vending machines business plan examples

Vending Machine Business Plan Template

Written by Dave Lavinsky

Vending Machine Business Plan

You’ve come to the right place to create your vending machine business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their vending machine companies.

Below is a template to help you create each section of your Vending Machine business plan.

Executive Summary

Business overview.

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona, a growing Phoenix suburb. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Now that Chris has obtained his degree, he is equipped with the skills and know-how to start his new company, Healthy Snacks Vending. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

As its name implies, Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target several proprietors in a new commercial development that has just been built in a growing area of town. New developments include an array of corporate offices, a high school, a hospital, and several retail establishments. 

Product Offering

The following are some of the healthy snack products that Healthy Snacks Vending will carry:

• Bottled Water
• Fruit Juice
• Fresh Fruit 
• Granola Bars
• Cereal Bars
• Nuts and Seeds

Customer Focus

Healthy Snacks Vending will target all proprietors in the new Buckeye commercial development. It will target the owners of the commercial buildings as well as the school and the hospital. Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

Management Team

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations to place vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in Business Administration and is skilled in purchasing, budgeting, and controlling inventory. Chris relies on Stephen’s ability to source the most cost effective healthy snack products as well as his ability to ensure there is the right amount and mix of products available to ensure profitability. 

Success Factors

Healthy Snacks Vending will be able to achieve success by offering the following competitive advantages:

• First-mover advantage in this new Buckeye development. There are currently no other vending machines in or near these recently built establishments. 
• Healthy snack options will be offered, giving people a healthier option over typical vending machine snacks. 
• Healthy Snacks Vending is investing in new vending machines that will take multiple forms of payment including credit cards, debit cards, and contactless payment options to give people more flexibility in the way they can pay. 

Financial Highlights

Healthy Snacks Vending is seeking $100,000 in debt financing to launch its vending machine    business. The funding will be dedicated towards purchasing the initial vending machines and inventory. Funding will also be dedicated towards three months of overhead costs to include payroll, sales, and marketing costs. The breakout of the funding is below:

• Vending machines: $50,000
• Inventory:  $10,000
• Three months of overhead expenses (payroll, sales, and marketing):  $30,000
• Working capital:  $10,000

Company Overview

Who is healthy snacks vending .

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target all proprietors in a new commercial development that has just been built in a growing area of town. New establishments include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending History

Healthy Snacks Vending is a new vending machines business that will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. 

Since incorporation, Healthy Snacks Vending has achieved the following milestones:

• Registered Healthy Snacks Vending, LLC to transact business in the state of Arizona. 
• Reached out to multiple proprietors in the area to initiate the process of negotiating contracts to put vending machines in their buildings. 
• Has secured contracts with two proprietors. 
• Recruited Stephen Smith to be the Inventory Manager and Kim Miller to be the Accountant. 

Healthy Snacks Vending Services

The following are some of the healthy snacks that Healthy Snacks Vending will provide:

Industry Analysis

The U.S. Vending Machine Operators industry is a $8.9B market in 2022 and is expected to increase by 3.5% this year. Rising per capita disposable income and increased consumer spending have helped drive industry growth. 

The primary challenge for industry operators is high competition. If there are multiple vending machines in a small area, a company’s ability to differentiate its products, pricing, or payment options will be the key to success. 

Changes in consumer behavior have posed a challenge for many industry operators. A growing number of consumers are seeking healthier snack choices. For this reason, vending machines that offer junk food items are seeing less revenue than those offering healthy alternatives. Additionally, less consumers are carrying cash, while a growing number prefer contactless payment options. New vending machines that take card and contactless forms of payment are likely to bring in more revenue for industry operators than cash-based machines. 

Customer Analysis

Demographic profile of target market.

Healthy Snacks Vending will target proprietors in a new commercial development that has just been built in Buckeye, Arizona. Establishments in the area include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

The precise demographics for Buckeye, Arizona are:

Customer Segmentation

Healthy Snacks Vending will primarily target the following customer profiles:

• Proprietors of businesses in the area
• Staff and visitors of corporate offices, the hospital, and retail establishments
• Students, teachers, and administration staff at the school

Competitive Analysis

Direct and indirect competitors.

Healthy Snacks Vending will face competition from other companies with similar business profiles. A description of each competitor company is below.

Snack Food Vending, LLC

Snack Food Vending, LLC is an established vending machine company that operates in Phoenix, Arizona and surrounding areas. Snack Food Vending, LLC provides a wide variety of snack options in vending machines throughout the region. Most of Snack Food Vending, LLC’s vending machines are located in busy retail locations, schools, and hotels. This vending machine company stocks traditional snacks and healthy snacks. Snacks include soda, water, candy, chips, apples, granola bars, gum, tea, fruit cups, and energy drinks. Most of Snack Food Vending, LLC’s machines have been in service for several years and are cash-based machines. 

SNACKS! Vending 

SNACKS! Vending is a Phoenix-based vending machine company that stocks healthy snack food options including applesauce, sandwiches, tea, water, crackers, and fresh fruit. SNACKS! Vending machines are primarily placed in areas around downtown Phoenix including hospitals, office parks, and shopping malls. SNACKS! Vending has established itself as the reliable source for healthy snack options in the city. 

Healthy Eating Vending Machine Co. 

Healthy Eating Vending Machines Co. offers a wide variety of healthy snacks for patrons on-the-go. Snacks include fresh fruit and vegetables, salads, sandwiches, juice, tea, water, and sunflower seeds. Healthy Eating Vending Machine Co. is a fairly new establishment with just a handful of machines placed in a few commercial locations in Buckeye, Arizona. This vending machine company offers premium healthy snacks at relatively higher prices than competitors. 

Competitive Advantage

Healthy Snacks Vending will be able to offer the following advantages over its competition:

• All Healthy Snack Vending machines will be the newest models, with multiple payment options including credit, debit, and contactless payment choices. 
• Healthy Snack Vending will offer patrons a wide range of affordable, healthy alternatives to traditional junk food available in most vending machines. 
• Healthy Snacks Vending will target all proprietors in the new commercial development in Buckeye, Arizona enabling the company to have the first vending machines placed in these buildings. 

Marketing Plan

Brand & value proposition.

Healthy Snacks Vending will offer the unique value proposition to its customers:

• The only vending machines offering affordable, healthy snacks in the area. 
• Multiple forms of payment accepted including credit, debit, and contactless pay for flexibility in payment options. 
• Moderate pricing that is on par or slightly less than the competition. 

Promotions Strategy 

The promotions strategy for Healthy Snacks Vending is as follows:

Word of Mouth/Referrals

Chris Garcia will leverage his effective communication and word of mouth marketing skills to create interest among local proprietors to get his vending machines placed in their buildings. He has already obtained commitments from two such proprietors who will spread the word to others. 

Professional Associations and Networking

Healthy Snacks Vending will become a member of the local vending association and participate in industry events to network and build relationships with other industry professionals in the area. 

Print Advertising

Healthy Snacks Vending will invest in professionally designed print ads to display in local magazines, newspapers, and direct mailers targeting local business owners that could benefit from putting a vending machine with healthy snacks in their establishments. 

Website/Social Media Marketing

Healthy Snacks Vending will create and maintain an informative website that will list the products that Healthy Snacks Vending is able to provide and the locations of its vending machines. The website will also list their contact information for proprietors that may be interested in putting a Healthy Snacks Vending machine in their establishment. 

In addition to the website, Healthy Snacks Vending will maintain an active social media presence on multiple channels including Facebook, Instagram, Twitter, YouTube, and TikTok to promote its business. 

The pricing of Healthy Snacks Vending will be moderate and on par or slightly below that of competitors to ensure Healthy Snacks Vending won’t be overlooked as being too expensive if other vending machine operators place their machines nearby.  

Operations Plan

The following will be the operations plan for Healthy Snacks Vending.

Operation Functions:

• Chris Garcia will be the Owner and Marketing Director of the company. He will oversee all marketing and sales efforts as well as manage all contracts and client relations. Chris has spent the past year recruiting the following staff:
• Stephen Smith – Inventory Manager who will source, purchase, and stock all vending machine inventory. 
• Kim Miller – Accountant/Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting for the company. 

Milestones:

Healthy Snacks Vending will have the following milestones complete in the next six months.

7/1/2022 – Finalize contracts with two initial proprietors to place vending machines in their establishments. 

7/15/2022 – Finalize personnel employment contracts for Stephen and Kim. 

8/1/2022 – Purchase initial vending machines for the first two locations. 

8/15/2022 – Install vending machines in the first two locations. 

8/22/2022 – Source products and stock the vending machines. 

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations for his vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in business administration and is skilled in sourcing and budgeting. Chris relies on Stephen’s ability to source the most cost effective healthy snack products and ensure there is the right amount and mix of products available to increase profitability.

Financial Plan

Key revenue & costs.

The revenue driver for Healthy Snacks Vending is the payment received for each product purchased from one of its vending machines. Prices will range from $1.00-$5.00 per healthy snack item. 

The cost drivers will be the fees paid to proprietors. Each proprietor contract will have its own fee schedule. However, in general, Healthy Snacks Vending will pay between 5%-15% of its revenue per vending machine to the proprietor. The expenses will be the payroll cost, vending machine maintenance cost, and marketing materials.

Funding Requirements and Use of Funds

• Inventory: $10,000
• Three months of overhead expenses (payroll, sales, and marketing): $30,000
• Working capital: $10,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Vending Machines in Operation: 10
• Total Average Revenue from All Machines Per Month: $5,000
• Average Fees Paid to Proprietors Per Year: $6,000

Financial Projections

Income statement, balance sheet, cash flow statement, vending machine business plan faqs, what is a vending machine business plan.

A vending machine business plan is a plan to start and/or grow your vending machine business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your vending machine business plan using our Vending Machine Business Plan Template here .

What are the Main Types of Vending Machines Businesses?

There are a number of different kinds of vending machines, some examples include: Candy Vending Machines, Snack Vending Machines, Ice Cream Vending Machines, Beverage Vending Machines, Coffee Vending Machines, Specialty Vending Machines, Custom Vending Machines, and Bulk Vending Machines.

Other vending machine businesses include beauty, video game, water, beer and other unique items.

How Do You Get Funding for Your Vending Machine Business Plan?

Vending Machines are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well crafted vending machine business plan is essential for securing funding from any type of potential investor.

What are the Steps To Start a Vending Machine Business?

Starting a vending machine business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Vending Machine Business Plan – The first step in starting a business is to create a detailed vending machine business plan that outlines all aspects of the venture. This should include market research on the vending machine industry and potential target market size, information on the services and/or products you will offer, marketing strategies, pricing details and a solid financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your vending machine business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your vending machine business is in compliance with local laws.

3. Register Your Vending Machine Business – Once you have chosen a legal structure, the next step is to register your vending machine business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your vending machine business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Vending Machine Equipment & Supplies – In order to start your vending machine business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your vending machine business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a vending machine business:

• How to Start a Vending Machine Business

Where can I get a Vending Machine Business Plan PDF?

You can download our example vending machine business plan PDF here. This is a business plan template you can use in PDF format.

• Sample Plans
• Retail, Consumers & E-commerce

Vending Machine Business Plan

Thinking about starting your own vending machine business? Here's a sample business plan for a vending machine business that you can use as a reference while creating your plan. Plus, you can download a free template here to craft an actionable vending machine business plan tailored to your needs.

Every day, millions of people grab a quick snack, stay hydrated on the go, or satisfy a sudden craving—all thanks to the convenience of vending machines.

With the vending industry booming and valued at over $8.6 billion in the U.S. alone, it’s clear there’s never been a better time to dive into the world of automated retail.

If you've been dreaming of running your own vending machine business, now is the perfect moment to start and make your mark in this lucrative market.

But before you place your first machine, you’ll need a solid plan to guide you through every step—from choosing the best locations to stocking your machines with products that sell.

Don’t know where to begin? No worries! This vending machine business plan template is designed to help you build an actionable, step-by-step plan to set your business up for success.

What should I include in my vending machine business plan?

When writing a vending machine business plan , it's important to cover all the key aspects of your business. Here’s a detailed guide on what to include:

Executive summary

This is a quick overview of what your vending machine business is all about—who you are, what you do, and why it's going to work. It’s like giving someone a sneak peek of your plan without diving into all the details.

Even though this part comes first, you'll want to write it last. Why? By then, you'll have all your key sections ready to summarize the most important details effectively.

In your executive summary, touch on these points:

• The name of your vending machine business and where you’ll operate
• What inspired the business and your values behind it
• The market opportunity you’re tapping into (think: locations, demand)
• What types of products or services your machines will offer (snacks, beverages, health items, etc.)
• How you plan to market and attract your target customers
• What will make your vending business a success
• A snapshot of your financial projections and any funding you’ll need to get started

Ultimately, this section is your first impression, so keep it clear, simple, and engaging—making readers want to learn more about your business.

Business description

The business description section is where you get to dig into the details of your vending machine business.

Think of it as painting a full picture of what you’re trying to build, going beyond the quick snapshot you gave in the executive summary.

Here’s what to include:

• What’s your business about?
• How are you set up legally?
• Where will your machines be?
• What kind of machines are you using?
• Any milestones or wins so far?
• What are your goals?

Don’t forget to mention any legal stuff, like permits or licenses needed, especially if you're dealing with food and beverages.

All in all, this section gives anyone reading your plan a solid understanding of what your vending machine business is, how it operates, and where it’s headed.

Market analysis

In this section, we will provide a thorough overview of the vending machine industry landscape, market dynamics, and our target audience.

Begin by conducting comprehensive market research to explore the specific niche of the vending machine business.

To draft this section carefully, consider answering the following questions:

• What's the size of the global vending machine industry?
• How big is the vending machine market in your country or region? Is it growing or declining?
• Who are the leading suppliers or manufacturers of vending machines?
• What are the current trends shaping the vending industry (e.g., healthy vending options, cashless payments)?
• Who are your target customers based on their demographic and psychographic profiles (e.g., office workers, school students, travelers)?

Organization and management

In this section, you'll introduce the people behind the vending machine business—the owners and key managers. Highlight their roles, experience, and what they bring to the table.

You can include short, resume-style summaries or bios for each key member. Focus on important figures like the founder(s), operations manager, sales and marketing lead, and finance officer. Share their qualifications, skills, and any industry know-how they have.

To make it clearer, you might also want to add an organizational chart to show how your team is structured and how everyone fits into the business. This adds a nice visual touch and helps investors quickly understand the team's layout.

Here is one example of it:

Products or services

This section outlines what your vending machine business will offer, giving a clear idea of the products available to customers.

It’s essential to have the variety and quality of the products, pricing, and how you’ll meet customer needs. Here’s an overview of what you might provide:

• Snacks: A range of popular snacks, including chips, granola bars, and healthy options like nuts and dried fruit.
• Beverages: A selection of drinks such as water, soda, energy drinks, and flavored waters.
• Healthy options: Protein bars, yogurt cups, and fruit cups for health-conscious customers.
• Seasonal items: Special treats or snacks during holidays or local events, like themed candies or festive snacks.
• Gourmet treats: Premium items like artisan chocolates or local snacks to attract a more diverse customer base.

Be specific about your product offerings and pricing. This will help you communicate clearly with potential investors and stakeholders, showing them how you plan to meet customer needs and generate sales.

Marketing and sales strategy

Having a clear sales and marketing plan is vital to making your vending machine business stand out, especially in a competitive environment. This plan will help guide your marketing efforts and create campaigns that draw in new customers while keeping regulars coming back.

Here are some key strategies:

• Use Instagram, Facebook, and Twitter to showcase your vending locations, popular products, and promotions.
• Send emails to local businesses announcing new items, offers, or discounts.
• Partner with gyms, schools, and offices for high-traffic machine placements.
• Advertise in local papers, community boards, or radio to boost visibility.
• Create a simple website with machine locations, products, and contact info.
• Offer loyalty deals or run seasonal promotions to keep things exciting.

On top of these strategies, it's important to ensure your machines are well-maintained, regularly stocked, and in top working order. This shows customers that they can count on your vending machines for quality and convenience, which helps build trust and loyalty over time.

Funding request (if applicable)

If you’re seeking funding, outline exactly how much capital you need and how you plan to use it. This might include purchasing vending machines, stocking initial inventory, securing prime locations, and covering operational costs.

Clearly define your terms with investors or lenders (equity, debt repayment schedule) Be sure to also give the lender a timeline for when you will need the money and how it will help you grow your vending machine business altogether.

Sample vending business plan funding request:

Funding request and use of Funds

We're seeking $50,000 to kickstart and grow our vending machine business. This capital will allow us to purchase equipment, secure great locations, and market effectively. We’re flexible about the funding structure, whether as a loan, equity investment, or a combination, depending on investor preferences.

Here's how the funds will be used:

• Vending machines ($30,000): We'll acquire 10 modern vending machines equipped with contactless payment and customizable product options to meet a variety of customer preferences.
• Inventory ($5,000): Stocking the machines with snacks, drinks, and healthier choices to attract a wide range of customers.
• Security of location ($7,000): Supporting those funds will help cover rent; and permits to secure the best possible locations for our products.
• Marketing & branding ($3,000): This includes developing a marketing plan to grow brand awareness via social media, giveaways, and branding materials.
• Working capital ($5,000): To help with everyday expenses like maintenance, restocking, freight, and buffer for any unforeseen costs.

Financial projections & return on investment

We project sales of around $100,000 in our first year, aiming for a 40% profit margin. With this trajectory, we expect to break even within the first 12 months and generate positive cash flow. Investors can anticipate a yearly return of 15-20% over the next five years.

Repayment plan

For the loan, our suggestion is 5% month-to-month for a 5-year repayment approach. We will offer 20% equity, with a portion of profits going back toward the business performance.

For us, this funding provides the base to scale our vending machine network nationwide, opening up in new locations & further develop technology tools that will enhance customer experiences.

Financial projections

To build a profitable vending machine business, it’s advisable to have a solid financial plan along with realistic projections.

Typically, this plan includes a breakdown of your business’s financial details, either on a monthly or quarterly basis, and shows how you’ll meet your financial targets over the first 3-5 years.

Here are some key financial statements and reports you should include in your vending machine business financial plan:

Income statement projections (Year 1 - Year 3)

Balance sheet projections (end of each year), cash flow statement projections (year 1 - year 3).

Additionally, you should outline the break-even point, determine your funding needs, and conduct sensitivity analyses for various situations. To be more specific, a well-rounded financial plan enables you and potential investors to assess the financial health of your vending machine business and understand its profitability and possible return on investment.

Appendix (Optional)

The appendix includes additional materials that give more context and support the strategies mentioned in your vending machine business plan.

Here’s what to include in the appendix:

• Market analysis and research findings
• Detailed financial breakdowns
• Machine locations and rental agreements
• Necessary legal paperwork (business registration, permits, etc.)
• Inventory/product list
• Promotional materials and strategies

In short, this section provides evidence to back up your plan and helps readers or investors better understand and trust the business strategies you’ve outlined.

Download the sample vending machine business plan template

All set to draft your vending machine business plan? But need some extra help? No worry; we’ve got you covered. Here you can find a free vending machine business plan PDF template for your vending machine business plan.

This template will help you to create a structured vending machine business plan.

Now that you know the essential sections of a vending machine business plan and how to approach each one, you're well-equipped to create a thorough and effective plan tailored to your business needs.

But if you still feel uncertain about structuring your plan or want some extra support, try using an AI business plan creator . An AI-powered business plan generator can help you create a solid, actionable business plan with ease.

So, why wait? Get started on bringing your vision to life today!

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Frequently Asked Questions

Do I really need a business plan for a vending machine business?

Yes, you do. A business plan helps you figure out your goals, who you’re selling to, and how much you’ll need to get started. It’s also helpful if you want to show investors that you’ve thought everything through.

How do I make my vending machine business plan stand out to investors?

To get investors interested, focus on why your vending machines are different. Maybe you're offering unique products, or you've found great high-traffic locations. Include numbers that show how you’ll make money and explain how you’ll keep costs down.

What financial projections should I include in my business plan?

You'll need to cover your startup costs (buying machines, stocking products), ongoing expenses (like maintenance), and how much you expect to earn. Try to estimate how long it’ll take before you start turning a profit, and show that you’ve got a handle on your finances.

Some key projections are:

• Revenue forecasts
• Expense budget
• Cash flow statements
• Profit and loss statements
• Break-even analysis

Can I use a business plan template for my vending machine business?

Yes, templates can be really helpful when you’re just getting started. But make sure you customize it to your specific business—like what kinds of products you’re offering, where your machines will be, and who your customers are.

Consider using reliable sources such as Bizplanr, Upmetrics, etc for the sample templates.

How detailed should my vending machine business plan be?

It doesn’t need to be overly complicated, but it should cover the main points—what you’re selling, who your customers are, and how you’re going to make money.

The clearer your plan, the easier it’ll be for others to understand your business.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

Follow Vinay Kevadiya

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Vending Machine Business Plan

Vending machines are no longer used to dispose of snacks. From frozen foods to stationery items, you name it and there might be a vending machine selling that product.

And if you want a business that requires less time and is profitable, then a vending machine business might be your thing. It also allows you to get creative with products and packaging.

All you need is a product idea, a little bit of research, and a vending machine business plan to help you get started. Here we’ll give you an insight into the vending machine industry and a few tips to help you set up your business better.

Before you start writing your business plan for your Vending Machine Business, spend as much time as you can reading through some samples of Food, Beverage & Restaurant Business Plans templates .

Our sample Vending Machine Business Plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.

Industry Overview

The global vending machine industry stood at a market value of 30.30 billion dollars in 2018 and is expected to grow at a rapid pace in the coming years too.

Vending machines are super convenient and accessible. Hence, their popularity is increasing amongst the working class who always have less time on their hands and want to grab a quick snack or any other merchandise.

Also, as the vending machines require much less space compared to traditional convenience stores they are perfect for offices and other commercial settings. Also, the cashless ways of paying grow vending machines are bound to get more popular as they make such transactions easier.

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Things to Consider Before Writing a Vending Machine Business Plan

Pick your niche.

As there are so many options to choose from, it is essential to pick a range of products that you want to sell through your vending machine. You can pick a niche based on a combination of factors including your interests, your area of expertise, and the profitability of the niche. Deciding your niche beforehand comes in handy while doing your research and picking a location as well as getting an idea about your target audience.

Select a good location

A good location is another important factor that influences the success of your business. A vending machine needs to be placed strategically in a way that is accessible and convenient to use for people in a hurry. Also, most of the purchases from a vending machine are impulse buying decisions. You should keep that in mind while deciding a location for your vending machine so the location works in your favor.

Figure out good packaging and storage techniques

Good packaging that makes things easy to pick and carry on the go is one of the best things about a vending machine. Hence, good packaging can make your machine popular and good storage ensures that the items don’t get damaged. Hence, preventing unnecessary losses to your business.

Figure out security measures

Although there are a lot of good things about a vending machine, unfortunately, it is also prone to theft and damage. But taking proper security measures can help you avoid these hassles as much as possible. Hence, figuring out the security requirements before getting started is essential.

Chalking out Your Business Plan

With people returning to work post the COVID-19 pandemic and contactless services still being in vogue a vending machine business can be an exceptionally profitable one if done right.

Not just that vending machines are easy to use, but they come with a variety of product niches and help you avoid the hassle of showing product after product to customers, who’ll have every option displayed right in front of them with a vending machine.

And though refilling a vending machine and protecting it from theft and vandalism might seem like a boring job, a vending machine business is much more than that.

From vending machines that offer products ranging from granola bars to office supplies to the ones that take orders from apps through artificial intelligence, the vending machine business has gone through a massive change over the decades.

But, one more interesting fact is that there are over 5 million vending machines in the US alone, and if you want to last in such a competitive market you need a proper business plan. So, read on to find out how to write a vending machine business plan.

Why do You Need a Vending Machine Business Plan?

Before we discuss how to write a business plan , it is only fair to tell you about its advantages first. A vending machine business plan will help you decide your product niche, and the location where you can find your targeted customer, it helps you manage your finances, devise a marketing and pricing strategy, and run the operations of your business smoothly.

It also helps you design your brand image, decide on the scale of expansion and become more cost-effective as a business. Thus, a well-written business plan can serve a variety of purposes and help the different facets of your business is flourishing.

This brings us to the central topic of this blog, how to write a vending machine business plan.

How to Write a Vending Machine Business Plan?

Even though you can write a business plan from scratch yourself it is always a good idea to get a little expert help before you start writing one. You can either use a pre-designed template or an online business plan software.

For, writing a good plan always remember, that a plan should be clear, realistic, and customizable. It should not be a dead letter, but a living document that grows with the industry.

Here are a few sections that you can include in your business plan to make it a well-rounded one.

Vending Machine Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Mission statement
• Vision Statement
• Customer Focus
• Success Factors
• Financial Summary
• 3 Year profit forecast
• Startup cost
• Products and services
• Market Analysis
• Industry Analysis
• Market Trends
• Working Community
• Residential Community
• SWOT Analysis
• Advertising Strategy
• Pricing Strategy
• Financial Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

What to Include in a Vending Machine Business Plan?

Although your vending machine business plan would keep growing alongside your business there are certain key areas that you must include in your business plan.

1. Executive Summary

The executive summary section sums up your vision, business idea, and strategy. It consists of a summary of all the sections of your business. It is important to write a good executive summary, especially if you are expecting to get funded.

As a vending machine business, you should include your range of products and target audience, preferable locations, financial summary, and pricing strategy in your executive summary.

2. Company Summary

In this section you will summarise all that your company stands for:

• Your target audience, whether they are kids, students, working professionals, or tourists.
• Your niche, if it is beverages, packaged food, health food, stationery, or some other products.
• Your preferred location( select this as per your target audience)

All in all this section defines what your company is.

3. Competitive Analysis

In this section, you should include everything you can find about your direct and indirect competitors. You should note down points that are working for them, strategies that have led to their failure, and what makes you stand out from your competition. Apart from that, you should also see if you are standing out in a positive or negative light.

4. SWOT Analysis

SWOT (strength, weakness, opportunity, and threat) analysis is an analytical framework generally used to evaluate any business’ competitive position in the market.

While conducting a SWOT analysis , it is important to initially focus on the market’s threats and opportunities. This will allow you to gain a deeper understanding of how your business’s strengths and weaknesses relate to market opportunities and threats.

Here’s an example of a SWOT analysis prepared for a vending machine business using Upmetrics:

5. Financial Plan

A financial plan is essential for the success of a vending machine business plan. It helps you decide whether you need funding or not, which are the most viable options for being funded, how much should you spend initially, when your business is ready for an expansion, etc. Therefore, a financial plan is exceptionally helpful and should be included in your business plan.

Download a sample vending machine business plan

Need help writing your business plan from scratch? Here you go; download our free vending machine business plan pdf to start.

It’s a modern business plan template specifically designed for your vending machine business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

A business plan software like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions, customizable templates, and 400+ sample business plans to help you get started.

So, whether starting a new vending machine business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.

So what are you waiting for? Start planning today!

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Frequently Asked Questions

What is the easiest way to write your vending machine business plan.

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any vending machine business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a vending machine business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my vending machine business plan?

The level of detail of the financial projections of your vending machine business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What's the importance of a marketing strategy in a vending machine business plan?

Marketing strategy is a key component of your vending machine business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Vending Machine Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their vending machine businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a vending machine business plan template step-by-step so you can create your plan today.

Download our Ultimate Vending Machine Business Plan Template here >

What is a Vending Machine Business Plan?

A business plan provides a snapshot of your vending machine as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Vending Machine Business

If you’re looking to start a vending machine business or grow your existing vending machine company you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your vending machine business in order to improve your chances of success. Your vending machine business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Vending Machines

With regards to funding, the main sources of funding for a vending machine business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a vending machine business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a vending machine business.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of vending machine business you are operating and the status; for example, are you a startup, do you have a vending machine business that you would like to grow, or are you operating a chain of vending machine businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the vending machine industry. Discuss the type of vending machine business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of vending machine you are operating.

For example, you might operate one of the following types:

• Food and snacks : this type of vending machine business typically offers pre-packaged snacks such as chips, cookies, etc., as well as perishable products such as sandwiches, ice cream, and fruit
• Beverages : this type of vending machine can be for hot drinks (coffee, cocoa), or cold (soft drinks, water)
• Candy : this type of vending machine is stocked exclusively with candy and gum
• Other products : this could be healthy food options (granola, fruit, hummus, etc.), or consumer products such as electronics, movies, condoms, souvenirs, etc.

In addition to explaining the type of vending machine you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new machine locations, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the vending machine business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the vending machine industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards selling advertising on vending machines, it would be helpful to ensure your plan calls for varying ad types and sizes.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your vending machine business plan:

• How big is the vending machine business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your vending machine. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your vending machine business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: hotels, office buildings, correctional facilities, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of vending machine you operate. Clearly correctional facilities would want different pricing and product options, and would respond to different marketing promotions than office buildings.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve (both the end customers (who purchase items in your vending machines) and the decision-makers (who approve your desire to place a vending machine in their facility).

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other vending machines.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes convenience stores, grocery stores, pharmacies and restaurants that offer quick food. You need to mention such competition to show you understand that not everyone who purchases convenience items uses a vending machine every day.

With regards to direct competition, you want to detail the other vending machine businesses with which you compete. Most likely, your direct competitors will be vending machines located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products that your competitors don’t offer?
• Will you make it easier or faster for customers to purchase your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a vending machine business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of vending machine business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to snack machines, will you offer machines that sell items such as coffee or other consumer products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your vending machine. Document your location and mention how the location will impact your success. For example, is your vending machine located inside a heavily trafficked office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your vending machine marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your vending machine clean and visually appealing to attract passing customers
• Focusing on machine design and technology for a better user experience
• Placing vending machines in strategic locations

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your vending machine such as procuring products, delivering and restocking, keeping the machines clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to place your 10th machine, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your vending machine’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the vending machine business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in vending machines and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your vending machine business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vending machine:

• Cost of equipment like vending machines, refrigerated delivery trucks, etc.
• Cost of maintaining an adequate amount of inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your delivery truck design plan or machine lease details.

Vending Machine Business Plan Summary

Putting together a business plan for your vending machine business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the vending machine business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful vending machine business.

Download Our Vending Machine Business Plan PDF

You can download our vending machine business plan PDF . This is a business plan template you can use in PDF format.

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Other Helpful Business Plan Articles & Templates

Vending Machine Business Plan Guide + Example

July 6, 2023

Adam Hoeksema

Welcome to our definitive guide on crafting a robust vending machine business plan, complete with a real-world example to get your entrepreneurial gears turning! Vending machines are silent salespeople that work around the clock, presenting a lucrative business opportunity that often requires minimal upkeep.  In this blog post, we will explore the ins and outs of developing a comprehensive strategy, covering key considerations such as location analysis, product selection, and financial planning. 

After talking to customers who purchased our vending machine financial projection template , we realized that many customers also needed a business plan to be able to present to a potential funder, so I decided to take a deeper dive on the topic. 

Here is what I plan to cover in this article:

• Why write a business plan for a vending machine business?
• What to include in a vending machine business plan?
• Vending machine business plan outline

How to determine what type of vending machine to buy?

• How to find a good location for a vending machine?
• How to find a high foot traffic area for a vending machine?
• How to create financial projections for a vending machine?

Example Vending Machine Business Plan

Vending machine business plan faqs.

With that as a plan, let’s dive in!

Why write a business plan for a vending machine business? 

If there was ever a simple business that didn’t require a strategic business plan it would be a vending machine business right?  You just have to buy a machine, fill it with candy, place it in a high foot traffic location and watch the money roll in right?  What is there to plan?  

If that is your attitude I actually don’t think you are too terribly far off, BUT the real reason to write a business plan for a vending machine startup is because your potential investors or lenders have asked you for projections and a business plan.  If that is the case, then you really just have to get it done right?  

What to include in a vending machine business plan? 

I think a vending machine business plan can really be quite simple.  Below you will find the outline from our free vending machine business plan template . 

Vending Machine Business Plan Outline

• Executive Summary
• Company Description
• Market Analysis
• Marketing and Sales Strategy
• Operations and Management
• Financial Plan

There are at least 10 types of vending machines that you could choose from.  There is also the question of whether you should decide on a location first or decide on a type of vending machine first and then find the right location for that machine.  We are going to take a look at the process for finding the right machine to buy first.   

The best choice for you depends on your budget, target market, location, and your personal preferences. Here are some steps to guide you in making the right decision:

• Define Your Budget: The first step is to determine how much you're willing to invest in this business. Vending machines come in a range of prices, from a few hundred to several thousand dollars. Your budget will dictate whether you start with used or new machines, as well as the number and type of machines you can afford.
• Understand Your Target Market: Understanding your customers is key. Conduct a market research to find out what products are in high demand in your desired locations. Are you targeting office workers who'd appreciate a quick snack or drink? Students who might need stationery or school supplies? Understanding the needs and wants of your prospective customers will guide you on the type of vending machine to invest in.
• Analyze Location: The success of your vending machine business largely depends on where your machines are located. If you're planning to place your machine in a gym or health center, a vending machine selling healthy snacks or drinks would be ideal. For a location with lots of kids, a toy or candy machine could work well.
• Maintenance and Operation: Certain types of vending machines require more maintenance and restocking than others. Consider how much time and effort you can invest in the maintenance of your vending machines. Some machines, like those selling perishable goods, require more frequent restocking and cleaning.
• Supplier Relationships: Your choice might also depend on the suppliers you have access to. If you have a good relationship with a supplier of a certain product, it might be profitable to focus on that type of vending machine.
• Profitability: Lastly, analyze the profitability of each type of vending machine you're considering. Some machines may cost more but have a higher profit margin, while others may be cheaper but have lower returns. Look at both the initial cost of the machine and the potential ongoing income it can generate.

Now that we have decided on a type of machine, we need to find a good location.  

How to find a good location for a vending machine? 

The location of your vending machine plays a critical role in determining the success of your business. Here's a step-by-step guide on how to find a promising location:

• Identify High Traffic Areas: A good vending machine location is somewhere with high foot traffic. Look for places where people gather or pass by frequently. These could include shopping malls, office buildings, universities, airports, hotels, and busy street corners. However, remember that high traffic doesn't always mean high sales, as it depends on the needs and preferences of the people frequenting that area.
• Understand Your Target Market: Knowing who your target customer is will help you choose the right location. If you're targeting office workers, you might want to place your vending machines in or near commercial buildings. If students are your target market, universities and colleges would be ideal.
• Consider Location Compatibility: The type of products you plan to sell should align with the location. For instance, a vending machine selling protein bars and healthy drinks will likely perform well in or near gyms and health clubs. Likewise, a machine selling toys or school supplies might do well in a family-friendly mall or near a school.
• Research Existing Vending Machines: Analyze the performance of existing vending machines in potential locations. Are they doing well? If so, similar products might succeed in that location. But be cautious about placing a similar machine too close, as it might lead to fierce competition.
• Negotiate with Property Owners: Once you've found a potential spot, approach the property owner or manager to discuss installing your vending machine. Some might charge a flat fee, while others may ask for a percentage of the profits. Be ready to discuss why your vending machine would benefit their location, whether it's by providing a service to their customers or staff or offering them a share of the profits.
• Review Legal and Zoning Requirements: Be sure to understand any legal or zoning requirements for vending machines in your chosen location. Some cities may have restrictions on where machines can be placed, so you'll need to check this out in advance.

Finding the right location takes time, research, and sometimes a bit of trial and error. But with careful planning and consideration, you can find a location that's a great fit for your vending machine business.

How to find a high foot traffic area for a vending machine? 

It can be difficult to find potential high foot traffic areas for your vending machine.  We have a foot traffic report that will allow you to select an address and receive a foot traffic estimate for that specific location.  As an example, I looked up an office building that I used to work at and can see it has roughly 18,000 visitors per month.    

These reports can be incredibly helpful in identifying potential target locations for your first vending machine.  

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the vending machine business has its unique factors that impact financial projections, such as location selection, product assortment, and consumer foot traffic. Utilizing a vending machine financial projection template can simplify the process and boost your confidence. Creating accurate financial projections goes beyond showcasing your vending machine's ability to generate sales; it's about illustrating the financial path to profitability and the realization of your business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your vending machine business, including machine acquisition or leasing, product inventory, installation, permits, and initial marketing efforts.
• Forecast revenue based on projected sales volume, product pricing, average transaction value, and anticipated foot traffic or demand in chosen locations.
• Project costs related to product sourcing, machine maintenance and repair, and restocking expenses.
• Estimate operating expenses like machine rental or location fees, utilities, insurance premiums, marketing, and administrative costs.
• Calculate the capital needed to launch and sustain your vending machine business, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a critical component of your vending machine business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about market trends, consumer preferences, and emerging vending technologies to ensure your financial plan aligns with your goals and positions your business for long-term success.

Below, you will discover the content of our vending machine business plan. For your convenience, you can access and edit this vending machine business plan template in Google Doc format by downloading it from this link. Additionally, we have provided a helpful video walkthrough to guide you in customizing the business plan to suit your unique vending machine concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: FitFuel is a leading provider of convenient and nutritious snack options in Nashville, Tennessee. Our vending machines offer a wide range of healthier alternatives, including granola bars, nuts, dried fruits, and low-sugar beverages, to individuals seeking wholesome and satisfying on-the-go snacks.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish a strong presence in key locations throughout Nashville, securing partnerships with high-traffic areas like office buildings, gyms, schools, and community centers.

    - Example: Long-term: Expand operations to neighboring cities and regions, introducing FitFuel  as a recognized and trusted brand in the healthy snacking industry

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At FitFuel, our mission is to make nutritious snacks easily accessible to individuals in Nashville, empowering them to make healthier choices in their busy lives. We are committed to promoting wellness, providing exceptional customer experiences, and supporting our local community's health and well-being.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example:  Our success hinges on offering a diverse range of high-quality, healthier snacks to accommodate diverse dietary needs, strategically placing vending machines in high-traffic areas for maximum convenience.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: FitFuel was founded by Jo McClain, an entrepreneur passionate about promoting healthy snacking options. Inspired by personal wellness journeys, Jo established FitFuel in Nashville, Tennessee, to offer a range of nutritious snacks to health-conscious individuals seeking convenient and nourishing choices.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: FitFuel operates as a sole proprietorship, with Jo McClain as the owner and responsible for the business's operations and management.

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: FitFuel sets itself apart by providing a diverse selection of high-quality, healthier snack options that cater to various dietary needs and preferences. With an emphasis on granola bars, nuts, dried fruits, and low-sugar beverages, FitFuel offers a convenient and satisfying snacking experience that supports a healthy lifestyle.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: FitFuel caters to busy professionals, fitness enthusiasts, students, and anyone seeking wholesome on-the-go snacking options that align with their dietary goals.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The healthy vending machine industry is experiencing significant growth, driven by the increasing demand for healthier snack options and a growing emphasis on wellness and nutrition. 

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Nourish-N-Go: Known for their wide variety of organic and gluten-free snacks, Nourish-N-Go has established a strong presence in the healthy vending machine market.

        - Example: Indirect competitors: Traditional Vending Machines: While not solely focused on healthy snacks, traditional vending machines still pose a competitive challenge by offering a broader range of convenience snacks.

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: FitFuel's target market comprises health-conscious individuals in Nashville, Tennessee, who prioritize nutritious snacking options. This includes fitness enthusiasts, working professionals, students, and individuals actively seeking healthier alternatives. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: FitFuel has several growth opportunities in the healthy vending machine market, including expanding into high-traffic locations, partnering with local health and wellness initiatives, leveraging technology for personalized recommendations, and establishing strategic alliances with local snack manufacturers and suppliers.

• Example 1: Conduct a survey or order a market research report of potential locations to determine the foot traffic and identify high-traffic areas for placing FitFuel vending machines. (e.g., Location A records 500 people passing by every hour during lunchtime, indicating a prime spot for a vending machine)
• Example 2: Contacting every gym in the area to determine if they have or would be open to having one of our vending machines. Compile that list.
• Example 3:  Analyze the demand for healthier snack options in the target market by surveying employees in office buildings and educational institutions. (e.g., 80% of surveyed employees express a preference for healthier snacks and beverages in vending machines)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: FitFuel offers a diverse range of healthy snack options, including granola bars, nuts, dried fruits, and low-sugar beverages. Our products are carefully selected to cater to various dietary needs and preferences, providing customers with convenient and nutritious on-the-go options

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: FitFuel adopts a competitive pricing strategy that reflects the value and quality of our healthier snack offerings. Our pricing is designed to be affordable and accessible to a wide range of customers, encouraging regular purchases and promoting healthier snacking habits.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build customer relationships.

        - Example: FitFuel's sales strategy focuses on establishing strong partnerships with local businesses, gyms, and wellness initiatives to expand our customer reach. Additionally, we prioritize customer satisfaction by maintaining a well-stocked inventory of fresh and enticing snack options.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: In addition to placing our vending machines in high-traffic areas such as office buildings, gyms, and educational institutions, we also partner with local retailers and wellness centers to make our products easily accessible to a broader audience.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: FitFuel employs a targeted marketing approach that includes social media campaigns, and collaborations with influencers in the health and wellness space. We also implement promotional offers, and strategic partnerships to incentivize customer engagement and attract new clientele to our healthier snack options.

• Example 1:  Partner with local fitness centers, gyms, and wellness events to offer promotional discounts on FitFuel vending machine products, attracting health-conscious customers. (e.g., 200 customers redeem promotional discounts within the first month)
• Example 2:  Create a list of local gyms that have agreed or opted into housing one of our vending machines.
• Example 3: Perform a pilot test at a few gyms by selling or giving away the snacks and drinks at a display using the honor system or manning the booth yourself and take note of gym member feedback on the snacks themselves and if they’d like to have a vending machine on site

5. Operations and Management

5.1. vending machine placement:.

Involves identifying suitable locations and securing contracts for the strategic placement of vending machines 

        - Example: FitFuel will strategically acquire and place vending machines in high-traffic areas such as office buildings, gyms, universities, and shopping centers. We will negotiate agreements with property owners to secure prime locations that offer maximum visibility and convenience for our target customers.

5.2. Inventory Management and Restocking:

  Refers to the systems used to monitor and replenish product inventory

        - Example: FitFuel will utilize an advanced inventory management system that tracks product levels in real-time and generates automated alerts for restocking. We will establish strong partnerships with trusted suppliers to ensure a consistent supply of high-quality, healthier snack options.

5.3. Maintenance and Service:

Highlights inspections, repairs, and cleaning to maintain vending machine functionality

        - Example: FitFuel will prioritize the maintenance and upkeep of our vending machines to ensure uninterrupted service. We will implement a proactive maintenance schedule, conducting regular inspections and cleaning to maintain cleanliness and functionality.

• Example: The FitFuel's founding team, led by Jo McClain comprises nutritionists, health professionals, and business experts who collectively possess extensive knowledge of the vending machine industry, nutrition, and customer preferences. This expertise enables FitFuel to curate and offer the most suitable and appealing healthy snack options for its customers.

5.4. Technology Integration and Data Analysis:

Describe the technology and systems that will be utilized to streamline operations and enhance efficiency.

        - Example:  FitFuel will integrate cutting-edge technology into our vending machines, offering cashless payment options, touch-screen interfaces, and remote monitoring capabilities. This will enhance the customer experience and provide valuable insights into machine performance and product popularity.

All of the unique Vending Machine projections you see here were generated using ProjectionHub’s Vending Machine Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

 Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of FitFuel. We have already raised $75,000 through a personal investment from the owner and we are working with a financial institution to secure a business loan of around $50,000 to $100,000 for working capital and to purchase a truck. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for FitFuel.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  FitFuel projects $500,000+ in revenue in year 3 and break –even during year 2. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: FitFuels expenses include property lease, accounting, advertising, maintenance, utilities, and fuel costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: FitFuel  expects to achieve profitability within the first two years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: FitFuel’s cash flow projections account for seasonal fluctuations in sales and expenses.

  Determines the point at which the company's revenue equals its expenses.

        - Example: FitFuel anticipates reaching its break-even point early in year 2 of operation.

Watch how to create financial projections for your Vending Machine Business

Key Point  4 

• Example 1: Research industry benchmarks for vending machine businesses to estimate projected revenues, expenses, and profit margins. (e.g., The average annual revenue per vending machine in the industry is $10,000, aligning with FitFuel's projected revenue)
• Example 2: Consider factors such as machine maintenance costs, product spoilage, and product demand fluctuations to create a comprehensive financial projection. (e.g., Accounting for a 10% annual maintenance cost and a 5% spoilage rate in the financial projections)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: As the owner and entrepreneur behind FitFuel, Jo McClain has invested a significant amount of personal capital into the business, demonstrating a strong commitment and dedication to its success. By leveraging personal resources and assuming financial risk, Jo showcases a vested interest in the growth and profitability of FitFuel.

How do I start a vending machine business?

To start a vending machine business, identify profitable locations, choose the right vending machine types and products, secure necessary permits and licenses, find reliable suppliers, establish agreements with location owners, monitor inventory and sales, and market your vending business.

What types of products can I sell in vending machines?

Vending machines can sell a variety of products depending on the target market and location. Options can include snacks, beverages (soda, coffee), healthy food options, convenience items, personal care products, electronics, or even specialized products like toys or pet supplies.

How can I find suitable locations for my vending machines?

Finding suitable locations for vending machines involves identifying high-traffic areas such as office buildings, schools, hospitals, shopping centers, and recreational areas. Consider approaching location owners or working with vending machine placement companies to secure locations.

How can I optimize sales and profits in my vending machine business?

To optimize sales and profits, ensure your vending machines are well-stocked and regularly serviced, regularly analyze sales data to understand popular products and adjust inventory accordingly, price products competitively, consider upselling or cross-selling strategies, and provide excellent customer service.

What are the maintenance requirements for vending machines?

Vending machines require regular maintenance, including restocking products, cleaning and sanitizing, performing routine maintenance on the machine's mechanisms, troubleshooting and repairing any malfunctions, and ensuring proper cash handling and accounting procedures.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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• Business plans

Vending Machine Business Plan Template

Used 4,872 times

If you’re starting a new vending machine business, a well-rounded vending machine business plan can improve your chances of success.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

Prepared for:

​ [Repicient.FirstName] [Repicient.LastName]

​ [Repicient.Company] ​

Executive Summary

​ [Sender.Company] is a vending machine business in the [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] area that provides 24/7 convenient access to food, drinks, and travel essentials in strategic locations, including schools, offices, parks, hospitals, transportation terminals, and gas stations.

Our machines currently accept cash credit/debit cards, and we are continually adding new payment technology. The machines have 24/7 security with built-in CCTV. Additionally, customers can press an emergency button to contact the nearest police station in case of robbery, assault, or medical emergencies.

​ [Sender.Company] will primarily serve the (location) area. The business and residential demographics of the area are as follows:

(Add demographic information)

Business Description

​ [Sender.Company] was established by [Sender.FirstName] [Sender.LastName] in (Enter year). Upon incorporation, it was able to achieve the following milestones:

Finalize the first vending machine location

Lease equipment and install it in the first location

Launch second vending machine location

Reach break-even

The contents of each machine can be customized according to the location’s needs. [Sender.Company] also offers in-house repair, maintenance, and upgrade services for each vending machine.

Mission Statement

Through our business activities, [Sender.Company] hopes to achieve the following goals to achieve success with our vending machine business:

(List goal)

​ [Sender.Company] ’s long-term goal is to become the premier vending machine business in (Enter city). We seek to be the standard by which other providers are judged.

Step 1: (List step)

Step 2: (List step)

Step 3: (List step)

The following are a series of steps that lead to our vision of long-term success. [Sender.Company] expects to achieve the following milestones in the following (Enter number) months:

Audience/Market Analysis

​ [Sender.Company] will serve residents, businesses, and schools in the (Enter location) area.

The demographics of the town in which our location resides are as follows:

Based on the industry analysis, we will target the following segments:

(List the market segments your vending machine will target).

Competition

Competition within the vending machine industry is not very extreme. [Sender.Company] ’s top competitors include:

(Enter the name of competitor)

​ [Sender.Company] enjoys several advantages over its competitors. These advantages include:

Excellent service

Relationships

The strengths that will set [Sender.Company] apart from competitors include:

(List strengths)

These milestones underscore [Sender.Company] 's unwavering commitment to consistently making tangible and measurable advancements in its pursuit of success within the (Industry Name).

Here are the products that [Sender.Company] vending machines will offer:

Snacks: Biscuits, bread, chips

Sweets: Candies, chocolates, ice cream

Drinks: Canned juice and soda, small bottled water

Travel essentials: Batteries, flashlights, toothbrush, toothpaste, sanitizer, tissue paper, etc.

Security camera and emergency button: Add-on feature that connects the vending machine to the nearest police station for emergency calls

Marketing Plan

The [Sender.Company] brand will focus on the Company’s unique value proposition:

(Enter your company’s unique value proposition)

Promotions Strategy

​ [Sender.Company] will target businesses, schools, and other public locations to secure locations for its vending machines. [Sender.Company] ’s promotions strategy to reach these businesses includes:

Telephone Marketing

Direct Mail

Social Media

Operations Plan

​ [Sender.Company] headquarters will offer 24-hour maintenance and repair services.

The Company intends to employ (Enter number) admin staff, (Enter number) technicians, and (Enter number) delivery personnel.

To execute [Sender.Company] ’s business model, the Company needs to perform sales, supply, and maintenance of vending machines. [Sender.Company] anticipates using the services of (Enter number) employees, divided into the following roles:

Service Functions

Technicians

Delivery personnel

Customer service representatives

General & administrative functions, including marketing, bookkeeping, etc.

Management Team

​ [Sender.FirstName] [Sender.LastName] is a business consultant who has (Enter number) years of experience in the industry. He/She works for a company that helps businesses grow and attract more investors.

​ [Sender.Company] ’s team will consist of highly skilled technicians. These technicians will be responsible for repairing, maintaining, and upgrading the vending machines.

Financial Plan

Annual income / profit/loss statement, cash flow statement, balance sheet, confidentiality statement.

The confidential information and trade secrets described above shall remain the Company’s exclusive property. They shall not be shared or removed from the Company’s premises under any circumstances whatsoever without the express prior written consent of the coaching business.

Please find listed below any additional addendums related to [Sender.Company] :

(Add any relevant addendums)

​ [Repicient.FirstName] [Repicient.LastName] ​

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Vending Machine Business Plan

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LiveHealthy

Value proposition.

LiveHealthy vending provides healthy, delicious, and affordable alternatives to traditional vending machines. We understand that despite your busy schedule, you aim to remain satisfied between meals by accessing nutrient-rich foods. We are committed to providing you with options that are aligned with your health goals as you manage your hunger and help improve your diet quality. People should not have to trade convenience for quality.  

The Problem 

Consumers complain about the worn-out, outdated, and unhealthy vending machines that dominate spaces begging for more intentionality. These spaces often include workplaces, K-12 schools, universities, and hospitals. People are tired of feeling the shame of convenience and seek to elevate their snack on-the-go options with quality choices.  

The Solution

LiveHealthy looks to support real people with their goals and values of living out their best lives despite their busy schedules. Everyone should have access to snacks that make them feel good. To do that, we do extensive research on the products we provide to ensure they are healthy and delicious at a price point that we can all appreciate.  

Target Market

The primary market for LiveHealthy Vending is health-conscious and focused, yet busy people that aim to satisfy hunger with nutrient-rich options. Common attributes include: 

• A commitment to aligning their active lifestyle with healthy snack options.
• A desire to access nutrient-rich snack foods despite being busy.
• An interest in supporting a healthy diet and weight management. 

The secondary target market is people in the immediate area of the vending machine looking for a quick snack.  

Competitors & Differentiation

Current alternatives.

• Local vending machines in the immediate area 
• Convenient stores, gas stations
• Higher end Grocery Stores (Whole Foods, Market of Choice)

On average, Americans eat about 2.2 snacks per day and get about a quarter of daily calories from snacks. Unfortunately, a large majority snack on junk food which increases their intake of excess fat and simple carbohydrates. 

When you shop at LiveHealthy, you can be confident that you are getting the best possible products for your health. We only sell products that are made with natural and whole ingredients. Our vending machines are located in convenient locations, so you can always find one when you’re on the go. 

We offer a hassle-free way to get your healthy snacks and drinks. Simply select your desired item and pay with your credit/debit card or cash. LiveHealthy prices are competitive, so you can get the healthy snacks and drinks you want without breaking the bank. Lastly, our vending machines are regularly stocked and cleaned, so you can be sure you’re getting the freshest products available.

Funding Needs

The target vending leasing spaces will be at 5th Street Public Market, Oakway Shopping Mall, and the University of Oregon campus. LiveHealthy expects to start with 8 vending machines with an expected cost of $5,500 per machine. The initial inventory cost will be $8,000. Marketing costs at launch amounts to about $2,000. Beginning operational costs of 1 year, including ongoing inventory, employee salary, machine maintenance, etc., amounts to $24,000. 

The total initial funding needed is $78,000. 

Sales Channels

• Retail location

Marketing Activities

• Personal accounts/references
• Blogs/Newspaper

Marketing activities will be minimal for LiveHealthy vending. The main marketing tactic will be personal references and accounts from customers. 

Financial Projections

Ongoing expenses will include employee salary, taxes, advertising, and paying for maintenance. Maintaining consistently flowing inventory and ongoing maintenance will be a significant cost to keep the vending machines running effectively. A minimal but consistent cost will include advertising expenses and website maintenance. Additionally, to have vending machines on a property you typically have to sign a 5-25% revenue-share agreement with the property owner or agree to a set monthly rent. 

Luckily, price fluctuations aside, expenses should decrease over time after the initial equipment investment.

• 2022: $42,000
• 2023: $55,000
• 2024: $68,000

Expenses/Costs:

• 2022: $78,000
• 2023: $38,000
• 2024: $44,000
• 2022: $(36,000)
• 2023: $17,000
• 2024: $24,000
• Find initial vending machine locations — September 1, 2022
• Sign leasing fees for respective properties—  September 10, 2022
• Install machines on properties — September 20, 2022
• Add initial vending machine inventory – September 25, 2022
• Open for business — September 29, 202
• Take professional photos of the vending machines — September 29, 2022
• Create a website and google/yelp accounts —   October 1, 2022
• Make initial employee hire for Inventory upkeep – November 5, 2022
• Google/Yelp review forecast —  December 1, 2022
• Explore possibilities of expanding leasing sites— January 15, 2023
• Add new leasing sites  — March 15, 2023

Team and Key Roles 

Owner/Manager: Establishes the business and is in charge of overseeing the hiring of employees, managing inventory, and long-term business prospects. Maintains a constant flow of inventory, and supervises daily activities of the vending machines. Analyzes new potential locations for expansion. 

Inventory Associate: Assists owner in purchasing snacks and drinks for vending machine inventory and identifying items that will sell. Tracks new inventory and sales volume to make sure that vending machines are properly stocked. 

Partnerships and Resources

The purpose of these partnerships is to generate awareness among the key target audience and increase LiveHealthy’s share of the local vending machine market. LiveHealthy will target local establishments that see heavy traffic. The expansion of inventory and locations will allow for the continued growth of LiveHealthy as a premiere and unique healthy vending machine choice.

• Various locations across the campus (EMU, Rec Center, Dorms)
• In lobbies throughout the Hospital
• Offered as a quick alternative to a traditional meal
• In lobbies at local student apartment complexes

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