How to Operate ATM Machines for Profit
An ATM business is one of the most lucrative ways to earn money. But it’s still a business model that has flown mostly under the radar with entrepreneurs, mainly because they aren’t sure how to operate such a business. Make no bones about it, people just like you are getting into the cash distribution game and there’s no reason why you should be missing out.
We’re going to tell you all of the basics you need to know from creating the business plan to weighing your options with a portable ATM rental versus purchasing a machine. However, there is one very important thing to keep in mind before you even consider pursuing this form of revenue stream. While owning and operating an ATM may seem like a passive enterprise, you will need to devote enough time to keeping your business afloat.
Too many first time ATM business owners mistakenly believe they don’t have to do much beyond fill the machine with cash once it runs out. As a result, their businesses fail. Don’t make the same mistakes, here are the things you need to keep in mind for operating a profitable ATM business.
Create A Business Plan
Any business needs a good plan and operating an ATM is no exception. If you are planning on raising capital for your business from investors, then you need a business plan. The plan should be forthcoming about how much money you want to invest into the business, how and where you expect to raise that capital, and the many different facets about your outlook on the enterprise.
Be sure to include things like where you plan to place the machine, where and how you plan to secure the machine and an outline of the expenses that are going to be needed to operate the business.
Securing the Machine
You have options for securing your machine, but it comes down to a simple decision. Are you planning on renting an ATM machine or buying one? For the latter, you need to consider if you will purchase a brand-new machine or find an older used one. Renting means you’ll need to enter into a leasing agreement with the individual who owns the unit. A purchase requires you to do some research into the various units that might be available.
Buying means, you put one lump payment down, renting means you’re paying a monthly cost for the rental. You should compare these costs and decide which is more cost-effective for your business.
Finding the Best Location
Your ATM machine business relies on customers. Without them, you’re sunk. So, you need to find the right location where you can balance foot traffic and saturation. You want customers to be able to easily locate your machine when they need to get cash, but you don’t want to put your machine in an area where there are so many other ATM machines for customers to use instead.
Remember, you are charging a fee for every transaction and many customers may opt to use their bank’s ATM instead, in order to avoid the fees. So, you need to do your homework as to where more of the public will be inclined to use your ATM.