variety of snacks and beverages, catering to a wide range of tastes and dietary preferences. Our strategic location in high-traffic areas and the use of cutting-edge technology for real-time inventory tracking and cashless payments give us a competitive edge. This focus on diversity, convenience, and technology enables us to offer a superior customer experience, fostering loyalty and setting us apart from the competition.

SnackSpot Vending’s marketing strategy is centered around offering a diverse range of high-quality vending machine options at competitive prices. Our product lineup spans from everyday snacks and beverages to hot drinks, healthy options, and frozen treats, ensuring we cater to all customer preferences. To promote our services, we will employ a combination of online marketing tactics, including social media engagement and targeted advertisements, alongside traditional promotional activities. These efforts aim to increase our visibility, encourage first-time use, and build a loyal customer base in Stockton. By integrating customer feedback into our marketing and product selection strategies, we aim to continuously meet and exceed customer expectations, securing our place as a leading vending machine provider in the area.

SnackSpot Vending is committed to operational excellence, focusing on efficient inventory management, maintenance, product selection, and customer service. Key operational processes include daily stock level checks, routine maintenance and cleaning, and regular evaluation of customer preferences to adjust our product offerings. Financial management and marketing activities are integral to our operations, ensuring profitability and brand visibility. To expand our reach, we continuously scout for strategic new locations. Our commitment to sustainability and regulatory compliance further strengthens our operations. Achieving our upcoming milestones, such as securing location contracts and reaching our revenue goals, will be crucial for our success and growth in the competitive Stockton market.

Under the leadership of Julian Washington, our President, SnackSpot Vending boasts a management team with deep expertise and a successful track record in the vending machine industry. Julian’s experience and strategic vision are instrumental in driving our company towards achieving its goals. His hands-on approach and knowledge of market dynamics ensure that SnackSpot Vending develops innovative strategies, fosters meaningful partnerships, and maintains operational excellence, positioning us for sustained growth and success.

Welcome to SnackSpot Vending, a pioneering vending machine enterprise based in Stockton, CA. As a fresh face in the local market, our mission is to fill the gap left by the absence of high-quality vending machine services in the area. Our dedication to providing exceptional service and a diverse product range sets us apart, making us the go-to source for quick snacks and drinks in Stockton.

At SnackSpot Vending, our offerings are curated to cater to a wide range of tastes and preferences. Our customers can choose from an extensive selection of snacks, beverages, hot drinks, healthy options, and even frozen treats. Whether you’re in the mood for a quick bite, a refreshing drink, or a warm cup of coffee, our machines are stocked to ensure your satisfaction. Our commitment to variety ensures that there’s something for everyone, making snacking convenient and enjoyable.

Our strategic location in Stockton, CA, allows us to serve the community effectively, providing easy access to our vending machines throughout the city. This local focus not only enables us to understand our customers’ needs better but also allows us to respond quickly to market trends and preferences, ensuring a continually evolving and satisfying snacking experience.

SnackSpot Vending is poised for success for several reasons. Our founder brings invaluable experience from previously running a successful vending machine business, providing us with a solid foundation and insight into the industry. Moreover, our competitive edge lies in our ability to offer a more extensive variety of snacks and beverages than any of our competitors. This diversity in our product range is a key factor in attracting and retaining customers, setting us apart in the market.

Since our inception on January 6, 2024, SnackSpot Vending has achieved significant milestones as a Limited Liability Company. Our journey began with the creation of a unique and recognizable logo, followed by the development of our company name, which reflects our focus and mission. Finding an ideal location was another critical accomplishment, ensuring our services are accessible to a broad customer base in Stockton. These achievements mark the beginning of our journey to become the leading vending machine business in the area, dedicated to providing high-quality snacks and beverages to our community.

The Vending Machine industry in the United States is currently valued at over $7 billion, with steady growth projected in the coming years. The market is expected to expand at a compound annual growth rate of 2.7% from 2021 to 2026, driven by increasing consumer demand for convenient and on-the-go food and beverage options.

One of the key trends in the Vending Machine industry is the shift towards healthier snack and beverage options. Consumers are becoming more health-conscious and are seeking out vending machines that offer a variety of nutritious choices. This trend bodes well for SnackSpot Vending, as it positions itself as a provider of healthy and delicious snacks and drinks in Stockton, CA.

Another trend in the Vending Machine industry is the incorporation of technology to enhance customer experience. With advancements such as cashless payment options, interactive touch screens, and real-time inventory tracking, vending machines are becoming more efficient and user-friendly. SnackSpot Vending can leverage these technological trends to attract and retain customers in Stockton, CA, setting itself apart from traditional vending machine providers.

Below is a description of our target customers and their core needs.

Target Customers

SnackSpot Vending will target a diverse range of customers, beginning with local residents. These individuals are always on the lookout for convenient snacking options. The vending machines will provide a quick and easy solution for people needing a snack or drink without the hassle of going to a grocery store.

The company will also focus on serving customers in high-traffic areas such as schools, hospitals, and office buildings. Busy students, healthcare workers, and office employees often do not have the luxury of time to step out for snacks. SnackSpot Vending machines, strategically placed in these locations, will cater to their need for quick, on-the-go refreshments and snacks.

Another significant customer segment includes travelers and commuters using public transport facilities in Stockton. These individuals often require quick snacks and drinks to keep them energized during their journeys. SnackSpot Vending will tailor its product selection to meet the needs of these on-the-move customers, ensuring a variety of options are always available.

Customer Needs

SnackSpot Vending caters to the needs of individuals seeking quick, convenient access to high-quality snacks and beverages. Customers can find a variety of options to satisfy their hunger or thirst on-the-go, ensuring they don’t have to compromise on quality for convenience. This service is especially beneficial for those with busy lifestyles who require immediate nourishment without the delay of traditional food services.

In addition to providing quality snacks and beverages, SnackSpot Vending also meets the need for accessibility and availability. The machines are strategically located in areas frequented by residents, making it effortless for anyone to grab a quick bite or drink at any time of the day. This continuous accessibility caters to the unpredictable schedules of many, offering a reliable solution for late-night workers, early morning commuters, and anyone in between.

Furthermore, SnackSpot Vending addresses the growing demand for healthier snack options. Consumers increasingly seek out snacks that not only satisfy their cravings but also contribute to their overall well-being. SnackSpot Vending includes selections that cater to various dietary preferences, including organic, gluten-free, and low-calorie options, ensuring that customers can make choices that align with their health goals.

SnackSpot Vending’s competitors include the following companies:

Dennis Vending Service offers a wide range of vending machine options, including snacks, beverages, and healthy food options. They cater to a variety of customer segments, including offices, schools, and healthcare facilities. Their price points are competitive, aiming to provide affordable options for consumers while ensuring quality and variety. Dennis Vending Service operates primarily in the Northern California region, with a strong presence in the San Francisco Bay Area and Sacramento. This geographical focus allows them to maintain a strong local connection and understand the specific needs of their market. One of Dennis Vending Service’s key strengths is their commitment to customer service and the ability to offer customized vending solutions to meet the unique needs of their clients. However, a potential weakness is their limited geographic reach, which may restrict their ability to scale up quickly compared to competitors with a broader service area.

ABC’s Enterprises specializes in offering a wide selection of vending machine products, including traditional snacks, drinks, and innovative vending solutions like coffee vending machines and micro-markets. They focus on providing high-quality products at various price points to cater to different customer preferences and budgets. ABC’s Enterprises serves a broad customer base, including corporate offices, educational institutions, and retail locations, ensuring they have a diverse revenue stream. Their strength lies in their adaptability and the variety of vending options they offer, allowing them to cater to a wide range of customer needs. However, their weakness may stem from the complexity of managing a diverse product range, which could lead to challenges in inventory management and maintaining product freshness.

PVS Vending is known for its technologically advanced vending machines, which include features such as touchless payment options, remote inventory management, and customizable product selections. They offer competitive pricing and focus on incorporating healthy and organic options into their product range. PVS Vending targets a wide range of customers, including corporate environments, public spaces, and schools, with an emphasis on convenience and accessibility. A significant strength of PVS Vending is their use of technology to enhance the vending experience and improve operational efficiency. This positions them well to adapt to changing consumer preferences and market trends. However, the reliance on technology could also be seen as a weakness, as it requires continuous investment in updates and maintenance to avoid obsolescence and ensure customer satisfaction.

Competitive Advantages

At SnackSpot Vending, our primary competitive advantage lies in the extensive variety of snacks and beverages we offer. Understanding that our customers have diverse tastes and dietary preferences, we ensure our vending machines are stocked with an array of options to suit everyone. From the latest health-conscious snacks and organic selections to traditional favorites and indulgent treats, we cater to a wide spectrum of consumer needs. This commitment to variety not only sets us apart from the competition but also enhances the customer experience, encouraging repeat business and fostering a loyal customer base.

Furthermore, our strategic placement of vending machines in high-traffic areas ensures convenience and accessibility for our customers. We leverage state-of-the-art technology to maintain real-time inventory tracking, allowing us to promptly restock popular items and introduce new products based on customer feedback and trends. This proactive approach to inventory management, coupled with our dedication to offering competitive pricing, positions SnackSpot Vending as a leader in the market. Our ability to adapt quickly to consumer preferences and maintain high standards of service quality underscores our commitment to excellence and innovation in the vending machine industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

SnackSpot Vending emerges as a premier provider of a diverse range of vending machine options, catering to the varied palates and preferences of its clientele. With a focus on convenience, quality, and variety, SnackSpot Vending ensures that customers can effortlessly access their favorite snacks and beverages. Below is a detailed overview of the products and services offered by SnackSpot Vending, along with the average selling prices for each category.

Snacks represent a cornerstone of the offerings at SnackSpot Vending. Customers can expect to find a wide selection of chips, candy bars, gum, and other popular snack items. These quick bites are perfect for on-the-go consumers looking for a fast and convenient way to satisfy their hunger. The average price for snacks hovers around $1.50, providing an affordable option for those in need of a quick snack fix.

Beverages form another critical component of SnackSpot Vending’s product lineup. The machines stock a variety of cold drinks including sodas, water, energy drinks, and juices. Catering to the needs of customers at any time of the day, these refreshing beverages are an ideal pick-me-up. The average selling price for beverages is set at $1.75, making it easy for customers to grab a drink on the go without breaking the bank.

Hot Drinks offer the perfect solution for customers craving warmth and comfort. SnackSpot Vending provides a selection of coffee, tea, and hot chocolate, available at the touch of a button. This service caters especially to early morning commuters and those who need an energy boost throughout the day. With an average selling price of $2.00, customers can enjoy a hot beverage without the wait time associated with traditional coffee shops.

Healthy Options are increasingly in demand, and SnackSpot Vending responds by offering a variety of nutritious snacks and drinks. These include granola bars, nuts, dried fruits, and bottled water. Recognizing the growing consumer trend towards health-conscious eating, these options are priced competitively, with an average selling price of $2.25. This category ensures that customers looking for healthier alternatives have access to satisfying choices.

Frozen Treats add a unique element to SnackSpot Vending’s diverse selection. From ice cream bars to frozen fruit pops, customers can indulge in a cold, sweet snack, especially during the warmer months. These treats are a hit among individuals of all ages looking for a quick way to cool down. The average selling price for frozen treats stands at $2.50, offering a delightful escape from the heat without a significant expense.

Overall, SnackSpot Vending prides itself on providing a broad spectrum of products and services to meet the needs of its customers. With competitive pricing and a focus on quality and convenience, SnackSpot Vending is poised to become a favored choice for vending machine services in its area. Whether customers are in the mood for something sweet, salty, healthy, or refreshing, SnackSpot Vending has them covered.

Promotions Plan

SnackSpot Vending employs a multifaceted approach to attract and maintain a strong customer base in the competitive vending machine market. Understanding the importance of visibility and engagement, SnackSpot Vending will integrate online marketing strategies with traditional promotional methods to create a comprehensive marketing plan. This blend of tactics ensures the brand stands out and reaches potential customers effectively.

Online marketing stands at the forefront of SnackSpot Vending’s promotional efforts. Recognizing the power of digital platforms, SnackSpot Vending will leverage social media channels to engage with customers, share promotions, and showcase new products. Platforms such as Instagram, Facebook, and Twitter will serve as vital tools for building a community around the brand. Additionally, targeted online advertisements will play a crucial role in reaching potential customers based on their preferences and online behavior. By utilizing SEO strategies, SnackSpot Vending’s website will rank higher in search engine results, making it easier for customers to find information about locations, product offerings, and special promotions.

Apart from online marketing, SnackSpot Vending will also employ location-specific promotions to generate buzz in the Stockton area. Collaborations with local businesses and events will introduce the vending machines to a broader audience. Special offers, such as discounts for first-time users or bundle deals, will incentivize trial and foster loyalty. Moreover, eye-catching designs and interactive features on the machines themselves will not only enhance the user experience but also serve as a form of advertisement.

To ensure the message resonates with the target audience, SnackSpot Vending will also prioritize customer feedback and engagement. Initiatives such as surveys and suggestion boxes will allow customers to voice their preferences and feedback, which in turn will help tailor future promotions and product offerings. This direct line of communication will foster a sense of community and customer loyalty.

In conclusion, SnackSpot Vending will combine online marketing strategies with traditional promotional methods and direct customer engagement to build its presence in Stockton, CA. By focusing on visibility, engagement, and customer satisfaction, SnackSpot Vending expects to attract a loyal customer base and stand out in the competitive vending machine market.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of SnackSpot Vending, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We continuously monitor and restock the inventory in each vending machine to ensure products are available and fresh. This involves checking the stock levels daily, identifying fast-moving and slow-moving items, and adjusting the product mix accordingly.
• Maintenance and Cleaning: Regular maintenance checks are performed to ensure all vending machines are functioning correctly. This includes cleaning the machines to maintain hygiene standards and performing any necessary repairs or updates to the software and hardware.
• Product Selection: We constantly evaluate customer preferences and sales data to adjust our product offerings. This means adding new, trending products and removing those that do not sell as well, ensuring we meet our customers’ expectations.
• Customer Service: Provide prompt and efficient customer service to address any issues or feedback. This includes managing refunds, responding to service requests, and engaging with customers through social media or other communication channels.
• Financial Management: Daily financial tasks include processing payments, managing cash flows, and analyzing sales data to monitor the profitability of each vending machine. We also ensure that all transactions are secure and comply with financial regulations.
• Marketing and Promotions: We develop and implement marketing strategies to promote our vending machines and special offers. This can involve social media advertising, loyalty programs, and partnerships with local businesses to increase visibility and attract more customers.
• Location Scouting: Regularly assess and scout for new locations to expand our vending machine network. This involves negotiating with property owners, assessing foot traffic, and ensuring locations align with our target market and business goals.
• Sustainability Practices: We adhere to sustainability practices in our operations by opting for energy-efficient vending machines, minimizing waste, and promoting products that are eco-friendly or come from sustainable sources.
• Regulatory Compliance: We ensure that all operations comply with local, state, and federal regulations, including health and safety standards, business licensing, and tax obligations.
• Technology Updates: Stay abreast of technological advancements that can improve the efficiency and customer experience of our vending machines. This includes implementing cashless payment options, remote monitoring systems, and personalized advertising displays.

SnackSpot Vending expects to complete the following milestones in the coming months in order to ensure its success:

• Secure Location Contracts: Establish agreements with high-traffic venues (malls, schools, office buildings) to place our vending machines in accessible and strategic locations. This is fundamental for ensuring the machines are visible and available to a large customer base.
• Acquire Necessary Permits and Licenses: Complete all legal requirements for operating vending machines in Stockton, CA. This includes business licenses, health and safety permits, and any other local regulations necessary for vending machine operations.
• Purchase and Setup Vending Machines: Invest in modern, reliable vending machines that can offer a range of products (snacks, beverages, healthy options). Ensure that machines are equipped with user-friendly payment systems, including cash, credit/debit card, and mobile payment options.
• Develop Supply Chain Relationships: Establish strong relationships with suppliers of popular and high-quality snack items. Negotiate pricing to ensure profitability while maintaining an attractive product mix that appeals to a wide customer base.
• Implement Maintenance and Restocking Procedures: Create efficient systems for regularly servicing the vending machines and restocking them with fresh products. This includes setting up a schedule for routine maintenance checks and having a quick-response team for any unexpected issues.
• Launch Marketing Campaigns: Develop and launch targeted marketing campaigns to create awareness of SnackSpot Vending machines in the community. This could include social media advertising, local partnerships, and promotional offers to encourage first-time use.
• Analyze Customer Data and Feedback: Collect and analyze data on customer preferences and purchase behavior. Use this information to adjust the product mix, pricing, and promotional strategies accordingly.
• Achieve Operational Break-Even: Reach a point where monthly revenues cover all operational costs, including restocking, maintenance, and any loan payments. This is a critical milestone for long-term sustainability.
• Reach $15,000/Month in Revenue: Focus on growth strategies to increase sales and reach the milestone of $15,000 in monthly revenue. This may involve expanding the number of machines, optimizing product selection, and enhancing marketing efforts. Completing these milestones will significantly reduce the risks associated with starting and operating a new vending machine business, paving the way for SnackSpot Vending’s success in the competitive market of Stockton, CA.

SnackSpot Vending management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Julian Washington, President

Bringing a wealth of experience to SnackSpot Vending, Julian Washington is a seasoned entrepreneur with a proven track record in the vending machine industry. Julian’s entrepreneurial journey is marked by a series of successful ventures, most notably his prior experience in running a vending machine business. This venture not only honed his skills in operations and management but also provided him with deep insights into the nuances of the vending market, customer preferences, and efficient logistics management. Julian’s strategic vision and hands-on approach in navigating the competitive landscape make him an ideal leader to steer SnackSpot Vending towards achieving its goals. His expertise is crucial in developing innovative strategies, fostering partnerships, and ensuring operational excellence, which are vital for the company’s growth and lasting success.

To achieve our growth objectives, SnackSpot Vending requires $77,500 in funding. This capital will be allocated towards essential investments such as location buildout, equipment purchase, and initial operating expenses including marketing, supplies, and staffing. These financial resources will lay the foundation for our operations, enabling us to secure strategic locations, optimize our product offerings, and implement effective marketing campaigns. Achieving operational break-even and reaching our revenue target of $15,000 per month are critical milestones that will ensure our long-term viability and success in the competitive vending machine industry.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Vending Machine Business Plan Example PDF

Download our Vending Machine Business Plan PDF here. This is a free vending machine business plan example to help you get started on your own vending machine plan.  

How to Finish Your Vending Machine Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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Start a Vending Machine Business in 2024: A Detailed Guide

APR.23, 2018

As we enter 2024, the demand for convenient and accessible snacks and beverages continues to rise. As highlighted in our  restaurant business plan , the vending machine business is an attractive opportunity for entrepreneurs seeking passive income streams.

This article everything you need to know about starting a vending machine business, including:

• Pros and Cons
• Industry Trends
• Startup Costs
• Earnings Potential
• Barriers to Entry
• Business Plan for Vending Machine

By the end, you’ll understand what it takes to start a successful vending machine business and how to navigate the challenges with our vending machine business plan example.

Pros and Cons of Vending Machine Business

Like any new business venture, the vending machine industry has its pros and cons:

• Low Overhead Costs –  Unlike traditional retail businesses, vending machines do not require a physical store, eliminating rent, utilities, and maintenance. According to the National Automatic Merchandising Association (NAMA), vending machines have an average operating cost of less than  15% of total sales.
• Passive Income Stream –  Once the vending machines are in place and stocked, they can generate income without constant supervision, making it a passive income stream. An average vending machine has a  20–25%  profit margin and earns  $5–$50  per day in sales.
• Flexible Business Model –  You can customize vending machines to suit various niches and product types. You can choose snacks, beverages, hygiene products, or even specialized items by referring to our  food truck startup business plan .
• Potential for Scalability –  Once you establish a successful vending machine location, expanding your business becomes easier. You can replicate the model in multiple locations due to high demand. In the US alone,  100 million  people use vending machines daily.
• Minimal Labor Requirements –  Unlike traditional retail businesses, vending machines don’t require constant staffing. Regular maintenance and restocking are the primary labor needs. NAMA reports that vending machine operators spend an average of  2-3 hours per week per machine on maintenance.
• High Initial Investment –  The initial investment in vending machines is high, with new machines costing between  $3,000 – $10,000 . However, you can start small by purchasing used or refurbished machines for  $1,200 – $3,000 . (Source: Nerdwallet)
• Vandalism and Theft Risks –  Vending machines are susceptible to vandalism, theft, and damage. A large Atlanta bottler reports that roughly  10 – 15% of vending machines in the US are vandalized each year. The cost of repairing or replacing vandalized machines significantly impacts profits.
• Inventory Management Challenges –  Inventory management, restocking, and fresh product maintenance require attention to detail and efficient management to sustain customer satisfaction. Refer to our  pizzeria business plan  to understand inventory management better.

While the vending machine business presents attractive opportunities for entrepreneurs, it’s essential to carefully weigh the pros and cons of a vending machine startup business plan before moving ahead.

Vending Machine Industry Trends

The vending machine industry undergoes continuous evolution. As per our business plan for the vending machine company, key trends influencing this sector include:

• Increasing Demand for Self-Service Experiences –  The rising demand for self-service experiences has incentivized companies to develop automated kiosk systems, benefiting the vending industry. Persistence Market Research  report  projects that the overall market value of industrial vending machines by 2032 will reach nearly  $7 billion .
• Focus on Healthy Eating –  The vending machine industry is witnessing a shift towards promoting healthy eating by offering more nutritious options. According to  Statista  Consumer Insights,  50 percent  of Americans claim to actively try to eat healthy, and more than  60% of vending machine operators offer healthy snack options. (Source: Gitnux)
• Rising adoption of technology –  The integration of advanced technologies is enhancing the quality and functionality of vending machines. Mobile app or web deals influence about  6%  of vending machine buying in the U.S. (Source: Gitnux)
• Expansion of distribution channels   –  Vending machine operators are expanding their distribution channels to reach new customers, which is helping to drive growth in the industry. More than  5 million  vending machines in the U.S. employ around  85,000 people. (Source: Gitnux)

Industry Size and Growth Forecast

According to an  analysis  by Grand View Research, the global retail vending machine market was valued at  $51.91 billion  in 2021. From 2022 to 2030, the vending machine market is expected to reach  $129.40 billion , exhibiting a compound annual growth rate (CAGR) of  10.7% .

Source: Grand View Research

How Much Does It Cost to Start a Vending Machine Business?

As per an analysis by Starter Story, the average cost of starting a vending machine business is about  $19,267 . This includes the cost of vending machines, initial stock, and other potential expenses.

For your better understanding, here’s a breakdown of typical startup costs for a new vending machine business:

These are average estimates, and actual costs can vary based on your vending machine location, specific business model, and other factors. Also, some costs like royalties/commissions and taxes are sales percentages and will fluctuate with revenue. So, plan accordingly or check our business plan for selling snow cones.

How Much Can You Earn From a Vending Machine Business?

On average, a well-placed and properly stocked vending machine can generate between  $300 to $600  monthly profits per machine, with some high-traffic locations generating even higher returns.

Let’s consider a detailed example to understand the profitability of a single vending machine:

Assumptions:

• Number of vending machines: 10
• Average monthly revenue per vending machine: $1,200
• Cost of each refurbished vending machine: $2,100
• Initial stock cost for all 10 machines: $5,000

Revenue Calculation:

Cost Breakdown:

Profitability Calculation:

Therefore, with 10 vending machines generating an average monthly revenue of $1,200 per machine and considering the associated costs, you can earn an annual profit of approximately $36,900 ($307.5 per machine per month) from your vending machine business after taxes.

What Barriers to Entry Are There in Starting a New Vending Machine Business?

Aspiring vending machine entrepreneurs may face many unforeseen barriers that make entry in the market challenging. Here are some barriers that entrepreneurs might face:

• High upfront cost  to purchase new or refurbished vending machines.
• Securing prime locations  with high foot traffic.
• Maintenance costs  for regular servicing and repairs.
• Inventory management  to ensure machines are always stocked.
• Competition  from established vending machine businesses.
• Regulatory compliance  with local and national laws.
• Security issues  such as vandalism or theft.
• Waste management  for expired or unsold products.
• Customer service  for addressing user issues.
• Marketing costs  to promote the business and attract customers.

These formidable barriers highlight the complexities of the vending machine business, requiring aspiring entrepreneurs to carefully assess their resources, strategies, and commitment via a professional vending machine business plan.

Create a Vending Machine Business Plan

A well-researched business plan, like a  lemonade stand business plan , is critical if you want to start and grow your vending machine business profitably. It helps attract potential investors, guides your operations, and navigates challenges. Here’s a breakdown of key sections to include along with components and tips:

Executive Summary

The executive summary concisely outlines the key elements of your water vending machine business plan. It provides an overview of your business concept, target market, competitive advantages, management team, financial projections, and funding requirements.

What to Include:

• Business Concept
• Target Market
• Competitive Advantages

Management Team

• Financial Highlights

Funding Request

• Keep it succinct (usually 1-2 pages).
• Focus on the most critical aspects of your plan.
• Write it after completing the entire business plan.
• Make it engaging to capture attention.

Business Overview

The business overview section of a business plan provides a concise yet comprehensive introduction to the coffee vending machine business. It lays the groundwork for the more detailed sections that follow.

• Company Description
• Mission Statement
• Business Model
• Product/Service Offerings
• Unique Selling Proposition (USP)
• Operating Hours/Locations
• Be concise but thorough.
• Address any legal or regulatory considerations.
• Highlight your commitment to quality and customer satisfaction.

Market Analysis

The market analysis section of your healthy vending machine business plan examines the industry landscape, market trends, growth potential, competitive landscape, and the overall market environment in which your vending machine business will operate.

• Industry Overview
• Market Trends
• Competitive Landscape
• Market Opportunity
• Economic and Regulatory Factors
• Use data and research to support your analysis.
• Consider both macroeconomic factors and micro-level insights.
• Highlight your competitive advantage.

Services or Products Line

This section of your snack vending machine business plan provides a comprehensive overview of the specific products and services you plan to offer to your customers. It covers the details of your products, including descriptions, pricing strategies, sourcing, and quality control measures.

• Product/Service Descriptions
• Product Sourcing
• Pricing Strategy
• Product/Service Roadmap
• Branding and Packaging
• Quality Control
• Highlight any unique or specialized product offerings.
• Ensure your pricing strategy is competitive.
• Explore partnerships with local suppliers.

Target Market Segments

The target market segments section defines the specific customer groups you aim to serve and outlines tailored strategies for reaching and engaging each segment effectively. This section ensures that your business aligns with customer demands and maximizes its reach.

• Target Market Segmentation
• Customer Profiles
• Market Size and Growth Potential
• Competitive Analysis
• Marketing Strategies
• Be specific; avoid generic descriptions.
• Tailor your offerings to each segment.
• Consider any seasonal variations.

Organization and Management

The organization and management section outlines the structure, leadership, and operational framework of your company. It provides details about who is responsible for key decisions.

• Ownership Structure
• Organizational Chart
• Staffing Plan
• Strategic Partnerships
• Professional Services
• Company Culture and Values
• Emphasize the strengths of your team.
• Acknowledge any skill gaps and how you’ll address them.

Financial Projections

The financial projections outline your company’s anticipated financial performance over a specific period. It provides a roadmap for revenue, expenses, profits, and cash flow.

• Revenue Projections
• Cost of Goods Sold (COGS)
• Operating Expenses
• Income Statements
• Cash Flow Statements
• Balance Sheets
• Key Financial Ratios
• Assumptions
• Support your projections with realistic assumptions and research.
• Use charts and graphs to visually represent your projections.
• Explain any significant fluctuations or trends.

Highly Efficient Service

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

To illustrate how all of these sections come together, we’ve put together a comprehensive sample business plan for a vending machine for a fictional company SnackWave that you can use as a template for your own business.

Vending Machine Business Plan Template

SnackWave Vending is a startup vending machine operator. SnackWave aims to revolutionize the snacking experience in major metropolitan areas. Founded by seasoned entrepreneurs Michael Smith and Emily Wilson, SnackWave will launch operations in New York City in 2024.

SnackWave’s unique competitive advantages include:

• AI-powered predictive restocking and inventory optimization
• State-of-the-art touchscreen interfaces and mobile app integrations
• Curated selections of healthy, high-quality, locally-sourced products
• Best-in-class customer service with 24/7 support and real-time issue resolution

SnackWave projects $3.2 million in revenue by Year 3 with a machine network of 150 units across New York City’s five boroughs. SnackWave has also secured $1.2 million in seed funding.

SnackWave is a limited liability company (LLC) established in New York in 2024. Our core business is:

• Operation, and
• Maintenance of high-quality vending machines in strategic locations throughout the city.

We will be offering a diverse range of consumable products through our modern vending machines. Our product line will include:

Healthy Options

• Hot Beverages

We will work with reputable suppliers and distributors to ensure that our vending machines are consistently stocked with fresh, high-quality products. Additionally, we will regularly rotate our product offerings to introduce new and seasonal items, keeping our customers engaged and satisfied.

The U.S. vending machine market was valued at $23.5 billion in 2022 and is expected to grow at a 5.8% CAGR. Key growth drivers include:

• Rising workplace snacking and impulse purchasing
• Demand for healthier, higher-quality vending products
• Adoption of cashless payment and mobile technologies
• Preferences for contactless, unattended retail experiences

SnackWave’s initial target market is the New York City metropolitan area, specifically:

• 4.1 million office workers across 1.6 million businesses
• 1.1 million college/university students and staff
• 15.4 million annual tourists visiting retail, entertainment, and event venues

With only 30,000 vending machines currently in NYC, there is substantial white space opportunity for an innovative, tech-savvy operator like SnackWave.

SnackWave will offer a diverse range of products to cater to the varying preferences and dietary needs of our customers. Our product line will be divided into the following categories:

• Chips and crackers (regular, baked, and flavored options)
• Nuts and trail mixes
• Granola bars and protein bars
• Cookies and baked goods
• Candy and chocolate bars
• Sodas and carbonated drinks
• Juices and fruit drinks
• Energy drinks and sports drinks
• Bottled water (still and sparkling)
• Iced teas and iced coffee
• Fresh whole fruits (apples, bananas, oranges)
• Yogurt cups (regular and Greek-style). To start a yogurt business, check our  business plan for a frozen yogurt
• Salads (pre-packaged and ready-to-eat)
• Sandwiches (pre-packaged and fresh options)
• Veggie snack packs

Hot Beverages (in select locations)

• Coffee (regular and specialty blends)
• Hot chocolate
• Hot teas (various flavors)

To ensure product freshness and quality, we will work with reputable suppliers and distributors to consistently stock our vending machines.

All our vending machines will feature:

• Touchscreen digital interface
• Integrated mobile app for seamless payment
• AI inventory tracking and predictive restocking
• Telemetry for remote monitoring and data analytics
• Energy-efficient, environmentally conscious design

Beyond vending, SnackWave will offer 24/7 customer support, handling inquiries, and complaints and resolving machine issues in real-time.

SnackWave will initially focus on the following key market segments within the New York area:

• Office Buildings and Corporate Campuses
• Hospitals and Medical Centers
• Shopping Malls and Retail Centers
• Universities and College Campuses
• Recreational Facilities and Entertainment Venues

By targeting these market segments, SnackWave can leverage the high foot traffic, captive audiences, and specific snacking needs of each location to maximize the potential for vending machine sales and revenue generation.

Ownership and Legal Structure

SnackWave is a limited liability company registered in New York. The company is owned and operated by co-founders  Michael Smith (60% ownership) and Emily Wilson (40% ownership) .

• Michael Smith, Co-Founder & CEO:  15+ years experience in food/beverage manufacturing and distribution. Specialist in supply chain operations and logistics.
• Emily Wilson, Co-Founder & CTO: 20+ years leading technology development and data analytics teams. Expert in machine learning, IoT, and mobile platforms.

Organizational Structure

Initially, SnackWave will employ a lean team of 10 full-time employees to support its operations:

• Chief Executive Officer (CEO)
• Chief Operating Officer (COO)
• Chief Financial Officer (CFO)
• Operations Manager
• Sales and Marketing Manager
• 3 Field Service Technicians
• 2 Administrative Assistants

As the business grows and expands its reach, we will increase our workforce to meet the increasing demand for our services. Additional roles, such as regional managers, customer service representatives, and inventory specialists, will be added to support our operations effectively.

SnackWave is seeking $1.2 million in seed funding to launch operations, comprised of:

• $420,000 – Vending machine CAPEX (50 machines at $8,400 per unit)
• $300,000 – Facility buildout (warehouse, operations hub)
• $180,000 – Vehicle fleet (3 vans)
• $120,000 – Initial product inventory
• $180,000 – Working capital runway

Based on our market analysis and conservative estimates, we have prepared the following financial projections for the first three years of operations:

These projections demonstrate a strong potential for growth and profitability. By the end of the third year, we expect to generate an annual revenue of $4.32 million and a net profit of $1.92 million, representing a substantial return on investment.

Need Expert Guidance? Partner With OGSCapital for Your Business Plan

Till now you might have already understood that to start or expand your business, having a comprehensive vending machine business plan documentation is crucial. At OGSCapital, our team of experienced consultants specializes in helping entrepreneurs like you develop winning business plans.

With our expertise, we can provide:

• In-depth industry knowledge of the vending machine market
• Proven workflow for vending machines business plan and strategy
• Guidance through every step – market research, financial projections, operational plans, and funding acquisition
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Don’t leave your vending machine business plan success to chance. Partner with OGSCapital’s consultants who have extensive experience in crafting actionable business plans across industries. For example, our  hot sauce business plan . Contact us today to write your business plan vending machine business that sets your venture up for long-term success.

Download Vending Machine Business Plan Sample in pdf

Frequently Asked Questions

Is a vending machine business profitable?

Yes, a vending machine business can be profitable. On average, a single vending machine generates more than $300 monthly. The global vending machine market is expected to be worth $146.6 billion by 2027. (Source: Research and Markets)

Do reverse vending machines make money?

Reverse vending machines can make money by preparing a professional reverse vending machine business plan first. They collect fees for items deposited and sell recycled materials. Collection fees and profits from selling these materials can be substantial. These machines promote recycling while providing an income stream.

What is the best business structure for a vending machine business?

The best business structure for a vending machine business is often an LLC (Limited Liability Company). It limits personal liability, allows pass-through taxation, and protects assets from business debts and

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Vending Machine Business: Cost, Tips, Pros and Cons

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Vending machines are not a novel business idea — they’re basically everywhere. However, if you’re looking to start your own business, there is a lot to like about the vending industry. Consider that there are millions of machines in the U.S. alone — and the vending machine industry in the U.S. generated over $8.6 billion in annual revenue in 2023 [0] IBISWorld . Vending Machine Operators in the US - Market Size (2005–2030) . Accessed Feb 21, 2024. View all sources .

The vending machine industry is an attractive option for both new and experienced entrepreneurs because of its versatility. It can be a great weekend side hustle, a low startup-cost business or an interesting new way to expand your portfolio.

Vending machine costs

The majority of the cost to start a vending machine business comes from the vending machines and the stock items, and can be financed through a small-business loan or personal savings. With as little as a $2,000 investment, you can generally get a basic vending machine business up and running.

Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000. A new vending machine will cost anywhere from $3,000 to $10,000, depending on its size and features.

Besides the machine itself, you'll also want to consider the cost of inventory to stock your machines. Depending on how many machines you plan to own and what kind of inventory you'll stock, this could span a few hundred to thousands of dollars.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start a vending machine business: A step-by-step guide

Though helpful, previous experience and connections in the industry aren’t necessary to get a vending machine business off the ground — and make money doing it. Here's how to start a vending machine business in six steps.

1. Consider your vending machine options

There are a wide range of vending machines available today. In general, there are four different categories of vending machines (which we'll outline below). Consider all four types when choosing the machine whose products are best suited to the target market you’ve defined in your business plan .

Whichever type of vending machine you choose, start out with one or two machines with a specific market focus. That way, you can gradually learn about popular stock- and site-specific patterns, and add new machines accordingly.

Food and beverage vending

According to a report from Vending Market Watch released in 2023, food and beverage vending machines with snacks, soda and candy make up the majority of the vending market share in the U.S., with beverages alone accounting for 23% of vending sales.

You can get a machine that just offers drinks, snacks or snack-and-drink combinations. Some vending machine entrepreneurs choose to purchase different types of machines for one location or place one kind of machine in multiple locations. If you’re a new vending operator, consider starting with a specialty — healthy snacks, beverages or fresh food — until you learn more about the industry.

To make the most sales, cater your offerings to a specific, location-driven market. For instance, you might stock healthy alternatives such as protein bars and shakes at a gym location or juice and granola bars in a school vending machine.

Bulk vending

Starting a vending machine business with machines that stock gum balls, stickers or rubber balls — also known as bulk vending — requires very little capital and low maintenance costs.

These typically low-maintenance vending machines might not be glamorous, but the quarters do add up. A refurbished vending machine could cost you less than $50 and bring in $30 per month with only a few sales a day. The products you’re offering have incredibly low overhead. In the right market — like a school or amusement park — this modest investment offers the potential for a reliable, passive income source.

Most bulk vending machines are mechanical devices and don’t require electricity or battery power to operate, which means the cost of operation is low to nonexistent. That said, many candy and toy vending machines are older, so a used device might require minor repairs before it’s functional.

Specialty vending

You're not just limited to food and drinks when starting a vending machine business. Large public places like arenas, airports and malls often have machines offering goods like tech accessories, beauty products or other specialty items. Some of these vending machines use the same technology as standard vending equipment, and some with advanced features like touch screens and contactless payment are differentiated as Automated Retail Machines.

Some specialty vending items include:

Hot beverages: Coffee or hot beverage vending can be successful in offices, universities and conference centers. Manufacturers often produce both specialty beverage equipment and traditional machines, so you may be able to combine your purchases.

Retail merchandise: Essential travel items like phone chargers, headphones and neck pillows can be lucrative vending products if you’re able to negotiate a contract with a local transit station or airport. Upscale vending machines in malls and airports often contain luxury skin care products or electronics.

Laundry products: Individually packaged detergent, fabric softener and dryer sheets make great vending products if you identify the right market for it — like laundromats, apartment complexes or dormitories.

Tobacco: Tobacco vending is legal in many states and can be lucrative, depending on the state taxes. Even cannabis vending machines are becoming available, but with a much more limited market.

Franchising options

If you don’t want to build your business from scratch, you may want to consider buying a franchise to start your vending machine business. As a franchisee, you will be able to work within a proven business framework and receive extra support and training to get your vending business set up. You’ll also be able to decide how many or how few machines you want to invest in. However, keep in mind that as a franchisee, you will be responsible for paying a portion of your profits to the franchisor.

» MORE: Best franchise financing options for your business

2. Find the right location for your vending machine

The location of your vending machine is a crucial factor in earning a profit. For instance, an upscale food and beverage vending machine might fail in a strip mall full of restaurants, but that same machine might flourish in an office park.

When starting a vending machine business, think about the locations where you have personally purchased something from a vending machine, as well as the times when people are most likely to purchase beverages, snacks or other items.

Some location ideas for your vending machine include:

Schools, colleges and university campuses.

Hospitals, medical centers and care facilities.

Grocery and retail stores.

Airports, train and bus stations.

Shopping malls.

Laundromats.

Gyms and other exercise facilities.

Business offices and complexes.

Apartment buildings.

Manufacturing plants, distribution centers and industrial parks.

Car dealerships.

Secure your location

If you already have locations in mind, reach out to proprietors or work on getting contact information for the relevant manager. Talking to prospective proprietors about location needs can help you get a better understanding of local demand and inform your vending machine and product selection.

Researching online or contacting your local Chamber of Commerce for information about major businesses in your area can help you identify potential locations. Ideally, try to place your vending machine at companies with at least 100 employees or considerable foot traffic, like a multi-business office park.

Understand state-specific vending laws, regulations and compliance

Different rules apply to various types of vending machines, and vending regulations vary by state. Before starting a vending machine business and reaching out to prospective location proprietors, find out how your state governs vendors by looking up your state and local small business regulations online.

Also, any vending machine you put in a public place may be subject to certain ADA compliance standards , and it’s a good idea to keep accessibility in mind when considering vending machine options.

Know commission requirements and prepare a proprietor contract

You’ll need to pay commission to the proprietor who provides the location and the electricity required to operate your machine. Generally, you can expect to pay the property owner 5% to 25% of the revenue from your vending machine.

Draw up a contract with the proprietor stating your agreed compensation rate, contract length and terms. Include provisions for breach of contract, too. It’s also smart to include expectations and obligations regarding servicing and restocking your vending machines, vandalism or theft, and the possibility of unprofitability. As always, have a lawyer look over the contract before signing.

3. Find your vending machine

Finding your vending machine can be as simple as an online search. To get an idea of the different vending machines offered and price points, search both local and national suppliers. You’ll also want to consider the cost of inventory when looking at vending machine prices.

You can start your search with these three types of sellers:

Manufacturers or wholesale vending suppliers have the widest selection of vending machines for sale, new technology and end-to-end services for delivery, repairs and training. This is likely the most expensive option.

Secondary market sellers or specialty online retailers allow you to browse multiple brands and models of vending machines and often have helpful resources for business owners.

Consumer-to-consumer platforms like Craigslist and eBay have vending machines for sale. Save time by filtering by merchant or owner location, so you don’t have to worry about major shipping costs. This may be the best option for first-time vending entrepreneurs who don’t want to spend thousands on a new or refurbished machine.

Vending machines come with a range of features and capabilities, all at different price points.

Some of those special features include:

Snack/drink combination machines.

Credit card and large bill functionality.

Touch or voice accessibility.

Remote monitoring software and low-stock alerts.

Branded “wraps” for the front of your machine.

Interactive screens.

These special features can be tempting, but they will often add to the overall cost of the machine. Choose the vending machine that best fits the products you want to offer and what you can afford.

4. Explore your financing options

Starting a vending machine business doesn’t typically require as much startup capital as some other small businesses, which can cost hundreds of thousands of dollars to start.

However, depending on the type and number of machines you want and the stock you plan to carry, you may want to explore financing. Here are some options to consider:

Short-term loan

If you’re already a business owner and have the business financial history to prove it, securing a short-term loan to finance your vending machine might be your best course.

Short-term lenders deposit a lump sum of cash directly to your business bank account, and you’ll repay your loan, plus interest, over a predetermined amount of time. Repayment terms for short-term loans are usually 12 months or less, although you may find terms up to 24 months. Interest rates are a bit higher than longer-term loans.

Short-term loans can be easier to qualify for than other forms of financing because lenders are often more flexible when it comes to credit score and time in business.

» MORE: Best online business loans

Equipment financing

An equipment financing loan is another option to consider. The terms of these loans depend on the value of your equipment, which also acts as collateral in case you default on your loan payments.

In addition to your financial information and business plan, you will need equipment quotes for the machine(s) you plan to purchase when you apply for an equipment loan. And, if you need capital to purchase inventory, you may want to consider inventory financing .

5. Stock your vending machine with inventory

Once you’ve settled on a vending machine, you have to stock it with inventory.

Rather than choosing to stock items based on wider food and beverage trends, pay attention to local, site-specific needs. To stay on the safe side, don’t over-order stock in the beginning, and adjust your offerings based on demand.

If you choose to provide combined food and beverage services in your vending machine business, drinks will make up most of your sales. As the growing refreshments market expands to flavored water and healthier beverages like coconut water, consider what your location can support in terms of pricier specialty foods and drinks.

Drink size and shapes will affect your range of machine choices, so if you feel strongly about selling cartons or irregularly shaped products, try to find a machine with adjustable product sizing.

6. Make the right investments

After you’ve purchased your machine and placed it at a selected location, you’ll want to focus on making the business profitable.

Invest in a vending management system (VMS)

Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory and track revenue.

If you have machines that require you to manually manage your inventory, it might be possible if you own just a couple of vending machines. Once you have five to 10 vending machines, though, it’s probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. VMS software allows you to remotely manage your vending machines from an internet-enabled device. Most VMS systems provide real-time inventory updates and reporting tools.

Invest in customer service

Even if you only have one or two vending machines, it’s worthwhile to emphasize customer service from the beginning of this (or any) venture.

Most importantly, ensure that your vending machines are stocked and functioning on a weekly or biweekly basis. You can also consider providing an 800-number for service requests and comments, which is a great way to get useful feedback.

Like many location-based businesses, vending operators are often dependent on word-of-mouth referrals and in-person connections. Foster relationships with business owners, look up your state’s vending association or join local networking groups for entrepreneurs.

Invest your time

Starting a vending machine business requires more than just capital investment — you’ll have to invest some time and attention to your vending machine business, too.

A full-size vending machine might require you to collect money weekly, which is important to keep in mind when determining how much time you can realistically spend traveling to locations. In addition to the time it takes to purchase inventory, visit locations and restock, operating a vending machine business requires you to spend time researching trends in sales, new products or locations, and talking to peers.

If you can’t get away from your full-time commitments often, bulk vending — with non-perishable candy or stickers — might be a good way for you to break into the vending machine business without sacrificing too much of your time.

Pros and cons of starting a vending machine business

Like any new venture, starting a vending machine business has advantages and disadvantages to consider.

Easy to scale: Scaling your vending machine business is relatively easy. You can start off with a few vending machines, and as you become more successful, expand locations.

Variety of choices: There are all types of vending machines. Vending machines now serve healthy foods, gourmet options and items completely unrelated to food.

Little to no overhead costs: There are little to no overhead costs of running a vending machine business, especially if you don’t have employees or require office space.

Time commitment: Operating a vending machine business will require you to commit some time and energy into stocking, servicing and collecting money from your machines on a regular basis.

Theft and vandalism: Vending machines can be an easy target when it comes to theft and vandalism. Ensure that your machines are in secure and safe areas to avoid a loss in profits.

Yes, vending machines can be profitable. The average vending machine generates $75 a week or around $300 a month. However, vending machines that are well-stocked and placed in safe, high-traffic locations can generate more than double that.

Yes, vending machine owners pay rent or commission to the owner of the property. Vending machine owners generally pay between 5% to 25% of their vending machine sales.

Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.

You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys and more. But you'll need to sign a contract with the property owner first.

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A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Vending Machine Business Plan

Secondly, and in my opinion the most important aspect, is how important writing one of things is to YOU. This vending machine business will be filled with so many small details that you as the owner need to be aware about, for running, strategizing, and planning long-term future. You need to know everything from demographics to what you should be realistically making within the first, second, and third years of business; not to mention set proper goals for yourself to follow and reach for. And to gather this information takes a lot of work that not all owners truly get into, which can lead to disastrous results as they realize too late that they aren’t making the return in profit as fast as they imagined; which, realistically, often takes a few years before one can start expecting. Being able to set these expectations, plan your life and work accordingly, and make sure you are truly ready to go through what it’s going to take before your career as an amazingly successful and profitable vending empire owner truly kicks off.

There are a lot of sections to these, but tackled one at a time with proper intent, which one may want to start about a year before ‘premiering’ the business, and what can seem daunting is sure to finish much easier than expected… like one of those annoying school business pamphlet projects. Tackle each one of these sections, and you’re sure to build up your ideal business plan.

Note that this ‘template’ doesn’t have to be exact; though you’ll want to keep the main sections in order, one can adjust the order and use of ‘sub sections’ somewhat depending on how it fits your exact business. Don’t feel absolutely required to follow it to a T. Also, it’s not stated specifically in the various sections, but filling your plan with as many Graphs, Tables, and other Data Sources to display points and figures is definitely suggested, both to look professional and allow easy reading/understanding of the points.

Executive Summary

Besides providing very quick, general summaries and assumptions about what the following sections of your plan will further go into detail about, the Executive Summary is also where you put the face of your proposed company. You’ll want to start off with a quick bit of the Purpose for this plan, usually raising money, followed by where and when it was founded. This will then be followed by classic subsections such as:

Products and Services: a BASIC, quick summary of what particular products you will be offering, along with the services used in getting these out and maintaining relationships, should only need 1-2 paragraphs.

Objectives: what you plan to accomplish in the first year, accounts found and machines bought/sold, etc

Mission Statement: the one section you’re allowed to be all emotional and gooey when you talk about the vision for your business, the ‘motto,’ of course also containing what’s important for you in the business aspect.

Financing: Money you’re seeking and assuming to raise to fund the following statistics.

Management/Team: who founded and will, well, be managing it, whether it’s one person or more.

Sales Forecast: simple and brief expected earnings for each of the following three years.

Expansion: where do you plan to re-invest earnings for the company for growth? New machines, vehicles, warehouses, etc?

Company/Financing Summary

Where one discusses themselves as a company, their registered name, facility/ies, etc, and what their vending business is targeting for the area, along with info on Startup Funding.

Ownership: Who has official ownership and, if under the thumb of multiple people/investors, what percentage

Required Funds/Startup Summary: the costs needed, BROKEN DOWN via researched factors like equipment, inventory, travel costs, repairs, current assets, Liabilities short+long-term, etc.

Investor + Management Equity: to see IF you are seeking investment from a third/fourth/etc party or if it’s all 100% Management.

Exit Strategy: do you plan on selling after a certain amount of profit is attained? What’s the strategy for that, or any other ideas you had in mind. You’ll want SOMETHING here at least.

Products/Services Overview

A full-on and more in-depth description of your products/service offerings, which can be done in large paragraph format, or be broken down like this:

Product Description : listing each of your products, or at least the main ones/styles, in an outline with description of each, what it is and, if applicable, how it’s prepared by the customer.

Competitive Comparison: how your products differ vs what’s currently on the market, if it’s new or if it offers better value, quality, etc. Done individually or as a whole as is appropriate.

Sales Literature: any brochures/reading material available for customers? Not required field.

Sourcing: where are machines/products gotten? Imported or made yourself, and any important details that may permit.

Future Products: if you’re looking to expand the line-up, or change your inventory seasonally, what direction are you going? Anything specific, or purely adjusting to market change.

Strategic Analysis

Using CURRENT Research, you will detail both the economic factors of the day along with how it looks in the future and how that pertains to your vending machine business. This is also where one details the customer and market profiles, your ‘demographics,’ how they’re distributed, why they’re likely to buy your product and what needs/trends you’ll be taking advantage of. One of the more introspectively detailed sections, will want to cover subsections such as:

Industry Analysis: what’s the vending machine industry like in your state/country, general number of owners and what they average. Basically proof that this is a proven solid business concept. This can and should include a Competitive Analysis and Buying Patterns subsection, considering one needing to survive amongst other vending machines.

Customer Profile: who all is buying from your machine? Specific demographic for main body of sales vs all types, going into further detail if needed and able.

Market Needs/Trends : what as-yet-so-far untapped product/service‘hole’ are your machines filling, if applicable, or what trends/popular wants do you plan to focus on taking advantage now and in the future?

Market Growth: any proven info on future growth for the vending industry or your product in particular in the market.

Marketing Plan

A description of the marketing and advertising plans you’ll use to establish vending machine locations throughout your area, including potential starter targets.

Objectives: outline/bullet points of exact goals, mainly establishing and maintaining relationships.

Strategy: your main take on how you plan to position the business, stand out, get your name and product out there, and other aspects to advertise and work with customers/markets. How much are you focusing on gaining new customers vs keeping old, and why? Focus on questions like these, either in or followed by some likely needed subsections discussing Promotion Strategy, Distribution Strategy, Marketing Programs, and Pricing Strategy, the last of which can be a separate section or sub.

Sales Strategy: How you will identify and focus each sale opportunity, with potential Forecast for the first year.

Organizational and Personnel Plan

Basically everything going into your workers; such as Management Team/Biographies to detail each of your leaders, or just yourself; overall Organizational Structure that outlines different positions; potential Training Plans/Regimens/Strategies for new workers, including assumptions on need for future employees if applicable; and Personnel Plan/Fund Source for listing expected/necessary wage budgets.

Financial Plan

Likely the most detailed and important part of the business plan to research, this will look at all the financial concerns and expectations for your vending machine business from day 1 to year 3. Plenty of graphs and tables will certainly go into play here, alongside plenty of sections to put them in.

Underlying Assumption: in order to officially predict and display your suggested financial futures in a succinct, professional, and seemingly accurate manner, you have to make certain assumptions to what will be happening every year from now. That includes your business’ growth, how much funds you’re starting with, inflation, and what sort of loan you’ll be paying off. Basically, setting up the factors that influence your predicted budgets and cash flow.

Profit and Loss Statements: a projected analysis for the first 3 years of Gross Margins and Profits. This, along with everything following, should include balance sheets listing all expected costs applied.

Expanded Profit and Loss: breaking it down to every month of the first year and quarters of year 2 and 3; yes this is often done as well as the simple yearly profit-loss.

Cash Flow Analysis: simple yearly table of where you expect to get cash from, and how much, including sales and investments, compared to repayment, asset purchases, and dividend costs.

Expanded Cash Flow: see Expanded PnL

Balance Sheet: basically collecting the cost of all assets, including depreciation, and liabilities/equity to determine Net Worth and Total Liabilities for next 3 years.

Business Ratios: a full listing of all these factors, presented yearly, and including growth expectations, only listed as percentages and ratios. A statement of your overall planned budget, growth, profit projections, net worth, etc that can be applied no matter what funds one starts with.

Don’t forget to consider finishing the whole shebang with an Appendix of data and beginning with an Index for professional-looking purposes.

It’s hard to get a full understanding of everything that needs written and displayed in your business plan even from this, so we went and found a couple templates and other helpful resource that you should definitely look into when beginning your business plan write-ups.

Finance Resource Example Business Plan – a detailed and simple example of a plan set up for another Vending Machine Business

Vending Services Business Plan – another highly detailed plan that should be viewed over

Did You Think of These Before You Started? – article going into other discussions on the Business Plan, such as Why, Where to Start, Doing the Math, and Growing your Business.

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Vending Machine Business Plan Template

Whether you want to start your own vending machine business or expand an existing one, you need a business plan. the following vending machine business plan template lets you know what elements you need to include in a successful vending machine business plan., fill the form to download business plan templates.

To ensure your vending machine business success in this highly competitive market, you need a properly structured vending machine business plan. With over 12 years of experience in business plan writing , we have helped over 5,000 entrepreneurs create business plans to start and grow their vending machine businesses. Using the following vending machine business plan template, you can put together an effective business plan.

Things to Know Before Writing a Vending Machine Business Plan?

Vending machine operators provide and service automated machines that sell snacks, soft drinks, cigarettes, newspapers, and other products.

In the five years to 2023, the Vending Machine Operators industry has experienced slight growth. Although there have been challenges, increased per capita disposable income and consumer spending have supported industry revenue during the period.

Thus,acording to IBIS-World over the five years to 2022, industry revenue is expected to increase by an annualized 0.8% to $10.2 billion, including an increase of 3.8% in 2022 alone.

Among the major products and services in this industry are

• Hot beverages
• Cold beverages
• Frozen products
• Food and snacks
• Other products
• Healthy item

Key Success Factors for Vending Machine Business

Despite the challenges of the Vending Machine industry, We have identified five factors that can help you boost profitability, efficiency, and ultimately success.

• Having exclusive rights to sell a particular popular product: If an operator can secure the sole right to sell a particular popular product at a particular location, demand is likely to be high.
• Transferable cost increases: Any cost increases from suppliers need to be passed on to consumers since profit makes up a small percentage of revenue. Customers generally accept small price increases for a well-stocked, reliable machine in a good location.
• Scale economies: Businesses that service and control many machines gain economies of scale by purchasing bulk products, which lowers their maintenance costs per unit.
• Scope economy: Companies with a wide variety of products in their vending machines are more likely to attract customers.
• Close proximity to key markets: Operators who are able to place vending machines close to many potential customers will likely generate more revenue.
• Easily accessible for clients: A vending machine that is conveniently located for customers will likely receive a higher volume of traffic and usage.

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What is a Vending Machine Business Plan?

A business plan for a vending machine business is a written document that sets your company’s financial goals and discusses how you’ll reach them.

A solid, comprehensive plan will serve as a road map for the next three to five years of the vending machine business. Any bank or investor you approach will require a vending machine business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a vending machine business or pitching to investors or venture capitalists.

Why You Need a Vending Machine Business Plan

A business plan gives a picture of your vending machine as it currently stands and outlines your growth strategy for the following five years. It describes your company’s aims and plan for achieving them. Market research is also included to back up your goals.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a vending machine business idea, and may help you better understand your company’s finances and competition.

Vending machine business owners who have a business plan grow 30% faster than those who don’t, and 71% of fast-growing businesses have one.

A vending machine business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Vending Machine Business

Here are some possible funding options for your vending machine business:

Short-Term Loan

Entrepreneurs who wish to enter into the vending machine business might benefit greatly from short-term business financing. Lenders will normally consider your personal or company credit, the latter of which may need you to already be a business owner before entering into vending machines.

These criteria may restrict businesses without prior vending machine expertise from obtaining short-term loans. However, if you qualify, short-term business loans are a wonderful fit for this line of company.

Equipment Financing

Because vending machines classify as equipment, equipment financing may be a viable option for you to get capital for your business. The terms of these loans are determined by the worth of your equipment, which serves as collateral for the loan in the event that you default on your payments.

Personal and Business Credit Cards

Considering how inexpensive it is to acquire new or old vending machines compared to starting other types of small companies, using credit cards to fund your business is a viable option. Look into some of the best business credit cards for establishing a business to determine whether this is a viable option for you.

Looking to Build Credit for Your Vending Machine Business?

Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .

How to Write a Vending Machine Business Plan

To write a vending machine plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a vending machine business plan, or you can just download our proven sample business plan pdf  to get a better idea.

Vending Machine Business Plan PDF and Word

Download our vending machine business plan in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of vending machine business you have and what stage you’re in; for example, are you a startup, do you have a vending business company that you want to expand, or do you have a lot of vending machine businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the vending machine industry
• The name, location, and mission of your vending machine company
• A description of your vending machine business, including management, advisors, and a brief history
• Discuss the type of vending machine business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your vending machine business plan.

Free: Executive Summary Examples

An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

• Company summary: Your company analysis will describe the type of vending machine business you are running and its future goals. The type of vending machine you might be focused on (  Groceries,  Drinks, Snacks, Children’s toys, Beauty products and cosmetics, Fruits, Vegetables, Handkerchiefs, Towels, Flowers, etc)
• Company history: When and why did you start your vending machine business?
• What milestones have you achieved so far? Milestones might include sales goals achieved, new machine installations, and so on.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your vending machine company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

You need to include an overview of the vending machine in the industry analysis you performed before sitting down to write your vending machine business plan.

While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.

Furthermore, market research can improve your strategy, especially if it identifies market trends. For example, if there is a trend toward selling advertising on vending machines, make sure your strategy includes a variety of ad formats and sizes.

The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the vending machine industry. Define the vending machine business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the vending machine industry.
• Identify the market’s major competitors.
• Age, gender, and general lifestyle of the targeted market
• Determine the factors that have an impact on the vending machine industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your vending machine business intends to position itself in the industry. Concentrate on how your vending machine business can benefit from opportunities highlighted in the industry.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

Customer Analysis

The first condition for a vending machine business is to identify its target customers clearly. Customers can be categorized into the following segments:  Households, office buildings, Business People, Sports Men and Women, Students, Children, Adults, Tourists hotels,, correctional facilities, etc.

The customer analysis section is an important part of any vending machine business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the product will meet those requirements.

Customer analysis may be divided into two parts: psychosocial profiles (why your vending machine suits a customer’s lifestyle) and demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitive Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more.

4  Use competitor analysis to:

• Identify the strength and weakness of your vending machine business competition.
• Search for opportunities to distinguish your vending machine company from competitors.
• For setting your product’s price.

The first step in competitive analysis is to determine who your direct and indirect competitors are.

The direct competition consists of other vending machine businesses that offer essentially the same services or to the same people as you do.

Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.

This includes grocery stores, pharmacies, and quick-service restaurants.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your vending machine business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offer lower prices or more costly than you and other competitors, what value do buyers get for that price?
• Quality – Are they offer premium products, the perceived worth in the eyes of the customers
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer excellent customer service culture, highly competitive prices, reliable and easy to use payment option or Will you provide superior products?

Consider how you will outperform your competitors and include them in this portion of your vending machine business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a vending machine involves identifying the target demographic and finding products that suit their preferences.

As part of your marketing plan for a vending machine company, you should include:

Pricing and Product Strategy

Your vending machine business must offer products that are different from those of your competitors. Research what your competitors offer and how they price their vending machine products. Unique products identifies your vending machine business as the place to go for unique services and differentiates it from others.

Placing and Promotions

The position of your vending machine is referred to as place. Record your location and explain how it will affect your success. Is your vending machine, for example, in a high-traffic office building or gym? Discuss how your site may deliver a continuous stream of consumers.

Promoting your vending machine business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your vending machine business. A few marketing methods you could consider are:

• Give vending machines a unique look, so that they are easily identifiable to customers.
• Advertise on blogs and forums, as well as on social media sites like Twitter, Facebook, and LinkedIn to get the word out,
• Creating an online presence (listing all of the vending machines) using a basic website
• Join local vending machine associations for information on industry trends
• Offer discounts to customers on special days
• Advertise in local newspapers, TV and radio stations
• Listing the vending machine business in the yellow pages
• Use word-of-mouth marketing (referrals)

You should also think about your vending machine company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other vending machine businesses. Ensure that your USP is reflected in your marketing.

Pro Tips: Learn how to create a marketing plan in a business plan by pros!

Operations Plan

While the previous sections of your vending machine business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operations plan in a business plan should be divided into two individual parts, as seen below.

Daily short-term processes include all the tasks involved in operating your vending machine, including purchasing products, delivering and restocking, keeping the machines clean, etc.

Long-term goals are milestones you hope to reach. It may be the date when you expect to place your 5th vending machine or when you hope to reach $X in sales. Another example would be when you expect to hire your Xth employee or start a new location.

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Management Team

When writing a vending machine business plan, the management section in a business plan ‘ outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your vending machine business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your vending machine business. Ideally, you and/or your team members have direct expertise in the vending machine business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with vending machine business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your vending machine company. They would assist in answering queries and providing strategic direction.

If necessary, search for advisory board members with expertise running vending machine.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your vending machine business plan is your human resource needs.

Financial Plan

In your financial plan of a business plan , you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 70 customers per day or 150? Will sales grow by 3% or 15% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Want to learn how to make an income statement? Download our free income statement templates to make a stunning one for you.

Free: Income Statement Template

Create a financial statement for your business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your vending machine business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your vending machine business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $15,000 to build out your vending machine business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $5,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Want to learn how to make an balance sheet? Download our free balance sheet templates to make a beautiful balance sheet template .

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your vending machine business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vending machine business:

•  Fees for registering a business
• Equipment costs, such as vending machines, refrigerated delivery trucks, etc.
• Costs associated with sufficient inventory management
• Business insurance costs
• Costs of obtaining licenses and permits as well as accounting services (software, P.O.S. machines, and other software)
• Insurance coverage (general liability, workers’ compensation, and property casualty) at a total premium
• Operational costs for the first 3 months (salaries of employees, bills, etc.)
• Start-up inventory costs

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip : Find out what to include in a business plan appendix when writing a vending machine business plan.  

Summary of the Vending Machine Business Plan

A vending machine business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the vending machine business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your vending machine business.

Do you want to Finish Your Vending Machine Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your vending machine business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

OR, we can create your vending machine business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

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Effective Vending Machine Business Plan with Template

Let’s show you how to write an effective vending machine business plan. No doubt, we now live in a dynamic world where there are many sides to being an entrepreneur. If you are looking to become your own boss and follow the entrepreneurship route, then you might want to consider starting a vending machine business .

As the demand for convenient, on-the-go products continues to rise; vending machines provide a practical and profitable solution. And that makes it an attractive business anyone can consider. However, like any successful venture, a well-thought-out business plan is essential to navigate the path towards prosperity.

But what are the elements you should include in your vending machine business plan? In this post, we will be showing the important elements your business plan should have and how to put them all together to make an effective business plan. What more? We will also show you a vending machine business plan sample you can leverage to create one for your business too.

Table of Contents

But Why Do You Need a Business Plan for This Business?

A solid business plan serves as the cornerstone for any successful venture, and starting a vending machine business is no exception. It acts as a roadmap, guiding entrepreneurs through the intricacies of their business, while providing a clear vision and direction.

A well-crafted business plan enables you to make informed decision regarding product selection, pricing strategies, and location choices. It also helps you stay focused and accountable because you would have already figured out your goals and objectives while writing your business plan, making the business journey much easier.

How to Create an Effective Vending Machine Business Plan: All You Need to Include In the Plan

To create an effective vending machine business plan, it is crucial to include key elements that provide a comprehensive overview of your venture. Each section serves a specific purpose in shaping your strategy and demonstrating your business’s viability. Let’s explore the essential elements to include:

#1: Executive Summary

The executive summary provides a concise overview of your entire business plan. It should highlight the key points, including your business concept, target market, competitive advantage, and financial projections. Although placed at the beginning, it is advisable to write the executive summary after completing the rest of the plan.

#2: Company Overview

In this section, outline the mission, vision, and goals of your vending machine business. Describe your company’s legal structure, location, and history. Discuss your unique selling proposition (USP) and the specific products or services your vending machines will offer.

#3: Industry Analysis

Conduct a thorough analysis of the vending machine industry, including market trends, growth potential, and any regulatory factors. Identify your target market segment and demonstrate a clear understanding of its demographics, preferences, and needs.

#4: Customer Analysis

Describe your target customers in detail, including their preferences, purchasing behaviors, and pain points. Highlight how your vending machine business will address their needs and provide convenience and value.

#5: Competitive Analysis

Assess the competitive landscape by identifying and analyzing existing vending machine businesses and potential competitors. Evaluate their strengths, weaknesses, and market positioning. Showcase how your business will differentiate itself and gain a competitive edge.

#6: Marketing Plan

In this section, outline your marketing strategies to attract and retain customers. Include details about branding, pricing, promotions, and distribution channels. Discuss how you will leverage digital marketing, social media, and other advertising methods to reach your target audience.

#7: Operation Plan

Provide a detailed plan for operating your vending machine business. Describe the logistics of machine procurement, inventory management, maintenance, and restocking. Explain how you will ensure product quality, freshness, and customer satisfaction.

#8: Management Team

Introduce the key members of your management team and their relevant experience. Highlight their roles and responsibilities within the organization. Investors and lenders want to see a capable team that can execute the business plan effectively.

#9: Financial Plan

Present a comprehensive financial forecast for your vending machine business. Include projected income statements, balance sheets, and cash flow statements. Demonstrate your understanding of start-up costs, revenue streams, and profitability expectations.

#10: Appendix

In the appendix, include supporting documents, such as market research data, permits, licenses, contracts, resumes of key team members, and any other relevant information that adds credibility to your plan.

Vending Business Plan Sample: An Easy-to-Use Template

To bring the home better, let’s show you a vending business plan sample or template that will illustrate how everything we have been saying plays out. In this section, we will be creating an imaginary company called “SnackEase” that operates in the vending machine industry. Then we will write a business plan for the company.

So, if you will be using this sample, perhaps for an urgent or deadline submission, you will need to edit SnackEase to your company name.

Executive Summary:

SnackEase aims to revolutionize the vending machine industry by offering a wide range of healthy snacks and beverages conveniently accessible to customers. With a focus on quality, convenience, and innovation, SnackEase seeks to capture a significant market share by targeting health-conscious individuals seeking on-the-go options. Our robust marketing strategies, efficient operations, and commitment to customer satisfaction will propel SnackEase to become a leader in the industry.

Company Overview:

SnackEase is a Delaware-based limited liability company. Our headquarters will be located in a high-traffic area in downtown Wilmington. We plan to start with a fleet of 50 state-of-the-art vending machines equipped with advanced payment systems and real-time inventory tracking.

Industry Analysis:

The vending machine industry is experiencing steady growth, with a market size projected to reach $12.5 billion by 2025. Shifting consumer preferences towards healthier snacks and the demand for convenient, on-the-go options provide ample opportunities. SnackEase will capitalize on this trend by curating a diverse product selection of nutritious snacks, organic beverages, and allergen-free options.

Customer Analysis:

SnackEase will serve large businesses within a 100-mile radius of our location. These potential customers are about 890 businesses with 100 or more employees.

Sectors with high potential are:

• 138 large businesses in the Retail sector
• 99 large businesses in the Manufacturing sector
• 75 large businesses in the Health Care sector
• 72 large businesses in the Professional, Scientific, and Technical Services sector.

Competitive Analysis:

SnackEase faces competition from existing vending machine operators and nearby convenience stores. The following vending machine operators are located within reasonable driving distance of SnackEase, thus providing either direct or indirect competition for customers:

Big Top Vending

Big Top Vending is a full-service vending company supplying state-of-the-art vending machines stocked with snacks, beverages, fresh and frozen foods, along with coffee vending machines and office coffee service.

In addition to traditional vending machines, the company offers a complete self-checkout vending market. It offers traditional vending services, as well as subsidized and free vending options to employers. Big Top helps customize selections to fit the location, and continually monitors the machines to make sure that they are fully stocked with the items that are bought most frequently.

Big Top Vending is the largest vending machine operator in the area. Its sheer size, along with its brand recognition will likely continue to attract loyal customers. However, our advantage lies in the fact that we are local, and can provide faster service for our customers.

Marketing Plan:

SnackEase will employ a multi-faceted marketing approach to maximize brand exposure and attract customers. This includes a strong online presence, social media advertising campaigns, targeted promotions, and collaborations with fitness centers and corporate offices.

Additionally, we will utilize data-driven analytics to refine our marketing strategies and tailor them to specific customer preferences.

Operation Plan:

SnackEase will carry out its day-to-day operations primarily on an appointment basis. In order to execute on SnackEase’s business model, the Company will perform many functions, including the following:

Sales Functions

•    Machine placement negotiations
•   Customization of product offerings
•   Stocking the machines

Administrative Functions

• General & administrative functions, including legal, marketing, bookkeeping, etc.
• Sourcing and storing products
• Hiring and training staff
• Customer service

Miscellaneous

• Maintenance

Management Team:

SnackEasy is led by [Founder’s Name], who has been in retail management for 20 years. While [Founder] has never run a vending operation himself, he has managed convenience stores for 20 years.

As such, [Founder] has an in-depth knowledge of the convenience/grab-and-go food service business (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

[Founder] graduated from xyz University with a major in Business Administration. [Other person’s name] will serve as the customer service manager. He/she has extensive experience in the hospitality industry.

Financial Plan:

The financial plan projects revenue of $500,000 in the first year, with an estimated net profit margin of 15%. Start-up costs, including machine acquisition, initial inventory, and marketing expenses, are estimated at $300,000.

SnackEase plans to secure funding through a combination of equity investment and small business loans. The financial plan also includes a detailed three-year projection, demonstrating steady growth and profitability.

The appendix includes market research data on consumer trends, sample vending machine location agreements, product catalogs, and the resumes of key team members.

You may also intrested in other business plans:

• Landscaping Business Plan
• Dispensary Business Plan
• Candle Making Business Plan

Vending Business Tips to Help You Succeed

• Location is Key: Choose high-traffic locations with a target audience that aligns with your product offerings. Consider office buildings, universities, gyms, and hospitals for maximum visibility and customer engagement.
• Product Variety: Offer a diverse range of products to cater to different customer preferences. Include healthy snacks, beverages, and popular brands to appeal to a broader customer base.
• Monitor Trends: Stay updated on current consumer trends and adjust your product selection accordingly. Introduce new items, seasonal offerings, and limited editions to keep customers interested and coming back for more.
• Regular Maintenance: Ensure proper maintenance and cleanliness of your vending machines. Regularly restock inventory, conduct routine inspections, and promptly address any technical issues to provide a seamless customer experience.
• Marketing and Promotion: Implement effective marketing strategies to increase awareness and drive sales. Utilize social media, online advertising, and collaborations with local businesses to reach your target audience and create brand recognition.
• Customer Service: Prioritize exceptional customer service. Train your staff, if applicable, to be friendly, knowledgeable, and responsive to customer inquiries or concerns. Promptly address any customer feedback or complaints to maintain a positive reputation.
• Utilize Technology: Embrace technology to enhance efficiency and convenience. Implement cashless payment systems, digital signage, and real-time inventory tracking to streamline operations and improve the customer experience.
• Data Analysis: Take advantage of data analytics tools to gain insights into customer preferences and peak selling times. Use this information to optimize product placement, inventory management, and marketing strategies.
• Continuous Innovation: Stay ahead of the competition by continuously innovating and adapting to changing market dynamics. Explore new product offerings and vending machine technologies to stay relevant and meet evolving customer needs.

What Tool Should I Use to Write My Vending Machine Business Plan?

When writing your vending machine business plan, you can use popular tools like Microsoft Word, Google Docs, or other word processing software. These tools provide a user-friendly interface and essential features to format and structure your plan effectively.

How Do I Market My Vending Machine Business?

There are a couple of ways you can market your vending machine business. One of them is establishing a professional website and creating social media profiles to showcase your products, locations, and promotions.

You can also collaborate with local businesses, offices, schools, and fitness centers to place your vending machines in their establishments. Offer them incentives and mutually beneficial arrangements to expand your reach.

You can as well take advantage of targeted advertising, direct mail marketing, and offering promotions and discounts. All these can be a great way for you to market your business and help it achieve its goals easily.

How Much Electricity Does a Vending Machine Use?

Vending machines designed for serving cold beverages typically consume an average of 7 to 14 kilowatt-hours (kWh) of electricity per day. The energy usage can vary based on factors such as the machine’s size, complexity, and additional features.

Smaller or simpler vending machines tend to have lower electricity consumption, closer to the range of 7 kWh. However, larger and more elaborate machines with additional functionalities may consume closer to the higher end of 14 kWh.

What Type of Vending Machines Make the Most Money?

Bulk machines, which are commonly found in playgrounds, parks, and restaurant waiting areas, are known to be one of the most affordable types of vending machines with significant profit margins.

These low-tech dispensers, often filled with gumballs, candies, and small toys, offer a cost-effective option for entrepreneurs looking to enter the vending machine business. The bulk machines’ appeal lies in their simplicity, low maintenance requirements, and high-profit potential.

How Much Money Do Vending Machines Make?

Vending machines can be a lucrative source of revenue. The initial cost of a vending machine, including equipment and shelving, ranges from $3,000 to $5,000. Annual maintenance and stocking expenses can amount to a few thousand dollars.

On average, vending machines have a profit margin of around 50%, meaning that half of the money spent on products is profit.

Sample Vending Machine Business Plan

Vending machine business plan sample.

Vending machines have been automated to provide vending services to customers. It works only when money is being slotted into it.

Millions of these machines are in the United States and worldwide, each providing a specific range of services.

Some products sold on vending machines include coffee drinks, chocolate bars, and film rental services.

Others include newspaper and book vending machines, and photo booths , among several other uses.

Benefits of a Vending Machine Business

The advantage of having a vending machine is the low cost of operation.

A vending machine eliminates the shopkeeping time, allowing the business owner to do other equally important things with their time, leading to more productivity.

Also, there are lesser cases of mistakes, as the entire system is automated. There are little to no instances of underpaying or overpaying for particular services.

These and so many other benefits are accruable to users of vending machines.

Things to Consider When Starting a Vending Machine Business

As with other businesses, starting a vending machine business requires adequate planning. This is more so with an automated company.

Hence there are several factors to consider before commencing the business. We will start with the following;

• Ensure it is Compatible with Your Business Idea.

Why so? Because there are business ideas that are not compatible with vending machines. In other words, certain services cannot be offered using vending machines.

Hence, considering if the idea is practicable after bringing up your vending machine business plan is essential.

If it is achievable, then you have satisfactorily answered an important question that can lead to the success of your business idea or its failure.

• Selecting a Service Niche

Here, it is essential that you carefully consider the niche that most interests you. You cannot start a vending machine business in just about any place.

Randomly choosing a niche that comes to mind may likely lead to failure. This is because by choosing a place of particular interest, you may have good knowledge of how that specific area of vending machine business works.

In a situation where you do not understand things well, learning will be easy as your interest will fuel your zeal to know more. Choosing a niche that comes more naturally to you positively impacts the business.

• Choose Your Vending Machine Locations

Selecting the locations for your vending machines is an essential criterion for starting this business. Sites have a significant impact on the profitability of vending machines.

Hence, you may want to choose areas with a lot of human traffic. Locating a vending machine in such regions will likely increase patronage/sales. Also, carefully selecting locations for your vending machine business can contribute to the security of the vending machine.

• Your Products

Product selection is essential. This is similar to having a niche. The only difference, however, is the particular product you may want to vend.

For example, if you want to start a book vending machine business, the book (novel, for instance) will belong to the same niche as the newspaper.

You may want to choose your particular product for your vending machine business to make all your activities streamlined.

Planning your vending machine business out to the minute detail can immensely benefit the company.

• Low Set Up Cost

By starting a vending machine business, high startup costs are eliminated. These costs are primarily associated with renting/buying a business outlet.

While providing a high-yield business opportunity, the costs associated with starting a vending machine business make it very attractive to investors who do not have the resources to invest in significant portfolios.

• Freedom of Time

If the human race cherishes anything, it is time to do what they love to do. Starting a vending machine business affords you that opportunity.

The freedom of having to control your own time and destiny is priceless! Being a fully automated business venture, the business owner only needs to load the products into the vending machine and return to collect the money later!

The device does every other work. This is impressive as you could use your spare time to do other things that benefit you.

Vending machine businesses have become attractive ventures to investors the world over. Today, the number of vending machines continues to increase due to this growing popularity in the United States and worldwide.

Also, there is minimal waiting time as there has been immense success in reducing the waiting time.

Customers using vending machines for purchases now spend lesser time waiting for services.

With the advances in innovation, services have become increasingly automated, improving service delivery. The vending machine business is a perfect example of this trend.

It is believed that with the information provided here, significant success will result if these tips are followed.

VENDING MACHINE BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a vending service business.

Technology has made the world a very comfortable place to live in. As a result, most people will quickly replace any activity that requires some effort with activities that require no effort.

This implies that most individuals will get their drinks and snacks from a vending machine instead of entering a retail store.

This might appear very simple. However, it is very significant. The fact that people would choose convenience over effort means there is a high demand for vending machines.

This, therefore, makes the vending machine business one that is worth going into.

If you want to start a reverse vending machine business, you should know all the requirements by now. Like every other business, a business plan is one of the requirements for starting a vending machine business.

Below is a comprehensive business plan sample for a vending machine business.

How do I start a vending machine business?

Business Name: Jojo and Tata Vending Machine Company

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

• Market Analysis
• Sales and Marketing Strategy
• Financial Plan

Competitive Advantage

Jojo and Tata vending machine Company is a business that dispenses an extensive range of products. It is a business that will be located in Dallas, Texas .

It is owned by Josephine and Taylor, two very prolific businesspeople with over twenty years of experience in the business world. Jojo and Tata vending machine Company already has a relatively large warehouse to house all our machines.

At Jojo and Tata vending machine Companies, we want to make all edibles available to our potential customers. However, we will put more focus on the provision of drinks.

We will ensure that everyone who patronizes us gets a treatment that is second to none.

Jojo and Tata vending machine Company is in this industry to make gains. Although we are looking to make gains, we do not intend to do this at the expense of our customers.

We want to give our customers the best service that can be obtained in the vending machine industry. We want to stock our vending machine with products from some of the top brands in the United States.

Some of the products that we will offer at Jojo and Tata vending machine Companies are;

At Jojo and Tata’s vending machine business, our vision is to set up a company that will be well-known in Texas and the entire United States. Beyond the United States, we also intend to have a strong presence in key cities in Canada.

Our mission at Jojo and Tata vending machine Company is to set up an enterprise providing a broad range of products to those residing in Dallas, Texas.

We intend to also make these products available at prices everyone can afford.

At Jojo and Tata vending machine Companies, we are not just interested in starting a vending machine business; we are interested in becoming one of the biggest in this industry.

We also want to spread the vending business from Texas to other major cities in the United States and beyond.

Unlike being average in this business, being a huge success requires much work. Therefore, to make this happen, we will start by ensuring that we have the needed structures for this to occur.

We will employ only those we consider qualified to run businesses at the highest level. We will also provide a conducive working environment for all our workers.

Market Analysis Market Trend

The retailing industry is not new to anyone.

However, there is rapid innovation in this industry. This rapid innovation is a result of the rapid rise in technology. The increase in technology has brought about the prominence of vending machines in the retail industry.

Vending machines are not just prominent at the moment; they have also come to stay. This is because they make life easier for people and offer lower prices.

This makes people spend less money in the long run.

Our Target Market

The vending machine industry is an industry that caters to the needs of virtually everyone.

This, therefore, means that we can offer our services to almost everyone. However, we have chosen a target market to achieve our aim of starting up this business.

Those that make up our target market include;

• Business Executives

Here is how to secure contracts in this industry.

Financial Plan Source of Startup Capital

We are looking to start our vending machine company on a large scale.

As a result of this, we will need $100,000 to set up our vending machine company. We already have half of this amount. We are looking to get the remaining amount from the bank.

This business has a high level of competition because not very much is needed to start it.

We will stock our vending machines with an extensive range of products to stand out from the crowd. Our prospective customers will always get whatever they need from our vending machine.

This is a vending machine business plan sample for Jojo and Tata vending machine Company. It will be located in Dallas, Texas, and set up with $100,000.

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