Preparing your vending machine business plan will be the most important thing you do before launching your new venture.

A business plan will be a crucial resource that will help guide your business in the right direction. A business plan lays out what needs to happen for you to achieve your goals, outlines how you will do it, and lays out backup plans in case things change later. It forces you to do the necessary research to find out if there really is a market for the vending machines and locations you have in mind.

It may be necessary to have a plan written in a formal, professional style if your goal is to use it to convince bankers or investors to support your idea. However, even if you have nothing to prove to anyone, your business plan will help confirm the viability of your ideas in your own mind.

Keep a copy of your plan on your PC, as well as in a file or folder in case of an emergency. Don’t forget your business plan once you’ve opened your doors for business. Check back regularly to make sure you’re on track to meet your goals. Don’t be afraid to make changes to the plan when necessary.

Every entrepreneur or business consultant will have different ideas about how a business plan should be structured. There are many different templates available online, and some sites even have samples directly related to the vending industry. Below is an example of a suitable outline with section headings that you might consider including in your own vending machine business plan.

Cover and content page

Start with a cover page with a header so people know what the report is about, who the author is, and when it was written. If you will be presenting the report to many different people, you may want to consider including a personalized cover letter with each copy of the plan. Start with a table of contents so readers can easily navigate your report.

Executive Summary

Summarize the other sections of your business plan. Please provide brief information about the opportunities you see in the marketplace and outline what you intend to do with your business to capitalize on these opportunities. Try to entice readers to read the full report.

Background

Give the reader some background on you and your reasons for starting a vending machine business. Please provide details of any relevant experience or competitive advantages you have.

You can also include background information on the vending industry showing national industry data, as well as information on the local industry you plan to enter.

mission status

A mission statement is usually a short sentence or two that outlines what your business is about, what it does, and how well it does it. It’s a good way to remind yourself of your company’s basic goals or philosophy as well as the profit motive. A good mission statement might mention something about the standard of your machines and products or how you strive to be better than your competitors.

Goals and objectives

Indicate the goals you want to achieve in the short and medium term. Goals could include placing a certain number of vending machines or reaching a certain level of revenue per machine.

startup requirements

Establish a list of startup costs and estimate the total amount of capital that will be needed to get the business started. Tell about some of the financing options that are available to homeowners.

In this section of the report you can also mention some of the other things that need to happen for the company to start operating legally and professionally. Mention the processes and fees involved in applying for licenses, permits, and other paperwork based on the laws of the region where the business will operate.

Ownership and management structure

Consider who the founders of the company are and the particular ownership interest each has in the business. For those who will be actively involved in running the business, it is important to describe what role they will play and their responsibilities. Will the business be registered as a sole proprietorship, partnership, or corporation?

business operations

This section of a business plan should describe the details of how you plan to run the vending machine business. Include information about where your business will be located, management, any plans you have for hiring employees, and how your business will operate on a day-to-day basis.

Include details about vending machines, maintenance, products, distributors, route planning, and how you will record and manage sales data. What systems will you implement to maximize productivity and efficiency?

Try to find solid reasons why you are choosing a certain vending machine, product line, or system. Whenever possible, include some supporting evidence from the research you have done.

Market analysis

Using the data from your market research, you can report on the current state of your target market and identify some of the opportunities. Here you can include demographic data, as well as information you have collected from surveys and other research.

Provide information about the competition in your target area and examine their strengths and weaknesses. Look for ways to deliver products and services through your machines that are clearly different from what your competitors offer. Get ideas from them about what works well and what doesn’t. Look for a competitive advantage. Don’t forget to also mention indirect competitors, such as convenience stores, in-house cafeterias, or food trucks.

Marketing plan

Outline a strategy to create a selling brand that meets the needs of the market. Based on the market opportunities you see, establish a strategy to meet customer needs in terms of locations, vending machines, product lines, and pricing.

Provide details on how you plan to get new machine locations, set up appointments with “decision makers” and sell them your services. Your marketing could be done primarily by approaching decision makers directly or you could rely on advertising to generate some inquiries.

Also describe your marketing plan directly to your customers or end users. These could include ‘point of sale’ promotions on the front of the machine or how you or your staff will build relationships with customers when they visit the premises where your machines are located.

You should also mention how you plan to maintain sales accounts and customer satisfaction in the long run. Customer retention is just as important as customer acquisition.

Financial planning

Use a spreadsheet program to forecast cash flows in and out of your vending machine business over a hypothetical two-year period. If you have done your research, you should be able to anticipate future monthly income and expenses. So you can determine future levels of profitability and a break-even point.

Run a variety of different scenarios that consider a conservative growth rate, an expected growth rate, and an optimistic growth rate. Things don’t always go the way you expect, so it’s important that you plan for a variety of outcomes.

appendix

Lastly, you must attach an addendum to the report that includes any reference letters, documents, vending machine images, or other supporting material referenced in the plan content. Try to back up all your assumptions with evidence whenever possible.