www.oxforddictionaries.com defines “wealth” as follows:
1. an abundance of valuable possessions or money
2. plentiful supplies of a particular resource
3. [in singular] a plentiful supply of a particular desirable thing
In truth, “wealth” means different things to different people.
Firstly, a vending franchise is not going to make you a millionaire so let’s put that out of our minds. Most people in this current climate are generally looking for something that will provide a steady income and a healthy balance between work and quality of life. So really wealth can be considered on two levels.
In terms of how much money you can make from vending, you have to ask yourself some basic questions to determine the best route for you:
1. How much can you invest to begin with?
We have already seen in other posts that vending is by comparison a low-cost start-up. Cost of equipment is key to this. Non-electric machines like Tubz towers are cheaper to purchase and can potentially mean starting with a higher income once they are all active. This can then help lead you to expanding your business sooner. If you are looking to acquire a business loan to start out, be very sure that the costs of the loan won’t negate the profits from the machines.
2. How much do you want to earn? How much do you NEED to earn?
Only you can determine this as everyone has different living expenses. Before you commit to anything, be clear in your mind what you need to earn and then what you would like to earn. This will define whether a vending franchise is right for you. Avoid over-burdening your business.
3. How much time can you invest into the franchise to begin with?
Vending is a flexible business but you will still need to invest some time to make it work. This will be determined by how many machines you have, the area that you cover and your other commitments.
4. Is the business scalable?
Compare vending to a retail or restaurant franchise for example and the costs involved in opening a second venue. Some vending concepts such as tower vending have the benefit of many suitable locations in any region and with the choices available, it is much easier to scale up your business with relatively little cost.
5. What are the basic costs / turnover?
Make sure that you have taken into account all the costs involved – are there franchise fees? Cost of repair? Fuel costs? As we have discussed before, vending does have low overheads but they still need to be considered. Decide what profit margin you are prepared to accept on your products after wholesale price, venue commission / charity payment, fuel and so on. Keep in mind also the VAT threshold – most vending machine operators stay below the threshold to avoid additional costs (go to http://www.hmrc.gov.uk/vat/ for more advice and information).
6. What are your long-term goals for the business?
Expansion? An extra revenue? A legacy for your children?
The other important question that you need to ask yourself is: What do you want the business to do for YOU? One of the most attractive factors of a vending business is that it allows more time for you to spend on what is really important to you, whether that’s time with the family, the freedom to work on other projects or pursue other interests. It means that you don’t have to be tied to a desk, you can be your own boss and still earn a steady income. That sort of wealth is immeasurable.
