atm business plan pdf

ATM Business Plan Template

Written by Dave Lavinsky

ATM Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their ATM companies.

If you’re unfamiliar with creating an ATM business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an ATM business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an ATM Business Plan?

A business plan provides a snapshot of your ATM business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for an ATM Business

If you’re looking to start an ATM business or grow your existing ATM company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your ATM business to improve your chances of success. Your ATM business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for ATM Businesses

With regards to funding, the main sources of funding for an ATM business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for ATM companies.

Finish Your Business Plan Today!

How to write a business plan for an atm business.

If you want to start an ATM business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your ATM business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of ATM business you are running and the status. For example, are you a startup, do you have an ATM business that you would like to grow, or are you operating a chain of ATM businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the ATM industry.
• Discuss the type of ATM business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of ATM business you are operating.

For example, you might specialize in one of the following types of ATM businesses:

• Independent ATM owner/operator: This is the most common type of ATM business in which an individual owns one or multiple ATM machines that can be located in a variety of places such as retail stores, shopping malls, and more.
• Mobile ATM: The owner/operator of this type of ATM business will book their mobile ATMs for events such as festivals or conventions.
• Bitcoin ATM: This type of ATM machine is for cryptocurrency transactions rather than traditional banking transactions.
• ATM installation and maintenance: This type of business provides installation and maintenance services for an ATM owner/operator.

In addition to explaining the type of ATM business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of transactions completed, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the ATM industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the ATM industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your ATM business plan:

• How big is the ATM industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your ATM business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your ATM business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of ATM business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other ATM businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes online money transfer apps and traditional banking establishments. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of ATM business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to access your ATM?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a ATM business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of ATM company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide mobile ATMs, bitcoin ATMs, or ATM installation services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your ATM company. Document where your company is situated and mention how the site will impact your success. For example, is your ATM business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your ATM marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your ATM business, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to install your Xth ATM, or when you hope to reach $X in revenue. It could also be when you expect to expand your ATM business to a new city.  

Management Team

To demonstrate your ATM business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing ATM businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an ATM business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you install 5 ATMs in retail locations around your city, and will you charge a $2.00 fee for each transaction? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your ATM business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a ATM business:

• Cost of the ATMs
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of locations in which your ATMs will be installed.  

Writing a business plan for your ATM business is a worthwhile endeavor. If you follow the free template above, by the time you are done, you will have an expert ATM business plan; download it to PDF to show banks and investors. You will understand the ATM industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful ATM business.  

ATM Business Plan FAQs

What is the easiest way to complete my atm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your ATM business plan.

How Do You Start an ATM Business?

Starting an ATM business is easy with these 14 steps:

• Choose the Name for Your ATM Business
• Create Your ATM Business Plan
• Choose the Legal Structure for Your ATM Business
• Secure Startup Funding for ATM Business (If Needed)
• Secure a Location for Your Business
• Register Your ATM Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your ATM Business
• Buy or Lease the Right ATM Business Equipment
• Develop Your ATM Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your ATM Business
• Open for Business

Learn more about   how to start your own ATM business .

Don’t you wish there was a faster, easier way to finish your ATM business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .  

Other Helpful Business Plan Articles & Templates

ATM Business Plan Template

Written by Dave Lavinsky

ATM Business Plan

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

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their ATM businesses.

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

Executive Summary

Business overview.

SecureVault ATM Company is a startup ATM machine business located in Santa Cruz, California. The company is founded by Lacie Bryon, a vending machine manager who owns multiple machines throughout the city of Santa Cruz. She has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current locations where her name and reputation precedes her.

SecureVault ATM Company will provide reliable and secure ATM services to customers while creating mutually beneficial relationships with the location providers. There is an increased drive by consumers for cash and SecureVault ATM Company plans to build profit from that increase, particularly as the business grows. All SecureVault ATM machines will be in convenient and easily accessible locations, making it especially easy for consumers to access the ATM machines and return to it whenever needed.

Product Offering

The following are the services that SecureVault ATM Company will provide:

• Convenient and secure ATM cash withdrawals
• ATM cash machine services for tourists and out-of-country visitors
• Bank deposits that will transact within 24 hours
• Secure video panels and safety mechanisms within the machines ensure secure and safe transactions
• Proprietary app “ATM @My Location,” quickly sources and offers driving instructions to the nearest available ATM within the SecureVault ATM machines in the region
• Secure account information printouts with receipts
• Day to day management of ATM locations to maintain clean machines and surrounding areas

Customer Focus

SecureVault ATM Company will target residents of Santa Cruz. They will also target visitors from the U.S. and international visitors within the popular beach city. They will target business owners who are interested in partnerships built via the ATM machine locations. They will target businesses who will want to market services or products via the ATM app.

Management Team

SecureVault ATM Company will be owned and operated by Lacie Byron, a vending machine entrepreneur who owns multiple vending machines throughout the city of Santa Cruz. She has recruited her virtual assistant, Kayleigh Thompson, to join the startup on-site.

Lacie Byron has been a self-employed entrepreneur for over fifteen years. She has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current vending locations where her name and reputation precede her.

Kayleigh Thompson, the former virtual assistant, will join SecureVault ATM Company as an Administrative Assistant on-site. She will oversee all day-to-day administrative tasks. She will also be on-call for ATM emergencies 24/7 each day.

Success Factors

SecureVault ATM Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of SecureVault ATM Company
• Secure ATM machines that accept out-of-country debit and credit cards
• SecureVault ATM Company creates partnerships with area businesses with the intention of building up both businesses and creating mutually beneficial profitability.

Financial Highlights

SecureVault ATM Company is seeking $200,000 in debt financing to launch its SecureVault ATM Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for SecureVault ATM Company.

Company Overview

Who is securevault atm company.

SecureVault ATM Company is a newly established, full-service ATM machine business in Santa Cruz, California. SecureVault ATM Company will be the most reliable, secure and convenient choice for residents, visitors and tourists from out of the country, as well as those from the surrounding communities. SecureVault ATM Company will provide a comprehensive menu of ATM choices and services for any customer to utilize. Their full-service approach includes a comprehensive set of options for cash withdrawals, deposits and other banking transactions.

  SecureVault ATM Company will be able to serve hundreds of customers on a regular basis. The team of professionals in SecureVault ATM Company are highly qualified and experienced and each member of the team is trained to easily serve customers. SecureVault ATM Company removes all the headaches and issues of trying to find an ATM machine, particularly in an unfamiliar city, and ensures all issues are taken care of expeditiously while delivering the best customer service.

SecureVault ATM Company History

SecureVault ATM Company is owned and operated by Lacie Bryon, a vending machine entrepreneur who operates multiple vending machines throughout the city of Santa Cruz. She has been in business for over 15 years and has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current locations where her name and reputation precede her.

Since incorporation, SecureVault ATM Company has achieved the following milestones:

• Registered SecureVault ATM Company, LLC to transact business in the state of California.
• Has a contract in place for a 10,000 square foot office in a midtown building.
• Reached out to numerous contacts to include SecureVault ATM Company in their current and future location plans.
• Began recruiting a staff of three and two office personnel to work at SecureVault ATM Company.

SecureVault ATM Company Services

The following will be the services SecureVault ATM Company will provide:

Industry Analysis

The ATM machine industry is expected to grow during the next five years to over $30 million. The growth will be driven by ATM machines placed in new locations, particularly as new communities form. The growth will also be driven by new industries or sectors that conduct business in rapidly-growing cities. The growth will be driven by entrepreneurs who prefer to own and operate a business without an employer or oversight by others. Costs will likely be reduced as ATM partnerships share the costs on a more equitable level of a 50/50 split. Costs will also be reduced as new technology paves the way for improvements to ATM servicing capabilities.

Customer Analysis

Demographic profile of target market, customer segmentation.

SecureVault ATM Company will primarily target the following customer profiles:

• Residents of Santa Cruz
• U.S. visitors and international tourists
• Potential business partners for ATM placement/services
• Potential business partners who will market their business via the ATM app

Competitive Analysis

Direct and indirect competitors.

SecureVault ATM Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Quick Cash Company

Quick Cash Company provides ATM machine access throughout the Santa Cruz and Highway 1 Corridor. ATM machines are located within strip malls and adjacent to laundry facilities. The ATM machines provide cash in twenty-dollar increments up to a value of $200. The ATM machines do not accept bank deposits, nor do the ATMs accept cash deposits. There are no receipts provided. Quick Cash Company is owned and operated by Gerrie and Sandy Doney, entrepreneurs who have been in the ATM business for over ten years. The ATM machines provided by Quick Cash Company are utilized heavily near the beach amusement park area and are also popular near the southern beach portion of the Santa Cruz city. Quick Cash Company has a singular goal: that of providing cash; all other transactions are omitted from the services provided.

MoneyLink ATM Services

MoneyLink ATM Services is bank-owned and operated as a convenience for the customers of the Redwood Bank. The day-to-day management of the ATM machines owned is contracted out to a security company that refills the ATM machines with cash on a regular basis and maintains the ATM machines as needed. The Redwood Bank provides services for customers of the bank, including conducting transactions if cash or checks are deposited and paying out up to $400 if the withdrawals are from a bank customer.

MoneyLink ATM Services operates 10 ATM machines in various parts of the city of Santa Cruz, with two ATM machines near tourist shops and mini-mall stores in the downtown area of the city. The ATM servicing company maintains the ATM machine by filling them with cash as needed; however there is no cleaning of the areas around the machines, nor cleaning of the machines themselves. There are no services offered at the ATM machines, other than withdrawals and deposits.

Harrison & Company

Harrison & Company is a legal limited liability company formed between four brothers who own and operate ATM and vending machines throughout the Santa Barbara, California area. They recently expanded their business to include Santa Cruz and other beach areas. There are twenty food vending machines in the business and 15 cash vending machines within the company, each serviced and maintained by the siblings in Harrison & Company.

The food vending machines owned by Harrison & Company are located primarily in strip malls and convenience stores, where visitors can access easy and convenient cash. Harrison & Company carefully evaluates each suggested location before placing a vending or ATM machine on any site, due to the increased risk of theft or other invasive tactics by unscrupulous visitors. Harrison & Company maintain the ATM machines and food vending machines on a daily basis and have created strong and lasting partnerships with other businesses in the area in order to secure the prime locations for their machines.

Competitive Advantage

SecureVault ATM Company will be able to offer the following advantages over their competition:

• SecureVault ATM Company creates partnerships with area businesses with the intention of building up both businesses and creating mutually beneficial profitability

Marketing Plan

Brand & value proposition.

SecureVault ATM Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of services and cash products to consumers.
• SecureVault ATM Company offers reasonable partnership value and steady income levels for partners.

Promotions Strategy

The promotions strategy for SecureVault ATM Company is as follows:

Word of Mouth/Referrals

SecureVault ATM Company has built up an extensive list of contacts over the years by providing exceptional service and expertise to her clients. Current partners and potential partners are eager to take part in the relationships of SecureVault ATM Company and help spread the word of SecureVault ATM Company.

Digital Advertising

SecureVault ATM Company will contract with a digital marketing expert to access local and regional marketing campaigns.

Social Media Campaign

SecureVault ATM Company will also contract with a social media manager to announce the launch via a series of call outs across several channels to build up to the launch date. ATM locations and specifics of the services offered will be included in the social media campaign efforts.

Print Advertising

SecureVault ATM Company will secure local newspaper ads to announce the new ATM machines in the targeted communities and regional areas. They will also send a direct mail targeted flyer to all residents within Santa Cruz county.

Website/SEO Marketing

SecureVault ATM Company will fully utilize their website. The website will be well organized, informative, and list all the services and products that SecureVault ATM Company provides. The website will list their contact information and will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “ATM machine that accepts international debit and credit cards” or “ATM machine near me”, SecureVault ATM Company will be listed at the top of the search results.

The pricing of SecureVault ATM Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for SecureVault ATM Company. Operation Functions:

• Lacie Byron will be the Owner and President of the company. She will oversee all staff and manage partners and new partnership relations. She has spent the past year recruiting the following staff:
• Kayleigh Thompson, who will take on the role of Administrative Assistant and manage the office administration and act as the emergency contact.

Milestones:

SecureVault ATM Company will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel employment contracts for the SecureVault ATM Company
• 6/1/202X – Finalize contracts for SecureVault ATM Company partnerships
• 6/15/202X – Begin networking to find potential partners and ATM locations
• 6/22/202X – Begin moving into the SecureVault ATM Company office
• 7/1/202X – SecureVault ATM Company opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for SecureVault ATM Company are the fees they will charge to customers for the usage of their ATM services.

The cost drivers will be the overhead costs required in order to staff SecureVault ATM Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

SecureVault ATM Company is seeking $200,000 in debt financing to launch its ATM machine business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

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 ATM Customers Per Month: 1,600
• Average Revenue per Month: $56,500
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, atm business plan faqs, what is an atm business plan.

An ATM business plan is a plan to start and/or grow your ATM 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 ATM business plan using our ATM Business Plan Template here .

What are the Main Types of ATM Businesses? 

There are a number of different kinds of ATM businesses , some examples include: Independent ATM owner/operator, Mobile ATM, Bitcoin ATM, and ATM installation and maintenance.

How Do You Get Funding for Your ATM Business Plan?

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

What are the Steps To Start an ATM Business?

Starting an ATM 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. Develop An ATM Business Plan - The first step in starting a business is to create a detailed ATM business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your ATM 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 ATM business is in compliance with local laws.

3. Register Your ATM Business - Once you have chosen a legal structure, the next step is to register your ATM 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 ATM 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 ATM Equipment & Supplies - In order to start your ATM 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 ATM 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 successful ATM business:

• How to Start an ATM Business

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Atm Business Plan

Additional revenue potential, a simple business model, and several tax benefits make starting an ATM business an excellent choice for emerging entrepreneurs. However, entering the marketplace without proper planning can expose your business to risk.

Need help writing a business plan for your ATM business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared an ATM business plan template to help you start writing yours.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an ATM business plan?

Writing an ATM business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, marketing strategy:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on your business details, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name and type of your ATM business: mention details about your ATM business type and the services it will offer to consumers. For instance, here are a few popular ATM business types: 1. Retail ATM Business: This type of ATM business involves placing ATM machines in retail locations such as gas stations, convenience stores, and other busy areas. 2. Mobile ATM Business: This business model involves transporting ATM machines to mobile locations such as fairs, festivals, etc. 3. Bitcoin ATM Business: It is a type of kiosk allowing users to buy or sell bitcoins using cash or debit cards.
• Company structure of your spa business whether it is LLC, partnership firm, or some other.
• Location of your ATM business and why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your ATM business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your ATM business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use various sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

An ATM business plan’s product and services section should describe the specific services and products offered to customers. To write this section should include the following:

ATM Machines:

Atm services:, fees & charges:, value-added services:, emphasize security:.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, your business plan’s sales and marketing strategies section should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s essential to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your ATM business.

7. Management Team

The management team section overviews the individuals responsible for running the ATM business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Founder/CEO:

Key managers:, organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the ATM industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your ATM business should only include relevant and essential information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This ATM business plan sample will provide an idea for writing a successful ATM plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready ATM business plan to impress your audience, download our ATM business plan pdf .

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Frequently asked questions, why do you need an atm business plan.

A business plan is an essential tool for anyone looking to start or run a successful ATM company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your ATM business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your ATM business.

How to get funding for your ATM business?

There are several ways to get funding for your ATM business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors, venture capital.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your ATM business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your ATM business plan and outline your vision as you have in your mind.

What is the easiest way to write your ATM business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any ATM business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home » Financial Services

A Sample ATM Business Plan Template

An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without direct interaction with bank staff.

ATMs were originally developed as cash dispensers, and have evolved to provide many other bank-related functions. Anyone can start an automated teller machine business as long as they have the financial capacity, license, network, and business exposure.

The global ATM market size reached USD 20.18 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.9 percent from 2022 to 2028. The total number of ATMs in the United States is 425,000, Independently owned ATMs deployed 222,000 ATMs, and the Average ATM fee/Convenience fee is $2.77 (source-National ATM Council).

Steps on How to Write an ATM Business Plan

Executive summary.

Pickford Cash© ATM Services, Inc. is an American-based business that will operate independent automated teller machine services all across the United States. Although our business will be based in New Haven – Connecticut where we intend to position our automated teller machines (ATM) all across the city, we have plans to spread across major cities in the United States within record time.

Pickford Morgan is the founder and CEO of Pickford Cash© ATM Services, Inc.

Company Profile

A. our products and services.

• Cash withdrawals, deposits, transfer funds, or obtaining account information
• Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, income taxes, etc.)
• Printing or ordering bank statements
• Updating passbooks
• Cash advances
• Cheque Processing Module
• Paying (in full or partially) the credit balance on a card linked to a specific current account.
• Transferring money between linked accounts (such as transferring between accounts).

b. Nature of the Business

An ATM Services business is meant to operate the business-to-consumer model or transfer completely to a business-to-business approach.

c. The Industry

Pickford Cash© ATM Services, Inc. will operate in the Automated Teller Machine industry.

d. Mission Statement

Our mission is to make cash withdrawals, cash deposits and other financial services more accessible to all and sundry and the services will also include blockchain and cryptocurrency transactions.

e. Vision Statement

Our vision is to build an ATM services business that will have an active presence all over New Haven – Connecticut and other key cities in the United States of America.

f. Our Tagline (Slogan)

Pickford Cash© ATM Services, Inc. – Financial Services Any Time, Any Day, and Anywhere!

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

Pickford Cash© ATM Services, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• ATM Custodian/Manager
• Admin and Human Resources Manager
• Sales and Marketing Manager
• Information Technologist
• Call Center Executives.

i. Ownership/Shareholder Structure and Board Members

• Pickford Jude (Owner and Chairman / Chief Executive Officer) 51 Percent Shares
• Gordon Wisdom (Board Member) 14 Percent Shares
• Jude Soares (Board Member) 13 Percent Shares
• Paul Nelson (Board Member) 12 Percent Shares
• Zara Rodrick (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Effective structures to help consumers enjoy a seamless digital experience when making use of our ATMs
• Highly experienced and qualified employees and management
• Active presence in key locations across cities
• Access to finance from business partners
• Water-tight strategies on how to expand beyond the major markets
• Good returns on investment for our investors.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established banks with ATMs and other independent ATM service companies and traditional banks
• Inability to retain our highly experienced and qualified employees longer than we want.

c. Opportunities

• Partnerships and mergers between established banks are becoming more frequent.
• Digital banking services are taking over
• 46 percent of people exclusively use digital channels for their financial needs
• Good support structure for independent ATM service companies in the United States of America.

i. How Big is the Industry?

It is safe to say that the Automated teller machine (ATM) industry is a massive industry. This is so because the total number of ATMs in the United States is 425,000 (source-National ATM Council), and Independently owned ATMs are 222,000 (source-National ATM Council).

ii. Is the Industry Growing or Declining?

The Automated teller machine (ATM) industry is growing rapidly and available data shows that the market surpassed USD 20 billion in 2020 and is anticipated to grow at a CAGR of 4 percent between 2022 and 2027.

iii. What are the Future Trends in the Industry?

New technologies, like machine learning/artificial intelligence, predictive behavioral analytics, and data-driven marketing, are what will determine the future trends in the Automated teller machine (ATM) industry.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niche ideas when it comes to automated teller machine (ATM) business, and they are as follows;

• Cash Dispenser ATM
• White Label ATM.
• Yellow Label ATM
• Brown Label ATMs.
• Onsite ATMs.
• Offsite ATMs.
• Crypto Exchange Platform.

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

Pickford Cash© ATM Services, Inc. has plans to sell franchises in the nearest future and we will have a strong physical presence in key financial hubs (cities all across the world).

• The arrival of a new ATM company within our market space
• Unfavorable government policy and regulations.
• Cyber security challenges
• Liability problems
• Continuously changing consumer demands especially as it relates to how they expect ATM service companies to serve them.

i. Who are the Major Competitors?

• Capital One
• Bank of America
• Wells Fargo
• BankMobile Vibe
• ATM Money Machine, Inc.
• Cardtronics
• ATM Marketplace of Florida, Inc.
• Phoenix Cash Systems A Division Of The World Is Mine Corp
• Micro Resources International
• Hyosung America | ATM Solutions
• Payroll Corporation (“Mr. Payroll”)
• Bitbox ATM machines

ii. Is There a Franchise for an Automated teller machine (ATM) business?

Yes, there are franchises for Automated teller machine (ATM) businesses are here are some of them;

• ACFN – Initial investment: $39,230 – $63,820
• Bitbox ATM machines – Initial investment: $38,590 – $157,980
• Payroll Corporation (“Mr. Payroll”) – Initial investment: $68,800 – $328,000
• ATM Money Machine, Inc. – Initial investment: from $2,100
• BitCash USA – Initial investment: $13,500 – $250,000

iii. Are There Policies, Regulations, or Zoning Laws Affecting Automated Teller Machine (ATM) Business?

In the United States of America, the automated teller machine (ATM) machine business, like all financial services is regulated at both the state and federal levels. Each of the 50 states and the federal government has passed its own body of laws that may apply to financial services providers.

Please note that because of the scope, scale, and dynamism of the automated teller machine (ATM) services industry, the sector is often regulated by multiple regulators, both within certain types (e.g., multiple government regulators) and across types (e.g., governmental, self-regulators, and market regulators).

Please check with your zoning or planning department to find out what options are available to you.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to do business with us.

ii. Level of Educational

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

iii. Income Level

There is no cap on the level of income of the people that can use our automated teller machines.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that can make use of our automated teller machines.

v. Language

There is no restriction when it comes to the language spoken by the people that can make use of our automated teller machines. We have different language options in our ATM machines.

vi. Geographical Location

Anybody from any geographical location will be welcome to make use of our automated teller machines.

vii. Lifestyle

Pickford Cash© ATM Services, Inc. will not restrict people based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share our Events in Local Groups and Pages.
• Turn our Social Media Channels into a Resource
• Develop our Business Directory Profiles
• Build Relationships with players in the financial services industry.

i. Traditional Marketing Strategies

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

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile 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 and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Pickford Cash© ATM Services, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each transaction. All our pricing strategies will reflect;

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

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the automated teller machine industry, the finance and banking industry, and freelancers to help refer clients to us.

Pickford Cash© ATM Services, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need cash supplies per time means that Pickford Cash© ATM Services, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, processing, and feeding cash in our ATMs. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Pickford Cash© ATM Services, Inc. will make available to her clients;

• Payment via automated teller machines

d. Return Policy, Incentives, and Guarantees

At Pickford Cash© ATM Services, Inc. we will refund our clients when the transaction does not pull through but the customer was charged. We will also guarantee our customers the safety of their card details and financial details.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide an excellent return on investment (ROI) and customer service to all our clients and investors. We will work with effective CRM software to be able to achieve this.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting investors and strategic partners like banks et al that will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at an ATM Services Business?

• The office is open for the day
• ATMs are loaded with cash
• Documentation and other administrative works are conducted throughout the day
• Marketers go out in the field to market our services
• Transactions are facilitated and pending queries are resolved
• Maintenance of the server and all payment gateways are carried out as scheduled.
• Maintenance and servicing of ATM machines
• The report for the day is written and submitted to the required authority
• The office is closed for the day.

b. Production Process

There is no production process when it comes to the Automated teller machine (ATM) business.

c. Service Procedure

When it comes to the service procedure of ATM service providers, it is important to note that the internet service provider (ISP) plays an important role in ATMs. This provides communication between ATM and host processors. When the transaction is made, the details are input by the cardholder.

This information is passed on to the host processor by the ATM. The host processor checks these details with an authorized bank. If the details are matched, the host processor sends the approval code to the machine so that the cash can be transferred.

Please note that to use a cardless ATM, you need to open the app on your mobile device, choose the linked bank account you want to withdraw from, and tap your phone against the designated reader. To complete the transaction, the ATM will then prompt you to either type in your PIN (just as if you had inserted your physical card).

d. The Supply Chain

Pickford Cash© ATM Services, Inc. will rely on major banks to supply cash to us.

e. Sources of Income

Pickford Cash© ATM Services, Inc. makes money (commissions and charges) from offering the following services;

Financial Plan

A. amount needed to start your automated teller machine (atm) services company.

Pickford Cash© ATM Services, Inc. would need an estimate of $1.2 million to successfully set up our automated teller machine (ATM) company in the United States of America. Please note that this amount includes cash in our ATMs and the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Internet Infrastructure and Software Development – $250,000
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $80,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing, Equipping and ATM machines – $350,000
• Capitalization Base: $500,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

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

Pickford Cash© ATM Services, Inc. will not build a new facility for our ATM service company; we intend to start with a short–term lease for locations where we intend to install our ATMs.

d. What are the Ongoing Expenses for Running an ATM Services Company?

• Server maintenance
• Transaction fee to third-party providers
• Transport and logistics
• Utility bills (internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $65,000 Per Year
• ATM Custodian / Manager – $42,000 Per Year
• Admin and Human Resources Manager – $39,000 Per Year
• Information Technologist – $38,000 Per Year
• Accountant – $35,000 Per Year
• Call Center Executive / Customer Service Executive – $30,000 Per Year.

f. How Do You Get Funding to Start an ATM Service Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your service.

At Pickford Cash© ATM Services, Inc. our fee will be based on the volume of transactions on our payment platform. But averagely, we charge between $1.50 to $3.50.

b. Sales Forecast?

• First Fiscal Year (FY1): $500,000
• Second Fiscal Year (FY2): $750,000
• Third Fiscal Year (FY3): $1.2 million

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Pickford Cash© ATM Services, Inc. will be between 2 and 5 percent.

d. Profit Margin of an ATM Service Company 

The average net profit margin of Pickford Cash© ATM Services, Inc. is approximately 12%. The average net profit margin can be higher or lower depending on our additional service offerings and the number of our overhead expenses.

Growth Plan

A. how do you intend to grow and expand .

Pickford Cash© ATM Services, Inc. will grow our automated teller machine (ATM) services company by first installing our ATMs in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Pickford Cash© ATM Services, Inc. plan to expand first to Los Angeles – California, New York City – New York, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

We intend to expand to these locations because available statistics show that the cities listed above have the highest and most thriving financial markets in the United States.

The founder of Pickford Cash© ATM Services, Inc. plans to exit the business via merger and acquisition. We have placed structure and processes in place that will help us achieve our plan of successfully merging with one of the leading players in the finance and banking industry or even in the automated teller machine (ATM) services industry. With that, we can rest assured that the business will be under the care of a well-structured management team.

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How to Write an ATM Company Business Plan + Sample Template

ATMs, also known as automated teller machines, are an appealing business to operate due to the passive nature of the business. But the industry has faced unexpected changes over the past few years that should cause pause before moving forward with the idea.

ATM manufacturing alone is an $185 million dollar industry in the United States according to reports . Independent owners of these machines take a small fee from each transaction that occurs with the unit. The more machines you’re able to acquire and position in high-traffic locations, the more revenue you can generate.

The challenge within this industry has been impacts of the global pandemic. People aren’t going to be gathering in crowds, attending baseball games or fairs the same way they used to. In turn, cashless payment options are becoming more prevalent, cutting the need for paper assets where germs could spread more easily. As a result the industry size is expected to shrink through 2025.

In spite of this global shift, ATMs will continue to work in some areas. Just like magazines and other industries on that have been on the decline decades, you can still build a profitable business with the right approach. You’ll just need to be more creative and aware of the changing consumer behavior. According to major news outlets , cash is still the most used method of payment in the United States.

ATM machines are expected to decline in use over the next 5 years.

If you’re thinking about purchasing a set of machines, be sure to write a detailed business plan first so you understand the strengths and weaknesses of the business model. This post we provide detailed instruction on how to write a business plan in this industry. We even include free templates you can download and update. Let’s do this thing!

Executive Summary

Start with a brief description of your proposed ATM business by writing down an introduction for it in this section. Include a little bit about the company as well, a quick rundown of the services your ATM business will offer, and the customer focus you’ll be reaching with this kind of business.

Introduction

Introductions are important in a formal business plan. This gives your readers a quick run-through of what your ATM business is without getting too technical. A simple introduction of your business name, location, and the services you’ll be offering will suffice since more details will be thoroughly explained later on.

A sample introduction can be like this:

Cash 2 Go is an ATM business center located inside Pennsylvania Station, New York. The ATMs deployed will have cash withdrawal functions, balance checker options, bills payments services, and fund transfer services. The ATM center is accessible 24 hours a day and seven days a week.

Just by this introduction, you can already tell the name of the business, where it will be located, the services the machines will carry and the hours it is going to be accessible to the public. Assuming the venue is open, the machines could be making you money 24/7 365.

You do not have to provide extreme amounts of detail in this section. You’ll tackle the details in the next sections of the document.

Company Description

Where can I find a cupcake ATM machine?

Why have you decided to put up an ATM business? Who will be the ones running this? A little background on your company will be of great help. This gives your reader an idea of what your business setup will be such as who is in charge of accounts, who will handle the replenishing of cash, and who is responsible for machine repairs and maintenance.

Again, just list down the roles briefly for you will have the opportunity to list down a detailed management structure later on.

ATMs are already known to dispense cash but what other services will your ATM business cover? In this section, write down an introductory list of services your business will be offering.

In this case, you service is simple. You provide access to cash. However, be sure to offer any unique aspects of your vending machines that could be used to differentiate the service.

• Distribution of bills in different denominations ($10, $20, $50)
• Some machines will allow you to make specialty purchases like stamps.
• Does a certain portion of your proceeds go toward charity? That could be a differentiator.
• Does you ATM machine have a green element and use less energy than competitors? This could sway environmentally aware consumers to use your service.

Customer Focus

You’d be surprised to know that not everyone uses ATMs. The younger generation has adopted the ATM more than senior citizens. Also be aware of the location you plan to place the ATM. If you’re installing the machine into an international airport, you may want to consider adding paper assets from other countries. Understand what the customers of your area truly need and adapt.

In this section, briefly state your customer focus for your ATM business since this will come in handy in visualizing the entirety of the business for your readers.

Mission Statement

An ATM machine in Rome.

Even a simple ATM company business will need a mission statement. It will serve as the business’s goals so you can be steered in the right direction when you’re making important business decisions. It also helps you achieve success.

Related Reading: How to Write a Lemonade Business Plan for Kids + Sample Templates  

Here is a sample to give you an idea of how a mission statement would look like:

Cash 2 Go promotes ease of banking. We aim to provide cash for your needs as well as other banking services such as fund transfers and bills payments all at the convenience of one machine. One unique element of our machines is that we allow donate 5% from each transaction to the the Planetary Whale Fund. We also aim to make every transaction as secure as possible and to have our machines up and running twenty-four seven.

With this statement, you can tell how Cash 2 Go’s objectives are to dispense cash, provide basic banking services, and to ensure all their machines will be online all days of the week.

Any shortcomings will mean that the ATM company business has failed in following their mission statement. So make sure to practice and meet these objectives to provide a one hundred percent satisfaction rate from your customers.

Company Concept

ATM company businesses have a fairly simple concept. The main concept is to be able to provide cash for those who need it and cannot go to the banks at the moment. But if you need anything more to add, now is the time to write it down here.

Other concepts you might want to consider:

• Providing a deposit function for both cash and checks
• Viewing and requesting statements
• Adding the option to buy cryptocurrency
• The ability to buy lottery tickets or stamps

Do note that you’ll have to look for machines’ that can accept cash and checks since basic ATMs will only dispense cash.

Market Analysis

We are moving toward being a more cashless society.

The ATM company business has been around for a while and everywhere you go, you’ll probably spot a machine. But that shouldn’t hinder you from putting up your own. Writing up a market analysis will help you figure out if the ATM industry in your desired location is feasible or not so this will give you an idea of what to expect of your ATM business before you decide to operate.

In this section, expound further on the customer focus you mentioned above, study the industry around you, and do a competitive analysis to size up the competition you will possibly meet.

Target Market

Who are the people you are targeting for your ATM company business? Determining this before you start your operations helps you decide the services you’re going to offer, where to place your ATMs, and how to market your business.

Let’s take for example the people who need cash. That would be the people living in rural areas that have no access to banks within the vicinity and would be in need of ATMs. You can also include tourists and young adults who are relying on their parents’ debit cards.

Just be clear which market your business is catered to so you’re not lost on how to advertise your ATM business.

Industry Analysis

Are ATM businesses feasible? More importantly, is there a growth in ATM businesses around your proposed location? Studying the ATM business industry is crucial to the success of your business. An analysis will help you determine if you should push through with it or not, or if you should change some factors such as location to help your business become a success.

Remember that if you come across any results that show your business is not feasible, don’t blame the industry analysis. In a way, it helped you to stop putting up your business before you can push through with it otherwise you would have lost a big investment. So don’t skip this section of the business plan.

Competitive Analysis

There will be ATM businesses around your area so it’s best to note their pros and cons. Do they operate twenty-four seven? Do they accept deposits? How about bills payments? What rates do they have? These are the things you can take note of and compare with your own ATM business so you know which areas you can improve upon so that your business will be better than theirs.

Management Structure

An ATM business may not have a lot of staff since you’ll be letting the machines do all the work for you. But the maintenance behind it takes a few people.

Here are just some of the crew behind getting an ATM business to operate:

• IT Admin or Maintenance Team
• Sales and Marketing Manager
• Customer Service Representative

The number of departments or staff will vary depending on how big your company will be.

Product Line and Services

ATMs won’t be obsolete for many years if not decades.

As mentioned above, ATMs aren’t just known for dispensing cash. If you wish to have fund transfers, bills payments, cash, and check deposits, then you may also add them in this section.

Just be sure that the machines and system that you get for your ATM can carry all the features you wish for it to hold. Make sure you get the right specifications so you won’t have any trouble fixing things up in the future.

Also, make sure your system is secure. ATM hacks are common and hackers evolve through time. Have your IT admin do updates and security patches if need be. Make sure your security alarm and CCTV cameras are also functional so if anything happens, you can find the culprit fast.

Sales and Marketing

How do you market your ATM company business? Well, for a service that’s more of a necessity for a lot of people, advertising your ATM business shouldn’t be difficult.

Related Reading: Download Liquor Store Business Plan Sample Template + Doc

Location plays a great deal. Choose one where there is a lot of foot traffic and with shopping and food establishments around you. Chances are, people will need cash to pay for something so when they’ll spot your ATM conveniently within the vicinity, they’ll use it at once.

You can also advertise on social media and in print so you can reach a lot of people whether young or old.

Financial Plan

A financial plan helps you check the supplies you need to purchase, how much to charge for rates, and how long will it take you to reach break-even. This may seem intimidating but with a proper breakdown and a careful analysis, it will help you estimate how much to provide for your capital.

Funding Request

Business startups get their money by asking for a loan from the bank, inviting friends and families to invest in you, or simply to use a portion of your savings. But the most common one is usually to loan from the bank.

Banks will need some documents and even a business plan from you before they analyze whether or not to grant you a loan so prepare everything you need and make sure this plan will be able to convince them.

Financial Forecast

List down all the materials you need in building that ATM company business. Here is a list of things you might need and things you will be spending on:

• Permits and licenses
• Automated Teller Machines
• Rental space
• A head office
• Marketing materials
• Armored vans or delivery vans to transport your money in and out
• CCTV cameras
• Payroll for your staff
• Maintenance Fees
• Revenue splits with other businesses

Make sure your rates will also match the competition surrounding you so you do not overcharge. With these rates, you can then compute how long it will be for you to reach break-even per machine. By offering revenue splits with business owners, you can increase your chances of being placed in high-profit locations.

Operational Plan

Plan out a schedule for when you want to put your business plan into action. Don’t worry if the dates are all tentative. An operational plan just gives you a timeline for a possible startup date.

Here’s an example:

Date Plan [Insert Date Here] – Finalize the permits, licenses, business registration, and location for your ATM business. [Insert Date Here] – Start purchasing all your machines and system. [Insert Date Here] – Hiring and training your staff. [Insert Date Here] – Load money unto your ATM and start operations. [Insert Date Here] – Achieve objectives and reach break-even.

Every business will have a lot of references and documentation going on which includes photos, a list of expenses, permits, and many other legal documents. This is the section of the business plan where you’ll be able to file them.

Download Templates

Here are the ATM business templates you can download for free in PDF or Word Doc file types.

• ATM Business Plan PDF Template
• ATM Business Plan Template Word Doc
• ATM Businesses may be costly due to the machines and systems you will be purchasing. But note that with a proper business plan and a good location, you’ll be able to profit off of it soon.
• Automated Teller Machines can be purchased brand new or second-hand. Just make sure it’s not broken down if you decide on a second-hand machine to use to fit your budget. Buying used ATMs is a smart approach since you’ll invest less to start the business and will have lower financial risk.

In conclusion, an ATM business has the flexibility to be a small business venture managed in your spare time with the ability grow into a large corporation with thousands of locations. What matters is building a network of consistent locations that are profitable and an operation planning for filling machines with cash and making repairs. After all you won’t make a nickel in this business if the ATMs aren’t stocked with cash or operating correctly.

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How to Start an ATM Business With a Business Plan

Jan.26, 2024

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Table of Content

An ATM business is a type of business that operates and owns automated teller machines that dispense cash and offer other banking services to customers. Customers find ATMs easy and dependable to get cash from, and business owners can earn extra money from transaction fees and ads. But to start an ATM business, you need to plan, research, and invest in how to run an ATM if you’re an ATM business beginner. This ATM business plan sample will provide an idea for writing a successful ATM plan.

How to Write a Business Plan For an ATM Business

A business plan is a roadmap that explains how to start an ATM business step by step. A business plan like a microfinance business plan lays out what you want to achieve, how to set up an ATM, and the strategies. So, whether you are looking to secure funding or keep tabs on your progress, a solid business plan is the key.

Your ATM machine business plan should explain how to start an ATM business with no money and cover the following sections:

• Executive Summary – A brief overview of your entire business plan, highlighting the key points and the primary purpose of your ATM business. Should make the reader curious, and tell your business idea, market chance, edge over others, money highlights, and pros and cons of the ATM business.
• Company Overview – A full explanation of starting an ATM business, with its past, mission, vision, values, goals, and objectives. Should also have information about your ATM business license, legal form, owners, managers, and place, as explained in our collection agency business plan .
• Market Analysis – A complete study of the market you work in, with the industry changes, size, growth, and future. Should study the customer groups, needs, likes, and actions, as well as the competition, strengths, weaknesses, chances, and risks.
• Business Strategy – A clear explanation of how you will operate your ATM business, including your business model, your value proposition, your revenue streams, your cost structure, your pricing strategy, your distribution strategy, your customer service strategy, and your risk management strategy.
• Financial Plan – A projection of your business’s financial performance, including your income statement, balance sheet, cash flow statement, break-even analysis, and financial ratios. It should also include your funding requirements, your sources of funding, and your assumptions and estimates. For example, refer to our credit repair business plan .
• Marketing Plan – A detailed plan of how you will promote and market your business, including your marketing objectives, your marketing strategy, your marketing mix, your marketing budget, and your marketing metrics.

What is the Growth Potential for an ATM Business?

According to a report by Grand View Research, the global ATM market size reached USD 22.80 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2023 to 2030.

Image Source – Grand View Research

Here’s some more intriguing insight that shows the growing ATM market:

• There are around 3.5 million ATMs installed worldwide. 
• The total number of active ATMs in the US is between 520,000 and 540,000.
• The average withdrawal at an ATM amounts to around $80. (Source – Astute Analytica )

More and more people want automation, convenience, and security in the banking sector, especially in countries like China and India. This makes the industry grow. Also, new technologies, such as biometric authentication, smart ATMs, and mobile ATMs, can create more chances for the industry.

How much an ATM business can grow depends on many things, such as the place, the customers, the competitors, the number of transactions, the transaction fee, and the costs of running the business. Usually, an ATM business can profit 15% to 40% based on the number of machines, the number of transactions, and the bank business plan . But an ATM business also has problems, such as security risks, rules to follow, and costs of keeping and filling them.

Composition of an ATM Business Plan

To illustrate the composition of a business plan for ATM machines, we will use a sample ATM business plan for a fictional ATM business start-up called CashZone. CashZone is an independent ATM deployer (IAD) that operates and owns a network of ATMs in Florida. CashZone offers cash withdrawal, fund transfer, bill payment, and mobile top-up services. CashZone generates revenue from surcharge fees, interchange fees, and advertising fees.

Here is the company overview section of CashZone’s business plan that will explain how to start an ATM business in Florida:

Company Overview

CashZone is a start-up company that operates and owns ATMs in Florida. CashZone was founded in 2023 by Alex Right and Lucie Haynes, two entrepreneurs with experience and expertise in the ATM and banking industry. CashZone is registered as a limited liability company (LLC) in Florida and operates under the trade name CashZone Services.

CashZone wants to give customers easy, dependable, and safe cash access and make extra money for the business owners. CashZone wants to be the best ATM owner and operator in Florida, with top-quality machines having new features and functions and good advertising chances for local businesses.

CashZone’s goals and objectives are to:

• Start its ATM business in 2024, starting with 10 machines in strategic locations in Florida.
• Expand its ATM network to 50 machines by 2026, covering more areas and customer segments in Florida.
• Achieve a market share of 10% in the industry in Florida by 2026.
• Generate USD 500,000 in revenue and USD 100,000 in net profit by 2026. Refer to our financial advisor business plan to learn more.
• Establish strategic partnerships and alliances with local businesses and financial institutions to increase its customer base and market share.

CashZone’s management team and staff consist of:

• Alex Right, Co-Founder, and CEO, oversees strategy and vision with 10+ years in banking. Has an MBA and bachelor’s in business.
• Lucie Haynes, Co-Founder and COO, manages daily operations and supervision with 8+ years in banking. Has a bachelor’s in engineering and ATM certification.
• Chang Lee, CFO, handles financial planning, analysis, and reporting with 6+ years in accounting and finance. Has a bachelor’s in accounting and is a licensed CPA.
• Lisa Kirk, CMO, leads marketing and sales with 5+ years in marketing and advertising. Has a bachelor’s in marketing and digital marketing certificate.
• Tom Smith, CTO, oversees technology and innovation with 4+ years in IT and software. Has a bachelor’s in computer science and a software/security certificate.
• 5 ATM operators and technicians maintain and repair machines, load cash, and reconcile. Have ATM operations experience and training.

Keys to Success

The keys to success for CashZone are:

• Providing high-quality ATM machines that are secure, reliable, and user-friendly.
• Choosing strategic locations with high traffic, visibility, and demand for ATM services.
• Offering competitive surcharge fees that are affordable for customers and profitable for the business.
• Building a strong relationship with customers.
• Leveraging technology and innovation to enhance the functionality and efficiency of the ATMs.
• Marketing and branding the business effectively to attract and retain customers.

Industry Analysis

The ATM industry is a large and growing industry. ATMs provide cash and convenience services to millions of customers worldwide. According to Market Research Community, ATM Market size was worth USD 21.41 Billion in 2022, accounting for a CAGR of 4.8% during the forecast period (2023-2030), and is projected to be worth USD 32.65 Billion by 2030.

Image Source – Market Research Community

ATMs are very popular and widely used in the US. But the US ATM market also has some problems, like less people using cash, more people using digital payments, too many ATMs in some places, and higher costs and risks of running ATMs.

CashZone ATM wants to serve the people of Florida, who are about 22 million in 2024. Florida is a big and diverse state in the US, where many people need cash and convenient services. Florida is an appropriate place to do business because of:

• Flexible rules
• Affordable expenses
• Strong economy
• Great infrastructure
• Booming tourism industry.

CashZone ATM’s target market segments are:

• Tourists – Florida is a popular tourist destination. Florida received approximately 137.6 million visitors in 2022 (Source – Visit Florida). Cash is helpful for tourists who want to give tips, go street shopping, try local food, and have fun. They also like ATMs that are easy to use, trustworthy, and safe and have options for different languages, money types, and cash amounts.
• Retirees – Florida is a retirement haven, hosting over 4.2 million seniors (20.1%) aged 65 and above (Source – Consumer Affairs). Retirees need cash for paying day-to-day bills, meeting medical expenses, shopping for groceries, etc. Retirees also prefer ATMs that are accessible, easy to use, and safe, as well as offer features such as big fonts, voice guidance, and fraud prevention.
• Immigrants – Florida is a melting pot of cultures, with over 4.6 million foreign immigrants (21.2%) living in Florida (Source – Migration Policy Institute). Immigrants spend cash on things like sending money home, buying what they need, and more. Immigrants also prefer ATMs that are multilingual, multicultural, and affordable, as well as offer features such as currency conversion, money transfer, and low fees.
• Low-income households – Florida is a state with high poverty and income inequality. According to U.S. Census Bureau data, over 2.87 million (12.7%) people are living in poverty in Florida. Low-income households need cash for various purposes, such as paying rent, utilities, transportation, etc. Low-income households also prefer ATMs that are convenient, reliable, and economical, as well as offer features such as no minimum balance, no surcharge, and no overdraft.

Your ATM Marketing Strategy

The marketing strategy section of CashZone’s business plan should include the following information:

• The marketing objectives, such as increasing brand awareness, customer acquisition, customer retention, and revenue growth.
• The marketing mix, such as the product, price, place, and promotion strategies for the ATM business.
• The marketing budget, such as the allocation of funds for each marketing channel, method, and tool.
• The marketing metrics, such as the key performance indicators (KPIs) and targets for measuring the effectiveness and efficiency of the marketing strategy.

For example, CashZone’s marketing strategy can be summarized as follows:

Marketing Objective

CashZone aims to increase the number of customers and transactions by 20% in the first year of operation.

Marketing Mix

• Product – ATMs with cash withdrawal, fund transfer, bill payment, and mobile top-up. ATMs have biometric authentication, mobile integration, and smart features.
• Price – $2.50 surcharge fee per transaction. Interchange fees from banks and advertising fees from merchants and advertisers.
• Place – 50 ATMs in Florida at gas stations, convenience stores, shopping malls, and hotels. High traffic, visibility, and demand.
• Promotion – Online advertising, social media, flyers, referrals, and word-of-mouth. Discounts, coupons, and loyalty programs for customers and merchants.

Marketing Budget

$10,000 for the first year of operation, which is allocated as follows:

• Online advertising – $4,000 for Google Ads, Facebook Ads, and Instagram Ads, targeting customers by location, demographics, interests, and behaviors.
• Social media – $2,000 for Facebook and Instagram, posting content and engaging with followers and customers.
• Flyers – $1,000 for printing and distributing 10,000 flyers, featuring CashZone’s logo, slogan, services, locations, and contact information.
• Referrals – $1,000 for a referral program, where customers and merchants earn $10 for each referral.
• Word-of-mouth – $2,000 for building a positive reputation and image by providing excellent service, quality ATMs, and competitive prices.

Marketing Metrics

• Brand awareness – The percentage of potential customers and merchants aware of CashZone and its services, measured by online impressions, social media followers, and flyer distribution.
• Customer acquisition – The number of new customers who use CashZone’s ATMs, measured by the number of transactions, surcharge fees, and interchange fees.
• Customer retention – The number of repeat customers who use CashZone’s ATMs, measured by the frequency of transactions, loyalty program enrollment, and referral program participation.
• Revenue growth – The increase in the total revenue of CashZone, measured by the sum of surcharge fees, interchange fees, and advertising fees.

OGSCapital for Your ATM Business Plan

If you are confused about how to make an ATM business plan and looking for a professional and reliable business plan service, you have come to the right place. At OGSCapital, we have a team of experienced and qualified business plan consultants who can help you understand how to start an ATM machine business with our ATM business plan and related consultation services. We have been experts in making business plans for more than 17 years, and we have helped over 5,000 clients from 42+ industries get over $2.7 billion in money with our top-notch and tailored business plans.

We understand it’s a challenge of how to open an ATM business. We can help you create a strong and strategic business plan highlighting your benefits, market size, edge over competitors, and financial goals. We will also offer helpful tips and support on how to start and run an ATM business. No matter what your purpose is for having a business plan, we can make one that suits your requirements and expectations.

We have reasonable and flexible prices based on how challenging and urgent your project is. We ensure timely delivery, confidentiality, and quality of our work. Contact us today to get started!

Frequently Asked Questions

How much does it cost to start an ATM business? 

Starting an ATM machine in the US costs between $1,200 for a used model to $3,000 for a new, freestanding machine. But that’s not all. Setting it up and maintaining it costs extra. Hence, expect to budget $2,000-$5,000 or more to start an ATM business when accounting for all costs.

Is it worth it to start an ATM business? 

Are you confused about how to own an ATM machine for profit? ATM business profit in the US can be significant, with estimates of $450-$750 per month per machine. Starting ATMs in high-traffic areas can process over 800 transactions monthly, with potential gross profits of $6,624+ annually per machine. However, profitability depends on location, surcharge fees, and transaction volume.

Download ATM Business Plan Sample in pdf

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

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How to Start a Profitable Atm Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a atm business plan., 3. develop a atm brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for atm., 6. open a business bank account and secure funding as needed., 7. set pricing for atm services., 8. acquire atm equipment and supplies., 9. obtain business insurance for atm, if required., 10. begin marketing your atm services., 11. expand your atm business..

Starting an ATM business requires a thorough understanding of the market to identify potential opportunities and challenges. A comprehensive market analysis will help in making informed decisions and strategizing effectively. Here are some key points to consider:

• Research the current demand for ATMs in your target area by looking into the number of existing machines, their usage rates, and locations.
• Identify your potential customers, such as retail businesses, entertainment venues, or areas with high foot traffic, and understand their specific needs.
• Analyze competitors in the region to evaluate their services, fees, and customer satisfaction levels, which can offer insights into market gaps and areas for improvement.
• Study demographic and economic data to predict future ATM usage trends, focusing on population growth, tourism rates, and the overall economic health of the area.
• Evaluate the regulatory environment to ensure compliance with all laws and guidelines governing ATM operation and understand any potential legal barriers to entry.

Are Atm businesses profitable?

Yes, ATM businesses can be very profitable. The key to success in ATM business is to have a good location and keep your machines well-maintained and up-to-date. Additionally, many ATM businesses use a variety of marketing tactics to draw in customers, such as offering discounts and loyalty programs. If done correctly, an ATM business can generate a steady stream of income.

Starting an ATM business requires a well-structured plan to outline your strategy and financial projections. A detailed business plan will serve as a roadmap for establishing and growing your ATM operations. Consider the following crucial components when drafting your plan:

• Executive Summary: Summarize your business goals, target markets, and competitive advantages.
• Market Analysis: Research the demand for ATMs in your chosen locations, and understand your competition.
• Operational Plan: Describe the day-to-day operations, including how you will install, maintain, and service your ATMs.
• Marketing Strategy: Detail how you will attract venue partners and promote your ATM services to the public.
• Revenue Model: Explain how you will earn money, such as surcharge fees, and project your income and expenses.
• Risk Management: Identify potential risks and outline strategies to mitigate them.
• Financial Projections: Include projected profit and loss statements, cash flow forecasts, and a break-even analysis.
• Appendix: Provide supporting documents, such as contracts, legal documents, and technical specifications of your ATMs.

How does a Atm business make money?

ATM businesses make money by charging fees for transactions. These fees are paid by customers for withdrawing cash from the ATM, making balance inquiries, and other services. The fees paid by customers are the main source of income for ATM businesses.

Creating a strong ATM brand entails developing a distinct identity that resonates with customers and sets your services apart from competitors. A well-defined brand can foster trust and recognition, ensuring that your ATMs are the preferred choice for consumers seeking convenient cash access. Consider the following steps to cultivate your ATM brand:

• Identify your target market and tailor your branding to appeal to their preferences, whether they are tech-savvy millennials or value-driven baby boomers.
• Choose a memorable name and logo that reflects the professionalism and reliability of your services, while also being easy to recognize at various locations.
• Develop a unique value proposition that highlights the benefits of using your ATMs, such as superior security features, user-friendly interfaces, or widespread accessibility.
• Ensure consistent branding across all touchpoints, including the physical appearance of your ATMs, user interface screens, receipts, and marketing materials.
• Invest in quality customer service and user experience, as positive interactions with your brand will encourage repeat use and word-of-mouth recommendations.
• Utilize social media and online marketing to build a community around your brand, engaging with customers and gathering feedback to continuously improve your services.

How to come up with a name for your Atm business?

When coming up with a name for your ATM business, think of words that evoke a sense of trust and safety. Consider words such as secure, trust, or safety. Additionally, it may be helpful to use a pun or play on words to make your name memorable. Lastly, be sure to research the name you’ve chosen to make sure it’s appropriate and hasn’t been taken by another business. With these tips, you’ll be sure to come up with a great name for your ATM business!

Embarking on the journey to start an ATM business requires you to officially register your venture. This step is crucial for legal operation, tax obligations, and establishing credibility with both suppliers and customers. Below is a guide to help you navigate the formalization of your business registration:

• Choose a Business Structure: Decide on the most suitable business entity for your ATM business, such as a sole proprietorship, LLC, corporation, or partnership.
• Register with the State: File the necessary paperwork with the state where your business will operate. This may include articles of organization for an LLC or articles of incorporation for a corporation.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, which is also necessary if you plan to hire employees.
• Register for Taxes: Register with state and local tax authorities to obtain any necessary permits for sales tax, payroll tax, and other business taxes.
• Acquire Business Licenses and Permits: Secure any local, state, or federal licenses and permits required to operate an ATM business legally in your area.
• Open a Business Bank Account: Set up a dedicated bank account for your business transactions to keep finances separate from personal ones.

Resources to help get you started:

Access vital resources specifically compiled for ATM entrepreneurs aiming to gain insights on market trends, operational best practices, and strategic business growth:

• ATM Marketplace: A comprehensive source for the latest news, technology, and market trends in the ATM industry. https://www.atmmarketplace.com/
• National ATM Council (NAC): Offers resources, advocacy, and industry updates for ATM service providers and entrepreneurs. https://www.natmc.org/
• ATM Industry Association (ATMIA): Provides access to global reports, best practices, and networking opportunities for ATM professionals. https://www.atmia.com/
• International Journal of Electronic Banking (IJEBank): Features scholarly articles on trends and innovations in electronic banking, including ATMs. https://www.inderscience.com/jhome.php?jcode=ijebank
• PaymentsJournal: A hub for news and analysis on the payments industry, including ATM operations and technologies. https://www.paymentsjournal.com/

Starting an ATM business requires a thorough understanding of the legal requirements, including obtaining the necessary licenses and permits. This process can vary depending on your location, the type of ATM business you plan to operate, and the specific regulations in place. Below are the key steps to ensure you have all the required documentation to legally run your ATM enterprise:

• Research state and local regulations: Different states and municipalities have unique requirements for ATM businesses. Contact your local government or visit their website to understand the specific licenses and permits needed.
• Register your business: Before applying for licenses, you'll need to register your business with the appropriate state authorities and obtain a Federal Employer Identification Number (EIN) from the IRS.
• Apply for a business license: Secure a general business license from your city or county clerk's office to legally operate in your chosen location.
• Obtain specialized ATM permits: Check if your state or local government requires a special permit to operate ATMs, especially if you're placing them in public or semi-public areas.
• Compliance with banking regulations: Ensure compliance with federal banking regulations, such as the Bank Secrecy Act and Anti-Money Laundering laws, which may require additional registrations or reporting.
• Contact financial institutions: Establish relationships with banks or credit unions, as you may need to partner with them and ensure your ATMs meet their network and security requirements.

What licenses and permits are needed to run a atm business?

Licenses and permits will vary depending on the state and location, but generally, businesses need a business license, a regulatory license from the state (if necessary), zoning permits to operate in certain areas, and a license from the ATM manufacturer. Additionally, some states may require additional permits or licenses for ATMs. In some cases, a business may also need to register with state or local authorities as a money services business.

Starting an ATM business requires careful financial management and securing adequate funding. A dedicated business bank account is integral to keeping your finances organized and professional. Here's how to navigate this crucial step:

• Research banks that offer business accounts with low fees and good customer service. Consider those that provide additional services like online banking and merchant services.
• Prepare the necessary documents such as your business registration, EIN, and personal identification to open your account.
• Once your account is open, determine your initial capital requirements. This may include the cost of purchasing ATMs, cash to stock the machines, insurance, and funds for maintenance.
• Explore funding options like small business loans, lines of credit, or partnerships if your initial capital isn't sufficient. Crowdfunding and angel investors are also viable sources of funding.
• Develop a solid business plan to present to potential lenders or investors, showcasing your projected earnings and the growth potential of your ATM business.
• Consider applying for business credit cards to manage smaller expenses. They can also help build your business credit profile for future financing needs.

When setting pricing for ATM services, it is crucial to strike a balance between competitive rates and profitability. Here are some guidelines to consider for creating a pricing structure that can attract customers while ensuring your business thrives:

• Research the Market: Review the fees charged by other ATMs in your target area to establish a competitive range.
• Cost Analysis: Calculate your operational costs, including machine maintenance, cash loading, rent (if applicable), and transaction processing fees.
• Surcharge Fees: Set a surcharge fee that customers will pay per transaction. This fee should cover your costs and desired profit margin but remain fair to customers.
• Interchange Revenue: Understand the interchange fees you'll receive from card issuers, as this will supplement your income from surcharge fees.
• Dynamic Pricing: Consider implementing dynamic pricing where fees vary based on location, time of day, or transaction volume.
• Volume Discounts: Offer discounts or lower fees for high-traffic locations where transaction volumes are greater.
• Compliance Costs: Account for regulatory compliance costs in your pricing to avoid impacting your bottom line.

What does it cost to start a Atm business?

Initiating a atm business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$6,000 - $28,000 for launching such an business. Please note, not all of these costs may be necessary to start up your atm business.

Starting an ATM business requires careful selection of the right equipment and supplies to ensure reliable service and customer satisfaction. It's important to invest in quality machines and maintain a stock of necessary items for smooth operations. Below you'll find guidance on how to acquire the necessary equipment and supplies for your ATM business:

• Research ATM models from reputable manufacturers and compare features such as cash dispensing speed, security measures, and customer interface.
• Consider purchasing both new and refurbished machines to balance cost and reliability.
• Ensure the ATMs comply with current security standards, including EMV technology for chip cards.
• Choose an ATM management software for monitoring, reporting, and managing your network of machines.
• Set up relationships with cash loading services, or plan for secure cash transportation if self-filling the ATMs.
• Stock up on receipt paper rolls, printer ink cartridges, and other consumables to minimize downtime.
• Acquire maintenance tools and cleaning supplies to keep the ATMs in optimal condition.
• Consider a maintenance contract with a professional service provider for technical support and repairs.

List of Software, Tools and Supplies Needed to Start a Atm Business:

• Atm hardware and software
• Security cameras and monitors
• Computer and network equipment
• POS terminals and software
• Bank accounts and merchant services
• Business insurance
• Employee training materials
• Branding and marketing materials
• Online presence and e-commerce
• Legal documents and contracts

Securing the right business insurance is a critical step in safeguarding your ATM business against potential risks and liabilities. It's essential to understand the types of coverage that may be required to protect your investment and ensure your operations run smoothly. Here are some key points to consider:

• General Liability Insurance: This can provide protection against claims of bodily injury or property damage that occur at your ATM location.
• Property Insurance: This helps cover the ATM machines themselves in case of theft, vandalism, or natural disasters.
• Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, this can protect your business from claims of negligence or failing to perform your professional duties.
• Data Breach Insurance: Given the sensitive nature of financial transactions, this coverage can protect you in the event of a security breach that compromises customer data.
• Business Interruption Insurance: If an unforeseen event causes your business to halt operations temporarily, this insurance can help cover lost income and expenses.
• Consult with an Insurance Broker: An experienced broker can help you navigate the complex landscape of business insurance and find a policy that fits the unique needs of your ATM business.

Starting an ATM business requires not only the right equipment and locations but also effective marketing to attract clients and users. Your marketing efforts should focus on highlighting the convenience, security, and accessibility of your ATMs. Here are some strategies to get the word out about your ATM services:

• Build a Website: Create a professional website showcasing your ATM services, locations, and contact information. Optimize it for search engines to help potential clients find you online.
• Utilize Social Media: Leverage social media platforms to reach a broader audience. Regular posts about your ATM locations and features can engage potential customers.
• Partner with Businesses: Establish partnerships with businesses that can benefit from having an ATM on their premises. Offer them a share of the transaction fees as an incentive.
• Local Advertising: Advertise in local newspapers, radio, and community bulletin boards. Consider offering special promotions to new locations to boost interest.
• Attend Trade Shows: Participate in local business expos and trade shows to network with business owners and promote your ATM services directly.
• Referral Program: Implement a referral program that rewards current clients for referring new locations or businesses to your ATM services.

Expanding your ATM business is a pivotal step in scaling operations and increasing revenue. To ensure a successful growth, it's important to analyze market demand, strategically choose locations, and offer excellent customer service. Here are some key points to consider while expanding your ATM business:

• Research the market to identify underserved areas or high-traffic venues where additional ATMs could be beneficial.
• Build relationships with business owners and negotiate placement contracts for your ATMs in their establishments.
• Invest in newer, more advanced ATM machines that offer a wider range of services to attract more users.
• Implement a robust maintenance and service plan to ensure all your ATMs are functioning properly and reliably.
• Consider diversifying your services by offering cashless transaction options such as mobile payments or contactless withdrawals.
• Enhance your marketing efforts to raise awareness about your ATM locations and services.
• Regularly review and analyze the performance of your ATMs to make informed decisions about further expansions or adjustments.
• Explore partnerships with financial institutions or other businesses to leverage their customer base and increase transactions.

Starting A Profitable ATM Business: A Complete Beginners’ Guide

The ATM business is an excellent way to generate a passive income stream that requires little to no effort once the machines are installed and operational. With a few initial investments and the right ATM automation process , you can create a profitable ATM business that will provide you with a reliable source of income for years to come.

Are you hoping to start an ATM business ? This guide highlights the fundamental steps necessary to get started. Here are some key pillars involved in building a profitable ATM business even as a beginner.

LLC stands for Limited Liability Company, which is a legal entity that protects the personal assets of business owners. EIN, or Employer Identification Number, is a unique identification number assigned by the IRS to a business entity for tax purposes. Obtaining an LLC/EIN is crucial for establishing a separate legal identity for the ATM business and for tax purposes.

Setting up a bank account is crucial for an ATM business, as it allows for easy management of finances. Many jurisdictions require that ATM businesses have a bank account to operate legally. Having a bank account can help ensure that the business complies with local banking and financial regulations. Additionally, a bank account is required to set up a merchant account, which allows the ATM business to accept credit and debit card payments. This can increase revenue and improve customer satisfaction.

However, be aware that you can get a lot of opposition from banks during this process. This is because banks consider the ATM business as a risky one, besides, you are also seen as a competition. So, it is safe to try out different banks to find the one that will be ready to work with you. You should also make sure that you have every necessary legal document with you when you go for the processing. These include; Copies of your LLC, EIN, identification, and a processing agreement (an agreement between you and your processing company.

ATM/Processing

The ATM is the heart of the ATM business, and choosing the right machine is crucial for the success of the business. Factors to consider when selecting an ATM include cost, reliability, functionality, and ease of use.

A processing company facilitates the transaction between the ATM and the customer’s bank. Choose a processor that offers competitive pricing, reliable service, and the necessary security measures to protect your customers’ data. However, be careful not to get too carried away with cheap pricing as it may not be the best.

Choosing the right location is essential for an ATM business . Ensure you research the market and determine if there is a demand for ATMs in your target area. Consider factors such as foot traffic, demographics, and competition when evaluating potential locations. The ideal location should have high foot traffic and be in a safe and easily accessible area. Places like liquor stores, nail salons, parking garages, and shopping malls can be good options to consider when looking for lucrative ATM business locations.

Do you have more questions on how to get started with your ATM business? Our team will be glad to help.

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How to Start an ATM Business (Complete Guide for 2024)

Starting a business may be a significant step to financial freedom. And it might surprise you, but you can actually start your own ATM business and make money off the fees when people withdraw cash. So, here’s how to start an ATM business.

• Invest in a new or used ATM machine or consider leasing one
• Find a high-traffic location where using cash is common
• Hire a cash delivery service to handle reloading the machine
• Ensure enough cash on hand to refill the machine monthly or as needed
• Plan for more minor expenses such as receipt paper, the phone connection for the machine, insurance, and ongoing maintenance

This article offers a complete guide on starting an ATM business in 2022. An ATM business is a cool source of passive income.

We’ll look at the complexities, legalities, and what life is like as an ATM owner. But I’ll also cover whether you need a business license, how much you can make off ATM fees, and what the first step in creating your business model is.

Let us dive in!

Step-by-Step Instructions on Starting an ATM Business

Starting an ATM business can be a great way to make money and provide a valuable service to customers. However, it is important to understand the process and the steps involved in order to ensure success. Here are 14 steps on starting an ATM business:

Step 1: Research the Market

Before you start your ATM business, it is important to research the market and understand the competition. Look into what other businesses are offering in terms of services, fees, and locations. This will help you determine if there is a need for your services in the area and if you can offer something unique that will set you apart from other businesses.

Step 2: Choose Your Location

Choosing the right location for your ATM business is essential for success. Consider factors such as foot traffic, visibility, security, and accessibility when selecting a location. You should also consider any local regulations or zoning laws that may affect your business.

Step 3: Obtain Licenses & Permits

Before you can open your ATM business, you will need to obtain all necessary licenses and permits from local authorities. This may include a business license, sales tax permit, or any other permits required by law in your area.

Step 4: Purchase Equipment

ATM machines are expensive pieces of equipment that require regular maintenance and upkeep. Before purchasing any equipment, make sure to research different models and compare prices from different vendors to get the best deal possible.

Step 5: Find Suppliers & Vendors

You will need to find reliable suppliers and vendors who can provide you with cash for your ATMs as well as other supplies such as paper rolls or receipt tape. Make sure to research different suppliers before making any decisions so that you can get the best prices possible.

Step 6: Set Up Your Business Structure

Before opening your ATM business, it is important to set up a legal structure such as an LLC or corporation so that you can protect yourself from personal liability in case of any legal issues or disputes with customers or vendors. Consult with an attorney or accountant who specializes in setting up businesses so that they can help guide you through this process.

Step 7: Create a Business Plan

A well-written business plan is essential for success when starting an ATM business. Your plan should include information about your target market, pricing structure, marketing strategy, financial projections, and more. This document will serve as a roadmap for running your business and should be updated regularly as needed.

Step 8: Secure Financing

Securing financing is one of the most important steps when starting an ATM business since it will determine how much money you have available for startup costs such as equipment purchases or marketing expenses. Consider applying for loans from banks or investors if needed in order to get enough capital for launching your business successfully.

Step 9: Market Your Business

Once everything is set up and ready to go, it’s time to start marketing your new ATM business! Developing a comprehensive marketing strategy that includes both online and offline tactics will help ensure that potential customers know about your services and where they can find them when they need them most!

Step 10: Train Employees & Install Equipment

Once all of the necessary paperwork has been taken care of and financing has been secured, it’s time to start training employees on how to use the equipment properly so that they can provide excellent customer service when helping customers use their ATMs! Additionally, make sure all equipment is installed correctly according to manufacturer instructions before opening up shop!

Step 11: Open For Business!

After all of these steps have been completed successfully it’s finally time to open up shop! Make sure everything is ready before opening day so that customers have a positive experience when using your ATMs!

Step 12: Monitor Performance & Adjust As Needed

Once everything has been set up properly it’s important to monitor performance regularly in order to ensure everything is running smoothly at all times! Additionally make sure adjustments are made as needed based on customer feedback or changes in market conditions so that you stay ahead of competition!

Step 13: Expand Services & Locations As Needed

As demand increases over time consider expanding services offered by adding additional features such as check cashing or bill payment options at select locations in order increase revenue potential even further! Additionally consider expanding into new locations if there appears enough demand in those areas too!

Step 14: Stay Up To Date On Regulations & Trends In The Industry

Finally make sure stay up-to-date on regulations related specifically related ATMs industry as well as trends within this sector so that you remain competitive at all times! Additionally consider attending conferences related specifically related ATMs industry too so that you stay ahead of competition at all times!

Frequently Asked Questions

How much does it cost to start an atm business.

A new indoor ATM machine is approximately $2,500. Outdoor machines are closer to $10,000. Renting space for the machine can be $100 per month. A phone line for connecting to other banks is $30 a month. Replacing receipt paper is $50 per month, and armored cash delivery can be as much as $500 per month.

And occasionally, you’ll have maintenance costs on the machine, especially if it’s outside.

But there is no exact figure that translates into the cost of starting an ATM business. I would like to believe that anyone who wants to start a business would have a budget they want to work with.

Alternatively, you may want to find out how much it will cost to generate a business plan for the finances or adjust your budget.

A number of factors influence how much money you may need to own an ATM business. Let us look at them.

Cost of ATM Machine

The cost of an ATM varies based on the model, size, and age.

You can get a machine between $2000- $3000 if it’s going INDOORS. In addition, you can choose to purchase a brand new ATM or refurbished machine. Determining the type of machine is a crucial aspect for ATM business owners.

As I said above, automated teller machines at ATM locations that are outside can cost closer to $10,000 since they have to be both weather-proof and more secure from theft.

You may want to invest in a new machine as it usually comes with a warranty. However, if you buy used machines, it may require lots of repairs, reducing the gross profit.

After settling the issue of the ATM, up next is looking for a good location.

Again, it helps if you find small business owners willing to rent out a space to you. In addition, whatever rent you agree to should not be so much that it leaves you with little or no profits.

Alternatively, you can suggest sharing the revenue from the ATM business with the location owner. This way, you are sure to avoid extra losses.

Some places will naturally benefit from having an ATM in their location (cash-only restaurants, for example) and be happy to let you place your machine for free. But others may want a fee of $100/month.

Business Structure

Another factor that affects the cost of starting an ATM business is the business structure.

You can choose between a Limited Liability Company or an incorporated business. Usually, creating a legal document may range from $150- $200.

In addition, you may have to visit the State Attorney General’s office to register the business. The cost of the registration varies depending on the business entity. However, the range is between $10- $700.

Licenses and Permits

Before you start an ATM business, you must follow your state’s licensing requirements.

You must have thought of a business name which you will register with your county clerk. In addition, you may opt for a limited liability company.

This protects you from personal liability. Furthermore, you should get all necessary business licenses and permits by paying all required fees before commencing the business.

Purchasing ATM insurance is not compulsory.

You can decide to get it or not. The cost depends on what plan covers the machine and/or cash. The number of employees and location of the business may also influence it.

But on average, expect it to cost about $500/year to insure an ATM for up to $1,000,000 in general liability coverage.

However, remember to check if an insurance policy already covers the location. If it does, this will determine the type of insurance to purchase.

Most people who start the ATM business are available to run it.

However, if you have the vision to expand to other locations, you may need to hire workers. And either way, you’ll need a system to reload the cash into the machine(s) periodically. Armored car service is the most secure but can run $500/month.

Alternatively, there are other services that can do it for about $50/visit.

So, think about how crime-ridden the neighborhood is where you have the machine, how busy it is, and how often it will need to be refilled.

Ongoing smaller expenses

As I said above, you’ll need to refill receipt paper as needed, which should cost about $50/month.

Then you’ll need a phone line so your ATM equipment can connect to other financial institutions. That is often about $30-40/month.

Thank you to Robinson’s Barbershop of Kenner, LA for choosing @advantageatm_ as it’s ATM partner! Mr. Robinson has been a successful business owner for 20+ years. We’re happy we could help! pic.twitter.com/4UcQikHRoG — cash is king. (@advantageatm_) July 11, 2020

Is owning an ATM profitable?

Yes, owning an ATM is a profitable business.

There is an ATM almost everywhere you go. They may be your only option when you are in dire need of cash but far from your local bank branch.

You may wonder what I mean by ATM business is profitable since they are affiliated with big financial institutions. However, that is not what I am talking about. Instead, I mean those ATMs you find in gas stations or convenience stores without the big names on them.

One of the key motivating factors for venturing into any business is profit. Now, to the burning question at the back of your mind: how do ATM owners get profit?

A specific transaction fee is deducted whenever a person withdraws money from the ATM. As a result, the ATM owners get paid a price of about $3 per transaction. In addition, ATM owners earn from interchange fees of about $0.10- $0.20 for each transaction.

According to Bankrate:

“An ATM operator fee or surcharge fee is charged by ATM owners to non-customers using its ATMs.”

This is another way private ATM owners make money. The average cost of surcharge fee is $3.08. Whenever someone withdraws cash from your ATM, you earn an ATM fee of about $3.

Therefore, your profit will depend on how much cash people withdraw within a period. According to ATM Depot, the average number of transactions on one ATM is 180 within a month. Therefore, you can make an average of $540 every month.

If you have more than one ATM or location is in a region with high foot traffic, then you are sure to make more profits.

Well this is different. Never seen them filling the atm before…now i know what those trucks with money are for XD pic.twitter.com/NG0q9Q35ZS — Andrew (@ajskateman) July 20, 2015

Who fills money in ATMs?

The bank obviously refills ATMs at banks or is owned by them.

However, if you are unfamiliar with the ATMs, you may wonder who actually fills these private ATMs with money since they are not affiliated with any bank.

Suppose you are the outright owner of the ATM business. You can refill the machine without involving a third party. This option may be stressful, but it is the path to maximizing profit from the business.

One problem that ATM owners may face is having enough money to refill the machine. Therefore, ATM owners must have much cash as capital for refilling.

Another issue they may face is security.

ATM business owners need to find the safest time to refill the machine. If something goes wrong, they may lose a huge amount of cash. This is primarily a risk for the free-standing type of ATMs.

Therefore, it is not uncommon for ATM owners to hire a cash management company to take care of refilling the machine with money.

Of course, this method reduces the overall profit.

But you can have your peace of mind intact. Working with a cash management company is a secure way of handling funds. The company will also have insurance which means double coverage if anything happens when filling the machine with money.

In addition, ATM owners may seek partnerships with an ATM processor.

The ATM processor is responsible for filling the machine with money. They help them map out business processes and strategies for filling the machine with cash. Although ATM owners would have to pay for this service, there is better security coverage.

WinSouth Credit Union, a financial institution based in Northeast Alabama, has partnered with ATM USA, an ATM outsourcing company, to deliver three ATMs to its new branches. #WinSouthCreditUnion #ATMUSA #ATMoutsourcing Read more: https://t.co/BWX4QIlU6R pic.twitter.com/2Q96ErcNfK — АО «САГА Технологии» (@SAGA_Tech) September 25, 2021

Are ATMs a dying business?

No, the ATM business is not a dying sector.

Some people would like to argue that the world is going digital. Therefore, there is no future for ATMs.

And 50 years from now, that will likely be true.

However, as long as cash is still in circulation, there will always be a need for ATMs. Cash has been around for thousands of years, and it will not lose relevance overnight. This is because it is the most accessible means of payment.

Many people are adopting the cashless policy.

They prefer to pay for goods and services with their debit or credit cards. The world is going digital fast. Nevertheless, ATMs are evolving to meet the need of people in the digital world.

Digital payments are risky, and that is why cash will persist. It is not easy to keep track of digital transactions. However, there is proof of transaction in your email. It would contain personal information putting you at risk of identity theft.

In addition, digital payment is a contributing factor to the digital divide.

Some people do not have access to the internet required for digital transactions. Others do not have the necessary skills to manage digital finances. Individuals living in rural areas, the unskilled, and the aged are at a disadvantage with digital transactions.

On the other hand, cash is quick.

You don’t have to wait for proof of transaction status or deal with issues of insufficient funds. Furthermore, cash is accessible to everyone irrespective of social class, educational background, or tech skills.

The events of 2020 and beyond have actually increased the usefulness of ATMs.

Banks are restricting the number of individuals who come in to follow the social distancing regulations. ATMs can be fitted with big screens for advert placement. In addition, ATMs in stores may increase foot traffic and boost business.

Found this on an atm/change machine in the casino when I went to change a 20. Someone’s having a rough start to their Vegas weekend! #Vegas #nofunds pic.twitter.com/Skm8QHgDZK — Heath Johnson (@heathjohnson80) February 15, 2020

Where is the best place to put an ATM?

The best locations for ATMs are indoor locations with a lot of foot traffic, restaurants or bars that are cash-only, or locations adjacent to large flea markets or swap meets as long as events happen regularly .

So as you may have guessed, the biggest factor that influences the success of the ATM franchise is location.

Therefore, it is essential to consider a good location because you can only profit when people use your ATMs. Here are some factors to consider before choosing a location.

Areas where cash is preferred : the ATM location should be where cash is the staple for transactions. Some organizations accept only cash, which makes them one of the best places to put an ATM.

High traffic areas : areas with more traffic increase the chances of using the ATM. This is because it is in a visible location that is easy to access. In addition, high traffic areas may make customers feel safer when using the ATM.

Other ATMs in the areas : suppose there are other machines. You may need to do a thorough investigation before placing your ATM there. If the other ATMs are old and in poor condition, you have nothing to worry about. Also, if the foot traffic is incredibly high, there may not be much competition. If otherwise is the case, you should avoid these locations.

The following are the best places for putting your ATM:

• Gas stations 
• Convenience stores
• Parking lots
• Clubs and bars
• Restaurants
• Event centers
• Universities and other institutes of learning

So I would never withdraw money from a free-standing ATM (cash machine), a converting a red phone box into one is admittedly a clever idea pic.twitter.com/ncaPMYHebb — The Travelphile (@TheTravelphile) September 1, 2019

What are the types of ATMs?

There are two types of ATMs: Freestanding and Through-the-wall ATMs.

In urban cities, you can find an ATM on almost every corner, gas store, and phone line. People can use their cards (debit or credit) to withdraw cash from any location. In addition, some ATMs allow for checks and cash deposits.

Let us take a look at the difference between the two.

Free Standing ATMs

Free-standing ATMs are the most popular ATMs owned by ATM operators. They are unattached to a wall or a building.

Instead, they are held by the ground. Free-standing ATMs are often provided to increase customers’ convenience, especially for organizations that accept only cash. For example, they are popular at movie theaters, grocery stores, and restaurants.

However, these machines do not receive deposits from customers for safety reasons. The benefit of free-standing ATMs is that they can be placed in any good location provided there is enough space and a constant power supply.

Through-the-wall ATMs

Through-the-wall ATMs are attached to the wall of a building or business.

This type of ATM offers more security features than its counterpart. Only the machine’s exterior, where customers can do their transactions, is on the outside.

The filling the ATM with money and other things take place behind the wall, out of prying eyes. However, through-the-wall ATMs require much space. This is because it requires constructing a room(s) based on the number of machines.

So, if you are opting for this type of ATM, do not forget to include construction costs in your budget plan. In addition, you may need to discuss the price of the area with the property owner.

Special thanks to our awesome business partner Citizen State Bank for our new ATM machine. This will better serve our students, staff and patrons. They are a great partner. ⁦ @AndrewRikli ⁩ ⁦ @PLCSchools ⁩ pic.twitter.com/vkYTu76jhV — Jeff Johnson (@papiojeff) April 22, 2019

What is a good name for an ATM business?

Finding a good name for an ATM business is a crucial decision of a sole proprietorship. The name is a representation of the business. Let us examine the steps in choosing a good name for an ATM business.

The first thing that influences a choice of name is the goals and vision you have for the business. You need to ask yourself fundamental questions like: “what is the target market? what emotions do you want to evoke in them?”

A clear answer to these questions helps to improve your understanding of the best ways to appeal to your potential customers.

Next is the fun part, which is brainstorming.

I would advise you to use paper and pen/pencil. Imagine what adjective you would like to be associated with your business. Allow the creative juice to flow and keep writing them down as they come.

Here are some brainstorming techniques:

• You can work with the ATM business location
• You can use words that evoke some emotions like secure cash ATM, Happy ATM, etc
• You can use word puns or combine words in a fun way like Money Mill ATM, Great Citizens ATM, etc
• There is the option of keeping it short and simple, like Safe ATM
• In addition, you can use a name that represents something for you, like your favorite celebrity, your family name, etc.

Furthermore, you can try a business name generator.

The software will ask some questions that it will utilize in generating the ideal name for your business. It is okay if you do not like the name. It can be the spark you need to get name ideas flowing.

Finally, register the business name.

Before going to the appropriate office to register, it would help to find out whether the business name you chose is available. It should not come to you as a surprise if someone has already used your desired name to register their business.

What are the worst mistake to avoid when starting an ATM business?

Starting an ATM business can be a great way to make money, but there are some mistakes that can be costly. Knowing what these mistakes are and how to avoid them is essential for success.

Not Doing Your Research

One of the worst mistakes you can make when starting an ATM business is not doing your research.

You need to understand the industry, the regulations, and the competition in order to be successful. You should also research the different types of ATMs available and decide which one is best for your business. Additionally, you should research potential locations for your ATM and determine if they will be profitable.

Not Having a Business Plan

Another mistake to avoid when starting an ATM business is not having a business plan.

A business plan will help you stay organized and focused on your goals. It should include information about your target market, pricing structure, marketing strategy, and financial projections. Having a well-thought-out plan will help ensure that you are making informed decisions throughout the process of starting your business.

Not Understanding Regulations

It is also important to understand all of the regulations that apply to ATMs in your area before starting an ATM business.

Different states have different laws regarding ATMs, so it is important to familiarize yourself with these laws before getting started. Additionally, you should make sure that you are compliant with any federal regulations related to ATMs as well as any local ordinances or zoning requirements that may apply in your area.

Not Having Enough Capital

Having enough capital is essential when starting an ATM business.

You need enough money to cover start-up costs such as purchasing or leasing an ATM machine, obtaining necessary permits and licenses, and marketing expenses.

Additionally, you need enough money to cover operational costs such as maintenance fees and cash replenishment fees until your business starts generating revenue from transactions fees charged by customers using the machine.

Not Having Proper Insurance

Finally, it is important to have proper insurance when starting an ATM business in order to protect yourself from potential liabilities or losses due to theft or vandalism of the machine or other unforeseen circumstances.

Make sure that you have adequate coverage for both property damage and liability so that you are protected in case something goes wrong with your machine or someone gets injured while using it.

The ATM business is profitable.

And it can be the key to financial freedom for you. But it’s not always easy to start an ATM business, and there are some significant start-up costs to think about.

You can also read a recent article on my website about the keys to financial freedom.

There are essential factors you must consider to get the best from an ATM business. It helps if you choose a good and catchy name for the ATM business.

Also, get it registered and licensed to avoid any trouble with the law.

Before you venture into the ATM business, take time to study the location and the type of ATM best suited for it. In addition, make concrete arrangements concerning how the machine will be refilled with cash when necessary.

I hope this article has been useful in guiding potential ATM owners. Make the right decision today!

Image by Peggy und Marco Lachmann-Anke from Pixabay

Jeff Campbell

Jeff Campbell is a budget-master, father, full-time blogger, Disney-addict, musician, and Dave Ramsey fan. Click Here to learn more about me. Click Here to learn more about my site. Editorial Policies.

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Step-By-Step Guide For How To Start an ATM Business

Starting an ATM business can be a lucrative endeavor. It’s important to understand the step-by-step process for doing so. In this article, we will outline the steps you need to take in order to get your business up and running.

Here are the 10 steps you can take to get started on building your very own ATM business.

10 Steps to Launching a New ATM Business

1. choose your type of atm business.

The first step in launching an ATM business is to identify the type of ATM business you want to launch. You might choose from the following types among others:

An independent ATM busines s: In this type of business, you would be responsible for finding locations to place your machines, installing the machines, and maintaining them. You would also be responsible for managing cash and keeping track of inventory.

A franchise ATM business : In this type of business, you would purchase a machine from an ATM franchisor and then find locations to place the machine. The franchisor would provide you with support in terms of machine maintenance, cash management, and inventory tracking.

A white-label ATM business : In this type of business, you would purchase machines from an ATM manufacturer and then find locations to place the machines. You would be responsible for managing cash and keeping track of inventory. The manufacturer would provide you with support in terms of machine maintenance.

2. Name Your ATM Business

Give your ATM business an identity so people will think of it as a well-known and respected brand. You can take the name of your ATM business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your ATM business is to make it sound appealing and trustworthy so…

3. Determine Your ATM Business Model

There are several possible types of business models for an ATM business including:

• The transaction-based model : In this type of business, the customer pays a fee for each transaction made using the machine.
• The surcharge-based model : In this type of business, the customer pays a flat fee for each transaction made using the machine.
• The interchange-plus model: In this type of business, the customer pays a fee that is a combination of a flat fee and a percentage of the transaction amount.
• The free-to-use model : In this type of business, the customer does not pay any fees for using the machine. This type of business is typically used as a marketing tool to attract customers to a specific location. 

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

4. Choose a Legal Form for Your Business

By incorporating your ATM business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your ATM business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common ATM business structures .

5. Write a ATM Business Plan

All ATM business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write an ATM business plan .

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your ATM business.

For example, you may need a general business license.

You must also register your ATM business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper ATM business licenses .

7. Determine Your Budget and Apply for Funding as Needed

In developing your ATM business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your ATM] business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your ATM business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting an ATM business to help you determine if funding is needed. 

Read our article about how to fund your ATM business . 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your ATM business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in point-of-sale (POS) software for your ATM business. POS software can streamline transactions and help you track inventory levels.

In addition, you may need a merchant account so you can accept credit card payments from customers. A merchant account is a type of bank account that allows businesses to accept credit card payments.

9. Market Your ATM Business to Potential Clients

Before you start selling your services , you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the ATM industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. ATM businesses should consider the following promotional strategies for which you should start getting prepared: 

Develop a Strong Brand Identity : A strong brand identity is key to success in any industry. You need to create a recognizable logo and color scheme that will be used on all of your marketing materials, from your website to your ATM machines.

Use Promotional Products : Give potential customers something they can hold onto that has your brand name and contact information. Popular promotional items for ATM businesses include keychains, USB drives, magnets and notepads.

Launch a Referral Program : Referral programs are an excellent way to get new customers through word-of-mouth advertising. You can offer existing customers discounts on future transactions or even cash bonuses for referring new customers to your business.

Read our article about how to market your ATM business for more tips.

10. Get New Clients and Grow Your Business

When you promote your services , you’ll start to get interest from potential clients . 

Make sure you’re ready to serve these clients . Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your ATM business.

Read our article about how to effectively grow your ATM business to learn more.

Starting an ATM Business FAQs

Why start an atm business.

The reasons for starting an ATM business vary from person to person. But there are some common motivating factors, such as the desire to be your own boss, the challenge of building a successful business, and the potential for financial independence.

Another reason why people start ATM businesses is that they have a passion for the industry and want to help other people become more financially independent.

What are Some Tips for Starting an ATM Business?

Here are a few tips to help you get started:

• Research the market : The ATM industry is constantly changing, so it’s important to stay up-to-date on the latest trends. Make sure you understand the different types of machines available and what features they offer. You should also research the fees associated with using ATM machines.
• Choose a niche : There are many different types of businesses you can start in the ATM industry. You can focus on a specific type of machine, such as those that dispense cash, sell tickets or provide other services. Or you can focus on a specific market, such as businesses, schools or government institutions.
• Create a business plan : A well-thought-out business plan is essential for any successful business. Be sure to include your marketing strategy, financial projections and a realistic timeline for launching your business.
• Find the right suppliers : You’ll need to find reliable suppliers who can provide you with high-quality machines and software. You should also compare prices to ensure you’re getting the best deal.
• Train your staff : Be sure to train your employees on how to properly use and maintain the ATM machines. This will help ensure a positive customer experience and minimize downtime.

With these tips in mind, you’ll be well on your way to starting a successful ATM business.

Where Can I Find a Simple Checklist for Starting an ATM Business?

A simple checklist to use when starting an ATM business is as follows:

• Choose Your Type of ATM Firm : This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
• Name Your ATM Business : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Determine Your ATM Business Model : Determine how your business will make money. Will you sell products, services, or a combination of both?
• Write an ATM Business Plan : Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses : In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed : You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
• Get the Technology and Software Needed to Run Your Business Efficiently : You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your ATM Business to Potential Clients : A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
• Get Clients & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services . 

Starting an ATM business can be a lucrative endeavor, but it takes some planning and effort to get started. By following the steps in this guide, you’ll be well on your way to launching a successful business. Remember the market and take the time to create a detailed business plan so that you have a solid foundation for success.

Other Helpful Articles

Pros and Cons of an ATM Business

How To Create a ATM Business Name & 11 Business Name Ideas

Is Buying an ATM a Good Investment?

Step-By-Step Guide For How To Start a Bitcoin ATM Business

Is the ATM Business Dying or Worth It?

How to Start an ATM Business

When a consumer needs access to cash, most are willing to pay a few dollars in service fees at the nearest ATM. Automatic teller machines strategically placed in public locations around town is a profitable way for entrepreneurs to earn a comfortable passive income.

Learn how to start your own ATM Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start an ATM Business by following these 10 steps:

• Plan your ATM Business
• Form your ATM Business into a Legal Entity
• Register your ATM Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your ATM Business
• Get the Necessary Permits & Licenses for your ATM Business
• Get ATM Business Insurance
• Define your ATM Business Brand
• Create your ATM Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your ATM Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our ATM Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your ATM Business?

Business name generator, what are the costs involved in opening an atm business.

While this type of business venture does not require an office space or a lot of supplies, there are a few things you will need to purchase. Total investment will be defined by how many machines you plan to start with. Each machine will cost between $3,000 and $10,000, depending upon the style you purchase. Each machine should have at least $2,000 in cash on a rotating basis. The only other items you should need is an insurance policy, a bag for transporting cash, tools for routine machine maintenance, and a reliable vehicle. Each machine must have access to a phone line or the Internet and you will need a computer for checking the status of each machine.

What are the ongoing expenses for an ATM Business?

Most machines require a minimum of $2,000 cash per week. Cash should be loaded in on a rotating basis. Many banks will charge your business a surcharge and merchants charge a monthly rent fee or commission, depending upon the contract both parties have agreed upon. New business owners are urged to conduct thorough research regarding your market, so that margins are correctly set from the beginning. This will help ensure higher profit margins for your ATM business.

Who is the target market?

Your ATM business is there to serve anyone who may need quick access to cash. Restaurants, bars, strip malls, convenience stores, and shopping malls are a great place to start.

How does an ATM Business make money?

An ATM business charges each customer a fee when they draw money out of their account.

The standard fee is $2.50 to $3.00 per transaction.

How much profit can an ATM Business make?

It’s important to choose high-traffic areas for your terminal locations. Successful business owners report an average of $500 per month, per ATM machine.

How can you make your business more profitable?

The more machines you have strategically placed, the higher your profits. Many new business owners find comfort in investing in franchises. Once you have learned the intricacies if this business venture, considering passing that knowledge on to new entrepreneurs by offering franchise opportunities.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your ATM Business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an ATM business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

ATM businesses should consider requiring clients to sign a services agreement before installing a new machine. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and so on.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your ATM Business needs and how much it will cost you by reading our guide Business Insurance for ATM Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an ATM Business

Unlike most business ventures, an ATM business requires little to no marketing. While you will not be directly interacting with your customers, you will communicate regularly with your merchants. Develop strong connections with them to ensure a long-term, mutually beneficial relationship. Networking with business owners in the community is a great way to ensure your name is recognized. When an entrepreneur opens a new business, your merchants will pass your name along, helping to solidify your business’ positive reputation.

How to keep customers coming back

It’s important to remember that each customer is coming to you out of convenience. Do not earn a reputation for having machines that are low on cash or always broken. Strive to deliver what they need, when they need it, at all times.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Are you seeking a business investment that doesn't require an immense amount of time or investment? Do you enjoy interacting with other business owners throughout the community? If so, opening an ATM business may be the perfect business opportunity.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an ATM Business?

The amount of time spent managing this type of operation varies, depending upon your skill set and the number of ATMs you own. Each machine must be kept in working order at all times. It should also contain enough cash to dispense 24/7. Anything less, and your business is losing money. Most ATM business owners have a regular route they tend to each day, where they check to ensure everything is working as it should. The rest of your team’s time is divided between administrative duties and nurturing relationships with vendors, banks, and the businesses that house your machines.

What are some skills and experiences that will help you build a successful ATM Business?

There is no formal training for owning an ATM business. Since this investment requires a significant amount of cash be on hand at all times, entrepreneurs must be skilled at handling cash and budgeting for future needs. A business degree or background is recommended. Strong interpersonal skills would also prove beneficial, as you will need to develop relationships with vendors, banks, and business owners throughout the community.

What is the growth potential for an ATM Business?

Consumers love convenience, making an ATM business a worthy long-term investment. The potential for growth is significant, as these small machines can be strategically placed wherever customers may need quick access to cash. A well thought out business plan will help you define and reach your short and long-term goals for growth and profit.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting an ATM Business?

Successful ATM business investors offer the following advice:

• Conduct thorough research prior to purchasing your machines. Choose one manufacturer and use them for all your machines. This will prove beneficial as you and your team learn how to repair and replace parts over time.
• While it will require more start-up capital, purchase a new machine with a 1-year warranty on parts. Older equipment leaves you open for potential issues and may not be equipped to handle evolving banking requirements/laws.
• Make sure you understand EMV and that your machines are EMV compliant .
• Have each of your merchants sign an agreement.
• Map out your route with locations fairly close together to cut down on operating costs.

How and when to build a team

Most new ATM business owners start out managing the business alone. If your goal is to spread out over a large area, it may be necessary to hire additional team members for servicing. When considering hiring new team members, review their background and job history thoroughly, as they will be regularly handling a significant amount of cash. Additionally, each team member should have the knowledge and skills needed to perform routine maintenance on your machines.

Useful Links

Industry opportunities.

• ATM Industry Association

Real World Examples

Further reading.

• Mistakes to Avoid When Starting an ATM Business
• Interview with an ATM Business Owner

Have a Question? Leave a Comment!

Sample ATM Business Plan

Here is how to write an ATM business plan .

It won’t be easy to find people who don’t use ATMs. These have become a part of our daily lives and offer convenience to financial transactions. There’s an entire industry structured around the ATM business.

You’ll need a plan if you’re drawn towards or want to start an ATM-related business.

However knowledgeable you are about this sector, having a plan will prove invaluable. This is why we’re providing you with a guide to work with.

SEE: How Much Do ATMs Hold?

As expected, this ATM business plan guide highlights key areas to include in your plan.

Without these sections, such a plan will be incomplete.

ATM BUSINESS PLAN SAMPLE

Your ATM business plan should contain certain key elements or sections, such as the executive summary and company description.

Others include the products & services section, market analysis, strategy & implementation, organization & management team, and financial plan & projection sections.

Executive Summary

Here, you want to present a concise overview of what your ATM business is all about. It’s a condensed introduction that must contain all the key points fully explained in the preliminary plan.

Your ATM executive summary section will appear first. However, that isn’t the order it should follow when writing it. It’s essential to keep it for last. This way, you can write a better summary of the contents of your plan.

Certain elements shouldn’t be left out in your executive summary section. These include identifying the problem, your solution, company, business description, and market analysis.

Other vital elements should include the products & services section, financial information & projections, and plans. All of these should fit into a few pages (preferably one or two)

Identifying a Problem and Solution

Your ATM business executive summary section should be informative.

Here, you hold the attention of your reader(s). A significant level of creativity is needed to convey your ideas. Every good business idea should solve the problem.

So, what standard ATM or financial issues do people have? Your first paragraph should be an attention grabber.

Company or Business Description

Describing the specific financial services you offer helps get you the needed funding.

Include information on when you formed your ATM business, services, products, and location. You’ll also need to include founders, executive team members, and names.

Market Analysis

Despite being a summary, the market analysis must include information on your competitors. You must state demand for your ATM services as well. Additionally, you’ll need to identify what makes your business unique.

Products & Services

There are tons of ATM-related financial services. What does your business offer? Clearly state these and provide information on current sales, growth, and unique selling points.

Financial Information & Projections

The executive summary section of your ATM business plan should have a financial overview. Remember, only the highlights are required here, as you will find the full details in the main body.

Future Plans

It would help if you had a plan for your ATM business. This shows that you’re growth-oriented. Here, you want to state what you intend to use funds on and where your expansion plans are headed.

2. Company Description

In writing a company description for your ATM business, you’ll need to state who you are clearly. This includes the name of your business as well as your name. If there are any partners, you must also have their names.

Who is your target customer? In other words, you want to identify to who you’re selling your financial services. Identifying the “what” is essential to describe your company. Investors will need to know what your ATM business is about, as well as the goals you have.

A timeline for achieving your goals is crucial, hence the “when.” Include and explain why people need your ATM services too.

3. Products & Services Section

When you established an ATM business, you intended to provide specific services. All such services will need to be delivered in detail under this section.

This includes a clear benefit to your customers and the business.

4. Market Analysis

This is where all the data from your research will be made available.

Under this section, you’ll need to provide information about the financial services sector and the outlook. There should be a transparent target market and market test results.

You’ll also need to discuss the lead time (regarding financial products on offer) and competitive analysis. To do a good job, a lot of online research is necessary.

Also, put yourself in your customers’ shoes when drafting your market analysis.

You’ll need to be concise in your approach and infuse some visual aids to help with straightforward interpretation.

5. Strategy & Implementation

Under this section, you’ll need to provide information on how you intend to promote your ATM business.

Details on pricing, distribution, ATM Costs , and promotions will also need to be included. Others include operations cycle, number of employees, and labor sources are essential additions to consider.

6. Organization & Management Team

An ATM business will require an efficient organization and management team to drive its operations.

You’ll need to include organization charts with critical employees and roles here. Owners will need to be named and their share percentages provided.

Naming the members of your management team alone won’t do. You’ll need to state their past experiences, occupied roles, and primary responsibilities.

7. Financial Plan & Projection

You should carefully write the financial plan & projection sections of your ATM business to include the sales forecast and an expense budget.

Other important aspects include the cash flow statement, the profit & loss statement, the balance sheet, and the break-even projection.

These are the primary contents your ATM business plan should include. Structuring your strategy around these would greatly help develop an excellent program.

It’s essential to perform all necessary research before putting down a plan. The better your research, the more likely your plans will succeed.

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How to Start an ATM Business: A Complete Playbook for 2022

Written by welcome read – august 15, 2022, written by welcome read  – august 15, 2022.

1:   ATM Business Introduction

2:   set up your corporation, 3:   find and secure locations, 4: buy and install atm machines, 5: manage your atms, are you thinking of starting an atm business if so, you’re in luck. this playbook will provide you with all the information you need to get started in 2022., we’ll go over everything from setting up your corporation to finding and managing locations. so whether you’re a new entrepreneur or just looking to expand your portfolio, read on for all the info you need to know about starting an atm businesses., 1: atm business introduction, before you get started on creating your atm business, it’s important to understand how the industry works. business owners in the atm industry are able to generate revenue through the surcharge and processing fees that customers pay when withdrawing money. through purchasing and placing atms within different high-traffic businesses in your area that are filled with your cash, you’re able to generate a steady stream of passive income., now you might be wondering, just how much money are you able to make from each machine well, with an average atm surcharge of $3 per transaction and an average of 180 transactions per month, your atms have the potential to generate over $540 per month in gross revenue or around $6,500 per year..

With most ATM machines costing around $3,000, that means that the average ATM owner is able to make their investment back in just under six months! Now there are obviously other costs to account for such as maintenance and rev shares with store owners, however, even if you cut the income you receive in half, that’s a yearly return of over 100%, try doing that with real estate.

2: set up your corporation, now that you’ve learned the ins and outs of the atm industry, it’s time to get started. in order to start an atm business, you first need to create a legal entity. whether you’re looking to create an llc, s-corp, partnership, or any other type of company, you’re going to need to file the appropriate paperwork., you can hire a lawyer to help you do this or use one of the many online tools available like zenbusiness . this is a great platform that will allow you to quickly and easily get your business off the ground without having to deal with a mountain of paperwork or the fees of a lawyer., once you’ve finished this step, we recommend that you create an official business plan to help you organize your thoughts into an actionable roadmap. make sure to include your sales process, budget, target market, competition, pricing strategy, and operational plans..

Now that you have a legal entity and a business plan, it’s time to get a bank account. While this may seem like a fairly simple step, as a result of the Bank Secrecy Act (BSA) , which is a law that requires banks to adopt certain procedures to prevent money laundering, you may run into some difficulties. While some large banks may have an aversion to opening bank accounts for ATM businesses, smaller community banks are often more willing to do so, so make sure to try both.

Finally, you can start working on marketing materials like a logo, website, and social media profiles to ensure that potential customers can find you online. tools like squarespace can help you quickly create great looking websites and other tools like canva can help you design your logo, business cards, and more with easy to use, plug and play templates., 3: find and secure locations, once you’re done setting up your company, it’s time for the fun part, making money. to do this you’re going to have to start finding locations that you can place atms. often times this is one of the most difficult steps for people because it involves calling or visiting businesses in-person and selling them on the idea of letting you place an atm in their location., to streamline this process, we recommend creating a simple sales pitch outline that you can give to the owners of the businesses that you visit. once you’ve created a pitch that you’re comfortable with, call around to locations in your area to see if they have an atm. some of the most profitable location types include bars, nightclubs, dispensaries, convenience stores, and really any cash only business that you can find..

Now that you know which businesses in your area don’t have an ATM, you can visit those locations and give your pitch. If they’re interested in letting you place an ATM in their business, you can then get them signed up and get the ATM delivered.

Make sure you create a lawyer approved contract that details the commitments of the agreement and have the business owner either sign it in person or send it to them online via a tool like pandadoc ., so now that you have locations that have agreed to let you place an atm in their businesses, you’re going to need to purchase and install those atms. there are many different atm machines for you to choose from but we highly recommend that you purchase something like the hyosung halo ii . this atm is arguably the most reliable atm on the market and is relatively affordable coming in at only $2,310 on the legacy atm marketplace ., additionally, if you order from legacy atm, we’ll ship the atm directly to you or your target location at no cost (if you’re in the united states)..

Once you’ve taken delivery of your ATM, it’s time to install it. In order to do this you’re going to need several tools including a dolly, scissors, hammer drill, and respective drill bit for the floor type. Start by taking the ATM out of the packaging and placing it in the spot that you and the business owner have agreed upon. You’re then going to want to drill four holes 2-3/4″ deep using a 1/2″ drill bit before hammering in your anchors and tightening them with a 3/4″ wrench.

Once your ATM has been secured to the ground, you’re going to need to plug it into the nearest AC power outlet and connect it to the internet via the ethernet wires provided or an ATM wifi router package.

Now that you have power and internet, you can start programming the ATM. In order to do so you’re going to need to partner with a reputable ATM processor that will serve as the critical link between your machines and the various payment networks including Visa, Mastercard, Discover, American Express, etc. This will ensure that customers can make secure transactions at your ATM and all surcharge is directed towards the correct account(s).

Should you choose to process with Legacy ATM , we can walk you step-by-step through the entire programming process while providing you with lightning fast processing, simplified fees, and automated reports and notifications to help keep you informed about your ATMs.

Now that you’ve found locations and installed your ATMs, it’s time to monitor your machines and ensure that they’re all running properly. It’s important to routinely check each ATM to make sure that they aren’t having any issues and that they are stocked with a sufficient amount of cash. Legacy ATM Processing provides you with automated notifications and reports so that you’re able to quickly respond to any issues regarding low cash balances or errors (We also provide 24/7 phone support should you run into any issues with your ATM).

While a large portion of this business model is passive, you still need to make sure that you’re properly maintaining the ATMs in your fleet. Put aside a few hundred dollars per year for each machine to make sure that you have the budget to replace any broken parts or hire a technician if needed. Every second your ATM is down is time that it isn’t making you money so it’s essential that you stay on top of any issues that pop up.

Final thoughts, so, there you have it. everything you need to know in order to start your own atm business. of course, this is just a basic overview and there are many details that we can’t cover in a single blog post. but, if you want more information or have any questions, please don’t hesitate to contact us., we would be happy to help get you started on your new venture. and remember, when it comes to atms, the sky is the limit, p.s. you can also click here to browse our selection of atm machines and find the perfect one for your business. thanks for reading and good luck with your future endeavors.,      contents, 1.   atm business introduction, 2.   set up your corporation, 3.   find and secure locations, 4.   buy and install atm machines, 5.   manage your atms.

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How to Start an ATM Business in 5 Steps

If you’d like to make a little extra money on the side or want to transition out of your 9-5 job, you might want to know how to start an ATM business. In just 5 steps, you can own and operate an ATM machine that brings in passive income almost immediately.

You don’t need a business license or any specific entrepreneurial training or experience to start an ATM business. Just complete the required documentation, select your ATM machine type, find a location, set a surcharge, and start making a profit. Here, we’ll tell you how to start an ATM business today!

Step 1: Get Compliant with Paperwork

When starting an ATM business, you have to complete the required documentation . The following forms and documentation are necessary in order to even get your machine. This proves that you are qualified to operate an ATM machine and helps set you up for success. This process is designed to make purchasing and operating an ATM machine seamless.

Required Documentation

Your ATM processor will require an equipment order form. This is where you choose the equipment you want and indicate whether you or someone else will handle installation. You will also need to document what your surcharge will be (see below) and what denominations your ATM will dispense.

Next is the ACH form so that your revenue can be deposited into your bank account! Your driver’s license is required to prove your identity and pass a background check. You cannot run an ATM business if you have been found guilty of a felony or financial crime.

A voided business check verifies the legitimacy of your linked bank account. For the purposes of running an ATM business, the account must be a checking account, not a savings account.

The ATM Operator Agreement and application tells banking partners who they are working with and ensures all federal regulations are met. You will need to complete and submit a W-9 form as well. Since you will be making money from your ATM machine, you’ll need to document your earnings for tax purposes.

Finally is the ATM processing agreement. This document lists your rights and obligations as the ATM owner as well as the rights and obligations of the ATM processor. It’s the legal contract between you and the ATM processor that runs your ATM machine program. This agreement also ensures you receive your payment as agreed upon.

Other Applicable Documentation

You may or may not need to complete these forms. They don’t apply in all situations. For example, a business license and permit might only be necessary if your local government requires it. Otherwise, you can register as a sole proprietor under a “doing business as” business name.

A placement agreement, or site location agreement (SLA), would only be necessary if you are planning to install your ATM machine in a location that was owned by someone else. This document serves as a contract between you and that third party and outlines each party’s responsibilities and share of the revenue.

Like all insurance, ATM insurance is completely optional. You can opt to purchase it and account for the cost when calculating your potential profit after operation costs. Or you can test your luck without it. Kind of a gamble here, but if you work with an insurance company that is associated with the ATM Industry Association (ATMIA), they can guide you toward a policy that meets your specific needs.

Last is the wireless agreement. This allows the ATM processor to send you a wireless modem which converts your signal from Internet to cellular and speeds up your connection. Again, this is optional and can be done on your own timeline.

Step 2: Select ATM Type

When choosing ATM equipment, there are three necessary decisions you have to make: ATM type, manufacturer and model, and new or refurbished. 

You have a lot of options when it comes to choosing ATM equipment . First you must decide the ATM type. There are free-standing, through-the-wall (TTW), and wall mount ATM machines.

Free-standing ATMs offer the most flexibility when it comes to placement. They can be installed anywhere there is a power source. They have a small footprint which is helpful when planning around available floor space in a store.

TTW ATMs are bulkier but more secure because the interface, the back of the machine, is secured within the wall extending into the next room. This can make accessing the machine to replace currency a little safer.

Wall mount ATMs can be mounted to a wall, table, or countertop. This can be convenient if your location doesn’t have a lot of extra space available. This is also a more practical choice for small businesses and low-traffic locations.

Manufacturers and Equipment Options

Two of the most popular ATM manufacturers are Hyosung and Genmega. Both produce high-quality, reliable equipment. ATM Depot also offers the full lines of Triton and Hantle (Tranax) machines.

Each of these market-leading manufacturers produces sturdy ATM equipment that lasts upwards of ten years. Just remember that pricing will vary based on the manufacturing company, machine type, and features. You can get more information about manufacturer and equipment options in our ATM Buyers Guide .

New vs. Refurbished

You also have the option of purchasing your ATM machine new or refurbished. New machines are recommended for first-time independent ATM deployers (IADs) who are just starting an ATM business. The new technology informed by feedback from IADs and users makes new ATM machines easier to use.

However, purchasing a refurbished machine could save you some money and therefore speed up your ROI and increase your profit. It’s also better for the environment to reuse electronic equipment rather than having it sent to the landfill.

Step 3: Find a Location

Choosing the right location is very important when it comes to making a profit from your ATM business. You have to find a location where there’s a great need for an ATM machine. Where do people go where they need cash to pay for goods and services? Where is there a large gap between one ATM machine and the next? What are the areas of your city with the most foot traffic? And who might you have to partner with in order to place your machine in a strategic spot?

Who Will Own the Space?

Before you should even think about ordering an ATM machine, you need to know where you’re going to put it. Choosing the perfect ATM location is a very strategic process. You have to consider factors such as visibility, ease of access, and competition. 

The first decision you have to make when choosing a location is whether you want to rent your own space, supply a space you already own, or coordinate with a site location owner. If you rent or purchase your own space, you have to factor that into your operating costs and adjust your business model accordingly to still make enough of a profit for it to be worth it.

The same is true of partnering with a site location owner. Depending on the agreement you set up, you could end up splitting your profits with the owner of the location where you choose to install your ATM. Keep this in mind when calculating your potential profit.

What Are the Best ATM Locations?

When it comes to choosing the right location for your ATM machine, you really have to consider what’s best for you and your business specifically. And you have to work with the locations available to you. Generally speaking, the best ATM locations typically share the same characteristics: cash only, high traffic, good reviews, liquor license, distance from other machines, and convenience for you.

Locations that are cash only or that encourage cash transactions create the demand that your ATM supplies. If people need cash, they need an ATM. This is good for business. So is high traffic. 

The more people who pass by and see your ATM on a regular basis, the more business you’re likely to get. High traffic areas also provide a certain level of security and comfort among users. Isolated machines away from security cameras or the public eye present an increased risk of vandalism and theft.

If you partner with a store owner, you want your ATM to be placed in a store or business that has good reviews. The more customers that store gets, the more business your ATM is likely to get. 

Locations with liquor licenses are good options, too. They are open late, so that extends the hours of operation of your ATM machine and offers more opportunities for transactions. Plus, it’s reasonable to have an increased surcharge at these locations, too (more on surcharge later).Finally, you have to consider the proximity of your machine to you as well as to other machines. The closer your ATM is to other machines, the more competition you have to get customers. But you also want the machine to be convenient for you to access. The more time and money you spend getting to your machine for maintenance and surveillance, the less profit you make.

What Are the Most Profitable ATM Locations?

There are some specific business types that tend to be more profitable due to increased surcharges, high demand, and large volume of patrons. These include casinos, gentlemen’s clubs, hotels, nightclubs and bars, convenience stores and gas stations, restaurants, barbershops and salons, microbreweries, and parking lots.

Keep in mind that profits will vary based on each individual business’s success. When looking for an optimal location for your ATM, choose a business that is busy, regularly brings in customers, and has good potential for staying in business for a while.

Step 4: Set Your Surcharge

The surcharge is the fee customers or users pay for the service your ATM machine offers. For each transaction made on your ATM machine, you make the surcharge amount in return. Setting your surcharge is a very strategic process. You want to offer a competitive surcharge while also setting yourself up to make as much profit as possible. 

The average ATM surcharge fee is about $2.50. Depending on the competition in your area, you can raise or lower that fee amount. And you can change it at any time. 

You might want to start with a low surcharge to encourage people to use your machine as you are just getting started. Or, alternatively, you might want to set a higher surcharge to meet your ROI quicker and start profiting sooner. The choice is up to you.

You also want to consider whether or not you’ll be sharing any portion of the revenue with a third party like a site location owner. If you are, you might opt to set a higher surcharge so that you make more after the site location owner’s share.

Step 5: Start Making Money

It is possible to make a good amount of money from an ATM business. When you’re just starting out, you will want to undergo a modicum of trial and error to get your business model just right. But with an ATM business, you have a low overhead and many opportunities for growth.

As long as people use your machine, you will make money. Getting people to use your machine is the hard work that you have to do once everything is set up. But once you do, you should expect to be making at least $450 monthly gross revenue. That’s 180 transactions a month at $2.50 each.

You can expect 40%-70% annual ROI from any location that warrants 80-100 transactions monthly. To make $1,500-$2,000 monthly in profit, you would need to own and operate 5-10 ATM machines. This is certainly possible if you can establish an efficient routine with your first machine and find optimal locations for subsequent machines. 

How to Start an ATM Business

If you want to know how to start an ATM business, it’s actually very easy. In just a few steps you can start making money. It will require a little bit of work to develop a routine with your machine and test different surcharge amounts and marketing strategies. But there are very few steps involved between completing the required paperwork and beginning to make money.

The best part about running an ATM business is that most of the factors that determine your success are in your control. You decide how much to invest in equipment, where you want your machine, who to work with, and how much you’d like to make per transaction. If you still have questions regarding how to start an ATM business, you can speak with an ATM Depot representative. Contact us today!

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How to Start an ATM Business in 14 Steps (In-Depth Guide)

Updated:   January 18, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The ATM industry is expanding at a rapid rate across the world. As of 2020, the market hit $20.18 billion and is projected to grow at a compound annual growth rate (CAGR) of 4.9% from 2021 to 2028.

For savvy entrepreneurs interested in pursuing this sizable market opportunity, understanding the key steps involved in building a successful ATM business is critical. What does it take to get started? What are the most important factors in running a profitable ATM operation?

This guide will walk you through how to start an ATM business. Topics include opening a business bank account, registering an EIN, marketing your brand, sourcing ATMs, and more. Here’s everything you need to know to start your own ATM business.

1. Conduct ATM Market Research

Market research is essential to starting a ATM machine business. It offers insight into your target market, local market saturation, trends in products and services, and more. There are two types of market research, primary and secondary, both are important for beginning a brand.

Some details you’ll learn through market research include:

• This upward trajectory is expected to continue.
• One forecast projects the global ATM market will reach $25 billion by 2026, up from $18 billion in 2021.
• Driving this growth is rising demand in developing regions like Asia Pacific and Latin America as personal incomes increase and more people want to withdraw cash.
• In the US specifically, market saturation remains low compared to other countries.
• There are only around 9 ATMs per 10,000 adults in the US, versus over 12 per 10,000 adults in Canada. This gap indicates there is room for more ATM expansion domestically.
• Profitability prospects for ATM operators are also favorable.
• Transaction fees from banks and surcharges collected from customers can produce strong cash flows.
• Well-located machines in high-traffic areas like gas stations, convenience stores, and entertainment venues can generate over $1,000 per month in gross revenue.
• After costs, operators can realistically target $200-500 in net monthly profits per ATM. For an operator with 20 well-situated machines, this translates to $4,000-$10,000 in monthly recurring cash flow.
• The upfront investment to acquire and install an ATM is around $2,500-$3,500 on average. With strong cash-on-cash returns, payback periods of 6-12 months are achievable.

Overall, market conditions point to a sizable and lucrative opportunity in the ATM industry right now. With steady growth on the horizon and attractive profit potentials from individual machines, the market offers a stable source of cash flow for operators who target strategic, high-traffic locations and provide reliable customer service.

Keep in mind that starting a Bitcoin ATM (or any other cryptocurrency ATM) business may require more initial financing and can be more difficult to achieve.

2. Analyze the Competition

Understanding the competitive landscape is key for any new business, and ATM operators are no exception. Competitive analysis tells you how to market your business, where customers are more likely to use ATMs, and what your target market is looking for in an ATM provider.

There are a few angles aspiring operators should analyze to size up competing ATM businesses:

• First, look at the number of ATMs already installed in your target geographic area. Tools like VISA’s Global ATM Finder allow you to search for ATMs by city and zip code.
• High concentrations of existing machines in an area make it more challenging to find vacant high-traffic sites in retail stores and other locations.
• National chains like Cardtronics and large independent players often have ATM fleets numbering in the hundreds or thousands.
• Analyze the monthly transaction volumes of competitors’ machines at locations you are considering. Higher volumes signal you may struggle to attract customers.
• Evaluating fees is also important. Check competitor surcharge amounts and if they adjust pricing during peak hours. You may find opportunities to undercut higher fees.
• Search online reviews of major operators. Poor feedback for lack of service and maintenance may present a competitive opening if you deliver better customer service.

Doing this competitive homework will help identify potential business gaps you can fill and sites where inserting a machine could be profitable. Performing ongoing competitive research as you scale your operation is key to staying strategic.

3. Costs to Start an ATM Business

When launching an ATM operation, the upfront costs consist of acquiring the machines, preparing sites, and handling initial licensing and compliance needs. There are also ongoing business expenses to consider.

Start-up Costs

• ATM Purchase – The biggest start-up cost is purchasing the ATM units themselves. New machines typically run $2,000 – $3,500 per unit depending on features. Opting for used/refurbished ATMs can reduce this upfront equipment investment to around $1,500 – $2,500 per machine.
• Site Preparation – When placing ATMs in retail locations, any construction or electrical work required to prepare the site will add startup costs. Budget around $500 – $1,000 per location for minor renovations or wiring work needed.
• Installation – Professional installation of the ATMs by a technician averages $300 – $600 per machine depending on location specifics.
• Cash Load – Each ATM will need an initial cash load in the cash cassette to service customer withdrawals. This can be $3,000 or more per unit depending on machine capacity and anticipated transaction volumes.
• Licensing – Certain states require specific ATM operation licenses that cost around $200 per year. Research regulations in your target markets.
• Insurance – General liability insurance for an ATM business runs $600 – $1,000 per year typically. Worker’s compensation is also required if hiring employees.
• With these factors, total startup costs for a small 1-2 machine operation may range from $10,000 – $20,000. For larger operators placing 5-10+ units, expect initial investments between $30,000 – $60,000.

Ongoing Costs

• Transaction Fees – Processing networks charge fees per withdrawal, usually $0.25 – $0.50 per transaction. With higher transaction volumes, these fees add up.
• Cash Management – ATMs need routine cash reloads, which cost around $150 per service visit. Budget around $5,000 – $10,000 annually for cash management across a fleet.
• Maintenance – Annual maintenance contracts for servicing, cleaning, and inspecting machines run $200 – $300 per ATM
• Wireless Connectivity – For ATMs with cellular data connections, wireless modem plans are around $30 per month per unit.
• Location Rent – Rental fees to the host business for placing an ATM on their site average $100 – $300 monthly per location.

By planning for both the initial investment needed to start ATM operations as well as ongoing costs, new entrants can properly size their opportunity and budget. Partnering with an established operator via a profit-sharing or revenue-share arrangement can also help reduce startup capital needs.

4. Form a Legal Business Entity

When starting an ATM business, choosing the right legal structure is key to limiting liability and supporting growth over time. Here is a breakdown of options entrepreneurs have and considerations for each:

Sole Proprietorship

A sole proprietorship is the simplest and most common entity for small businesses with one owner. There is no formal registration needed beyond standard business licenses. However, the owner has unlimited personal liability for debts and legal claims, which is risky in the ATM industry where security and cash handling exposures exist.

Partnership

Forming a general partnership splits ownership between two or more people. This improves capital resources and allows dividing labor, but still imposes unlimited liability on all partners. Partnerships also dissolve if a partner exits, disrupting operations.

Corporation

Establishing a corporation creates a separate legal entity from the owner and shareholders. This shields personal assets and eases taking on investment. However statutory regulations impose heavy recordkeeping and formalities. Double taxation of profits can also be financially inefficient for smaller ATM operators.

Limited Liability Company (LLC)

Forming a limited liability company (LLC) combines the flexibility of a partnership with the liability protections of a corporation. LLCs limit legal and financial risks to the business itself. They can be owned by one or multiple partners and allow passing profits directly to personal returns. LLCs also have fewer reporting rules than corporations.

5. Register Your Business For Taxes

One key tax-related task when starting an ATM operation is obtaining an Employer Identification Number (EIN) from the IRS. This unique identifier number is essentially the business’s equivalent of a social security number.

All business entities except sole proprietorships need an EIN for federal tax purposes. Having one simplifies filing business returns, opens access to benefits like health insurance deductions, and legitimizes the operation.

Applying for an EIN is free and can be done entirely online via the IRS website . Simply navigate to the EIN Assistant page and respond to a series of basic questions about the business structure and activities.

In the end, an EIN will be provided immediately that can be used to open business bank accounts, apply for licenses, and file taxes. The whole process only takes about 15 minutes.

In addition to the federal EIN, proper state-level tax compliance steps are needed. Most states require registering for sales tax collection and reporting if selling taxable goods.

Since ATM surcharge fees are considered taxable in most states, obtaining a sales tax permit is recommended. This can be acquired by submitting a business license application with the state revenue or taxation department (deadlines and costs vary by state).

6. Setup Your Accounting

Robust accounting practices are essential for any successful ATM operation. With frequent cash transactions and inventory management needs, having disciplined financial tracking and controls in place is a must.

Accounting Software

Using dedicated QuickBooks accounting software provides an easy way to log all revenue and expenses, generate financial statements, and automate tax filings. QuickBooks seamlessly syncs transaction data by connecting to the business bank accounts and credit cards. This eliminates manual data entry and ensures records are comprehensive and accurate.

Hire an Accountant

Partnering with an accountant or bookkeeper is also advisable. They can handle tasks like monthly reconciliations, produce financial reports, and ensure compliance with all IRS rules and tax obligations specific to the ATM industry. Expect to invest around $200 – $500 per month for basic bookkeeping assistance.

Open a Business Bank Account

Keeping personal and business finances strictly separate is also key. All revenue generated from ATM transactions, surcharges, and cash loading fees should flow into dedicated business accounts. Having distinct accounts avoids co-mingling funds and simplifies reporting.

Apply for a Business Credit Card

Obtaining a dedicated business credit card is recommended to keep purchasing and payments separate as well. Business cards don’t rely solely on personal credit scores, making it easier to qualify and obtain higher limits. Expect credit lines around $5,000 – $10,000 to start.

7. Obtain Licenses and Permits

Before installing and operating any ATMs, entrepreneurs must research and acquire all required federal, state, and local licenses and permits. Find federal business requirements through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

At the federal level, ATM operators must register with the Financial Crimes Enforcement Network (FinCEN) as a money services business. This helps ensure regulatory compliance with anti-money laundering laws. Registration can be completed easily online by creating a user account and submitting basic business information. There is no cost.

States may also require specific ATM licenses, particularly those with greater regulation of the industry like Florida, Louisiana, and Texas. These state ATM licenses allow for legal placement and operation within that jurisdiction and typically cost around $200 annually.

Most cities and counties additionally mandate standard business licenses for all commercial entities, including ATM operators. These help verify the legitimacy of the business and ensure awareness of local rules. Business license fees are generally around $50 – $100 per year.

Zoning permits may be needed to install ATMs in certain designated areas or if any construction modifications are required at a host location. Approval should be obtained before commencing work to avoid violations. Fees range from $150 – $500 depending on the jurisdiction.

Finally, some states mandate ATM operators to register as security guards since they handle cash. These registrations ensure operators have gone through proper vetting and background checks. Costs are typically under $100 annually for security guard cards.

Doing due diligence to get properly licensed at all levels will help ATM entrepreneurs remain compliant. Regularly consulting with qualified legal counsel can also help navigate evolving regulations in this industry.

8. Get Business Insurance

Given the cash handling and security risks in the ATM industry, having adequate business insurance coverage is strongly advised. Being underinsured can put the entire operation in jeopardy if claims or losses occur.

Not carrying general liability insurance means the business is fully responsible for legal expenses if customers are injured at an ATM site and decide to sue. Even frivolous suits can bankrupt unprotected businesses through legal fees alone.

If an ATM is damaged or cash is stolen in a break-in, not having property or crime coverage means bearing the full replacement and monetary losses personally. Just one major incident could make it impossible to continue operating.

Not having worker’s compensation insurance while employing staff exposes the business to cover all costs if an employee gets injured on the job. This creates major financial liabilities. And the same is true for banks and other business in this industry – it’s very volatile and just one misstep is problematic.

To get insured, entrepreneurs should first determine the specific policies and coverage amounts needed through a licensed broker or advisor. Useful resources to connect with qualified agents include TrustedChoice.com and NextInsurance.com .

The agent will help evaluate risks, recommend optimal coverage plans, and solicit quotes from reputable providers. Expect to budget around $1,000 – $2,000 annually for comprehensive liability, property damage, and other protection policies recommended for ATM operators.

Being properly insured gives ATM business owners invaluable peace of mind. Having the right policies in place keeps the focus on growing operations, not worrying about incurring catastrophic costs in potential worst-case legal or property damage scenarios down the road.

9. Create an Office Space

Having a dedicated office space can provide ATM operators with key infrastructure to run and grow their business. Here are some potential options entrepreneurs can consider:

Home Office

A home office offers a convenient and affordable choice for very early-stage operators. Administrative tasks like bookkeeping and customer service can be handled from home to minimize costs when just starting. Expect to invest around $500 – $2,000 to set up a comfortable and functional home workspace.

Coworking Office

As the business scales, a coworking space like WeWork provides a step up in professionalism and resources. Coworking spaces offer turnkey offices to rent monthly, with reception services, meeting rooms, WiFi, and other amenities. Average costs range from $300 – $800 per month depending on the location and office size needed.

Retail Office

For more established operators with several employees, leasing a small private office may be better suited long term. This provides dedicated space only for your team and customers, with more flexibility to customize. Average monthly rents start around $1,000 – $2,000 for 1-3 room offices.

Commercial Office

Operators with large ATM fleets may benefit from more warehouse-style space for staging, storage, and preventative maintenance work. Small industrial spaces of 2,000 – 5,000 square feet can be leased for $3,000 – $5,000 monthly.

10. Source Your Equipment

The core equipment needed for an ATM operation is the machines themselves. New entrepreneurs have several options to acquire this critical hardware:

Major ATM manufacturers like Triton sell machines directly ranging from $2,000 – $4,000 per unit. New units come with full warranties and the latest features.

Buying Used

Purchasing refurbished or second-hand units can reduce upfront costs substantially. Used ATMs with some wear but good working order run $1,000 – $3,000. Vet quality carefully before purchasing.

Some ATM providers offer short-term rental programs for special events or to test potential sites. Typical rental rates are $100 – $200 monthly per machine. This avoids large capital outlays upfront.

Leasing through an ATM sales company allows the use of new machines without purchasing. However, monthly costs of $150 – $200 per unit are higher long-term than buying.

11. Establish Your Brand Assets

Developing a strong brand is crucial for ATM companies to stand out and be remembered. This starts with securing foundational brand elements like:

Getting a Business Phone Number

Establishing a professional business phone line conveys legitimacy and organization to customers. Services like RingCentral provide toll-free numbers, call routing, voicemail, and other features essential for managing calls professionally.

Creating a Logo and Brand Assets

A polished logo helps new ATM brands craft an identity and recognition. Services like Looka make it easy to develop a custom logo, color palette, typeface, and supporting visual assets. A contemporary, tech-focused logo can align well with the ATM industry.

Having visually consistent designs across all touchpoints, from machine decals to websites to promo items, will strengthen brand recall.

Creating Business Cards and Signage

Business cards enable networking and serve as walking advertisements. Providers like Vistaprint offer quick and affordable card printing. Having cards on hand is useful for introducing the business at trade conventions or sales meetings.

External signage at high-visibility ATM locations also builds awareness. Vistaprint signs convey professionalism to customers engaging with the machines.

Purchasing a Domain Name

Securing a short, memorable domain creates a digital identity. The “.com” version of the brand name should be purchased from registrars like Namecheap . Take time to brainstorm unique, brand-relevant domain options during registration.

Building a Website

ATM operators need an informational website detailing their services, machines, and contact options. Users expect sites to be mobile-friendly and easy to navigate.

Operators can build basic sites themselves with drag-and-drop tools like Wix to control costs. For more advanced websites, hiring freelance web developers on Fiverr is affordable.

12. Join Associations and Groups

Joining relevant local organizations and online communities can provide invaluable connections and growth opportunities for new ATM entrepreneurs.

Local Associations

Industry associations like the ATM Industry Association offer networking, training, and advocacy. Memberships start at around $275 per year. Attending association trade shows to connect with other operators is highly beneficial.

Local Meetups

Services like Meetup help locate various local small business meetups to mingle with other entrepreneurs and learn from their experiences. Look for relevant finance or business networking-oriented groups within a reasonable driving distance.

Facebook Groups

Facebook communities enable crowdsourcing advice from thousands of fellow operators globally. The ATM Business for Beginners has over 70,000 engaged members each.

Participating in these online discussions helps navigate the industry learning curve faster by accessing others’ knowledge.

13. How to Market an ATM Business

Implementing marketing initiatives is essential for ATM companies to attract customers and build their brand. Some proven strategies include:

Personal Networking

Leveraging one’s network and cultivating referrals from happy existing customers can provide free and valuable word-of-mouth promotion. Offering rewards or discounts for referrals is one way to incentivize this. For example, giving a $10 credit for every new customer referred creates goodwill and expands reach faster.

Digital Marketing Ideas

• Search engine optimization to improve visibility for online searches like “ATM near me” or “ATM cash withdrawal”
• Google Ads geo-targeted to the service area to attract customers looking for convenient ATM access
• Facebook ads to rapidly test different marketing messages and target demographics
• Email marketing focused on retention and loyalty rather than acquisition
• Content marketing through blogging about ATM technology and business operations
• Live demonstrations on YouTube or TikTok to showcase the machines in action

Traditional Marketing Ideas

• Flyers distributed to local businesses, libraries, and events to provide awareness
• Sponsoring local events, fairs, and festivals with booth presence and signage
• Vehicle wraps or billboards placed in high-traffic areas around town
• Direct mail postcards to neighborhoods announcing new machines and locations
• Newspaper ads touting benefits like no-fee withdrawals or high maximums
• Radio ads with unique value propositions using humor or memorable jingles

While digital channels provide excellent tracking and costs per lead, traditional tactics can assist with branding efforts. Evaluating options based on the target customer profile will guide new operators on where to focus when ramping up their marketing.

14. Focus on the Customer

Providing exceptional customer service is crucial for ATM companies to keep users satisfied and gain referrals. With ample ATM options available, operators need to focus obsessively on service to stand out. Some ways to improve customer focus as an ATM company include:

• Quickly resolving issues when machines malfunction or run out of cash is critical.
• Customers will remember speedy responses that get devices working again promptly, reinforcing reliability.
• Slow repairs or prolonged downtime will erode trust.
• Answering questions and listening to feedback also matter.
• Following up after service calls with emails or calls to ensure issues stay resolved makes a big impression.
• Customers appreciate that extra mile of care.

With so many competitors, service is how ATM operators differentiate. Providing white glove assistance and promptly addressing problems earns loyal users who refer friends and family. However poor service risks losing accounts to other operators. Obsessing over the customer experience, not just hardware, is key.

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How to Start a $15M/Year ATM Business

October 2, 2023

Want to start earning a passive income? People still need cash and learning how to start an ATM business (ATM means automatic teller machine) can be a great way to make a passive income. Take it from someone who is already an ATM owner.

I was a cop working 60 to 80 hours a week and neglecting my family. My back was really against the wall. I decided to start an ATM business to start earning passive income.

From starting a side business in 2017, Paul Alex grew to $15 million in annual revenue with his company ATM Together. Now, he helps people automate their own ATM businesses. He makes it easy to:

• Buy ATMs at wholesale cost
• Get a free payment processor
• Find the best rates on internet
• Locate a bank that serves ATM businesses
• Place your first ATM
• Access vaulters and technicians

Perform market research

Create an atm business plan, prepare for atm business operations, find an atm location, buy an atm (and other equipment), install and operate the atm, grow the atm business, what does atm stand for, how much is an atm machine, do i need office space for an atm business, how to buy an atm machine business, start your own atm business, how to start an atm business.

Starting an ATM business requires a simple seven-step process:

Find out how to start an ATM business by following the steps below.

Starting an ATM business will require understanding the ATM industry. We’ve got you covered with the information you need to become an independent ATM deployer. We’ll answer ATM industry questions like:

• How much to start an ATM business?
• How much can an ATM make?
• How much time do you need to spend on an ATM business?
• How profitable is an ATM business?

How much does it cost to start an ATM business?

Starting an ATM business isn’t expensive. Paul told us:

You can start an ATM business for under $6,000.

He broke the costs down to:

• ATM Cost: $2,100 • Limited Liability Company: Under $1,000 • Business license: Under $1,000 • Internet modem: $150 • Internet service: $7 per month • Tools: $300-$500 • Gas: 65.5 cents per mile using IRS Mileage Rate • ATM liability insurance: Under $1,000

How much money can you make owning an ATM machine?

Your ATM investment earns approximately $9 to $15 per day according to Paul. That converts to $3,285 to $5,475 annually or $456.25 monthly at $2 per transaction.

Paul also told us:

You can add toppers and sell ad space to earn an additional $50 to $250 per location each month.

That means to make the $15 million annual revenue he earns, you would need approximately 4,600 ATM machines. Don’t worry, you can start off with one ATM and build from there.

Check out the rest of the interview with Paul.

How much time does investing in ATMs require?

Running an ATM business will take different amounts of time depending on the strategies you use. If you manage all your ATMs yourself, it will take your drive time plus up to 15 minutes to fill each machine.

But Paul told us you can hire employees or pay other companies to do it for you. That makes owning ATM machines completely passive income.

How much money is in an ATM?

The average ATM may hold up to $200K, but you might not want that much cash in your ATM at any time. Many machines keep less than $10K in the machine at any time.

Depending on the manufacturer and the bills in the machine, you will have between one and four dispensing cassettes that hold 1,000 to 4,000 bills each. That means in rare scenarios, an ATM could hold up to $1.6M.

Next, you’ll want to create an ATM business plan to document how your ATM company will operate. A successful ATM business plan will include the following sections:

• Executive Summary: Briefly cover the main points in your business plan in a single page.
• Company Overview: Explain what makes your ATM business different.
• Industry Analysis: Show your knowledge of the ATM industry both locally and nationwide. This will help you choose suppliers for your ATM operational plan.
• Customer Analysis: Describe your target customer and how you’ll reach them.
• Competitive Analysis: Explain how you’ll differentiate yourself. For instance, Paul helps people find their first location and provides all the vendors to get started.
• Marketing Plan: Detail how you will approach product, price, placement, and promotion in your ATM business.
• Operations Plan: Explain how you’ll provide customer support, refill machines, and find new ATM locations.
• Management Team: Provide the long-term goals for your organization, the roles you’ll need to fill, and the experience of anyone who is already on the team.
• Financial Plan: Document your expected revenue and expenses. Then create three- to 10-year estimates of your annual earnings. Provide any prior year net income statements, cash flow statements, and balance sheets.
• Appendix: Document every website you used to research ATM businesses in your appendix.

Check out our article on writing a business plan for more information.

There are certain things that every ATM operator will need to do run a successful ATM business. You’ll need to:

• Select an ATM business name.
• Choose your ATM business legal structure.
• Get business licenses.
• Open a business bank account.
• Get business insurance.

Keep reading for more resources about starting an ATM business.

Select an ATM business name

You’ll want to consider the name for your ATM business carefully because it will represent your brand for the lifetime of the company.

Some tips for choosing a memorable name for an ATM business include:

• Choose a business name that is low-cost and easy to pronounce, like ATM Together.
• Check name availability as a website, social media accounts, and on the USPTO .
• Think about how branding and marketing will fit with your ATM machine business name.

Paul told us:

I wanted to help people build small businesses with ATM machines, so I named it ATM Together because we work together to help the business owners succeed.

Check out our article about naming a small business for more information on choosing a name.

Choose the legal structure for your ATM business

Next, you’ll need a legal business structure for your ATM business. You’ll go to the Secretary of State and register the business name in each state where you’ll provide ATM machines.

You want to register as a limited liability company.

Want to know more about how the business model impacts ATM providers? Consider the following.

• Limited Liability Company (LLC): This business model protects ATM operators from personal liability for business liabilities and debts. You can have single or multi-member LLCs with pass-through taxation, and also turn it into an S-Corporation . You’ll have to pay self-employment taxes.
• S-Corporation (S-Corp): An S-Corp provides liability protection and pass-through income like an LLC, but has limits on the number of shareholders. You’ll also file with the IRS to be considered an S-Corp. If you work within the company, you’ll need to pay yourself a salary, too.
• C-Corporation (C-Corp): This business entity is entirely separated from its owners and must have a separate tax ID number. Should your ATM business grow large enough to go public you can have unlimited shareholders. C-Corps are taxed on both personal income and business income, which causes double taxation.
• Sole Proprietorship: While a sole proprietorship is inexpensive and may not require any registration, you do not want to use a sole proprietor structure for your ATM business because it leaves the business owner personally liable for all debts and commitments of the ATM company. Compare LLCs and sole proprietors .
• Partnerships: There are different types of partnerships, but these are primarily used when you start an ATM business with more than one business owner. You’ll need a legal agreement in place for partnerships to resolve conflicts.

While most businesses use these five structures to start an ATM business, there are plenty of other models for your business venture.

Next, we’ll discuss business licenses.

Get business licenses

You’ll need an ATM business permit to comply with local requirements and zoning codes. Check with your city for the inspection requirements because each state and municipality has its own requirements. You may also need:

• Class C Liquor License: Get this when businesses sell alcohol in the same location as your ATM machine. Consult a lawyer to see if your state requires this.
• Sign Permit: Your state’s Department of Transportation (DOT) may require a sign permit for ATM signage on pedestrian malls, highways, and parking areas.

You will also need bank accounts for an ATM machine to accept credit or debit card transactions.

What banks accept ATM business accounts?

You’ll need a business bank account for your ATM machine to deposit the funds that people transfer from their bank account. Unfortunately, many ATM machine businesses have trouble finding a bank to work with.

That’s because an ATM machine requires lots of cash, which means that the bank has to do more work. The ATM business bank account will also normally have low balances, which makes it harder to earn money on the interest.

ATM Together helps you find banks that are ATM business-friendly, or you can check out the list of banks suggested by ATM Depot .

Using other banking products, like a small business loan, business credit card, and money market account may help convince banks to be more friendly to your ATM business.

Get business insurance

You’ll want small business insurance to operate an ATM business. Some of the risks you’ll want to consider include lawsuits and theft of machines or cash. Most of these will be covered in a Business Owners Plan (BOP).

Other common small business insurance policies your ATM business may want include:

• General liability insurance: This covers damage to property as a result of your products or services, plus accidents and injuries that happen on your property or while interacting with your machines. It will normally be included in the BOP.
• Workers’ compensation insurance: This policy is required for small businesses that have employees. It protects against on-the-job injuries by paying medical bills and lost wages.

You can learn more about small business insurance or reach out to Simply Business to get an insurance quote from 16 small business insurance companies.

You’ll need to find locations to place your ATMs. Some popular places for ATM locations include:

• Convenience stores: Gas stations and convenience store customers will often want to withdraw cash.
• Retail stores: Some retail stores only accept cash payments. Plus some people just like having cash on them and prefer to make cash withdrawals at the same time as they shop.
• Hotels: People traveling will often need cash for tipping. Providing an ATM in hotels and other hospitality locations can be highly profitable.
• Casinos: Most casinos are all-cash businesses. Just make sure you’re dealing with legally operated casinos, or your ATM equipment (and money) may be confiscated during a police raid.
• Cash-only businesses: Some business ventures only accept cash and will need an ATM in the location. Some businesses that only accept cash include adult entertainment venues and dispensaries. Again, make sure these businesses are operating legally, or you could get in trouble for money laundering.
• Newly opened small businesses : You can reach out to new small business owners who have a retail space and offer to place an ATM in their location.

You’ll need to buy ATM machines and other equipment to start an ATM business. Every ATM business will need:

• At least one ATM machine: You’ll need at least one ATM machine for each location.
• Computer: You’ll need a computer to manage your business, keep track of revenue and business expenses, plus work on marketing activities.
• Internet line: Every ATM needs access to the internet. According to Paul, you can get internet access for $5.99/month through Verizon or AT&T.
• Phone line: You’ll need a way for customers to reach you, plus older ATM machines use phone lines for the internet connection.
• Square reader: You’ll want a Square reader to process business credit card and debit card transactions if you sell ATM machines to gas stations, convenience stores, and other small businesses that operate them.
• Debit card processing account: An ATM processor authorizes and processes the transfer of funds. Plus they create a log of every time money changes hands so you can easily view a report of your ATM transactions. Working with a company that already has this set up will make starting an ATM business easier.
• Currency notes: You’ll need money in ATMs to provide to potential customers. Depending on the location, ATM machine, and programming, you’ll need at least $10K in $20 bills for each machine, but casino ATMs will need a $100 slot, $20 slot, $5 slot, and $1 slot. If each slot has 2,000 bills in it, that means you’d need $247K to fill the machine, plus a way to pay out coins.
• Security camera: You’ll want to have security cameras to protect your investments. There are optional security cameras for an ATM machine, plus you may want one in your business or home office and vehicle.
• Safe: You’ll want a discreet safe in your vehicle and home because you’ll be transporting large amounts of money at times. If you pay a company to manage the collection, you can skip this.
• Tools for routine maintenance: Varies by machine, but should probably have drill, screwdrivers, levels, and other tools.
• Alarm system: Anywhere you’ll store cash, make sure to have an alarm system.
• Handgun: A friend of mine who owns an ATM business recommends carrying a gun when you are loading and unloading cash from machines. If you hire a vaulter, you won’t need this.
• Body cam: You only need this item if you are carrying a gun. This is a personal suggestion because it will help you defend yourself if you have to use protection.

Paul uses Hyosung Halo 2 machines and Bitcoin ATMs . Plus you can buy full routes and add toppers to sell ad space for $50 to $250 per location.

You’ll need to install all your machines in their new locations. Plus you’ll have to operate them by restocking money routinely. We’ll look at each of these next.

How to install ATM machines

To install an ATM machine, you’ll need to:

• Take the box off the machine.
• Grab the box with the receipt paper and keys.
• Unlock the machine.
• Take out any styrofoam liners or any other shipping materials.
• Place the receipt paper in the receipt holder.
• Reset the default code.
• Program the ATM.
• Connect Ethernet or WiFi.
• Fill the cassettes with money.
• Bolt the machine to the wall.
• Test the ATM machine.

Buying an ATM will require some learning during the cash machine setup. Paul suggested:

Program the ATM at your home or office so that you can learn what you’re doing privately.

How to manage an ATM location

One of the things you’ll need to consider about how to start an ATM machine business is how you will refill the machines. You have three main options:

• Fill them yourself.
• Hire vaulters.
• Hire employees.

Let’s look at each of these to understand how to get ATM machines refilled.

Maintain ATM yourself

When you first start an ATM business, you’ll want to keep startup costs low. The easiest way to do that is to do all the work yourself. That means you’ll need to learn how to work on ATM machines and how to refill ATM machines.

Make sure to switch up your schedule. You don’t want to have a set routine because that makes it where people can plan to rob you easier.

If you track each machine individually, you should be able to tell when it is getting low and go refill it. Then refill any of the ones that are on the way to it. Next time reverse the order.

You should hire someone to manage the ATM machines once you get to 10 ATM machines.

But which option is better: hiring a vaulter or hiring employees?

Hire vaulters

Vaulting services are companies that manage the refilling of your ATM for you. First National ATM provides a great overview of how to start an ATM business with no money using a vaulter.

They use the following ATM price example:

Monthly Service Fees per ATM

• Cash lending fee: Prime rate + 4 points • Cash management fee: 3 cents per transaction • Cash Insurance: $25 insurance on vault cash • Armored courier: $80 per trip

They subtract those costs from the monthly revenue, which they assume will be $3 per transaction and 500 transactions per month. Effectively, their example means you are paying approximately 17% of revenue to operate the machines. That sounds way better than doing it yourself or managing employees if you want passive income.

But what does it take to hire employees?

Hire employees for an ATM business

If you want to be more active in providing ATM services, you can hire employees. This business strategy would work if you are particularly good at multiple aspects of the ATM business.

For instance, ATM Together helps people get their first ATM machine location, automate the business income, and find ATM technicians.

In general, the operating costs will be higher if you hire employees because you’ll have to implement time tracking, payroll systems, and other types of ongoing expenses.

When you hire employees, you’ll need to:

• Prepare to hire people.
• Create a job description.
• Screen applicants.
• Conduct interviews.
• Provide a job offer.
• Onboard employees.
• Improve your employee retention.

We go into more detail on hiring in other blogs. Whether you DIY, contract a vaulter, or hire, there’s still a lot to do to become a successful business. Read on for a play-by-play for growing your ATM business.

In addition to the initial equipment costs, finding a financial institution to work with, and placing and supporting your first machine, you’ll want to grow the ATM business because you’ll probably want to build more income than the couple hundred dollars you make on the first machine.

You’ll want to:

Create an ATM business website

Reinvest in the business, add toppers, reduce costs, market your atm business.

At a minimum you’ll want to create an ATM website with the following pages:

• Services page
• Testimonials
• ATM business FAQs page
• Contact page

These pages will help your target market understand what you do, how you do it, and how much you charge as an independent sales organization. Learn more about website building .

As you make money, you’ll want to find more ATMs for sale so you can buy them and make more surcharges from the transaction fees. You might also want to make an ATM purchase to sell to people who want to manage their own ATM.

ATM Together makes it really easy to make a profit when you buy ATM machines at wholesale and then provide the ATM machine for sale. You can charge a one-time fee or monthly fees if you provide support to your customers.

An ATM topper is a screen that attaches to the top of an ATM to diversify your income stream. With an ATM your primary revenue is from surcharge revenue, but an ATM topper lets you earn revenue from ad views.

You can use the ads to promote your own products and companies, products and services in the store, or even outside businesses that the target market might like.

You can make $50 to $250 per machine depending on the foot traffic.

Check out how the Smartcast ATM Topper works.

Credit card processing fees are a portion of your ongoing expenses. If you’re doing all this yourself, you could pay as much as 2.9% + 10 cents per transaction fee.

Meanwhile, other processors claim they can provide free payment processing. I assume the credit card costs are baked into the prices of other services they offer. See the picture below to see places where ATM Together might make profits that cover the processing network.

Reducing the fees can impact how much cash you have to buy more ATM machines. There may be other ways to save money, like outsourcing the maintenance of your machines or providing cash to vaulters to earn a percentage of their returns.

Let’s say you’re paying a Stripe processing fee of $2.9% + 10 cents per transaction, but by joining ATM Together , you pay 0% and $0 per transaction.

The change makes it so every 10,000 transactions, you can afford another three machines.

There are numerous ways to market your ATM business including:

• Optimize your website for search engine optimization (SEO)
• Reach out to new small businesses and offer to place a machine
• Offer incentives for making cash purchases at stores
• Offer a loyalty program or monthly subscription to frequent users of your ATMs
• Partner with online banks to provide cash services through your ATMs.

Make sure to pay your taxes

Nothing hurts the income of a small business like getting hit with a hefty tax bill for failing to pay your taxes. You especially don’t want to fall behind, given the IRS is charging $450 for failure to file , plus you’ll owe the full tax amount and 4% to 9% interest for failure to pay.

ATM business FAQs

ATM means automated teller machine. An automated teller machine may dispense cash, manage money transfers, accept checks, buy and sell Bitcoin, and facilitate other financial transactions that make accessing funds more convenient for customers.

Next, we answer “How much does an ATM cost?”

ATMs cost between $1,900 and $29,000 depending on the style of ATM, functionality, and security. Some common pricing for ATM machines include:

• New ATMs: $2,700 to $17,000 with an average cost of $6,250 • Used and refurbished ATMs: $1,900+ (or around 80% of the cost of a new machine) • New wall-mounted ATMs: $6,800 to $12,500 • High-end ATMs: $29,000+

You’ll also have operational costs like cash replacement, data connection, electricity, and receipt paper.

Yes, but you can use a home office and the costs will help pay for your mortgage or rent.

When you’re looking for ATM machines for sale, one option is to buy ATM businesses. You’ll want to:

• Research the market and understand the industry.
• Raise money to purchase the ATM business.
• Find reputable ATM machine suppliers and compare prices.
• Consider location options and potential profitability.
• Research the business to establish whether they have a very high volume location or if they are using a cheap ATM.
• Obtain necessary licenses and permits.
• Negotiate a purchase agreement. See step 5 in our blog about buying a business .
• Sign the contract.
• Set up a reliable cash management system.
• Market your business to potential clients.
• Provide excellent customer service and maintain the machines regularly.

Starting an ATM business can be a highly profitable venture. It’s similar to starting a vending machine business that provides money to customers. Check out our extensive resources on vending to see how you can apply them as you learn how to start ATM business operations.

Have you seen unique ATM strategies? Share them in the comments.

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Vending Machine Business Plan: The Ultimate Guide

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.

[su_note note_color="#dbeafc"]

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 [/su_note]

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.

[su_quote] AMS and Vendo are by far the best machines I’ve used. [/su_quote]

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

Write Your Vending Machine Business Plan

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?

How to Write a Business Plan (Plus Examples & Templates)

What Is a Business Plan?

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

Get a Business Idea

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?"

Conduct Market Analysis

Product and service demand.

Identify Demographics of Target Market

• Other Interests
• Marital Status
• Do they have kids?

How to Write a Business Plan

• Business Plan Cover Page
• Table of Contents
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

How to Write a Business Plan Step 1. Create a Cover Page

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

How to Write a Business Plan Step 2. Create a Table of Contents

How to write a business plan step 3. write an executive summary.

How long should an executive summary bein an informal business plan?

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

What should i include in an executive summary for investors.

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here's the interview with the owner of Urbanity:

[su_youtube url="https://www.youtube.com/watch?v=_wUc28d8KkE"]

When to write an executive summary?

What mistakes do people make when writing an executive summary.

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

How to Write a Business Plan Step 4. Company Description

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Mission Statement

Company philosophy and vision.

What makes your company different?

Examples of core values.

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

What is a vision statement?

Example vision statements.

A world without Alzheimer's Disease and other dementia.

Business Goals

How far in advance should a business plan, example of great business goals.

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.
• Sole Proprietorship
• Limited Liability Company (LLC)

How to Write a Business Plan Step 5. Products and Services

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you'll sell and why?

How to Write a Business Plan Step 6. Sales and Marketing Plan

Swot examples.

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Include Competitor Data in Your Business Plan

Marketing strategy, advertising strategy.

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here's an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing - Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

Distribution Plan

Supply chain examples.

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

How to Write a Business Plan Step 7. Company Organization and Operational Plan

Quality control.

• Legal environment

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices
• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable
• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position's job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

How to Write a Business Plan Step 8. Financial Statements 

Provide all financial income from an existing business.

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial Projections For A Startup Business Plan

Financial forecasting mistakes.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

Ways to get funding for a small business.

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

How funding will be used

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

How to Write a Business Plan Resources

• Sample plan
• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What's Next?

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

107 Tips From Successful Business Owners

• Team building
• Delighting customers
• Operations.

Tip 1. Business is Personal

Tip 2. Be Fearless

Tip 3. keep a positive attitude, tip 4. eat healthy meals.

Tip 5. Maintain Positive Friendships

Tip 6. recognize toxic environments .

• Employees that are constantly stressed out and unhappy.
• Gossip and negativity among employees.
• Employees that complain and blame others for their problems.
• Hostility and aggression among employees.

Tip 7. Be Patient with Yourself

Tip 8. be authentic, tip 9. be transparent, tip 10. follow your passion.

Tip 11. Maintain a Work-Life Balance

• Set boundaries between your work life and personal life.
• Take time for yourself to relax and rejuvenate.
• Don't overwork yourself.

Tip 12. Make Each Year Your Best Year

• Set new company goals and work to achieve them.
• Challenge and push yourself to succeed a little more each day.
• Learn new things and grow as a person.
• Enjoy your life and have fun.
• Increase your compassion and show people you value them.

Tip 13. Be Gritty

• Persevere through difficult times.
• Don't give up when things get tough.

Tip 14. Challenge Yourself

Tip 15. Live with Passion

Tip 16. trust yourself.

Tip 17. Reduce TV Time

Tip 18. visualize your goals.

Tip 19. Create

Tip 20. put one foot in front of the other.

Tip 21. Maintain Your Calendar

Tip 22. get some exercise, tip 23. stay focused, tip 24. use your vacation time.

Tip 26. Stay Organized

Tip 27. Keep Records of Everything

Empowering your people, tip 28. respect others’ time, tip 29. build something meaningful.

Tip 30. Build a Positive Company Culture

Tip 31. Improve Others’ Lives

Tip 32. Be Patient with Others

Tip 33. help others, tip 34. build your team only as fast as you can train them.

• Offering training and development opportunities.
• Giving employees more responsibility as they prove themselves.
• Teaching the team to train others effectively once they have mastered their skills.

Tip 35. Ask for Feedback from the Team

Tip 36. Hire the Right People

A successful business delights customers, tip 37. know your target market.

Tip 38. Have a Great Product or Service

Tip 39. listen to complaints.

• Acknowledging their complaint and apologizing.
• Making sure they feel heard.
• Giving them a solution or a way to resolve the issue.
• Following up after the issue has been resolved.

• Listen to them.
• Validate their reason for being frustrated.
• Ask them politely, "What can I do to make this right?"
• Document it.

Tip 40. Exceed Everyone’s Expectations

• Offer superior customer service.
• Provide great products or services.
• Send them a thank you email and verify they are happy with their experience.
• Add small freebies into their order.

Tip 41. Focus on Customer Service

Tip 42. deliver what you promise, tip 43. build word of mouth.

• Encourage customers to leave reviews.
• Make it easy for customers to share your products or services on social media.
• Host events and offer exclusive deals to those who attend.
• Offer a loyalty program.

Tip 44. Expand Marketing

• Identify your target market.
• Develop a marketing strategy.
• Use a variety of marketing channels.
• Measure the results of your marketing efforts.
• Narrow the channels down to ones that have acceptable returns on investment.

Tip 45. Build an Online Presence

Tip 46. Ask for Referrals

• Include a referral program in your marketing materials.
• Make it easy for customers to refer to your business on social media.
• Thank customers for referrals and send them a special offer.
• Host an event and offer exclusive deals to those who refer friends.

Tip 47. Ask for Feedback from Customers

• Send a survey to customers after they've done business with you.
• Host an event and ask customers to provide feedback in person.
• Use a tool like Qualaroo or Hotjar to track customer behavior on your website.
• Make it easy for customers to leave feedback on social media.
• Thank customers for providing feedback, and offer them a special offer.
• Use the feedback to make changes to your business.

Tip 48. Use Social Media to Communicate

To Make a Business Successful: Never Quit Learning

Tip 49. understand finance.

• Balance sheets: shows assets, liabilities, and equity.
• Income statements: shows revenue and expenses.
• Cash flow statements: shows the flow of funds in and out of the business.

Tip 50. Develop Leadership

• Attend leadership training programs.
• Read books on leadership.
• Watch videos on leadership.
• Participate in online forums and discussions on leadership.
• Manage a team of employees.

Tip 51. Learn How to Sell

• Understand your customer's needs.
• Create a sales strategy.
• Make a good first impression.
• Be friendly and helpful.
• Give customers a reason to buy from you.
• Price your products or services correctly.
• Make it easy for customers to buy from you.
• Provide excellent customer service.

Tip 52. Read Case Studies

• UpFlip's YouTube channel, blog, and podcast
• Amazon's best selling business books
• Most major corporations' websites

Tip 53. Promote Yourself

Tip 54. Network

• Attend business events and meetings.
• Join business groups and organizations.
• Connect with people on social media.
• Attend workshops and training programs.
• Get involved in online forums and discussions.

Tip 55. Ask Questions

Tip 56. learn from failure, tip 57. do research.

A Profitable Business Controls Costs

Tip 58. plan finances.

• Have a financial goal with a timeline, and be specific. A good example would be, "The goal is for my net income to be $200,000 per year in three years."
• Know how much money the business needs. This includes the inventory costs, overhead, marketing expenses, business licensing, loan payments, and taxes.
• Keep expenses low. Make a list of all the costs associated with running the business and make sure there are no unnecessary items.

Tip 59. Manage Risks

• Understand your business risk. What could go wrong, and how likely is it to happen?
• Identify your risk triggers. What sets off the risk?
• Create a risk management plan. This includes steps you will take to reduce or avoid the risk.
• Monitor your risk. Track it regularly and update your risk management plan as needed.
• Have a backup plan in case things go wrong. This might include a fund set aside specifically for emergencies or diversification of your business interests if one revenue stream dries up.

Tip 60. Manage Cash Flow

• Make a budget and stick to it.
• Plan for unexpected expenses.
• Keep track of your expenses and make sure you're not overspending.
• Invest money wisely.
• Make payments as soon as possible to reduce the interest you pay.
• Collect payments as quickly as possible.

Tip 61. Plan Your Budget Based on the Worst-Case Scenario

• Make a list of all the expenses associated with running your business. If you don't know them, assume your pricing will be toward the higher end of online searches.
• Assume you will not make any money.
• Plan how you will cover your expenses if you don't make any money.
• Update your budget as needed.
• Track your expenses and make sure you're not overspending.

Tip 62. Only Spend on Necessities

• Is spending the money necessary? If the answer is yes, keep reading. Don’t buy it if the answer is no. 
• Is it necessary now? Keep reading if you answered “yes.” A dd it to a “do later” list if you answered no. You might want to include a description of when it might be a necessary expense.
• Is it cost-effective? If the answer is yes, buy it. If the answer is no, find a more cost-effective solution.

Tip 63. Sell Unused or Un-Needed Assets

• List your assets on a website like Craigslist or eBay.
• Have a clearance or garage sale.
• Sell them to a friend or family member.
• Donate them to a charity.

Tip 64. Require 10-50% Down Payments for Services

• Make it clear that you require a down payment before starting work.
• Set a minimum amount that the client must pay upfront.
• Ask for payment in advance for long-term projects.
• Get a deposit for materials or supplies needed for the project.
• If the client cancels, refund them the deposit minus any fees and costs incurred.

Tip 65. Sell Excess Inventory

Tip 66. bill immediately.

Tip 67. Earn Interest

• Open a business saving account: .5% at Live Oak Bank .
• Invest in Series I bonds or TIPS: The rates go up with inflation, but Series I bonds cannot be redeemed during the first year. Learn more on Treasury Direct .
• Invest in dividend stocks: There are plenty of stocks that will beat inflation during low inflation times. You can get gains from the price increases and dividends that may have special tax considerations depending on your company structure.
• Stake stable coins on crypto platforms: Crypto.com is the easiest for onboarding that has good interest rates. For example, you might earn up to 14% for staking up to $250K for locking the liquidity for three months at a time. Flexible and 1-month terms are also available.

Tip 68. Use Net 10-30-90 Vendor Payments 

• Creative Analytics
• Business T-shirt Club
• Summa Office Supplies
• Wise Business Plan
• Ohana Office Products
• Office Garner

Tip 69. Incentivize Early Payments

Tip 70. collect unpaid accounts.

• Make it easy for customers to pay. Accept all major forms of payment.
• Send reminder emails or text messages. Automate them to send before and on the due date, then periodically when the account is overdue.
• Sell the debt. Check the Receivables Management Association International for Certified Debt Buyers .
• Use a collection agency. Everest Receivable Services is the top-rated collection agency on TrustPilot, with a 4.8 rating and over 1,445 reviews.
• Take legal action. If necessary, you can use the courts to get the money owed to you, but this only makes sense with very large amounts.

Tip 71. Create Subscription Plans

Tip 72. pre-sell products, tip 73. buy used.

• Make sure the equipment is in good condition and has been well-maintained.
• Check to see if the warranty is still valid. Many companies only warranty the original owner.
• Get a quote from a repair technician to make sure the cost of repairs won't be more than the price of buying new equipment.
• Look for going-out-of-business sales.

Tip 74. Barter

• You can get things you need without having to spend money.
• Bartering is a great way to network with other businesses.
• You can get access to services you wouldn't be able to afford otherwise.
• It helps build relationships with other companies.
• You can find new customers through bartering.

Tip 75. Get a Business Line of Credit

Tip 76. only use credit in emergencies, tip 77. cut business costs.

Successful Entrepreneurs Know How to Run Business Operations

• Plan out the goals and objectives for the business and create a plan to achieve them.
• Organize the business to allow it to be effective and efficient.
• Direct the activities of employees and ensure that they are working towards the goals of the business.
• Control the business's resources and make changes as needed to achieve results.

Tip 78. Develop Partnerships

• Industry: Suppliers, competitors, and companies that help sell your product to customers are all good candidates.
• Size: Partner with similar-sized companies. In some cases, too big of a size difference can cause difficulties.
• Location : Successful entrepreneurs look to fill geographic gaps in their service areas with partnerships.
• Values: Most successful businesses live by their values. Don’t partner, acquire, or merge with a profitable business that doesn’t share your values. It’s a recipe for disaster.
• Goals: How do the business processes and company goals match each other? If they are a good fit, you should see an improvement in your operating margins.
• Competitors: Does the partner remove a current competitor? Do they add new competitors you have to monitor? These are some of the considerations of successful businesses.
• How partnership operates
• What contributions each provides to achieve success
• How to distribute shared resources 
• How each party expects to increase sales and revenue
• Customer service policies (especially if using the same communication sources)

Tip 79. Follow the 80-20 Rule

• Generate the most revenue and focus on those.
• Consume the most time and reduce the time spent on those tasks.
• Have the highest failure rate and eliminate or mitigate those tasks.
• Are the most important to customers and focus on those.

Tip 80. Take Risks

Tip 81. act fast.

• You'll have more time for other business activities.
• Your business will grow faster and be more profitable.
• You won't feel like you're wasting time on tasks that don't yield results.
• You'll be able to enjoy the fruits of your labor sooner rather than later.
• You’ll make more mistakes and learn from them.

Tip 82. Focus on What Is Important

• Identify the goals of your business and focus on those.
• Identify the tasks that generate the most revenue and focus on those.
• Delegate or eliminate tasks that are not essential to the success of your business.
• Set deadlines for yourself and stick to them.
• Stay organized and keep track of what you need to do.

Tip 83. Use the Right Business Structure

• Partnership
• Corporation

Tip 84. Use Analytics Software to Know Where You Get Customers

• Which products or services are the most popular.
• Where your customers are located.
• How much money your customers spend.
• Which products or services generate the most revenue.

Tip 85. Go Mobile

• Looking good on all devices.
• Being easy to find, use, and navigate.
• Having fast and responsive pages.
• Being more likely to rank high in search engine results pages.

Tip 86. Use Cloud Computing

• Access your files from any computer or device
• World-class cyber security teams managing the network
• Grow with your business without costly upgrades
• Option to store large amounts of data
• Reduce your business's IT costs

Tip 87. Update Your Business Plan

Tip 88. operate at optimal performance.

Tip 89. How to Grow a Business: Build Steadily

• Establish goals and objectives.
• Define key performance indicators.
• Budget for a projected growth rate.
• Reduce marketing if growing too fast.
• Create a process map. (See picture below.)
• Implement standard operating procedures

Tip 90. How to Focus on Business Security over Growth

• Good : One billion burgers sold
• Better: One million satisfied customers
• Best: 100% satisfied customers
• Good: Gross margin
• Better: % Increase in gross margin
• Best: Gross margin plus change in gross margin

• Rewarding achieved goals substantially. CEO bonus compensation tends to be 50% of the value of their base salary. Don’t give executive employees a $50 bonus and expect them to care. Give them something meaningful. Make other perks appropriate to the position of the employee.

Tip 91. Narrow Your Target Market

• Define your business's unique selling proposition.
• Research your competition.
• Business-to-Business (B2B) pays better because the pictures make the business money.
• Real Estate is highly profitable in a seller’s market, but not in a buyer’s.
• Weddings & Events are not her favorite, even though I love event photos because they are more real.
• Models are often easier to work with than inexperienced individuals. 
• She loves outdoor lifestyle shoots.

Tip 92. Don’t Enter Shrinking Markets

Tip 93. When Ready, Grow Outside Your Geographic Area 

Tip 94. continuous innovation, tip 95. go above & beyond, tip 96. make your business outlive you.

• Make your successful business a C-Corporation or a multi-member LLC.
• Strengthen your business's financial position.
• Document your procedures and processes thoroughly.
• Train your employees well.
• Pass on your business's values and culture.

Tip 97. Watch Competitor Pricing

• Identify their pricing strategy.
• Track their prices over time.
• Determine what products or services they are undercutting you on.
• Match or beat their pricing.

Tip 98. Watch Competitor Marketing

• About their business
• About their marketing strategies
• What products or services they are promoting
• What types of advertising they are using

Tip 99. Observe Competitor Customer Satisfaction 

Tip 100. observe competitor errors, tip 101. measure customer acquisition costs.

• Knowing how much you are spending per new customer.
• Determining which marketing strategies are most successful.
• Adjusting your marketing strategies to increase ROI

Tip 102. Measure Customer Lifetime Value

• Identifying the revenue and profit from each customer.
• Determining the effectiveness of marketing strategies.
• Adjusting customer complaint strategies based on client value.

Tip 103. Email or Text Prospects

Tip 104. email or text current customers.

• Develop more personal relationships with the customer.
• Drive revenue through personalized offers.
• Recognize special days for the customers.

Tip 105. Email Past Customers

• Remind them about a crucial service, like an oil change.
• Follow up about what the company could do better.
• Offer a promotion to entice customers to try their product or service again.

Tip 106. Make Hard Decisions

Tip 107. how to run a successful business: operate lean.

Meet the operational needs

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