How To Start An ATM Business
ATMs are becoming more popular because Americans are needing access to banking more and more. If you choose to start an ATM business, you can hop on and ride this trend not only making a decent amount of cash yourself, but also for the business owners who allow you to place it on their property.
One of the main reasons an ATM business is appealing is because owning them offers financial freedom to an extent if you’re willing to put in the occasional late nights and early mornings.
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ATM Business Overview
ATM business own their ATM’s outright and supply them for people to use in the public. The way they earn their money is through the ATM fees that the customer pays. If we go over to our friends at Forbes.com they tell us that their are 3 parties with their hands in the cookie jar. These are the ATM owner, the property owner, and the ATM processor which handles all the paperwork and keeps the ATM functioning 100%.
All three of these groups share in on the processing fees. The property owner typically makes 50 cents per transaction and the ATM processors have their own fees. With the rest of the ATM fee being anywhere from $1-$8, the ATM owner keeps what’s left.
To run an ATM business successfully, the ATM company must first pick a list of good possible ATM locations. These high traffic areas are typically the sports stadiums, malls, airports, etc. After that, they need to start approaching business owners in the area to see if they are interested. After all that’s settled, and an agreement is reached, all you have to do is keep it full of cash.
Owning an ATM business can be extraordinarily stressful though. Especially in cities where there are high crime rates. ATM machines getting broken into are more common than you’d like to think.
But there is a business opportunity we recommend that is MUCH LESS stressful and MUCH MORE profitable…
ATM Industry Summary
The global ATM industry had a calculated value of nearly $21 billion in 2019. From 2020-27 it is predicted that the industry will see a growth 5% growth.
So why is the industry growing and why might it be the time to start your own ATM business?
The fact that ATM machines are available literally 24/7 is what drives their popularity. On top of that, they almost act as robotic teller machines, allowing to do things like deposits without having to actually go inside the bank. The business structure is increasingly fitting into our ever so busy world.
ATM Industry Trends
There are several different trends affecting the ATM industry. Perhaps the greatest trend is their use among young people. All of these old ATMs are being replaced with newer ones that have features like touchscreens, dynamic branching, contactless transactions, video banking, and pre-staging so that they can appeal to this younger demographic.
These newer ATM machines allow the ability of personalized marketing messages. These messages can be based on the season, and in turn, can increase their profits by selling extra profits to their users.
You’ve heard of smartphones, you’ve heard of smart tv’s, and even smart homes…now get ready for the smart ATM.
These ATM machines offer an even larger range of services. We’re talking multiple currencies, loan payments, and even opening an account!
ATMs like this will directly reduce the cost for banks when it comes to staff and the customers will be given a new level of convenience when it comes to their banking needs. With business ideas like these coming out like this on the regular, banks will have to keep their eyes peeled for the next competitive edge.
All of these improvements and more are making ATMs safer and better for the customer. Wireless router machines and Solar machines will be able to operate where ATMs aren’t currently available. All these coming improvements make this a solid business venture to look more into.
Technological advancements are great, but they’re super expensive, especially in the ATM industry….
The business model we recommend people take a solid look at advances in technology just as fast, but DOESN’T COST nearly the amount of an ATM business to get started in!
ATM Target Market
The target market of an ATM business will be any business locations that have enough foot traffic to make it beneficial for both parties. These will be places like malls, airports, stadiums, farmers markets, convenience stores, and some schools.
Skills, Experience, And Education Useful In Running An ATM Business
Starting an ATM business won’t require you to have a business degree and you don’t have to be Warren Buffet either. You will need some basic skills in the following areas however.
Minor Tech background. If you have some background in technology, this will allow you as the ATM business owner to better understand and sell the benefits of your machine to the business owner.
Basic repair skills. As an ATM owner, it will be a huge help if you have some basic troubleshooting skills. This will help immensely when your machines operating have some issues. Basic maintenance repair skills like these can be an easy problem to solve on your daily ATM route.
Detail oriented. When you are having to deal with boatloads of cash on a regular basis, having some attention to detail is essential. You want to make sure you’re really good at counting.
Familiarity with the ATM location. Trust us, when you’re an ATM owner that knows the area like the back of your hand, you’ll know exactly where the ATM usage would be and where to place your machine.
Security background. It will be a big help if you have at least some experience or training within the security industry. Knowing common best practices will help protect you as the owner or the worker who is servicing the machine.
Negotiation skills. Being able to negotiate is always a great skill to have when approaching a business owner about setting up an ATM machine on their property.
Networking talents. If you want to grow your ATM business quickly, it’s best you become friends with everyone quickly. If you have strong relationship building skills, this will do nothing but help you!
And we know what you’re thinking “sheesh, that sounds like an ATM business means you have to be really good at sales”…yeah we get that.
ATM Financial Overview
When you want to start an ATM business, even a smaller one, you as the owner need to make sure you have enough cash to keep the machines stocked. Startup costs will vary based on how many quality machines you have and how much cash you expect to flow.
Now this is where you’ll get all the numbers:
- ATMs range from $2,000-$8,000 and free standing ones are $2,300-$2,000.
- Used ATMs can be found anywhere from $1,200-$1,800
- Costs to install an ATM machine are between $200-$300
- The Average ATM machine goes through $6,000-$8,000 cash per month
- An ATM owner can expect to fill the ATM with $1,500-$3,000 in cash every week
Common startup costs for an ATM business include:
- ATM machines (new or used)
- Consistent inventory of cash
- Maintenance, repair, cleaning, etc.
- Company vehicle for filling the ATM with cash
Step By Step Guide To Starting An ATM Business
Step 1: Create Your Business Plan
Before you even make any purchases, you need to come up with a business plan. You’ll need to go over all aspects of the business like your target market, competitive advantage, surcharge fee, plan for acquiring capital…literally everything down to the choice of receipt paper you want to use. This is also where you’ll decide whether you’re going to franchise or offer franchise opportunities.
The more detailed you can be, the better, because that will help you out tremendously when applying to the bank for a loan.
Step 2: Define Your Business Entity
After you have your business plan all figured out and know your target market, you’ll need to decide what kind of business entity you want to be. This business structure / legal entity will define how your ATM business is legally organized. There are 4 main types small business owners like you typically choose from:
- Sole Proprietorship
- Limited Liability Corporation (LLC)
Each of the 4 have their own unique pros and cons so its’ worth looking into so you can decide which business structure is right for you.
Step 3: Brand The Business
Coming up with a quality sounding name that people remember can be a tall order. Once you do find the name though, double check to make sure it isn’t already in use!
Step 4: Choose Your Location
The cool thing about owning an ATM business is that you aren’t tied down to a specific location. However, you’ll want to keep them relatively close together so you can stock and service them easily.
You’ll want to make sure you pick locations that get lots of foot traffic like gas stations, malls, and airports to maximize your investment. You’ll also need a phone line, internet, and cellular connection.
So even though you have more freedom with your location compared to a regular business, you’re still kind of tied to where your home is and your maintenance range, ultimately that will cap your income potential…
We like business opportunities that don’t cap your income or limit it by your location.
The business model we recommend offers the ability to make money from any location in the country WITHOUT affiliate marketing, WITHOUT Facebook ads, and WITHOUT an MLM!
Step 5: Register For Business Licenses And Permits
Since you’re in the ATM business and dealing with money on a regular basis, uncle Sam is going to have you get all sorts of permits, licenses, and permits for your businesses.
Here’s a short list for ATM businesses:
- Occupancy Permit
- Sales Tax Permit
- Employee ID Number
Some states have their own specific rules so be sure to double check with a legal professional before collecting profits.
Step 6: Find Funding For Your ATM
As you now know, starting an ATM business can require a lot of money. You’ll need to always have cash on hand and be prepared to pay ATM placement costs.
If you don’t have all the money up front, you might need financing. To get a small business loan, you’ll need to have good credit and be able to make an investment of 15-25% of the total start up cost.
Step 7: Open A Business Bank Account
To keep things organized, you’ll need to open up a separate business account that makes it easier to track income specifically tied to the ATM business.
Step 8: Choose And Fulfill A Marketing Plan
By having a solid marketing strategy in place, you can land locations for your ATM’s easier. Setting up a good website, online ads, email campaigns and in person meetings can be extremely helpful to you landing new locations and expanding your business.
Step 9: Business Insurance
When Starting an ATM business, you’ll need a plethora of insurance. Here are some of the types of policies you need to get.
- General liability insurance: protects the business owners if an ATM customer or vendor is ever injured while using the machine…yep there’s a story behind this one.
- Commercial property insurance: This is the insurance that protects the business in the event there’s a fire or other kind of disaster that damages the ATM.
- Worker’s compensation insurance: This insurance helps cover the fees related to an accident regarding a worker while on the job.
- Commercial auto insurance: This is similar to regular car insurance, protecting your vehicle in case of an accident.
- ATM insurance: This covers the loss of money or damage to the ATM
- Cash and valuables in transit insurance: This helps protect the ATM business owners from the possibility of losing money while it is stored, processed, or transported.
When researching an insurance policy for ATM’s, it is best to get on the phone with somebody because an insurance policy will vary depending on how much money the business keeps disposable for ATMs.
Step 10: Hire Employees If Needed
If you’re looking to increase your profits, you can start hiring out employees so that you can place more ATM’s in a wider geographic range. Although, ATM managers come at a pretty penny…the average ATM manager costs anywhere from $63,000-$110,000 a year.
On top of paying the employees salary, you’ll also need to budget for things like workers comp insurance.
Employee’s can get really expensive though and it might even cut into your profit margins at first…
Step 11: Put An Accounting System In Place
Something that you’ll need to set up in the beginning will be an accounting system. Although you might not think you’ll need it at first, it is something you will need long term
In an ATM business, you’re going to wont to stay on top of taxes as much as possible so that you don’t get in trouble with the government. Having an accounting system will not only help you with that, but with cash flow trends to help you maximize profit as well!
How Much Can You Potentially Make Owning An ATM Business
This will all very based on the amount of ATM’s that you have live in operation, transactions, credit card costs, ATM brokerage fees, and so on.
According to ATM brokerage the average ATM can expect to bring you anywhere from $150-$300 a month.
Not nearly as much as you thought huh? We were sort of surprised too.
What Is Our Top Recommendation For Making Money In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where ATM Businesses falls short is in scalability.
You can’t realistically expect to be able to make any REAL passive income when you’re only bringing in maybe $200 a month AND still having to drive around everywhere to restock cash.
But what if you leverage both time and money?
With this digital real estate program, you can have the ability to completely walk away from NEEDING thousands on hand for your ATM Businesses.
Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Remember ATM Businesses and all the small profit margins?
This one actually allows you to collect that without being limited to just your city. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Unlike The ATM Business, where the “passive” income you make is really just negligible…. You can finally get on the financially free side of life. A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike ATM Business Owners, more people have been able to become financially free as well.
Digital real estate allows you to have passive income with most of your day being spent ENJOYING your cash and NOT restocking it for the masses.
Now, I know you probably have tons of questions… So, check this out to learn more.