If you’re looking for a business with low start-up costs and minimal overhead, a candy vending machine business could be the right fit for you. With a little knowledge and work, you can have your own candy vending machine business up and running in no time.
Here are the steps you can take to get started on building your very own candy vending machine business.
12 Steps to Launching a New Candy Vending Machine Business
1. Name Your Candy Vending Machine Business
Give your candy vending machine business an identity so people will think of it as a well-known and respected brand. You can take the name of your candy vending machine business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your candy vending machine business is to make it sound appealing and trustworthy to building owners so they are more likely to work with you.
2. Determine Your Candy Vending Machine Business Model
There are 3 main types of business models for a candy vending machine business including:
- Operator: You will be responsible for stocking, servicing, and collecting money from the machines.
- Service company: You will contract with an operator to provide machines and stock them as needed.
- Product company: You will contract with an operator to provide the machines and then sell products to the operator to stock in the machines.
No matter which model you choose, make sure that it aligns with your business goals and the products you offer.
3. Choose a Legal Form for Your Business
By incorporating your candy vending machine 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). You can also operate as a sole proprietorship.
The business structure you choose for your candy vending machine 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 candy vending machine business structures.
4. Write a Candy Vending Machine Business Plan
All candy vending machine 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 a candy vending machine business plan.
5. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your candy vending machine business.
For example, you will need a sales tax permit if you plan to sell taxable items through your candy vending machines. You might also need a business license, which you can get from your local city or county clerk’s office.
To find out what other licenses and permits you might need, contact your state’s licensing board and/or the Small Business Administration (SBA).
You must also register your candy vending machine 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. If you plan to hire employees, you will also need an Employer Identification Number (EIN), which you can apply for at the IRS website.
Read our article about obtaining the proper candy vending machine business licenses.
6. Determine Your Budget & Apply for Funding as Needed
In developing your candy vending machine 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 candy vending machine business, you may consider taking advantage of those funds. In addition to your personal funds, other forms of potential funding for your candy vending machine business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a candy vending machine business to help you determine if funding is needed.
Read our article about how to fund your candy vending machine business.
7. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your candy vending machine 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 a vending management software system, which can help you track inventory levels, monitor machine locations and sales, and even provide customer service.
In addition, if you plan to accept credit and debit card payments from customers, you will need to invest in a credit card reader for your candy vending machines.
8. Purchase Your First Candy Vending Machine
Now that you know what type of candy vending machine business you want to start, it’s time to purchase your first candy vending machine. You can buy new or used machines, with the price varying depending on the condition and features of the machine.
Some factors to consider when purchasing a candy vending machine include:
- Capacity- How many products can the machine hold?
- Size- Will the machine fit in the space you have available?
9. Find Location(s) for Your Candy Vending Machines
Now that you have your machines, it’s time to find locations for them. You’ll want to choose high-traffic areas with a lot of foot traffic, such as:
- Shopping malls
- Grocery stores
- Office buildings
- College campuses
You can approach businesses about renting space for your candy vending machines or look for public spaces that allow candy vending machines. Once you have a few locations lined up, you can move on to stocking your machines.
10. Stock Your Candy Vending Machines
You’ll need to purchase products to stock your candy vending machines. If you’re selling snacks and drinks, for example, you’ll need to buy drinks and snacks in bulk. When stocking your machines, consider the following factors:
- Product expiration date- You’ll need to rotate your products so they don’t expire and customers don’t end up with stale candy.
- Variety- Offering a variety of products will appeal to more customers and increase the chances that they’ll make a purchase.
11. Market Your Candy Vending Machine Business to Potential Customers
Before you start selling your products, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and how they will benefit from them.
After you launch your website, start promoting it through social media channels, such as Facebook, LinkedIn and Twitter. Also consider networking with other people in the candy vending machine industry through social media and blogs so they can help promote your business.
You also need to start gathering the materials needed to execute your promotions strategy, which is your strategy for attracting new customers. You will want to consider preparing for the following promotional strategies for your candy vending machine business:
- Door Hangers
Read our article about how to market your candy vending machine business for more tips.
12. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these new and potential customers. Also, be sure to establish systems to ensure consistency and reduce costs. And, find and train the right people to help you grow your candy vending machine business.
Read our article about how to effectively grow your candy vending machine business to learn more.
Starting a Candy Vending Machine Business FAQs
The vending machine industry is a $42 billion industry with a lot of opportunity for growth. Candy vending machines are a convenient way for customers to purchase snacks and drinks without having to wait in line or find a store clerk.
In addition, candy vending machines are a relatively low-cost business to start, with used machines costing as little as $500. And with the right location, a candy vending machine business can be a high-profit venture.
To start a successful candy vending machine business, you'll need to purchase machines, stock them with products, find locations for them and market your business to potential customers.
You'll also need to establish systems to ensure consistency and efficiency in your business. Also, you’ll want to find and train the right people to help you grow your candy vending machine business.
Candy vending machines are a convenient way for customers to purchase candy without having to wait in line or find a store clerk.
In addition, candy vending machines are a relatively low-cost business to start, with used machines costing as little as $500.
With the right location, a candy vending machine business can be a high-profit venture.
Candy vending machines can be expensive to maintain and restock.
They can also be subject to theft and vandalism.
It can be difficult to find locations for your machines that will generate enough traffic to make your business profitable.
The cost of starting a candy vending machine business can vary depending on the number and type of machines you purchase, the products you stock them with and the locations you choose for them.
In general, you can expect to spend between $500 and $5,000 to get started.
A candy vending machine business can be a highly profitable venture. With the right location, a single machine can generate hundreds of dollars in revenue each month.
And with multiple machines, your profit potential can grow exponentially.
When starting a candy vending machine business, the most important things to consider are the costs of starting and maintaining your business, the locations of your machines and the products you'll purchase to stock them.
You'll also need to establish systems to ensure consistency and efficiency in your business. And, you’ll want to find and train the right people to help you grow your candy vending machine business.
It is possible to start a candy vending machine business with no money by finding used machines or negotiating payment terms with vendors. However, you will need to have some money to stock the machines and promote your business.
The best way to find locations for your candy vending machines is to talk to businesses in your area and determine if they would be interested in having a machine on their premises. You can also look for high-traffic areas, such as malls, airports or bus stations.
Here are some tips for starting a candy vending machine business:
- Purchase used machines or negotiate payment terms with vendors to save on costs.
- Find high-traffic locations for your machines, such as businesses, schools, hospitals or airports.
- Stock your machines with popular items that will appeal to your target audience.
- Establish systems for managing and restocking your machines to ensure efficiency.
- Train employees to help you run your business smoothly.
With these tips, you can get your candy vending machine business up and running in no time!
A simple checklist to use when starting a candy vending machine business is as follows:
- Name Your Candy Vending Machine 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 Candy Vending Machine Business Model: Determine how your business will make money. Will you be an operator, service company and/or product company?
- Write a Candy Vending Machine 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 & 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 Candy Vending Machine Business to Potential Customers: 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 products they truly need.
- Get Customers & 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 products.
Starting a candy vending machine business can be a great way to become your own boss and earn a steady income. However, there are several things you need to do in order to get started, such as finding locations for your machines, stocking them with popular items, and establishing systems for managing and restocking your inventory. With these tips in mind, you can launch your own candy vending machine business in no time!