Starting a vending business? If so, you may consider financing to get your business off and running.
Vending machines cost money, and though you can start relatively cheaply with used machines, the best way to go is to buy new and popular machines.
However, these shiny new machines cost money, and if you cannot come up with the cash, you will need to secure financing to pay for your new vending equipment.
If you are plan to seek out financing, you will most likely need a formal business plan.
Most financial institutions ask to see a copy of a business plan before they even consider financing your entrepreneurial impulses.
They want to see the short and long-terms plans, the stated goals, your current investment in the business, and the organization and structure of the business.
For a simple vending machine business, this plan does not have to be very complex or substantial; it merely needs to be concise yet informative.
The Contents of the Vending Business Plan The business plan should begin with a cover, or title page to let interested parties know the subject of the plan, the author, and the date.
A simple table of contents should follow the cover page.
This should be followed by a mission statement.
A mission statement is merely a few sentences about the purpose of the business.
It should encompass the philosophy of your business and its goals.
For example, if you are seeking to buy healthy vending machines, then your mission may be to have a profitable business while making vending snacks healthier for the public.
The next section should include a summary of the business and the background of the owners.
The summary is similar to the mission statement, but it focuses more on the advantages your machines may have (better quality, lower prices, healthier products, etc.
).
The background portion should focus on your business accomplishments and experience in or outside of the vending industry.
The next section of the business plan should focus on the structure of the business and its operations.
Most vending start-ups are one-person operations, so the structure is easy.
However, if there are a few partners involved, their duties and percentages of ownership and profits should be clearly delineated.
The operations section should outline the details of how the day-to-day operations will be run.
How many vending machines will you be servicing in one day? How do you plan to repair your machines? How will you be placing the equipment - yourself, or by using a vending machine locator service? The remaining sections should cover financial planing, marketing, and market analysis.
For a vending business, the financial planning section should have a brief outline of expected cash flows - displaying your expected income against the expected expenditures, including the cost of the financing.
The marketing section will be simple if you plan on using a vending machine placement service, but if you elect to place your own machines, you should provide a brief summary on how you plan to market and place the machines.
The amount of detail in the market analysis section will depend on how much equipment you want to purchase and the size of the loan you are seeking.
For smaller operations, minimal market analysis is needed - merely some data on the amount of money vending machines make in your area and possible locations for your type of equipment and products.
For a vending business, the business plan can be short and simple, but you absolutely need to create one.
Walking in to a bank in search of financing without one, is like walking in to a classroom without last night's assigned homework.
Vending machines cost money, and though you can start relatively cheaply with used machines, the best way to go is to buy new and popular machines.
However, these shiny new machines cost money, and if you cannot come up with the cash, you will need to secure financing to pay for your new vending equipment.
If you are plan to seek out financing, you will most likely need a formal business plan.
Most financial institutions ask to see a copy of a business plan before they even consider financing your entrepreneurial impulses.
They want to see the short and long-terms plans, the stated goals, your current investment in the business, and the organization and structure of the business.
For a simple vending machine business, this plan does not have to be very complex or substantial; it merely needs to be concise yet informative.
The Contents of the Vending Business Plan The business plan should begin with a cover, or title page to let interested parties know the subject of the plan, the author, and the date.
A simple table of contents should follow the cover page.
This should be followed by a mission statement.
A mission statement is merely a few sentences about the purpose of the business.
It should encompass the philosophy of your business and its goals.
For example, if you are seeking to buy healthy vending machines, then your mission may be to have a profitable business while making vending snacks healthier for the public.
The next section should include a summary of the business and the background of the owners.
The summary is similar to the mission statement, but it focuses more on the advantages your machines may have (better quality, lower prices, healthier products, etc.
).
The background portion should focus on your business accomplishments and experience in or outside of the vending industry.
The next section of the business plan should focus on the structure of the business and its operations.
Most vending start-ups are one-person operations, so the structure is easy.
However, if there are a few partners involved, their duties and percentages of ownership and profits should be clearly delineated.
The operations section should outline the details of how the day-to-day operations will be run.
How many vending machines will you be servicing in one day? How do you plan to repair your machines? How will you be placing the equipment - yourself, or by using a vending machine locator service? The remaining sections should cover financial planing, marketing, and market analysis.
For a vending business, the financial planning section should have a brief outline of expected cash flows - displaying your expected income against the expected expenditures, including the cost of the financing.
The marketing section will be simple if you plan on using a vending machine placement service, but if you elect to place your own machines, you should provide a brief summary on how you plan to market and place the machines.
The amount of detail in the market analysis section will depend on how much equipment you want to purchase and the size of the loan you are seeking.
For smaller operations, minimal market analysis is needed - merely some data on the amount of money vending machines make in your area and possible locations for your type of equipment and products.
For a vending business, the business plan can be short and simple, but you absolutely need to create one.
Walking in to a bank in search of financing without one, is like walking in to a classroom without last night's assigned homework.
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