Vending Machine Business Idea

The vending machine business is an important industry for increasingly active people who need this convenient option for foods and drinks.

This is a wonderful opportunity for generating “passive income” for continual cash flow.

Annually, more than 5 billion drinks and 8 billion snacks are sold through American vending machines. A Department of Commerce study showed that fewer than 5% of new vending businesses fail – compared to a 65% average for other small businesses.

The Economic Stimulus Act of 2008 has provided new tax deductions for the self-employed.

The vending machine business offers flexibility and independence to its owners. Other companies advertise the popular products sold in these machines, so there’s no need to worry about that.

All you need is to be physically fit and be able to meet three basic parameters: location, product and machines.

Vending offers a flexible schedule. Many start part-time and gradually build up their routes.

Available options include franchising or the purchasing of established routes. It should also be noted that this is a 100% cash business, which should make it appeal to many new entrepreneurs.

DEVELOPING A BUSINESS PLAN

Develop a business plan for your forecasted expenses and revenue. According to experts, approximately 78% of your gross revenues will go to expenses, so after accounting for vehicle maintenance and repairs, be sure to factor this in to your plan’s calculations.

When you first start out, you should focus yourself on finding locations, acquiring equipment, and determining good product mixes. Later you can look into finding new locations and centering yourself on filling every one of your clients’ needs.

Also be sure to monitor the owners of current machine locations to see if there’s any way your company could improve the service they receive.

Expansion options include movie rental kiosks and medical device and candy machines amongst many others.

YOUR VENDING MACHINE BUSINESS – LOCATIONS

The most basic sales task for the vending machine business is attracting good vending locations. Find a high traffic location or company with many employees. Bulk targets should include schools, hospitals and factories though the competition here is high and service expectations high.

Tailor your product mix to the specific business or venue you’re serving, and compare the pricing structures of your competition so as to be able to offer more competitive services.

FINDING GOOD VENDING MACHINES

Be sure to always seek out good-quality vending machines and vending supplies, and don’t ever buy what people aren’t looking for. With this in mind, also be sure to select attractive machines capable of drawing in customer interest.

Good machines are small, efficient, provide good product mixes, offer change and can display the newest products. Only buy used vending machines if absolutely necessary.

In dealing with your clients, small things such as providing a “Vending Company Service Form” and an efficient method of dealing with coin returns make you look professional. To reinforce this image, look at joining the Better Business Bureau.

If your vending machine business provides high-quality products and services, it can establish a good reputation, then use word of mouth advertising to generate long-term profitability for you.

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Coupon Business Idea

Coupons are in high demand as people look for ways to save money. A coupon business costs very little to start, but has the potential for high earnings. That makes it a smart choice for home based entrepreneurs.

When you first learn how to start a coupon business, you will discover that there are two principal ways to make money. The first method is where local businesses pay you to include their business coupon in your booklet. The booklet is then freely distributed.

The second method is where local business submit coupons for inclusion into the booklet at no charge, but the booklet itself is sold at a predetermined price. Either way, it is best to concentrate on one method when you first start out.

A home business will require a business license and may require a zoning variance, so check with your local licensing agencies and apply for the necessary permits and licenses.

In addition to properly setting up and registering your business, you will need the following:

Computer

Printer

Desktop Publishing Software

Flair for Design

Seek out and build a relationship with a reliable local printer. Using your own home printer will likely be sufficient in the beginning, but as your customer base grows, it will be more efficient and less expensive for you to work with a professional print shop.

HOW TO START A COUPON BUSINESS – KEYS TO SUCCESS

Learning how to start a coupon business requires that you plan strategically. Intelligent pricing will be essential. Your goal will be to factor in all of your costs and make a profit while still charging an affordable price. Don’t forget to include costs such as your time, printing, supplies, and mailing fees.

Excellent sales and communication skills will give you an edge as you talk to business owners and coupon seekers. When speaking with potential customers, always focus on the benefit they receive if they choose to buy from you.

Use common sense. Rather than including coupons from five different pizza establishments, include coupons from only one. Each booklet should be filled with complementary business coupons, not competing promotions. Business owners expect to see an increase in profits themselves by utilizing your services. If they don’t, they won’t participate again.

FINDING CUSTOMERS AND GROWING YOUR BUSINESS

Every business with a coupon in your booklet should have a supply of coupon books readily available for consumers. If you are using the free booklet method, make them available at grocery stores, libraries, schools, and other public venues. If you are selling coupon booklets, knocking on doors is one way to go. Approach local organizations who may be interested in using the booklets as fundraisers. Use low-cost ads in the local newspapers to advertise your coupon business.

As more business owners and coupon users become aware of your services, you can start to look for ways to add more profit. One way is to have a professional web site developed and sell coupon booklets online. Another option is to create a variety of themed coupon booklets. For example, design different coupon booklets for diverse target groups, such as newlyweds, parents, college students, or the retired.

If you are enthusiastic, artistic, and people oriented, learning how to start a coupon business is the ideal first step in turning your frugal franchise into a profitable, long-term venture.

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