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

A business plan will be a crucial resource to help guide your business in the right direction. A business plan sets out what needs to happen for you to achieve your goals, describes how you will do it, and sets up alternative 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 you 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 emergency. Don’t forget about your business plan once you’ve opened your doors. Check back regularly to make sure you are on track to meet your goals. Don’t be afraid to make changes to the plan when necessary.

Each entrepreneur or business consultant will have different ideas on 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 machine industry. Here’s an example of a suitable outline with section titles that you might consider including in your own vending machine business plan.

Cover and content page

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

Executive Summary

Summarize the other sections of your business plan. Present brief information on the opportunities you see in the market and summarize what you intend to do with your business to capitalize on these opportunities. Try to entice readers to read the entire report.

Bottom

Give the reader some background on yourself 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 vending machine industry background showing national industry data as well as information about the local industry you plan to enter.

Mission status

A mission statement is usually a phrase or a couple of short sentences that summarize what your business is about, what it does, and how well it does it. It is a good way to remember the basic objectives or philosophy of your company, in addition to the profit motive. A good mission statement could mention something about the standard of your machines and products or how you live to be better than your competitors.

Goals and objectives

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

Startup requirements

Establish a list of startup costs and calculate the total amount of capital that will be needed to get the business started. Inform 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 business to start operating legally and professionally. Mention the processes and fees involved with applying for licenses, permits and other procedures in accordance with the laws of the region where the company will operate.

Ownership and management structure

Consider who the founders of the business are and the private ownership interest each has in the business. For those who will be active in running the company, it is important to delineate what role they will play and their responsibilities. Will the company 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 your business location, management, 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 strong reasons why you are choosing a certain vending machine, product line, or system. Whenever possible, include some supporting evidence from your research.

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 that you have collected from surveys and other research.

Provide information on 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 distinctly different from what your competitors offer. Get ideas from them on what is working well and what is not. Look for a competitive advantage. Be sure to also mention indirect competitors such as convenience stores, indoor cafeterias, or food vans.

Marketing plan

Outline a strategy for creating a vending 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 obtain new machine locations, make appointments with “decision makers” and sell your services to them. Your marketing could be done primarily by reaching out to decision makers directly or you could rely on advertising to generate some inquiries.

Also outline 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 you visit the facility where your machines are located.

You should also mention how you plan to maintain your vending accounts and long-term customer satisfaction. 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’ve done your research, you should be able to anticipate monthly income and expenses going forward. In this way, you can determine future levels of profitability and a breakeven 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 to plan for a variety of outcomes.

Appendix

Finally, you should attach an addendum to the report that includes reference letters, documents, images of vending machines, or other supporting material that has been referenced in the content of the plan. Try to back up all your assumptions with evidence whenever possible.