Are you looking for a business opportunity that is recession-proof? How about starting your own ATM business? In this guide, we will walk you through the steps necessary to get your ATM business up and running.
We will discuss the different types of ATMs, how to choose the right location, and what type of customer service you should offer. So, whether you are just getting started or you are ready to take your business to the next level, this guide has everything you need!
Before You Begin
Before you begin, it's important to establish whether the atm business will be profitable. This will be determined by a number of factors…This does of course include the charge deducted by the ATM for each use and/or transaction.
But another vital factor is the foot traffic. Just how many people do you expect to pass by the ATM that would use it? Are there competing ATM machines in the surrounding area that will take customers away from you?
You also need to consider the fact that we are gradually moving towards becoming a cashless society. People are using cash much less frequently than they used to, as shops and businesses gradually move towards contactless card payments by debit and credit cards.
Even public transport is now on-board, and few organizations require payment in cash these days. Once you have taken all this on board and decided that you do want to start your very own ATM business, the process to begin is pretty straightforward.
And we'll be sure to cover every last detail. But before I lay out the various steps involved, let's just quickly go through some of the mistakes to avoid.
Mistakes To Avoid With Your ATM Business
The first thing to remember when starting up any new ATM business is to never ever underestimate the competition. In this case, you should always assume that there are other ATMs in the area, and if not, then there may well be soon enough.
Secondly, don't forget to think about the cost involved. If you're planning to open a standalone ATM, then you can probably expect to spend around $3,500-$7,000 (depending on where you live) to set up. However, if you plan to purchase an existing ATM, then you could save yourself a lot of time and trouble by purchasing one that has been previously set up.
Thirdly, don't forget to check the local laws. Some states and countries prohibit the opening of an ATM within their boundaries. So if you're thinking about setting up shop in California or New York, for example, then you might find that you won't be able to legally operate an ATM in those locations.
Finally, don't forget to keep track of your expenses. It's really easy to lose track of what you've spent over time, so try and keep a record of everything.
Now that we’ve got that out of the way, let’s move on to the main event: Starting an ATM business.
How To Start An ATM Business
1. Create A Business Plan
The first step to starting an ATM business is to create a business plan. This document will outline your company’s goals, strategies, and how you plan on achieving them.
You should also include a financial projection for the next five years, as this will give you a good idea of whether or not your ATM business is viable.
If you’re not sure how to create a business plan, then there are plenty of resources available online, or you could even hire a professional consultant to do it for you.
Once you have your business plan, the next step is obtaining a business license.
2. Obtain Business Licenses
The first step is to obtain the necessary business licenses. These will vary from country to country, but in the United States, you will need to acquire a Federal Tax ID number and a state sales tax permit.
You can apply for these online or in person at your local tax office. Once you have these, you will be able to open a business bank account and begin the process of setting up your ATM business.
3. Choose The Right ATM Locations
The next step is to choose a location for your ATM. This is perhaps one of the most important steps, as choosing the wrong location can make or break your atm business.
Examples of locations for your ATM machine:
- convenience stores
- grocery stores
- gas stations
- hotel lobby
These are just some examples, but really the possibilities are endless. Just make sure that you choose a location with high footfall and not too much competition from other ATMs in the area.
You should also check with the local authorities to see if there are any restrictions on where you can place your ATM.
Once you have found a suitable location, the next step is to negotiate a lease with the owner of the property. This will give you the legal right to place your ATM on their premises.
4. Select Your ATM Machines
When most people think of an ATM, they picture a machine in a bank lobby or at a convenience store. However, there are actually many different types of ATMs, and each one has its own benefits and drawbacks.
An important step in starting your ATM business is to decide which type of machine you would like to offer. Here are some of the most popular options:
These are the most common type of ATM, and they are typically found in bank lobbies. The benefit of bank ATMs is that they are already established and have a built-in customer base.
However, the downside is that you will need to rent or lease space from a bank, and you will have to comply with their regulations.
These machines are typically found in convenience stores, gas stations, and other retail locations. The benefit of retail ATMs is that they are easy to set up and customers are already accustomed to using them.
However, the downside is that you will need to find a prime location and negotiate a lease with the landlord.
These are becoming increasingly popular, as they can be placed virtually anywhere. The benefit of mobile ATMs is that they are very versatile and can be used at events, in shopping malls, or even in office buildings.
However, the downside is that they require regular maintenance and can be more expensive to operate than other types of ATMs.
Other ATM Machine Factors
There are many different types and models available on the market, so it’s important to do your research and choose one that is right for you and your location.
Some things to consider when choosing an ATM machine:
- How much money do you want to be able to dispense?
- Do you want a standalone machine or one that is built into a wall or countertop?
- What type of security features do you want?
- How easy do you want it to be for customers to use?
Again, these are just some things to consider. There are many other factors that you will need to take into account when choosing an ATM machine.
5. Install Your ATM Machine
Once you have chosen your machine, the next step is to install it. This process will vary depending on the type of machine that you have chosen.
If you are installing a standalone machine, you will need to find a suitable location and then drill into the floor or wall to secure the machine. You should also run power and data cables to the machine.
If you are installing a built-in machine, you will need to work with a contractor to have the machine installed. This process is usually more complex and can be quite expensive.
Once your ATM is installed, the next step is to configure it. You will need to choose a language, set the denominations of the bills that it will dispense, and select a logo for your machine. You should also set up some basic security features, such as a PIN code or fingerprint reader.
After you have configured your machine, you will need to load it with cash. How much cash you need to load will depend on the type of machine that you have and the location where it is installed.
You should also create signage for your machine. This will help customers find it and will let them know what services it offers.
6. Financing Your ATM Business
The cost of starting an ATM business can vary widely, depending on the type of machine that you choose and the location where you install it. However, most people will need to take out a loan in order to finance their ATM business.
There are many different ways to finance your ATM business. You could take out a personal loan, apply for a business loan, or even use venture capital.
The best option for you will depend on your personal financial situation and the amount of money that you need to borrow.
You should also consider whether you want to buy or lease your ATM machine. Leasing is often a good option for people who don’t have the upfront capital to buy a machine outright.
7. Marketing Your ATM Business
Once you have your ATM business up and running, you will need to start marketing it. There are many different ways to market your ATM business, but some of the most effective include:
- Creating a website
- Setting up social media accounts
- Running online ads
You should also consider email marketing, as this can be a great way to reach potential customers.
It’s important to have a solid marketing plan in place before you launch your business. Otherwise, you won’t be able to attract customers and grow your business.
8. ATM Business Insurance
Another important thing to consider when starting an ATM business is insurance. This will protect you in case something goes wrong with your machine or if it is damaged or stolen.
There are many different types of insurance policies available, so you should speak to an insurance broker to find one that is right for you.
Checklist For Your ATM Business
Now that you know how to start an ATM business, you need to make sure that you have everything in order before you launch your business. This includes:
- Finding the right location
- Installing your atm machines
- Configuring your machine
- Loading your machine with cash
- Creating signage
- Marketing your business
- Getting insurance
Answers To Your Most Frequently Asked Questions
Is owning an ATM profitable?
Being an ATM owner can be profitable, but it is important to do your research before you start your business. You need to make sure that you choose the right location and machine, and that you have a solid marketing plan in place.
You also need to make sure that you are properly insured. If you do all of this, then owning an ATM can be a profitable business venture.
How can I start an ATM business with no money?
One option for starting an ATM business with no money is to lease a machine. This can be a good option if you don’t have the upfront capital to buy a machine outright. You should also consider financing your business with a loan or venture capital.
Who fills money in ATM machines?
Most people assume that the cash in their ATM comes from the bank that owns the machine. However, this is not always the case. In many cases, it is the responsibility of the ATM owner to load cash into the machine.
How much money do you need to stock an ATM?
Depending on the size of the ATM and the location, you will need to stock the machine with a certain amount of cash. If you have a small ATM, you can stock it for as little as $500.
However, if you have a large ATM or one that is located in a high-traffic area, you may need to stock it with as much as $16,000.
The best way to determine how much money you need to stock your ATM is to speak with a representative from your bank or credit union. They will be able to give you an estimate based on your specific situation.
In general, it is always better to err on the side of caution and have more cash on hand than you think you will need. This way, you can ensure that your customers will always have access to the funds they need.
How much do ATM owners make?
Many people assume that owning an ATM machine is a lucrative business venture. And while it is true that ATM owners can make a decent profit, there are also a number of costs that must be considered.
For example, most machines require a monthly service fee, and there are also fees for transaction processing and cash replenishment. In addition, ATMs must be physically secured, which often requires the installation of security cameras and alarms.
As a result, ATM owners typically make between $450 and $750 per month per machine if they average 6 to 10 transactions per day. While this may not seem like a lot of money, it can add up quickly if you own multiple machines.
What Is It Like To Run An ATM Business?
There's a lot of responsibility that comes along with operating an ATM business.
You'll need to constantly monitor the machine, ensure it's working properly, and consider the safety of your customers as they withdraw their cash. (If the customers feel safe using the machine, they are more likely to return.)
There's also a lot of paperwork to do, including keeping track of the daily transactions, monthly reports, and bank reconciliations. But again, if you decide to go agency-based then a lot of this leg work is done for you.
The Bottom Line
Starting an ATM business can be a great way to earn passive income. However, it’s important to do your research and plan carefully before you launch your business. Use this guide as a starting point, and be sure to consult with experts in order to get started on the right foot.
With a little bit of planning and preparation, you can have your ATM business up and running in no time!