Starting an ATM business is the same as embarking on any other entrepreneurial venture. There are some very specific do’s and dont’s that should govern how you proceed with getting that enterprise off the ground.
Where ATM’s are concerned, there are some big mistakes that rookies and veterans alike often make and, in an effort to help you navigate these pitfalls, we present the five most common that you must avoid if you’re going to find success in this industry.
1. Failing to Do Research
This is going to sink your new business venture regardless of whether it’s ATM sales or running a bicycle shop. If you’re not well-apprised of the routines, obstacles, and other basic components necessary for making smart, savvy decisions about running your enterprise before you step into the field, then you’re pretty much destined to fail.
With that said, if you want to sell ATM machines or just own them, you need to know what you’re getting into first. That means asking the important questions like how much do you need to invest, where are the best locations for your ATM, who refills the machines with money when they run out, what kind of contracts are applicable, and of course, how do you make money from this type of endeavor?
The important thing to do is your research and when you can approach the operation of your business from an educated point of view, you’re giving yourself the best possible chance for success.
2. Choosing Bad Locations
Once you’ve done your due diligence into the fundamentals of starting an ATM business, you will start to figure out that certain things can doom the business from the outset. One of those is choosing poor locations for having an active ATM.
Here is where research plays another vital, yet different role in your preparation. You want to find a location that isn’t already saturated with machines in the vicinity. That includes nearby banks and other independent machines that have been established in the area.
But if you choose a location that has no machines in the surrounding regions, you may want to consider why. It could be due to the lack of consistent foot traffic in that locale and that might also hurt your chances of finding success with your machine.
3. Purchasing the Wrong Machine
Starting your ATM business with used equipment can present more hassles than you might be anticipating. The idea of getting a price break on the purchase of your machine may sound very appealing, but you could be taking on a lot more headaches in the form of repairs and parts replacement.
When you buy a new machine you may be paying top dollar but you’re also buying peace of mind as new machines come with warranties and fewer repairs. When your machine is down you’re not making any money and anything you can do to avoid that from happening should be your main priority.
4. Failing to Secure Contracts
If you’re going to enter into business with any other parties, getting contracts that outline all the specifics of your partnership is just smart and sensible. Where ATM machines are concerned, it’s critical to have a contract between you and the individuals who own the location where you are setting up your machine.
This will come in handy down the line should your location want you out for any reason or another ATM business tries to muscle in on that area. You don’t want to be dismissed for a better deal with a competing ATM machine and with a signed contract in hand, you are fully protected.
Signed contracts are also helpful should you want to sell your business later on. If your prospective buyer sees that your machine locations aren’t locked up, that might lower the value of the business and that means less money on a sale. Don’t make this mistake. It’s always worth it to have paperwork securing your interests.
5. Securing Your Machine
Don’t let something like security sink your ATM business before you can even get it up and running. Security is essential when it comes to the handling of cash. You want to ensure that your machines and your clientele are entirely safe and secure. That means placing the machine in a location that is designed to reduce the likelihood of crime.
This is where insurance can play a role, buying a policy that protects the machine and the money inside of it can help cover any losses suffered should thieves target any of your locations.