So you’ve thought about running an ATM business, but you’re not sure exactly where to start or how to go about doing it. Well there’s more to it than simply getting yourself a Carolina ATM machine, setting it some place and waiting for the profits to roll in.
There’s actually a lot of time and financial investment that goes into starting and operating an ATM business. Many prospective business owners are under the impression that owning an ATM is all you need to do in order to make money. That’s incorrect, you actually have a lot of decisions to make and maintenance to perform so that your machine is always at the ready to serve as many customers as possible.
That requires having the right location and it also means you will need to be sure that there is plenty of cash in the machine, because an empty ATM is of little use to anyone who is in need of cash on the quick.
So what are the basics of running a passive ATM business? The criteria is quite straightforward even though each step of the way is going to rely on you to be smart and savvy about a great number of factors.
Budding entrepreneurs such as yourself are getting into the ATM business because they want in on the large profits that can pour in from people who need cash and are willing to pay a small fee for the privilege of conducting such a transaction. The big banks make billions each year, a large portion of which is revenue generated from ATM transaction fees.
Why should the banks get all that money? Why not you? Now is the time to think about getting into the ATM business, you just need to know the basics. Lets examine the fundamental aspects of starting your passive ATM enterprise.
Every good business is built from the ground up and that starts with raising enough capital with which to invest into the company so you can get it started. Whether this is money you decide you want to put in from your own pocket or you intend to raise from investors, it’s up to you.
If you are using your own money you will need to determine what you can afford to invest without putting yourself into financial dire straits. If you are considering raising the money, you will need to put together a business plan that outlines everything you plan to do with the business, your outlook on profitability, your foreseeable costs, how much time it will take to pay back investors, and even locations and the type of ATM machine you plan to acquire.
The ATM Machine
In many cases, the largest upfront expenditure that you can probably expect to pay will be towards acquiring the ATM machine itself. But how do you plan on doing that? You have two clear cut options, you can rent it or you can buy.
You will need to weigh your options here to decide which is the more cost-efficient alternative. Purchasing the machine outright means that it’s all yours, you own it and you can do what you wish with it. That also means you’re not paying out anymore monies towards owning the machine.
The other option, of course, is to rent a machine. While some business owners consider choosing this option because it seems like the cheaper way to go, be sure you’re fully apprised of the inherent costs.
First off, you’ll be expected to make monthly payments to the owner of the machine and even after you’ve spent a considerable amount of resources on that rental, the machine will ultimately be returned to and remain the property of the owner.
Wouldn’t you rather have something tangible you could own yourself? An asset that will bring a steady stream of revenue. But the full cost of a good machine, even a unit without all the fancy bells and whistles could cost thousands of dollars. Many budding business owners don’t have that kind of cash available on hand so they choose to raise money from an investor or they will rent a machine because those monthly payments are far more easy to manage than one expensive lump sum.
Selecting the Best Location
The other important basic thing to remember is that where you place the machine can have a substantial impact on how much money you can make. That’s because a good location can bring high visibility from passersby.
But be careful, placing your machine in an area saturated with competitors could result in your machine getting overlooked and lost in the shuffle. Place it somewhere with very few other machines and you could miss out on potential customers due to a lack of foot traffic in a remote area.