Vending Machine Business Plan: The Ultimate Guide

  • 5 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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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

business plan for vending machines examples

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 template

Vending Machine Business Plan Guide + Example

business plan for vending machines examples

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.    

A screenshot of a phoneDescription automatically generated

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.

business plan for vending machines examples

  • 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.

business plan for vending machines examples

  • 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.

business plan for vending machines examples

  • 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.

business plan for vending machines examples

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

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

business plan for vending machines examples

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.

business plan for vending machines examples

 Outlines the company's projected cash inflows and outflows.

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

business plan for vending machines examples

  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.

business plan for vending machines examples

Watch how to create financial projections for your Vending Machine Business

business plan for vending machines examples

Key Point  4 

business plan for vending machines examples

  • 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.

business plan for vending machines examples

  • 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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How to Write a Winning Vending Machine Business Plan + Template

Vending Machine Business Plan

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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BUSINESS STRATEGIES

How to create a vending machine business plan

  • Nirit Braun
  • Sep 12, 2023

How to create a vending machine business plan

Starting a business , especially in the vending machine sector, demands careful planning. While promising, the vending machine sector is not without its challenges. Therefore, it's important to adopt a thoughtful and well-structured approach to maximize your chances of success.

In this article, we'll talk about the the intricacies of creating a business plan tailored specifically to the vending machine business . From conducting comprehensive market research to crafting a strategic financial outlook, this guide with cover all the basic steps to developing a strong, future-proof business plan.

Ready to kick off your vending machine business? Build a website with Wix today.

Why create a vending machine business plan? Main benefits to consider

A vending machine business plan is a strategic document that can help you raise money for your business , crystallize your vision and set realistic goals. A business plan for this type of business typically includes sections addressing market research, competitive analysis, marketing strategies , operational logistics, financial projections and risk management. By addressing each of these element, a vending machine business plan can help with:

Resources planning: Crafting a business plan requires you to conduct thorough research. It forces you to develop a comprehensive understanding of the resources, supplies and staff needed to establish your vending machine business. Including also cost to start an LLC or other business model. By outlining the equipment, inventory and personnel required upfront, you can more accurately estimate startup costs and ongoing operational expenses.

Strategic roadmap: A detailed business plan helps you set achievable goals, establish milestones and better gauge progress. Moreover, the plan can highlight potential challenges and propose solutions, providing a proactive approach to navigating obstacles and uncertainties.

Competitive edge: Creating a business plan will require you to dig deep into customer demographics, consumer preferences and market trends—which you'll then want to use to inform your product strategy or other business decisions. Moreover, you'll find yourself analyzing competitors' strengths and weaknesses to pinpoint your brand's differentiators.

Risk mitigation: A well-structured business plan includes detailed financial projections that outline expected revenues, expenses and profitability over a specified period. These projections can help you understand the financial feasibility of your new business and make informed decisions. Furthermore, by identifying potential risks and outlining risk management strategies, you can safeguard your business against unforeseen challenges.

So, what are the essential elements of a business plan? Here are several to keep in mind as you work through your own plan.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

Your executive summary is a concise overview of your entire vending machine business plan. It serves as an introduction that encapsulates the key points of your plan, providing readers with a quick understanding of your business concept, objectives, strategies and projected outcomes. While it appears at the beginning of the plan, it is often written after the rest of the plan is complete to ensure all crucial details are included.

Writing a clear executive summary for a vending machine business involves distilling the most essential information while maintaining clarity and enthusiasm. It should cover the following aspects:

Briefly introduce your vending machine business, explaining what products you will offer, your target market and the unique value you bring to the industry.

Outline your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).

Mention your key strategies for achieving your goals. This could include market penetration, product diversification or innovative technology utilization.

Highlight what sets your vending machine business apart from competitors. This could be a unique product offering, advanced technology, exceptional customer service or strategic locations.

Provide a brief overview of your financial projections, including revenue estimates, expenses and profitability forecasts.

Introduce key members of your team and their relevant expertise.

Indicate how much capital you are seeking or have secured and how you plan to use it.

Executive summary example:

"VendoTech Ventures aims to revolutionize the vending machine industry by offering a diverse range of healthy and innovative snacks tailored to the on-the-go lifestyle. Our SMART objectives include achieving a 15% market share within the first two years, expanding our product line to include beverages and establishing a network of 100 high-traffic vending locations. Our competitive edge lies in our AI-powered machine selection system and partnerships with local health-conscious suppliers. We seek an initial investment of $500,000 to fund product development, machine deployment and marketing initiatives. Our team boasts combined expertise in technology, food science and business management, ensuring successful execution. With a projected revenue of $800,000 and a 30% profit margin by Year 3, VendoTech Ventures is poised to become a leader in vending machine innovation."

02. Business and domain names

Before you register your business , you need to figure out what to name the business . Your company name should reflect your brand's identity and resonate with your target audience. It's the first impression customers and investors will have of your business. Similarly, your domain name is your digital address and a critical aspect of your online presence.

Consider using a business name generator to brainstorm ideas for your company name. Aim for a name that's memorable, easy to spell and evokes a positive impression related to your vending machine business.

Your domain name should reflect your small business's name or core offerings. This ensures consistency and makes it easier for customers to find you online. Keep it concise and avoid using complex words or special characters that can lead to confusion. If possible, include relevant keywords in your domain name to improve search engine optimization (SEO) and make your business more discoverable online. Verify that your chosen domain name is available by checking domain registration platforms. Aim for a .com domain, as it's the most recognized and commonly used extension.

03. Market analysis and research

The market analysis and research section of your business plan provides insights into the competitive landscape and consumer behavior. This data is essential for crafting a well-informed business strategy.

Start by defining your target audience based on demographics, psychographics and behavioral factors. Understand their preferences and needs. At the same time, evaluate your competitors' strengths, weaknesses, pricing strategies and market positioning. Identify gaps in the market that your vending machine business can fill.

Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis to gain a holistic view of your business's internal and external factors. Research industry trends, technological advancements and emerging consumer preferences. This information will help you stay ahead of the curve.

04. Operations plan

The operations plan in your vending machine business plan outlines the practical aspects of running your business efficiently. It covers aspects such as your location, premises, equipment and staffing needs.

Location : Detail how you'll identify high-traffic locations for your vending machines. Consider factors like foot traffic, target demographics and proximity to competitors.

Equipment : Specify the types of vending machines you'll use, including their features and capabilities.

Staffing : Determine the number of staff members required to manage inventory, restocking, maintenance and customer inquiries.

Example of an operations plan

"Location selection will be guided by thorough demographic analysis and foot traffic assessment. Our initial focus will be on office complexes and university campuses, where our target audience of busy professionals and students is likely to frequent. Our vending machines, equipped with state-of-the-art touchscreens and cashless payment systems, will offer an array of healthy snack options. We'll employ a dedicated team of two technicians for regular machine maintenance, ensuring optimal functionality and product availability."

05. Marketing and advertising plan

The marketing and advertising plan elucidates how you'll promote your vending machine business to attract customers and build brand awareness. You’ll need to define your marketing channels, such as your business website , social media, content marketing, email campaigns and partnerships.

Then detail your specific marketing campaigns designed to resonate with your target audience and drive engagement. Describe how you'll use these campaigns and strategies to establish your brand identity through consistent messaging and visual elements. You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use Wix’s free logo maker to get a professional logo in minutes.

Example of a marketing strategy for a business plan

"Our marketing strategy includes a combination of online and offline channels. We'll leverage social media platforms like Instagram and Facebook to showcase our diverse snack offerings and engage with our audience through interactive posts and contests. Additionally, we'll collaborate with local gyms and wellness events to position our brand as a champion of healthy snacking. Our 'Snack Smart, Live Better' campaign will emphasize the nutritional benefits of our products and the convenience they offer."

06. Financial plan

The financial plan section of your business plan outlines the financial aspects of your vending machine business, including startup costs, revenue projections and funding sources.

Detail the expenses required to launch your vending machine business, covering equipment, inventory, location setup, legal fees and marketing. Then provide an estimate of your projected revenue based on sales volume, pricing and market potential. Make sure to always list ongoing expenses, such as restocking, maintenance, rent (if applicable) and staffing costs.

You’ll need to indicate how you plan to fund your business ideas or idea initially, whether through personal savings, loans, investments or grants. Finish by outlining when you expect your business to become profitable based on your projected financials.

steps for developing a business plan

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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.

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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.

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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.

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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?

Form an LLC in your state!

business plan for vending machines examples

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.

business plan for vending machines examples

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.

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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.

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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

Key Success Factors for Vending Machine Business Plan

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.

Need a Business Plan Writer For Your Vending Macine Business?

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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.

Vending Machine Business Plan

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

Funding Sources for Vending Machine Business Pan

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.

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How to write the business plan for a vending machine company

vending machine business plan

Are you looking to start a vending machine business or grow an existing one? Writing a business plan is essential for success in this competitive industry.

A well-crafted business plan can help you identify potential opportunities and challenges, establish realistic goals and objectives, and secure financing from investors or lenders.

This guide provides an in-depth look at how to write a comprehensive business plan for your vending machine company.

We cover why it's important to have one, what information you need to include, the components of the plan itself, as well as some useful tools that will make writing your business plan easier.

So, let's get started!

In this guide:

Why write a business plan for a vending machine company?

Information needed to create a business plan for a vending machine company, how do i build a financial forecast for a vending machine company, the written part of a vending machine business plan, what tool should i use to write my vending machine business plan.

There are several reasons to write a vending machine business plan. Below, we cover some of the most important ones!

To draw up a roadmap

Writing a business plan for a vending machine company is an important step for entrepreneurs looking to start or grow their businesses.

A well-crafted business plan will help you identify and set objectives that are achievable over the next 3 to 5 years.

For existing businesses, writing a comprehensive business plan can be beneficial in evaluating current operations and planning to ensure continued success.

Not only does it provide direction and help focus on short-term goals, but it also helps you anticipate future challenges and opportunities so you can adjust accordingly.

To compare financial performance

It also enables you to regularly compare your financial performance against what was initially planned and adjust future financial forecasts accordingly.

This way, you can continually assess whether business finances are headed in the right direction and make adjustments as needed to stay on track with achieving long-term goals.

To raise financing from investors or banks

When looking for financing from an equity investor or a bank to start or grow a vending machine company, it is essential to have a comprehensive business plan.

This document will provide lenders with key information about your company and its prospects for growth and profitability.

The plan should demonstrate that investing in your vending machine business is likely to generate a good return on investment. Lenders will use your financial forecast to calculate metrics and ratios.

It should include details of how you intend to drive sales, manage expenses, manage cash flow and build value over time.

An effective business plan can be the difference between success and failure when seeking funds from investors.

Now that we understand why it is important to write a business plan for a vending machine company, let's look at the information needed to create such a plan.

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Writing a vending machine business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your plan!

Carrying out market research for a vending machine company

Carrying out market research is an important step before writing a business plan for a vending machine company.

Market research helps identify potential customers, understand their needs and preferences, and accurately forecast revenues.

It can also provide valuable insights into the competitive landscape that will enable you to develop strategies for success.

By carrying out market research, you'll be able to create a realistic financial forecast which is essential when trying to raise financing from investors or banks.

Developing the marketing plan for a vending machine company

Developing an appropriate sales & marketing plan, and budget, for your vending machine company is crucial before writing a business plan.

This will ensure that you have a clear go to market strategy in place, and that you allocate sufficient resources to hit your sales target when you incorporate these numbers in your financial forecast.

The staffing and equipment needs of a vending machine company

When writing a business plan for a vending machine company, it is important to include a thorough recruitment plan and investment strategy.

To do this effectively, you will need to think how the business will operate from a practical point of view. Where will you buy or manufacture the vending machines? How will they be delivered to customers? Who will service them? Etc.

This helps to ensure that you can realistically plan for the cash outflows required to hire personnel and purchase necessary equipment.

After gathering the necessary information to create a business plan for a vending machine company, the next step is to create your financial forecast.

A vending machine financial forecast has three key statements to it: the profit and loss, balance sheet and cash flow forecast. It also has a source and uses a table that details startup costs and expenses.

In the following sections, we explain each one in more detail.

The projected P&L statement

The projected P&L statement of a vending machine business shows how much income it will generate and how profitable it will be in the future.

example of projected profit and loss statement in a vending machine business plan

The projected balance sheet of your vending machine company

A vending machine balance sheet is one of the most important financial documents because it reveals the current financial position of a business.

It is a statement that shows the assets, liabilities, and equity of the company at a specific point in time.

  • Assets, such as cash are owned by the vending machine company and can provide future economic benefits.
  • On the other hand, liabilities represent debts and other obligations the company has to pay in the future.
  • Equity includes capital contributions from owners and retained earnings, which is the profit the company has accumulated since its inception.

The balance sheet is used to assess the financial position of your vending machine company.

It helps to gauge the company’s ability to pay its current liabilities, such as accounts payable and other short-term debts by calculating key metrics such as the current ratio or quick ratio. And to assess its borrowing capacity.

example of projected balance sheet in a vending machine business plan

The projected cash flow statement

A projected cash flow statement is a helpful tool for a vending machine company. It shows how much cash the company expects to generate or consume each month, as well as how much cash it will have left in the bank at any given time.

This helps the company plan ahead and budget its outflows so that it can make sure it has enough cash.

Knowing this information helps you decide when to invest and purchase more vending machines, or when to seek financing to avoid cash shortfalls.

example of projected cash flow statement in a vending machine business plan

The initial financing plan

An initial financing plan, also known as a sources and uses table, is a helpful tool which shows how you will finance the creation (or expansion) of your vending machine business.

vending machine business plan: example of sources and uses of funds

Now that we have discussed the financial forecast of our vending machine company business plan, let's look at the content of the written part of the plan, which provides the context needed to interpret the figures of your forecast.

The written part of a vending machine business plan has seven key sections.

From drafting an executive summary to presenting your financials, let's have a look at each of them!

1. The executive summary

The executive summary of a vending machine company business plan should provide a comprehensive overview of the company's operations, objectives, and strategies.

It should start with a concise description of the business, including its history, growth prospects and competitive advantages.

The market overview should then outline the size, scope and outlook of the vending machine industry, plus any key trends that could affect the business.

Following this, the summary should include a brief overview of key financial information, such as projected revenue and profits, capital requirements, and sources of funding.

2. The presentation of the company

The presentation of a vending machine company's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure, key stakeholders, and any partners or investors. It is important to clearly define each partner's stake in the business.

The location part should give an overview of where the company is implanted and what serviceable area it targets.

The management team should be given special attention in a vending machine business plan. This section should provide an overview of each member of the management team, including their background and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, as this will help potential investors understand why they should trust in their leadership.

3. The products and services section

When writing the products and services section of your vending machine business plan, you should list all of the items that you will offer to customers.

This will depend of whether you are a manufacturer of vending machines or an operator.

If you are an operator, this will includes both food and beverage options as well as any other services or features that may be available to vending machine customers.

Most vending machines store soft drinks, crisps, chocolate and confectionery but yours doesn't have to!

You need to explain how your product offerings differ from those already in the market, so investors can understand why it is worth investing in your business.

If you are a manufacturer you will need to detail the key features of your machines.

customer paying using contactless payment vending machine: pricing section business plan

4. The market analysis

When presenting the conclusion of your market analysis in a business plan, you need to include key aspects such as demographics and segmentation, target market, competition, barriers to entry, and regulation.

Demographics and segmentation are essential factors to consider when analyzing the potential success of a vending machine company. Knowing who your target customers are, how much they can afford to pay and their product preferences can help inform decisions about where to place machines or what type of products should be sold inside them.

Additionally, understanding which segments make up the overall customer base can also be beneficial when crafting marketing campaigns that reach those specific groups.

Knowing who the competition is will also help you shape your strategy for gaining market share. Additionally, researching any existing barriers to entry in the vending machine industry can provide invaluable information on the competitive landscape.

Be sure to also detail any applicable regulations or laws related to the vending machine industry because financier will want to check that your business is compliant with them.

By including these key aspects of your market analysis in your business plan, you can provide readers with a comprehensive understanding of the market conditions in which you operate.

5. The strategy section

A vending machine company should include an effective strategy section in their business plan that outlines pricing, sales & marketing approaches, milestones, risks and mitigants.

When creating a pricing strategy for your vending machines, you should consider the cost of producing machines and the cost of contents inside to help establish competitive prices.

When developing a marketing plan, you should consider where and how to advertise your product to reach the target customers.

The strategy section should also include milestones that can be used as markers of success along the way. Your aim might be to reach your break-even level of output within 6 months of launching the business or entering a new market, for example.

Finally, any potential risks associated with starting the business should be addressed along with specific mitigants for each risk identified.

6. The operations section

The operations section of a vending machine company business plan should detail the staffing team, roles of staff members, and recruitment plan.

The recruitment plan should include information such as the method of advertisement, the expected response rate, and the selection standards that prospective candidates need to meet.

It is also important to specify how many people are needed in each role and the qualifications they need to have.

In addition, the operations section of a vending machine company business plan should include details about the key assets and intellectual property that the business needs to operate.

This could include items such as software, hardware, or even trademarks and patents.

It is important to make sure that these assets are fully protected and that any legal documents are in place before the business starts operating.

Also, list the suppliers that you plan to work with to fill the contents of the vending machine and purchase or manufacture the machine itself. Mention why you chose to work with those suppliers (past relationships with them for example).

7. The presentation of the financial plan

This is where you will present the financial forecast that we talked about earlier in this guide.

Now that you have a better understanding of what should be included in your vending machine business plan, it’s time to look at the solutions that can help you create one.

In this section, we will be reviewing several solutions for creating a business plan for a vending machine company, including using Word and Excel, hiring a consultant to write the plan, and utilizing online business planning software.

Create your vending machine company's business plan using Word or Excel

Using Microsoft Word or Excel to create a business plan for a vending machine company has its pros and cons.

On the one hand, using Word and Excel are cost-effective options as they are widely available and familiar to many business owners.

However, it can take a significant time to create a financial forecast accurately, making it a tedious process. This is because modelling will be spread across hundreds of rows and multiple tabs.

And it is hard not to make mistakes unless you have significant experience in financial modelling.

You'll also need to format the document (on Word) once you are done.

Hire a consultant to write your vending machine company's business plan

Outsourcing the vending machine company business plan to a consultant or accountant can be advantageous and disadvantageous in equal measure.

On the plus side, consultants are used to writing business plans, while accountants have the financial acumen to create accurate financial forecasts without errors.

This can be invaluable in ensuring that investors and banks are presented with a comprehensive and accurate business plan.

However, outsourcing a vending machine company's business plan comes with its own set of drawbacks.

Accountants lack industry expertise to accurately forecast sales figures. Additionally, hiring consultants or accountants will be expensive, and there may be extra costs associated with any updates or modifications that need to be made.

Use an online business plan software for your vending machine company's business plan

Another alternative is to use online business plan software. There are several advantages in doing so.

  • You are guided through the writing process by detailed instructions and examples for each part of the plan 
  • You can be inspired by already-written business plan templates and examples
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you
  • You get a professional document, formatted and ready to be sent to your bank or investors
  • You can easily compare your forecast against your accounting data to make sure you are on track to deliver your plan, or make adjustments if needed

If you're interested in using this type of solution, you can try our software for free by signing up here . 

We hope that this article has helped you to better understand how to write the business plan for your vending machine company. Do not hesitate to contact us if you still have questions!

Also on The Business Plan Shop

  • Practical example of a business plan outline
  • How investors analyse business plans
  • How to do a market analysis for a business plan

Know someone in the vending machine industry? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Page last updated on 27 Jun 2023 , as per our editorial standards (originally published on 20 Jan 2023 ).

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ProfitableVenture

Vending Machine Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Retail Industry » Vending Machine

Vending Machine Business

A vending machine business entails owning and operating vending machines that distribute a variety of products such as snacks, beverages, coffee, and other items. The business owner buys or leases vending machines and positions them in high-traffic areas, such as office buildings, schools, hospitals, or shopping malls, where people can easily access them.

The vending machine collects money from clients, usually in the form of coins, bills, credit cards, or mobile payments, and then dispenses the specified product.

Steps on How to Write a Vending Machine Business Plan

Executive summary.

Go Grab® Vending Machine, Inc. is a vending machine business based in Los Angles, California and with an active presence in key cities all across California. We are well-equipped and trained to serve high-quality products to customers of all ages.

Our target market includes families with young children, college students, and individuals of all ages looking for drinks and snacks on the go. We plan to operate primarily in offices, hospitals, hotels, residential areas, parks, and popular public facilities to maximize our exposure and customer reach.

To support our business, we have secured fully equipped and customized vending machines, licensed by local authorities and compliant with all health and safety regulations. Our team consists of experienced and friendly staff who are passionate about creating a memorable experience for our customers. Mildred Merrick is the founder and CEO of Go Grab® Vending Machine, Inc.

Company Profile

A. our products and services.

At Go Grab® Vending Machine, Inc., our menu features a variety of snacks, drinks, and bottled water. We also offer dairy-free and vegan options to accommodate customers with dietary restrictions. To guarantee the quality and freshness of our products, we will work with local suppliers and distributors.

b. Nature of the Business

Our vending machine business will operate the business-to-consumer business model.

c. The Industry

Go Grab® Vending Machine, Inc. will operate in the vending machine and retail industry.

d. Mission Statement

Our mission at Go Grab® Vending Machine, Inc. is to give our customers more accessible food and beverage options while promoting healthy and sustainable lifestyle choices.

e. Vision Statement

Our vision at Go Grab® Vending Machine, Inc. is to become a leading vending machine business in the United States, offering a wide range of snacks, drinks, and bottled water.

f. Our Tagline (Slogan)

Go Grab® Vending Machine, Inc. – Bring Snacks and Drinks to You!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Go Grab® Vending Machine, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

  • Chief Executive Officer (Owner)
  • Accountant (Cashier)
  • Vending Machine Operators
  • Truck Driver

i. Ownership / Shareholder Structure and Board Members

  • Mildred Merrick (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Rhodes Morgan (Board Member) 18 Percent Shares
  • George Jason (Board Member) 10 Percent Shares
  • Victor Manson (Board Member) 10 Percent Shares
  • Deborah Daniels (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

  • Ability to quickly adjust the menu and prices based on customer preferences
  • Low startup costs compared to opening a brick-and-mortar store
  • Ability to serve customers quickly and efficiently, leading to high customer satisfaction
  • The business can be scaled up by adding more machines in new locations.
  • Easy to manage and operate with a small team
  • High mobility and flexibility, allowing the business to move to locations with high customer traffic.
  • Vending machines are incorporating advanced technology such as cashless payment systems and remote monitoring to improve efficiency and customer convenience.

b. Weakness

  • Limited menu options compared to a regular store
  • Fluctuations in sales during certain times of the year, such as during holiday periods and school breaks.
  • The success of the vending machine business relies heavily on the location and foot traffic of each machine.
  • Heavy competition from other vendors, including other vending machines and food trucks.

c. Opportunities

  • Ability to expand the business by securing regular locations at popular public facilities, hospitals, offices, and schools.
  • There are always opportunities to place machines in new locations that can provide a steady stream of revenue.
  • The trend towards healthier food and beverage options provides an opportunity to offer healthier products in vending machines.
  • There is an opportunity to incorporate new technology such as touchless payments and digital screens to enhance the customer experience.
  • With busy lifestyles, there is an increased demand for convenience which can be met through vending machines.
  • Opportunity to introduce new menu items and specialty snacks to attract new customers.
  • Possibility to partner with local businesses or organizations to provide catering services.

i. How Big is the Industry?

The vending machine industry is indeed a big industry. The global vending machine market was valued at $18.28 billion in 2019 and is expected to reach $25.25 billion by 2027, growing at a 6.7% CAGR between 2021 and 2027. From 2019 to 2027, the market is predicted to generate an additional $6.97 billion in sales.

ii. Is the Industry Growing or Declining?

Yes, the vending machine industry is growing and available data shows that more entrepreneurs and even conglomerates are venturing into the vending machine retail business to reach out to a specific target market.

iii. What are the Future Trends in the Industry

As consumers continue to prioritize healthier and more diverse drinks and snack options, vending machines may need to adapt their menus to meet these changing preferences. This could include offering more options. Vending machines may increasingly integrate technology into their operations, such as touchless payments and digital screens to enhance the customer experience.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to vending machine business, and here are some of them;

  • Art vending machines
  • Beauty product vending machines
  • Drinks and snacks vending machines
  • Healthy vending machines
  • Personal protective equipment (PPE) vending machines
  • Pet care vending machines
  • School supplies vending machines
  • Sneaker vending machines

v. Can You Sell a Franchise of Your Business in the Future?

Go Grab® Vending Machine, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.

  • An economic downturn can lead to a decrease in consumer spending and a reduction in vending machine usage.
  • Changes in consumer preferences and trends can affect the demand for certain products and potentially impact sales.
  • The vending machine industry is highly competitive, and new entrants or existing competitors may impact market share and revenue.
  • The COVID-19 pandemic has highlighted the importance of health and safety, which may affect customer behavior toward vending machines.
  • The vending machine industry is subject to various regulations which can impact business operations and costs.

i. Who are the Major Competitors?

  • Express Vending
  • Farmers Fridge
  • Fresh Healthy Vending
  • Gilly Vending
  • Healthy You Vending
  • Naturals2Go
  • Procter & Gamble
  • SnackNation
  • ZoomSystems
  • 24 Hour Vending.

ii. Is There a Franchise for Vending Machine Business?

Yes, there are franchise opportunities for vending the machine business, and some of them are;

  • American Vending Machines
  • Healthy Cravings Naturals2Go
  • HUMAN Healthy Vending
  • Seaga Manufacturing
  • U-Turn Vending.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Vending Machine Business?

Yes, there are county or state regulations and zoning laws for vending machine businesses in the United States. Before they may operate, many counties and states require vending machine businesses to get a business license. Municipal zoning restrictions may limit the location of vending machines. Vending machines, for example, may be outlawed in residential areas or confined to specific types of commercial zones.

Vending machine firms in some counties or states are required to get permits for each machine they operate. Vending machine firms may be subject to health and safety standards, such as food handling, storage, and temperature control requirements.

Depending on the region and type of products sold, vending machine firms may be liable to sales tax or other taxes. Businesses that sell vending machines must follow the Americans with Disabilities Act (ADA), which requires accessible design for individuals with disabilities.

Marketing Plan

A. who is your target audience, i. age range.

Our target market comprises people of all ages.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who will make use of our vending machines.

iii. Income Level

There is no cap on the income level of those who will make use of our vending machines.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people who will make use of our vending machines.

v. Language

There is no restriction when it comes to the language spoken by the people who will make use of our vending machines.

vi. Geographical Location

Anybody from any geographical location is free to use our vending machines wherever they are located.

vii. Lifestyle

Go Grab® Vending Machine, Inc. will not restrict any customer from purchasing drinks and snacks from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

  • Deliberately Brand All Our Vending Machines with Attractive and Bright Colors.
  • Tap Into Text Marketing.
  • Make Use of Billboards.
  • Share Our Promos in Local Groups and Pages.
  • Turn Our Social Media Channels into a Resource
  • Develop Our Business Directory Profiles
  • Build Relationships with players in the retail industry and the public facility management industry.

i. Traditional Marketing Strategies

  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

  • Affiliate Marketing
  • Content Marketing.
  • Email Marketing.
  • Influencer Marketing.
  • Mobile Marketing.
  • Social Media Marketing Platforms.
  • Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market.
  • Regularly update our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Go Grab® Vending Machine, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Competition-Based Pricing
  • Penetration Pricing
  • Value-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our sales channel strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the retail industry, the public facility management industry, and freelancers to help refer customers to us.

Go Grab® Vending Machine, Inc. will also use marketing’s four Ps: place, pricing, product, and promotion. We will create visible, in-demand products that are competitively priced and advertised to our clients by carefully integrating all these marketing methods into a marketing mix.

b. Inventory Strategy

The fact that we will need regular supplies of drinks, snacks, and bottled water, means that Go Grab® Vending Machine, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.

We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Go Grab® Vending Machine, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Go Grab® Vending Machine, Inc. will make available to her clients;

  • Cash (inserting coins or bills into the machine to make a purchase)
  • Contactless payments
  • Credit/debit cards
  • Mobile payments (such as Apple Pay or Google Wallet, which allows customers to make purchases using their smartphones)
  • Loyalty cards
  • Prepaid cards.

d. Return Policy, Incentives, and Guarantees

At Go Grab® Vending Machine, Inc., our customers are our top priority, hence our vending machine business offers a 30-day return policy for all purchases. If you are not satisfied with your purchase, please contact us within 30 days of the purchase date to arrange a return.

Returned items must be in their original packaging, unused, and in the same condition as when they were received.  Please note that the customer is responsible for the return costs. Go Grab® Vending Machine, Inc. also offers various incentives to our customers, including loyalty programs and discounts for bulk purchases.

For example, customers who make frequent purchases from our vending machines can join our loyalty program, which provides exclusive discounts, special offers, and rewards for their continued business. Additionally, we offer discounts for bulk purchases, such as buying multiple items at once.

e. Customer Support Strategy

Customers’ feedback will be sought as part of our customer service strategy. This will help us provide excellent customer service to our clients. We will work in partnership with stakeholders by using a good CRM platform to do this.

Operational Plan

Our operational plan will cover the day-to-day operations of the business, including procurement, vending machine restocking, equipment maintenance, staffing, and customer service.

a. What Happens During a Typical Day at a Vending Machine Business?

  • Restocking the vending machines
  • Cash Collection from the vending machines
  • Maintenance of vending machines
  • Inventory Management
  • Ongoing Customer Service
  • Administrative Tasks
  • Marketing/website upkeep
  • At the end of the day, the vendor cleans and sanitizes the vending machine, restocks supplies, and secures the equipment for the next day’s service.

b. Production Process

There is no production process for vending machine business.

c. Service Procedure

The service procedure for a vending machine business is focused on maintaining the machines in good working order, keeping them stocked with desirable products, and providing excellent customer service to ensure customer satisfaction and repeat business.

d. The Supply Chain

The supply chain for our vending machine business includes working with suppliers, transportation providers, and distributors to ensure that products are efficiently and effectively procured, loaded into the vending machines, and delivered to customers. Effective communication and planning are essential for managing the supply chain and meeting consumer demand.

e. Sources of Income

Go Grab® Vending Machine, Inc. will make money from selling drinks, water, and snacks.

Financial Plan

A. amount needed to start your vending machine business.

To successfully set up our vending machine in the United States of America, Go Grab® Vending Machine, Inc. would need an estimated $150,000 in funding. Please keep in mind that this figure covers all of our employees’ salaries for the first month of operation.

b. What are the Costs Involved to Open a Vending Machine Business?

  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $1,300.
  • Business Consultant Fee – $2,500.
  • Business registration fee: $750
  • Vending machines: $70,000
  • Initial inventory: $10,000
  • Permits and licenses: $500-$2,000
  • Insurance: $500-$1,000
  • Marketing and branding (logo design, website, social media): $500-$2,000
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it Cost?

Go Grab® Vending Machine, Inc. will not build a new facility for our vending machine business because by nature the vending machine business leverages public facilities to install their vending machines.

d. What are the Ongoing Expenses for Running a Vending Machine Business?

  • Product costs (supplies)
  • Machine maintenance
  • Location fees
  • Transportation
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Marketing costs.

e. What is the Average Salary of your Staff?

  • Chief Executive Officer – $55,000 Per Year
  • Manager – $45,000 Per Year
  • Accountant – $35,630,000 Per Year
  • Truck Driver – $27,100 Per Year
  • Vending Machine Operators – $26,000 Per Year

f. How Do You Get Funding to Start a Vending Machine Business?

  • Personal savings
  • You can apply for a small business loan from a bank or other financial institution
  • You can use crowdfunding platforms such as Kickstarter or GoFundMe to raise money for your vending machine business.
  • Research and apply for grants that are applicable to your vending machine business.
  • Consider partnering with an investor who can provide funding in exchange for a percentage of ownership in the business.
  • You can also seek funding from friends and family members who are willing to invest in your vending machine business.

Financial Projection

A. how much should you charge for your product/service.

We will usually charge based on the products in stock in our vending machines.

b. Sales Forecast?

  • First Fiscal Year (FY1): $120,000
  • Second Fiscal Year (FY2): $240,000
  • Third Fiscal Year (FY3): $300,000

c. Estimated Profit You Will Make a Year?

  • First Fiscal Year (FY1) (Profit After Tax): $50,000
  • Second Fiscal Year (FY2) (Profit After Tax): $120,000
  • Third Fiscal Year (FY3) (Profit After Tax): $180,000

d. Profit Margin of a Vending Machine Business Product/Service

The ideal profit margin we hope to make for Go Grab® Vending Machine, Inc. will be between 15 and 35 percent depending on the type of products retailed.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Go Grab® Vending Machine, Inc. will grow our vending machine business by expanding to major cities in the United States and by selling franchises not just in the United States, but also in Canada and the United Kingdom.

b. Where do you intend to expand to and why?

Go Grab® Vending Machine, Inc. plan to expand to the following cities;

  • Atlanta, Georgia
  • Boston, Massachusetts
  • Chicago, Illinois
  • Dallas, Texas
  • Las Vegas, Nevada
  • Los Angeles, California
  • New York City, New York
  • San Antonio, Texas
  • Phoenix, Arizona
  • San Diego, California.

We are expanding to these cities because, these cities have large populations, a thriving business environment, and a diverse consumer base that may be receptive to new and innovative vending retailing concepts.

The founder of Go Grab® Vending Machine, Inc. Mrs. Mildred Merrick plans to exit the business via family succession. Go Grab® Vending Machine, Inc. has placed structures and processes in place that will help the company achieve its plan of successfully transferring the business from one family member to another and from one generation to another without any difficulties.

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Sample Vending Machine Business Plan

Vending machine business plan pdf 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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Vending Machine Business Plan

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Step 2: add a checklist as part of the strategy, step 3: have a backup plan, step 4: review, update, and focus on your business plan.

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Vending Machine Business Plan Sample

APR.23, 2018

Vending Machine Business Plan Sample

Vending machine business plan for starting your own company

Starting a vending machine business is very easy and extremely profitable as well. If you don’t know how to start a vending business , just go through this vending machines business plan . It will guide you through everything which you need to know for starting this venture.

The first thing you should do is to develop a comprehensive plan for your business. The vending machines business plan will not only help you in startup but it will also help you in taking important decisions for your company over the next years. In case you don’t know how to write a good vending machine business plan , we are providing a detailed business plan of a vending machine business startup ‘Crunch & Cool’ to help you avoid the trouble of making a plan yourself.

Executive Summary

2.1 the business.

Crunch & Cool will be a licensed and insured vending machine business whose main office will be located in Downtown Manhattan. The company’s warehouse for storing the products will be at a 10 minutes’ drive from the main office.

2.2 Management

The business will be solely owned and operated by Jack Kith. Jack will hire a small team comprising of sales executives, drivers, technicians and assistants for helping him in his venture.

2.3 Customers

Our customers will primarily be the residential and working-class community living in Manhattan but with time, we also plan to increase our business in other cities as well.

2.4 Target of the Company

Our primary target is to become the best vending machine business in Manhattan within next 3 years of our launch. As per our vending machine business plan example , our secondary target is to achieve the net profit margin of $10k/month by the end of the first year, $15k/month by the second year, and $25k/month by the third year.

Vending Machine Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Jack is a business graduate of Harvard University. After completing his Bachelor’s, he worked with a couple of fast-food restaurants business plan at executive positions. He is known for his sharp business acumen and exceptional management skills.

3.2 Why the vending machine business is being started

The main motive behind Jack opening a vending machine business plan  is his intense passion for business. Jack has exceptional business skills and this venture is just his first step into the business world.

3.3 How the vending machine business will be started

The company will buy used vending machines for startup which will then be installed in several regions in Manhattan. Nearly 35% of machines will be located in the residential zone while the remaining will be distributed in the commercial zone as well as near schools, offices, and other institutions. The company’s financial experts have forecasted following costs for the start-up:

Vending Machine Business Plan - Startup cost

The detailed start-up information is as follows:

Services for customers

Before you move to starting a vending machines business plan , you must plan what type of vending machines will you install and what products will they provide to your customers because you can only plan the subsequent things after this stage. Our vending machines will offer following products:

  • Snacks such as chips, cookies, cakes etc.
  • Drinks and beverages including milk
  • Hot served drinks including tea and coffee
  • Frozen foods, chilled drinks and ice creams
  • Cigarettes and lottery tickets

Marketing Analysis of vending machine business

The most important component of effective vending machine business plans is their marketing analysis that’s why Jack acquired the services of marketing experts to help him through this phase. It is only after this stage that a good vending machine marketing strategy for business could have been developed.

After identifying the local market trends in Manhattan, the marketing experts and analysts helped him in developing a brilliant vending machine business model. If you are starting on a small scale then you can carry out a marketing analysis yourself by taking help from this vending machines business plan template.

5.1 Market Trends

The vending industry annually contributes about $30 billion in revenue to the United States. There are more than 7 million vending machines in the United States and nearly 100 million Americans use one of the installed vending machines each day. Considering the convenience they provide to the users, the number of installed vending machines have been increasing during the last few years. In short, this industry has a lot of potential and a business in this industry can yield immense profit provided that you plan it successfully.

5.2 Marketing Segmentation

Our marketing experts have identified following type of target audience which can become our potential customers.

Vending Machine Business Plan - Market Segmentation

The detailed marketing segmentation comprising of the company’s target audience is as follows:

5.2.1 Working Community:

The first category includes the workers and employees who work in the businesses or offices in Manhattan. This group leads a strenuous life, burdened with plenty of work and thousands of matters to think upon. Due to their busy routine, most of the time they can’t go to restaurants and hence use vending machines for grabbing a bite.

5.2.2 Residential Community:

The second group of our target customers will be the residential community. This group comprises of children, teens, adults and senior citizens. They also use vending machines to conveniently get their required products as compared to visiting the stores.

5.2.3 Passers-by:

The third category includes those people who do not work or reside in our target areas but have come to for any business purpose or commercial activity. This group also often tends to stop by vending machines for having a quick snack, beverages or cigarettes. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are as follows:

  • To become the best vending machine business in Manhattan within next 3 years of our launch
  • To recover the initial investment within next 1 year of launch
  • To expand the business and install vending machines in 3 other cities within 5 years

5.4 Product Pricing

After considering the market demands, we have priced all our products in the similar ranges as of our competitors.

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.

Sales strategy is an important component of any startup plan hence it must be given proper attention before you think about how to start a vending machine business .

6.1 Competitive Analysis

Vending machine industry is one of the most competitive industries since there are more than 7 million vending machines in the United States so any startup in this industry has a really tough competition. To survive in such competitive environment, you must come up with some competitive advantage before thinking about how to open a vending machine business . Our competitive advantage is that our vending machines will be always full of fresh products and stock. We will make sure our every customer gets everything from our vending machines so that they don’t need to visit stores or other places.

6.2 Sales Strategy

We will install our machines at all those places where there are no prior vending machines installed. We will offer a 10% discount on all products for the first three months of our launch. We will also paint vending machines in various eye-catching themes for the purpose of attracting customers.

6.3 Sales Monthly

Vending Machine Business Plan - Sales Monthly

6.4 Sales Yearly

Vending Machine Business Plan - Sales Yearly

6.5 Sales Forecast

Our forecasted sales pattern is given in the following column chart:

Vending Machine Business Plan - Unit Sales

The detailed sales forecast is given in the following table:

Personnel plan

After deciding the strategy, you must prepare a personnel plan before you start your own vending machine business . The personnel plan of Crunch & Cool is as follows:

7.1 Company Staff

Jack will act as the CEO of the company and will initially hire following people:

  • 1 Warehouse Manager for managing the operations at company’s warehouse
  • 2 Sales Executives responsible for marketing initiatives
  • 15 Assistants for filling vending machines with stock
  • 4 Drivers for transporting products
  • 2 Technicians for ensuring the vending machines keep working perfectly

7.2 Average Salary of Employees

Financial plan.

The final thing to do before you think about how to open a vending machine business plan is to develop a comprehensive financial plan which will cover the detailed costs of startup.

8.1 Important Assumptions

8.2 brake-even analysis.

Vending Machine Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Vending Machine Business Plan - PROFIT MONTHLY

8.3.2 Profit Yearly

Vending Machine Business Plan - PROFIT YEARLY

8.3.3 Gross Margin Monthly

Vending Machine Business Plan - GROSS MARGIN MONTHLY

8.3.4 Gross Margin Yearly

Vending Machine Business Plan - GROSS MARGIN YEARLY

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Vending Machine Business Plan - Projected Cash Flow Diagram

The following table shows the projected cash flow:

8.5 Projected Balance Sheet

The following table shows projected balance sheet:

8.6 Business Ratios

The following table shows data about business ratios:

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IMAGES

  1. Vending Machine Business Plan Template Sample Pages

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  2. Vending Machine Business Plan Template

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  3. Vending Machine Business Plan

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  4. Vending Machine Business Plan Template Sample Pages

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  5. Vending Machine Business Plan Template Sample Pages

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  6. Vending Machine Business Plan Template [Updated 2022]

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VIDEO

  1. How to start a vending machine business 🩷 #vendingmachinebusiness

  2. How to start a vending machine business 🩷 #vendingmachinebusiness

  3. How to start a vending machine business 🩷 #vendingmachinebusiness

  4. How I would start a vending machine business in 2024

  5. 2024 Vending Machine Business Tips for Beginners #vending

  6. Learn how to start a Vending Machine business in 2024 #vending

COMMENTS

  1. Vending Machine Business Plan Template [Updated 2024]

    Explain to them the type of vending machine business you are operating and the status; for example, are you a startup, do you have a vending machine business that you would like to grow, or are you operating a chain of vending machine businesses. Next, provide an overview of each of the subsequent sections of your plan.

  2. Vending Machine Business Plan Template + Guide

    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.

  3. Vending Machine Business Plan Template (2024)

    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.

  4. 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.

  5. Vending Machine Business Plan: A Step-by-Step Guide (2024)

    Industry Overview The global vending machine industry stood at a market value of 30.30 billion dollars in 2018 and is expected to grow at a rapid pace in the coming years too. Vending machines are super convenient and accessible.

  6. How To Start A Vending Machine Business

    Step 2: Find the Right Location. Depending on what kinds of machines you have, you can start to find space in commercial businesses and craft a route. Since it will be you or an employee refilling ...

  7. How To Write A Winning Vending Machine Business Plan

    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.

  8. How to create a vending machine business plan

    A vending machine business plan is a strategic document that can help you raise money for your business, crystallize your vision and set realistic goals.A business plan for this type of business typically includes sections addressing market research, competitive analysis, marketing strategies, operational logistics, financial projections and risk management.

  9. The #1 Vending Machine Business Plan Template & Guidebook

    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.

  10. Free Vending Machine Business Plan Example

    Add initial vending machine inventory - September 25, 2022. Open for business — September 29, 202. Take professional photos of the vending machines — September 29, 2022. Create a website and google/yelp accounts — October 1, 2022. Make initial employee hire for Inventory upkeep - November 5, 2022.

  11. Vending Machine Business Plan [Sample Template for 2023]

    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.

  12. Vending Machine Business Plan Template

    Your vending machine business plan should include a mission statement. In this section, you highlight what's essential to your business. What are your goals, and how will you reach them? What are your strengths? Who is your audience? What does the industry look like? These are all questions that'll be addressed here. Goals

  13. Vending Machine Business Plan Template

    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.

  14. How to write the business plan for a vending machine company

    A vending machine financial forecast has three key statements to it: the profit and loss, balance sheet and cash flow forecast. It also has a source and uses a table that details startup costs and expenses. In the following sections, we explain each one in more detail. The projected P&L statement. The projected balance sheet of your vending ...

  15. Vending Services Business Plan Example

    Directly place 10 vending machines, that we will operate, in the South Florida area. Achieve $500,000 in sales in our restaurant equipment line. For the following two years our growth objectives are: Grow our vending machine and equipment business by 20% each year. Grow revenues by 25% in our directly operated vending machines.

  16. Vending Machine Business Plan Template

    1 million businesses. Download a free vending machine business plan template with SBA-approved format. Includes pre-filled examples and step-by-step guides for a successful start.

  17. Vending Machine Business Plan [Sample Template]

    The vending machine industry is indeed a big industry. The global vending machine market was valued at $18.28 billion in 2019 and is expected to reach $25.25 billion by 2027, growing at a 6.7% CAGR between 2021 and 2027. From 2019 to 2027, the market is predicted to generate an additional $6.97 billion in sales. ii.

  18. Sample Vending Machine Business Plan

    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.

  19. PDF Free-Version-of-Growthinks-Vending-Machine-Business-Plan-Template

    You simply enter some numbers (for example the # of products/services you expect to sell and the price), and Growthink's Ultimate Vending Machine Business Plan Template automatically builds your 5-year Income Statement, Balance Sheet and Cash Flow Statement.

  20. Sales & Marketing Plan for a Vending Machine Business (Example)

    Sales & Marketing Plan for a Vending Machine Business (Example) Remi December 19, 2023 Business Plan, Sales & Marketing Strategy Launching and running a successful vending machine business requires more than just strategically placing machines; it demands a comprehensive approach to marketing and sales.

  21. 3+ Vending Machine Business Plan Examples in MS Word

    1. Vending Machine Business Plan Template Details File Format MS Word Google Docs Pages Download 2. Company Vending Machine Business Plan growthink.com Details File Format PDF Size: 369 KB Download 3. Food Vending Machine Business Plan

  22. Vending Machine Business Plan Sample

    As per our vending machine business plan example, our secondary target is to achieve the net profit margin of $10k/month by the end of the first year, $15k/month by the second year, and $25k/month by the third year. Landlord business plan Helps commercial tenants get landlord approval. Company Summary 3.1 Company Owner

  23. PDF Vending Machine Business Plan Example

    5. SWOT Analysis. Our intention of starting our vending machine business with a dozen vending machine installed in strategic locations around Detroit, Michigan 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-.