Everybody is always looking for a way to earn passive income. It’s easy money, right? The pursuit of this mythical belief has undoubtedly led many entrepreneurs down a dark path. There is never anything like a passive business. Every business you start requires work and strategic planning to succeed. Automated teller machines popularly known as ATMs can be located almost anywhere. This ATM business is run by people and companies and is a very good income-generating activity. So let us look at how you can venture and tap into this lucrative market.
How to start an ATM business?
When it comes to banking most Americans are keen on accessibility and convenience. The use of ATMs is growing by the day. To take advantage of this trend you should jump on the ship early and get yourself an ATM. An ATM business is very flexible you can achieve financial stability and total control of your business. You can make money off the ATM fees charged when customers make withdrawals. The fee charged will depend on the amount withdrawn.
Location is always key when starting any business. An ATM business thrives in high traffic areas. This includes areas like outside malls, banks, convenience stores, and any other location with foot traffic. Starting a small ATM business is not that complicated. The owner has to ensure that they have sufficient disposable cash to keep the machines from running out. The cost to start the business will entirely depend on the type of ATM machines purchased.
These prices can range between $2000 to $ 8000. You can also purchase used ATMs if you are on a budget and these will range between $1200 to $1800. Installing these machines will cost you $200 to $300 per machine. These machines will rack up about $6000 to $8000 depending on the location and traffic.
The common start up requirements include:
- Disposable cash to keep the machines from running dry.
- Working ATM machines.
- Cleaning, repair, and maintenance.
Steps to take while starting an ATM business
Formulate a business plan
The very first step is to have a business plan. This business plan needs to be concise and clear and all the details of how the business will run should be well highlighted in detail. If you are planning on getting an inves66tor or backing from a banking institution then this business plan will be required. Highlight all the details of how the business will operate like what will make you stand out from the competition, how the business intends to get funding, how the business will make a profit. All these should be well written as investors will be attracted to smart ideas.
Form a business structure
A business structure will define how organized your business is. It will show how it operates legally. The four main structures to choose from are:
- Sole proprietorship
- Limited Liability Company
Each of these business entities have their advantages and disadvantages and choosing any of these will require that you understand the costs, liability and administrative requirements needed in running such entities
Find a name
A business name can be the difference between the success and failure of the business. Finding the perfect name can be a bit hard and if you are having a hard time getting it right then you can try the business name generating websites.
Select a location
To achieve success in this business then there are just strategic areas these machines do well. The top priority should be to look for areas with high traffic and are public places. These include places like gas stations, bars, malls, convenience stores, etc. Once you find a good location then you are guaranteed profit and a successful business.
Apply for licenses and permits
Almost every business requires permits of some kind. This will make sure you stay on the good side of the law.
Apply for insurance
ATM businesses require insurance coverage. The costs will depend on the value of the business. Consult on the type of insurance policies required and properly understand how each works.
Step by step on how to get an ATM machine
Installing an ATM machine is not very complicated as people may imagine. These simple steps will guide you if you intend on installing an ATM to your business or if you plan on starting an ATM machine business.
Step 1- identify the location
This is simple; lots of foot traffic means more business opportunities. Areas that are constantly visited by many people are the ideal places to install an ATM machine.
Step 2- choose the best model for your business
If you are ready financially then identify the best model and purchase it. You will need to ensure you have ready cash to stock it and perform regular maintenance. There also companies that offer leasing if you are low on cash.
Step 3- Find a company that will service your ATM
After you have chosen the location and looked at your options on the best ATM that suits your business needs. You then have to find an ATM company that will give you what you are looking for. This company will set the ATM up for you and their technicians will run all tests to ensure everything is running fine.
An ATM business will work well if proper planning is put. The main goal should be to improve the brand’s identity as how your business is perceived by customers will determine the success of the business. Very little marketing is required and the most important aspect is developing strong connections with your customers.
Doing small things like setting up a business website will give people the idea that there is an ATM-operated business or an ATM machine along the area and this will assure them that they have easy access to cash should they require withdrawing. There is no formal training needed to own an ATM business and you only require investing and getting your business running.