Tag: Think

Vending Machine Business Plan: Did You Think of These Before You Got Started? #small

#vending machine business

#

Vending Machine Business Plan: Did You Think of These Before You Got Started?
by Chris Tomasso

The first things you must consider when making a business plan is, What are your goals? , and Does the math work? Many people first get the idea to get into vending because the notion of passive income and controlling their own destiny is so compelling. While this is true, they forget to calculate if it even makes sense for them.

Without a proper business plan, you can set yourself up for failure from the start. This is because, in vending, there is a significant delay between your actions and your financial results. Whether you make the right or wrong decision, you don t see your outcome for a while. So much money is moving from place to place in vending that it can be hard to track. There are many sources of income: Cash from machines, free vend, subsidizations, renting machines, rebates from corporations, and more. Expenses are varied, including but not limited to: Rent on a warehouse, insurance, vehicle repair and maintenance, machine repair and maintenance, buying product, accounting, and acquiring new accounts. Revenue from the business is the result of thousands of small transactions. In general, your profit is not immediately obvious.

Why create a business plan?

It may seem straightforward, but in a business where the average operating profit is 45%, but the average net profit is just 2%, you can’t afford not to plan. Creating a business plan will help you price your product, set up service schedules, set minimum sales requirements for locations, determine how much you can afford to invest in new business, and it lays the groundwork for your future success.

If you don t create a business plan, you could be working for less than minimum wage in a job that is supposed to give you more time and freedom.

Where do I begin?

A business plan can only be effective if it reflects your specific goals. If you haven t already, ask yourself some of these questions:

  • How many hours are you willing to work?
  • Are you looking to build it and sell it or give it to your kids some day?
  • Is it a retirement vehicle?
  • Will you need to train someone to eventually run it for you?
  • Do you have cash to invest in it or are you building it from scratch?
  • Do you want a flexible schedule or time to travel or spend with loved ones?
  • What resources do you already have? A person who is well connected will have a lot easier of a time starting out than a person who has just moved to the area.
  • Do you have warehouse space or a vehicle you can use?

I strongly encourage you to really consider these questions and how running a vending business will fit in with your overall lifestyle goals. This could take you days or even weeks if you haven t consciously thought of it before. Once you seriously answer all of these questions, you ll need to start doing some math.

Doing the math

The exact math you need to do will be reflective of your specific goals and the resources you need to achieve those goals. As such, it s beyond the scope of this article. If you need help deciding what s realistic for you, I suggest seeking the help of a professional in the vending industry.

What you need to keep in mind is that vending machines have a significant up front investment. It could take a year for the sales of a machine to recoup the cost of buying and installing the machine. This means that, although you will be making cash money immediately, you will not likely profit from those vending machines for at least a year.

This reality needs to be reflected in your business plan. If it takes each of your machines one year to pay off their debt, those machines are not making money for you right now.

How are you making money right now? Do you have this as a side job? Do you offer a service, such as installation or repairing machines for other vendors? Do you have office coffee service where the cost of installation is potentially much cheaper and the per item value potentially much higher?

On the other hand, can you afford to not turn a profit on this machine for the allotted time? Can you afford to add at least 15% to that number to account for maintenance costs? If you can absorb these for the time being, great! If it s not making you a profit, it still may be a good idea, as long as you plan for it.

Growing your vending business

Planning for the future is also part of your business plan. How do you plan to grow your business? Do you plan on making lots of cold calls? Do you plan on generating a referral based business?

Learning vending is a fantastic way to learn how to run any business. This is because, instead of running one giant entity like a restaurant, you are running dozens or hundreds of tiny machines, each with their own cash flow. In doing this you will get really good at recognizing good business opportunities and bad opportunities because you can automatically do the cash flow in your head.

Like many other businesses, a vending business has an economy of scale. Vending supply companies, such as a cash and carry. sell products in cases, so if you only have one snack machine and you buy a case of chips, unless that company only buys one kind of chips then I guarantee your chips will expire before you sell them all.

A case is 64 chips. In an average snack machine, a row for chips is between 10-12 spaces. This means that you will need 6 rows of one kind of chip to sell in no more than two months, because chips usually expire in two months. You will most likely have expired chips in this scenario. If you are in this situation, then you should probably take away your snack machine until you can find a location with a higher volume of sales. A vending business profits immensely from a certain scale, because you can get and utilize cases to offer a variety, get rebates from manufacturers, begin hiring employees so you re not doing as much route driving yourself, and get deliveries from vending supply companies instead of going to them to get product. These are just some of the benefits of scaling up your business.

Since scaling is so important, you must decide if you’ve gotten started in the business too small. If this is your problem, you might be better off selling your route to someone with a larger business and working under them on a contract basis. Otherwise, you will have to secure a large loan in order to purchase a lot more equipment if you want your business to scale up quickly. This debt will then be subtracted from your profits. If you can still make a profit after subtracting all of your business operating costs and paying back the debt for starting the business, then great!

Final Thoughts

The difficulty of creating a sensible business plan is why so many small time vendors go out of business so quickly. More and more the little guys get squeezed out because the cost of running a business is much harsher for a smaller business as it is for a slightly larger business. This is because often time your fixed costs (rent, insurance, product cost, etc) remain the same whether you have two machines or two hundred machines.

This is just barely scratching the surface. If you feel lost, I suggest seeking the advice of someone in the vending industry. I also recommend speaking with Robert Cornelius. He s our resident vending consultant at Vending How. No matter what you choose to do, it pays to plan and plan well.

Chris is the editor and online marketing guy at Vending How. He can also drive more traffic to your website.


Tags : , , , , , , , , , , ,

History and Mission #game #theory, #think #tank, #government, #independent, #private, #nonprofit, #organization, #research, #development,

#

History and Mission

Our Mission and Values

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis.

For more than six decades, RAND has used rigorous, fact-based research and analysis to help individuals, families, and communities throughout the world be safer and more secure, healthier and more prosperous. Our research spans the issues that matter most, such as energy, education, health, justice, the environment, and international and military affairs.

As a nonpartisan organization, RAND is widely respected for operating independent of political and commercial pressures. Quality and objectivity are our two core values.

RAND’s research is commissioned by a global clientele that includes government agencies, foundations, and private-sector firms. Philanthropic contributions, combined with earnings from RAND’s endowment and operations, make possible the RAND-Initiated Research program, which supports innovative research on issues that are crucial to the policy debate but that reach beyond the boundaries of traditional client funding.

Our Commitment to Dissemination and Education

RAND disseminates its research findings as widely as possible to benefit the public good. More than 20,000 RAND publications and commentary are available for free at www.rand.org.

RAND also operates the Pardee RAND Graduate School, the largest public policy analysis Ph.D. program in the United States and the only program based at an independent public policy research organization.

Our History

On May 14, 1948, Project RAND an organization formed immediately after World War II to connect military planning with research and development decisions separated from the Douglas Aircraft Company of Santa Monica, California, and became an independent, nonprofit organization. Adopting its name from a contraction of the term research and development. the newly formed entity was dedicated to furthering and promoting scientific, educational, and charitable purposes for the public welfare and security of the United States.

How RAND Invented the Postwar World

Almost all of the defining features of the Information Age were shaped in part at the RAND Corporation.

Researching RAND: Access to the Corporate Archives

RAND has a proud tradition of making its research and analyses widely available to the public. More than 20,000 RAND publications are already accessible at no cost on our external website. The publications provide a rich resource for scholars and others interested in learning and writing about RAND’s contributions to public policy.

Many more materials relevant to our mission, research, and history, and the work of current and former members of the RAND staff, are contained in the RAND archives. Research scholars and qualified journalists who are interested in learning more about RAND’s archives can request access.

The Nobel Prize and RAND

RAND’s unique intellectual environment and reputation for empirical, nonpartisan, independent analysis have attracted an impressive corps of researchers over the years. Many Nobel Laureates have been affiliated with RAND. Some have been employees, others served as consultants, while others served in an advisory capacity.

More About RAND


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Which RN program (full-time) to choose in the East Bay area #bachelor, #college, #degree,

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Which RN program (full-time) to choose in the East Bay area

Quote from turbohound

I’m an East Bay local also looking into RN programs. I’m looking at your list as well as Ohlone and Modesto. Chabot has expanded their program to allow for ten more students at the Las Positas campus. Also, the south bay programs are accessible via the ACE train. I’m volunteering at Valleycare to get a feel for nursing. Any idea what the wages are like?

Hi Lizz and turbohound !

Thanks for your messages.

You mention Ohlone college, which I visited. It’s a beautiful campus, but a little far away for me. I don’t know Modesto. Chabot college I heard is a very good college. I don’t know what the wages are like unfortunately, but you may want to post a new thread asking that question.

I’ve just been admitted to San Francisco State University, so I’ve decided that’s where I’m going to go. I’m excited! I was not sure whether to get a BSN or an ADN, because I’m already 46; but I think SFSU is a very attractive place, although a little far away. CAL-State Hayward is closer to my home, but they’re only going to give their answers in mid-June or July, and students at my colleges (Peralta) mentioned that SFSU is a very neat place and that this is what I should choose.

I was thinking earlier that CAL-State Hayward might be better, because they have a higher passing rate at the NCLEX exam, but someone told me that the reason is that they require their students to have an exam at their university first, before trying the Board State exam. I think CAL-State Hayward is a very good university nevertheless. Contra Costa College seems to be pretty high on the list of success at NCLEX exam too. They did not admit me, because they had some prerequisites I did not meet like two courses in physical education and child development. I was admitted at Merritt college, but heard that their present ADN program is too tough. A student told me that only 17 students are now left in the second year of their ADN program.

Thanks for responding

I got my MBA at Hayward, so I don’t want to do another long program. I’m looking at ADN programs due to my age (38). That’s so cool that you’ve been accepted. I’m so jealous. Maybe I’ll see you at Valleycare in Livermore sometime.

Quote from Vivi

Hi Lizz and turbohound !

Thanks for your messages.

You mention Ohlone college, which I visited. It’s a beautiful campus, but a little far away for me. I don’t know Modesto. Chabot college I heard is a very good college. I don’t know what the wages are like unfortunately, but you may want to post a new thread asking that question.

I’ve just been admitted to San Francisco State University, so I’ve decided that’s where I’m going to go. I’m excited! I was not sure whether to get a BSN or an ADN, because I’m already 46; but I think SFSU is a very attractive place, although a little far away. CAL-State Hayward is closer to my home, but they’re only going to give their answers in mid-June or July, and students at my colleges (Peralta) mentioned that SFSU is a very neat place and that this is what I should choose.

I was thinking earlier that CAL-State Hayward might be better, because they have a higher passing rate at the NCLEX exam, but someone told me that the reason is that they require their students to have an exam at their university first, before trying the Board State exam. I think CAL-State Hayward is a very good university nevertheless. Contra Costa College seems to be pretty high on the list of success at NCLEX exam too. They did not admit me, because they had some prerequisites I did not meet like two courses in physical education and child development. I was admitted at Merritt college, but heard that their present ADN program is too tough. A student told me that only 17 students are now left in the second year of their ADN program.

Thanks for responding

Quote from turbohound

I got my MBA at Hayward, so I don’t want to do another long program. I’m looking at ADN programs due to my age (38). That’s so cool that you’ve been accepted. I’m so jealous. Maybe I’ll see you at Valleycare in Livermore sometime.

An MBA, that’s pretty good! If I had one, I think I would go for the nurse practitioner program directly, which is two years like the ADN program. Because you already have a masters degree, I am afraid that SFSU or CAL-State Hayward (?) would not let you apply for another masters degree in nursing. You could always ask if you thought that was a good idea for you. You could apply to Samuel Merritt though. They are expensive, but I was told they’re a very good school, and Kaiser and West Catholic Hospital (I’m not sure what the name is) would reimburse students for their loans.

If you’re unsure, you could apply for both ADN and Master programs (have you thought of physician’s assistant at Stanford/Foothill college, and Samuel Merritt). It’s also a 2 years program.

I forgot to mention in my previous e-mail that Chabot college (ADN program) selects students through a lottery at the end of April (need to apply in January).

All the best to you in your endeavors!

Apr 17, ’04 by suzanne4

Quote from Vivi

An MBA, that’s pretty good! If I had one, I think I would go for the nurse practitioner program directly, which is two years like the ADN program. Because you already have a masters degree, I am afraid that SFSU or CAL-State Hayward (?) would not let you apply for another masters degree in nursing. You could always ask if you thought that was a good idea for you. You could apply to Samuel Merritt though. They are expensive, but I was told they’re a very good school, and Kaiser and West Catholic Hospital (I’m not sure what the name is) would reimburse students for their loans.

If you’re unsure, you could apply for both ADN and Master programs (have you thought of physician’s assistant at Stanford/Foothill college, and Samuel Merritt). It’s also a 2 years program.

I forgot to mention in my previous e-mail that Chabot college (ADN program) selects students through a lottery at the end of April (need to apply in January).

All the best to you in your endeavors!

An MBA is not a Master’s degree in nursing, so you would be able to get an MSN. They are not related to each other in any way. Hope that this helps.

Quote from chad75

sorry about resurecting this old thread but i’m considering moving to the sf area, i am an lpn wanting to fastrack. are there long waiting list for the various fastrack or just general asn/adn programs in sf?

the next rn adn program that starts the soonest for which you could apply is at the city college in san francisco. www.ccsf.edu/
you have to go there on the first day that you are allowed to apply (sometimes in august) – you could go now and get all the info. their 2 year program starts in january 2005. you most likely won’t be able to get any info by phone or to register for nursing by mail either.

for other adn programs, i heard that college of marin is good www.marin .cc.ca.us/
. as well as chabot college in hayward chabot web.clpccd.cc.ca.us/
chabot does a lottery however to select qualified applicants, and they rejected me, because i was not a in-district resident (i think they made a mistake); but they accepted someone else who leaves in alameda.

and contra costa college in san pablo www.contracosta .cc.ca.us

from all the things i heard, and their results at the nclex exams, i do not recommend merritt college in oakland (not to confuse with samuel merritt in oakland, which is a good program).

these may not be the fastest program in your situation, because you say you’re already an lpn; so i don’t know what programs are available in your situation. i believe that for bachelor degrees in nursing, there are faster programs for lpn, so it may be worth it to apply to bachelor programs.

samuel merritt in oakland www.samuelmerritt .edu may still accept applications for the fall 2004, and may have a special program for lpn, i don’t know. samuel merritt is associated with holy names college in oakland, or st mary’s college in moraga where you’d have to take some general education classes (you don’t have to be catholic.) they’re expensive, but good, and i heard that several employers, incl. kaiser and a hospital with a catholic name (catholic west or something like that) offer to reimburse education loans when they hire.

you may also want to check what kind of programs ucsf in san francisco has for lpns at nurseweb.ucsf .edu they’re also expensive, but apparently very good.

the other bachelor in nursing programs that i know are at san francisco state university, where i have been accepted. www.sfsu.edu
and csu hayward www.csuhayward.edu (there is a pre-entrance nln exam to take).

when you apply, make sure to fill out two applications one for the school, and one for the nursing program.

if anyone studied nursing at hayward university or san francisco state university, i’d be interested to know if they liked it or not, and why.

for more info on nursing programs in california, you can go to:


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Vending Machine Business Plan: Did You Think of These Before You Got Started? #office

#vending machine business

#

Vending Machine Business Plan: Did You Think of These Before You Got Started?
by Chris Tomasso

The first things you must consider when making a business plan is, What are your goals? , and Does the math work? Many people first get the idea to get into vending because the notion of passive income and controlling their own destiny is so compelling. While this is true, they forget to calculate if it even makes sense for them.

Without a proper business plan, you can set yourself up for failure from the start. This is because, in vending, there is a significant delay between your actions and your financial results. Whether you make the right or wrong decision, you don t see your outcome for a while. So much money is moving from place to place in vending that it can be hard to track. There are many sources of income: Cash from machines, free vend, subsidizations, renting machines, rebates from corporations, and more. Expenses are varied, including but not limited to: Rent on a warehouse, insurance, vehicle repair and maintenance, machine repair and maintenance, buying product, accounting, and acquiring new accounts. Revenue from the business is the result of thousands of small transactions. In general, your profit is not immediately obvious.

Why create a business plan?

It may seem straightforward, but in a business where the average operating profit is 45%, but the average net profit is just 2%, you can’t afford not to plan. Creating a business plan will help you price your product, set up service schedules, set minimum sales requirements for locations, determine how much you can afford to invest in new business, and it lays the groundwork for your future success.

If you don t create a business plan, you could be working for less than minimum wage in a job that is supposed to give you more time and freedom.

Where do I begin?

A business plan can only be effective if it reflects your specific goals. If you haven t already, ask yourself some of these questions:

  • How many hours are you willing to work?
  • Are you looking to build it and sell it or give it to your kids some day?
  • Is it a retirement vehicle?
  • Will you need to train someone to eventually run it for you?
  • Do you have cash to invest in it or are you building it from scratch?
  • Do you want a flexible schedule or time to travel or spend with loved ones?
  • What resources do you already have? A person who is well connected will have a lot easier of a time starting out than a person who has just moved to the area.
  • Do you have warehouse space or a vehicle you can use?

I strongly encourage you to really consider these questions and how running a vending business will fit in with your overall lifestyle goals. This could take you days or even weeks if you haven t consciously thought of it before. Once you seriously answer all of these questions, you ll need to start doing some math.

Doing the math

The exact math you need to do will be reflective of your specific goals and the resources you need to achieve those goals. As such, it s beyond the scope of this article. If you need help deciding what s realistic for you, I suggest seeking the help of a professional in the vending industry.

What you need to keep in mind is that vending machines have a significant up front investment. It could take a year for the sales of a machine to recoup the cost of buying and installing the machine. This means that, although you will be making cash money immediately, you will not likely profit from those vending machines for at least a year.

This reality needs to be reflected in your business plan. If it takes each of your machines one year to pay off their debt, those machines are not making money for you right now.

How are you making money right now? Do you have this as a side job? Do you offer a service, such as installation or repairing machines for other vendors? Do you have office coffee service where the cost of installation is potentially much cheaper and the per item value potentially much higher?

On the other hand, can you afford to not turn a profit on this machine for the allotted time? Can you afford to add at least 15% to that number to account for maintenance costs? If you can absorb these for the time being, great! If it s not making you a profit, it still may be a good idea, as long as you plan for it.

Growing your vending business

Planning for the future is also part of your business plan. How do you plan to grow your business? Do you plan on making lots of cold calls? Do you plan on generating a referral based business?

Learning vending is a fantastic way to learn how to run any business. This is because, instead of running one giant entity like a restaurant, you are running dozens or hundreds of tiny machines, each with their own cash flow. In doing this you will get really good at recognizing good business opportunities and bad opportunities because you can automatically do the cash flow in your head.

Like many other businesses, a vending business has an economy of scale. Vending supply companies, such as a cash and carry. sell products in cases, so if you only have one snack machine and you buy a case of chips, unless that company only buys one kind of chips then I guarantee your chips will expire before you sell them all.

A case is 64 chips. In an average snack machine, a row for chips is between 10-12 spaces. This means that you will need 6 rows of one kind of chip to sell in no more than two months, because chips usually expire in two months. You will most likely have expired chips in this scenario. If you are in this situation, then you should probably take away your snack machine until you can find a location with a higher volume of sales. A vending business profits immensely from a certain scale, because you can get and utilize cases to offer a variety, get rebates from manufacturers, begin hiring employees so you re not doing as much route driving yourself, and get deliveries from vending supply companies instead of going to them to get product. These are just some of the benefits of scaling up your business.

Since scaling is so important, you must decide if you’ve gotten started in the business too small. If this is your problem, you might be better off selling your route to someone with a larger business and working under them on a contract basis. Otherwise, you will have to secure a large loan in order to purchase a lot more equipment if you want your business to scale up quickly. This debt will then be subtracted from your profits. If you can still make a profit after subtracting all of your business operating costs and paying back the debt for starting the business, then great!

Final Thoughts

The difficulty of creating a sensible business plan is why so many small time vendors go out of business so quickly. More and more the little guys get squeezed out because the cost of running a business is much harsher for a smaller business as it is for a slightly larger business. This is because often time your fixed costs (rent, insurance, product cost, etc) remain the same whether you have two machines or two hundred machines.

This is just barely scratching the surface. If you feel lost, I suggest seeking the advice of someone in the vending industry. I also recommend speaking with Robert Cornelius. He s our resident vending consultant at Vending How. No matter what you choose to do, it pays to plan and plan well.

Chris is the editor and online marketing guy at Vending How. He can also drive more traffic to your website.


Tags : , , , , , , , , , , ,

Vending Machine Business Plan: Did You Think of These Before You Got Started? #secured

#vending machine business

#

Vending Machine Business Plan: Did You Think of These Before You Got Started?
by Chris Tomasso

The first things you must consider when making a business plan is, What are your goals? , and Does the math work? Many people first get the idea to get into vending because the notion of passive income and controlling their own destiny is so compelling. While this is true, they forget to calculate if it even makes sense for them.

Without a proper business plan, you can set yourself up for failure from the start. This is because, in vending, there is a significant delay between your actions and your financial results. Whether you make the right or wrong decision, you don t see your outcome for a while. So much money is moving from place to place in vending that it can be hard to track. There are many sources of income: Cash from machines, free vend, subsidizations, renting machines, rebates from corporations, and more. Expenses are varied, including but not limited to: Rent on a warehouse, insurance, vehicle repair and maintenance, machine repair and maintenance, buying product, accounting, and acquiring new accounts. Revenue from the business is the result of thousands of small transactions. In general, your profit is not immediately obvious.

Why create a business plan?

It may seem straightforward, but in a business where the average operating profit is 45%, but the average net profit is just 2%, you can’t afford not to plan. Creating a business plan will help you price your product, set up service schedules, set minimum sales requirements for locations, determine how much you can afford to invest in new business, and it lays the groundwork for your future success.

If you don t create a business plan, you could be working for less than minimum wage in a job that is supposed to give you more time and freedom.

Where do I begin?

A business plan can only be effective if it reflects your specific goals. If you haven t already, ask yourself some of these questions:

  • How many hours are you willing to work?
  • Are you looking to build it and sell it or give it to your kids some day?
  • Is it a retirement vehicle?
  • Will you need to train someone to eventually run it for you?
  • Do you have cash to invest in it or are you building it from scratch?
  • Do you want a flexible schedule or time to travel or spend with loved ones?
  • What resources do you already have? A person who is well connected will have a lot easier of a time starting out than a person who has just moved to the area.
  • Do you have warehouse space or a vehicle you can use?

I strongly encourage you to really consider these questions and how running a vending business will fit in with your overall lifestyle goals. This could take you days or even weeks if you haven t consciously thought of it before. Once you seriously answer all of these questions, you ll need to start doing some math.

Doing the math

The exact math you need to do will be reflective of your specific goals and the resources you need to achieve those goals. As such, it s beyond the scope of this article. If you need help deciding what s realistic for you, I suggest seeking the help of a professional in the vending industry.

What you need to keep in mind is that vending machines have a significant up front investment. It could take a year for the sales of a machine to recoup the cost of buying and installing the machine. This means that, although you will be making cash money immediately, you will not likely profit from those vending machines for at least a year.

This reality needs to be reflected in your business plan. If it takes each of your machines one year to pay off their debt, those machines are not making money for you right now.

How are you making money right now? Do you have this as a side job? Do you offer a service, such as installation or repairing machines for other vendors? Do you have office coffee service where the cost of installation is potentially much cheaper and the per item value potentially much higher?

On the other hand, can you afford to not turn a profit on this machine for the allotted time? Can you afford to add at least 15% to that number to account for maintenance costs? If you can absorb these for the time being, great! If it s not making you a profit, it still may be a good idea, as long as you plan for it.

Growing your vending business

Planning for the future is also part of your business plan. How do you plan to grow your business? Do you plan on making lots of cold calls? Do you plan on generating a referral based business?

Learning vending is a fantastic way to learn how to run any business. This is because, instead of running one giant entity like a restaurant, you are running dozens or hundreds of tiny machines, each with their own cash flow. In doing this you will get really good at recognizing good business opportunities and bad opportunities because you can automatically do the cash flow in your head.

Like many other businesses, a vending business has an economy of scale. Vending supply companies, such as a cash and carry. sell products in cases, so if you only have one snack machine and you buy a case of chips, unless that company only buys one kind of chips then I guarantee your chips will expire before you sell them all.

A case is 64 chips. In an average snack machine, a row for chips is between 10-12 spaces. This means that you will need 6 rows of one kind of chip to sell in no more than two months, because chips usually expire in two months. You will most likely have expired chips in this scenario. If you are in this situation, then you should probably take away your snack machine until you can find a location with a higher volume of sales. A vending business profits immensely from a certain scale, because you can get and utilize cases to offer a variety, get rebates from manufacturers, begin hiring employees so you re not doing as much route driving yourself, and get deliveries from vending supply companies instead of going to them to get product. These are just some of the benefits of scaling up your business.

Since scaling is so important, you must decide if you’ve gotten started in the business too small. If this is your problem, you might be better off selling your route to someone with a larger business and working under them on a contract basis. Otherwise, you will have to secure a large loan in order to purchase a lot more equipment if you want your business to scale up quickly. This debt will then be subtracted from your profits. If you can still make a profit after subtracting all of your business operating costs and paying back the debt for starting the business, then great!

Final Thoughts

The difficulty of creating a sensible business plan is why so many small time vendors go out of business so quickly. More and more the little guys get squeezed out because the cost of running a business is much harsher for a smaller business as it is for a slightly larger business. This is because often time your fixed costs (rent, insurance, product cost, etc) remain the same whether you have two machines or two hundred machines.

This is just barely scratching the surface. If you feel lost, I suggest seeking the advice of someone in the vending industry. I also recommend speaking with Robert Cornelius. He s our resident vending consultant at Vending How. No matter what you choose to do, it pays to plan and plan well.

Chris is the editor and online marketing guy at Vending How. He can also drive more traffic to your website.


Tags : , , , , , , , , , , ,