Machine Archives - BOLLYWOOD SURKHIYAN

Vending Machine Business Record Keeping Basics

Keeping good records of the status of each of your vending machines when you service them is both a critical and very easy practice. Even for those who strongly dislike record keeping and struggle with the practice, the process is not overly taxing. The benefits, after all, far outweigh the small inconvenience that it presents. After all, by keeping records, you will be able to see how you are doing over time so you will know exactly which machines are offering the best performance, how many of what product is being sold, and what profits you can anticipate in the weeks and months to come.

As a business owner, this is information that you need. With even the most basic record keeping, you will have a much more thorough understanding of your business and how it is doing from one machine to the next. This allows you to continue what you are doing right with some machines, and consider the relocation of other machines that just aren’t performing as they should be.

That being said, you will also greatly appreciate your efforts to keep accurate records when tax time comes around. Nothing is more painful than trying to scrounge together exact numbers from records that are either sketchy or non-existent.

The two kinds of records that you will want to consistently maintain within your vending machine business are a basic ledger and a report of all of the locations on your route. The basic ledger is essentially your general bookkeeping. It should document all of the income and expenses totaled from all of the locations on your route. You can do this on paper, but it is much easier and faster if you use a simple bookkeeping program on your computer. If you save all of your receipts and keep a good route report, you will be able to update your ledger quickly and easily each time you complete a service route.

While on your service route, you should keep a record of the status of all of your machines at each location. Each machine should have its own page where you take notes from each servicing. This way, you will be able to flip to the page for any given machine to observe its performance including expenses, income, the placement of products, and the popularity of each of the products.

When your business is still small enough for you to do all of the routes yourself, you will be responsible for all of the record keeping for both the ledger and the route. However, once your business gets large enough that you need to hire someone to run some or all of your routes for you, you will need to make sure that that individual is also keeping the detailed, accurate records that you need to make all the difference in understanding the success of your business.

The same thing goes if you wish to hire a bookkeeper to keep track of all of the income, expenses, and other data collected by the people running your service routes for you. The trick is to make sure that these records never fall behind, that they are always complete, and that they are always accurate.

Do not forget to actually use the information that you have collected. Keeping records is only a practical process when you examine and analyze the data that has been collected. Keep a close eye on the performance of each of your machines so that you always know where attention is needed.

Vending Machine Business Plan – Sample Layout With Section Titles

The preparation of your vending machine business plan will be the most important thing that you do prior to launching your new venture.

A business plan will be a crucial resource that will help guide your business in the right direction. A business plan sets out what has to happen in order for you to reach your goals, outlines how you will do it and sets out alternative plans in case things change further down the line. It forces you to do the research that is necessary in order to find out if there really is a market for the vending machines and locations that you have in mind.

It may be necessary to have a plan written in a formal, professional style if your aim is to use it to convince bankers or investors to support your idea. However, even if you don’t have anything to prove to anyone, your business plan will help to confirm the viability of your ideas in your own mind.

Keep a copy of your plan on your PC as well as in a file or binder in case of emergency. Don’t forget about your business plan once you have opened your doors for business. Refer to it regularly to make sure that you are on track to meet targets. Don’t be afraid to make changes to the plan where necessary.

Every entrepreneur or business consultant will have different ideas about how a business plan should be structured. There are many different templates available online and some sites even have samples relating directly to the vending machine industry. Below we offer an example of a suitable outline with section titles that you might consider including in your own vending machine business plan.

Cover and Contents Page

Start off with a cover page with a heading to let people know what the report is about, who the author is and when it was written. If you will be presenting the report to many different people then you may consider including a personalized cover letter with each copy of the plan. Start out with a table of contents so that readers can easily find their way around the report.

Executive Summary

Summarize the other sections of your business plan. Present some brief information on the opportunities that you see in the market and summarize what it is that you intend to do with your business to capitalize on these opportunities. Try to entice readers into reading the whole report.

Background

Offer the reader some background information on yourself and your reasons for starting a vending machine business. Provide details of any relevant experience or competitive advantages that you have.

You can also include a vending industry background showing national industry data as well as information about the local industry that you plan on entering.

Mission Statement

A mission statement is usually a phrase or a couple of short sentences that summarises what your business is all about, what it does and how well it does it. It is a good way to remember the basic goals or philosophy of your company aside from the profit motive. A good mission statement could mention something about the standard of your machines and products or how you strive to be better than your competitors.

Goals and Objectives

State the goals that you wish to achieve in the short and medium terms. Goals could include placing a certain number a vending machines or reaching a certain income level per machine.

Startup Requirements

Set out a list of startup costs and calculate the total amount of capital that will be needed for the company to get started. Report on some of the funding options that are available to the owners.

In this section of the report you can also mention some of the other things that must happen in order for the business to commence trading legally and professionally. Mention the processes and the fees involved with applying for licenses, permits and other paperwork under the laws of the region where the business will be operating.

Ownership and Management Structure

Note who the founders of the company are and the particular ownership interest that each has in the business. For those who will be active in the management of the business it is important to outline what role they will play and their responsibilities. Will the business be registered as a sole proprietorship, a partnership or a corporation?

Business Operations

This section of a business plan should outline the details of how you plan on running the vending machine business. Include information on where your business will be based, administration, any plans that you have to hire employees and how your business will run on a day to day basis.

Include details on vending machines, maintenance, products, distributors, route planning and how you will record and manage sales data. What systems will you put in place to maximize productivity and efficiency?

Try to come up with solid reasons why you are choosing a certain vending machine, product line or system. Wherever possible include some supporting evidence from research that you have done.

Market Analysis

Using data from your market research you can report on the current state of your target market and identify some of the opportunities. Here you can include demographic data as well as information that you have gathered from surveys and other investigations.

Provide information on the competition in your target area and examine their strengths and weaknesses. Look at ways of delivering products and services via your machines that are distinctly different from what your competitors are offering. Get ideas from them about what is working well and what isn’t. Look for a competitive edge. Don’t forget to also mention indirect competitors such as convenience stores, in-house cafeterias or food vans.

Marketing Plan

Outline a strategy for creating a vending brand that will meet market needs. Based on the market opportunities that you see, set out a strategy for meeting customer needs in terms of locations, vending machines, product lines and pricing.

Provide details on how you plan on getting new machine locations, arranging appointments with ‘decision makers’ and selling your services to them. Your marketing could mostly be done by approaching decision makers directly or you could rely on advertising to generate some enquiries.

Also outline your plan for marketing directly to your customers or end users. These could include ‘point of sale’ promotions on the machine front or how you or your staff will build relationships with customers when you visit the premises where your machines are located.

You should also mention how you plan on maintaining vending accounts and customer satisfaction in the long term. Customer retention is just as important as customer acquisition.

Financial Planning

Use a spreadsheet program to set out forecasts of cash flows in and out of your vending machine business over a hypothetical two year time period. If you have done your research you should be able to anticipate monthly income and expenses going forward. You will thus be able to determine future levels of profitability and a break even point.

Run a variety of different scenarios that consider a conservative growth rate, an expected growth rate and an optimistic growth rate. Things don’t always happen like you expect so it is important that you plan for a variety of outcomes.

Appendix

Lastly, you should attach an appendix to the report that includes any reference letters, documents, vending machine pictures or other supporting material that has been referred to in the contents of the plan. Try to back up all of your assumptions with proof wherever possible.

Vending Machine Business Scams

A bulk or full line vending business is simple to pursue and for that reason, it is said to have a low barrier to entry. Unfortunately this means that the market is crowded. Tons of people with a few spare bucks, get into vending every year. The lower the barrier to get into a field the more competition you will have to compete against. You can still make a go of it in vending, even with so many other competitors, but you’ll need to be better, faster, and more driven than the next guy.

One of the biggest pit falls to avoid at all costs is the vending business opportunities (biz ops) that are prevalent everywhere online. Energy business opportunities seem to be everywhere lately, but candy vending still has it’s own share of other scams. For a good chunk of cash, biz ops make you dreamy promises of profits. They’ll sell you the machines, get them on location and help you along the way. Of course all this is going to cost you about 10 to 20 thousand dollars. Most of these biz ops make hugely unrealistic claims as to the amount of money you will make. Vending is numbers game. With bulk machines, you need many heads in many locations all working at the small gain to make any money. Many people who get involved with biz ops get beaten down by it and leave vending entirely. They sell their vending machines online everyday.

If you have been conned into one of these plans, your choices are limited, you can complain to the Better Business Bureau, file a complaint with the Justice Department, or get a lawyer. That money will more than likely never be seen again. You want to have all the information before you make any decisions. If you’re being told about business profits that seem too high or unbelievable then trust your instincts, they are most likely false.

When starting out in bulk vending or full line vending, have a workable business plan before you quit your job. Don’t let me convince you that the vending machine business isn’t for you, but I want you to have all the relevant information needed. The average vending machine makes an average of $7. Although this is an industry standard, you may or may not make this amount. Everyone doesn’t make the seven bucks. Currently, my heads are averaging $5. Since the profits are so low, you need to have a lot of vending machines to replace your salary.

Please be alert to the possibility of locator problems. A locating service helps you by calling businesses to see if they want a vending machine on their property. This can also be done by someone in person, but phone locating is much more common unless you are doing it yourself. Machine placement services usually charge an average of $45 to get a machine on location. Unplaced machines don’t make you any money and a locator can be a good choice for fast growth. Each locator has different plans, some make income guarantees or time guarantees. Excellent locating people are difficult to obtain but if you do your research they can be found. A locator with a proven reputation is the best way to go, but even with that, I would go slow. Get them to place a couple machines and see how well they do.

The vending machine business is not a get rich quick plan. The vending business is a real business, not an unobtainable goal. But the path to success is difficult and long. A lot of folks that start vending business will fail, but this doesn’t mean vending isn’t a viable business. Too many people are really not up to the challenge of managing their own business. Unless you are independently wealth and not risk adverse I recommend buying a couple cheap vending machines, getting them placed, service them a couple months and see what you think. Vending really is something you can start very slowly and grow over the course of several years while keeping your full time job. As with all businesses, in vending it is best if you have a business plan. And if you follow my advice, this plan will be made with the expertise you have acquired by managing your own vending business.

Sample Vending Machine Business Plan

The preparation of a vending machine business plan is one of the most important first steps for your new venture. A business plan will be crucial in guiding your business in a successful direction. A business plan sets out what has to happen in order for you to reach your goals, outlines how you will do it and sets out alternative plans in the case that things change further down the line.

It may be necessary to have a plan written in a formal, professional style if your aim is to use it to convince bankers or investors to support your idea and you may need to seek help with this. But even if you don’t have anything to prove to anyone your vending business plan will help to confirm the viability of your idea in your own mind.

Keep a copy of your plan on your PC as well as in files or in a binder in case of emergency. Don’t forget about your business plan once you have opened your doors for business. Refer to it regularly to make sure that you are on track to meet targets and don’t be afraid to make changes to where necessary.

Every entrepreneur or business consultant will have different ideas about how a business plan should be structured. Below we offer a sample vending machine business plan which is a basic outline with sections that you may consider including.

Cover and Contents Page

Start of with a cover page with a heading to let people know what the report is about, who the author is and when it was written. This should be followed immediately by a table of contents so that readers can easily find their way around the report.

Executive Summary

Summarize the other sections of your business plan. Present some detailed information on the opportunities that you see in the market and summarize what it is that you intend to do with your business to capitalize on these opportunities. Try to entice readers into reading the whole report.

Background

Offer the reader some background information on yourself and your reasons for starting a vending business. Provide details of any relevant experience or competitive advantages that you have.

You can also include a vending industry background showing national industry data as well as information about the local industry that you plan on entering.

Mission Statement

A mission statement is usually a phrase or a couple of short sentences that summarises what your business is all about, what it does and how well it does it. It is a good way to remember the basic goals or philosophy of your company. A good mission statement could mention something about the standard of your products and service or how you strive to be better than your competitors.

Goals and Objectives

State the goals that you wish to achieve in the short and medium terms. Goals could include placing a certain number a vending machines or reaching a certain income level per machine.

Startup Requirements

Set out a list of vending machine business startup costs and calculate the total amount of capital that will be needed for the company to get started. Report on some of the funding options that are available to the owners.

Ownership and Management Structure

Note who the founders of the company are and note the particular ownership interest that each has in the business. For those who will be active in the management of the business it is important to outline what role they will play and their responsibilities.

Will the business be registered as a sole proprietorship, a partnership or a corporation?

Business Operations

This section of a business plan should outline the details of how you plan on running your vending business. Include information on where your business will be based, administration, any plans that you have to hire employees and how your business will run on a day to day basis.

Include details on your vending machines, maintenance, products, distributors, route planning and how you will record and manage sales data.

Try to come up with solid reasons why are choosing a certain vending machine, product line or system. Wherever possible include some supporting evidence from research that you have done.

Market Analysis

Using data from your market research you can report on the current state of your target market and identify opportunities. Here you can include demographic data as well as information that you have gathered from surveys and other investigations.

Marketing Plan

Outline a strategy for creating a brand that will meet market needs. Based on the market opportunities that you see, set out a strategy for meeting these needs in terms of locations, vending machines, the product lines that you will stock and your pricing.

Provide details on how you plan on getting new locations, arranging appointments with ‘decision makers’ and selling your services to them. Your marketing could mostly be done by approaching decision makers directly or you could rely on advertising to generate some enquiries.

Also outline your plan for marketing directly to your customers or end users. These could include promotions on the machine front or how you or your staff will build relationships with customers when you visit the premises.

You should also mention how you plan on maintaining vending accounts and customer satisfaction in the long term.

Competitive Analysis

Provide information on the competition in your target area and examine their strengths and weaknesses. Look at ways of delivering products and service that are distinctly different from what competitors are offering. Get ideas from them about what is working well and what isn’t. Look for a competitive edge.

Don’t forget to also mention indirect competitors such as convenience stores, in house cafeterias or food vans.

Financial Planning

Use a spreadsheet program to set out forecasts of cash flows in and out of your vending business over a hypothetical two year time period. If you have done your research you should be able to anticipate monthly income and expenses going forward. You will thus be able to determine future levels of profitability and a break even point.

Appendix

Lastly, you should attach an appendix to the report that includes any reference letters, documents, charts, diagrams or supporting material that have been referred to in the contents of your business plan.

There are many sample vending machine business plans and templates available online for free if you look around.

Artificial Intelligence and Machine Learnings Are Changing Our Life

Last month, I was discussing with one of my customers. During the discussion, I found that Cloud and SaaS applications have changed the business landscape and helping Business Owners. Post Cloud ERP solution, my Customer was saving around USD 2000 per month by not having Hardware and it’s maintenance, IT Persons etc.

I was just wondering how Artificial Intelligence (AI) and Machine Learning (ML) could change the life of Business Owners and industry? Today we see them in every stages of our life, but can’t distinguish them separately. They are part of our life.

How AI and ML are disrupting the industry?

AI, in manufacturing industry along with IOT tools, is suggesting CNC Machines on what to produce, when to produce and how much to produce. This has improved the efficiency and usage of machines, manpower etc. The production line has become smooth without many surprises as the Demand and Supply are met by ERP and IOT as this decision information are passed to different touch points that would execute the same. Define a standard patterns and rest is done automatically. Hardware and its preventive maintenance are controlled and maintenance to AI, its Data Centre issues and maintenance are impacted.

AI and ML are changing the way we are buying items, doing Sales, Buying rental or selling houses etc. Even dating applications are helping many to match and find the right partners. AI and ML’s are controlling Amazon’s recommendation of book, Google’s suggesting right information or pushing Ads etc. Jobs market is shrinking. Lot of mundane work is replaced with technical tools.

AI and ML have improved the life of online shoppers with right messages, supporting information on the additional items etc. Now ML is automatically learns the user patterns and suggest what to purchase. These tools have helped many online eCommerce companies to target the products to right cohort of Customers and learn more about their purchase habits, when and where they can purchase etc.

Based on your “social” credit history few companies helps to get you Loans or ensure that you get housing etc (Ant Financials)

AI tools have disrupted Agriculture sector too. The activities that are too data sensitive, difficult to sit and analyse have been simplified now. Now we can measure and monitor crops yields, productivity, soil fertility and lack of nutrition etc. Many Agritech companies are depending on the AI and ML to feed the data back to algorithm and see what happens.

How our personal life is disrupted to make it simple?

Earlier, we use to hail for the taxies by roadside or call Taxi Companies to book a Taxi. Now we use Apps and no more hailing by the roadside. UBER, Ola, GoJek have changed the need to own a car and pay for the maintenance. Money saving is huge considering savings in car maintenance cost, insurance and parking charges etc. This reduced the traffic on the road and getting blocked during peak hours, saving millions of Dollars in fuels.

Google is releasing the Driverless Car economy. AI’s supervised learning helps to check the car movement; it’s surroundings, nearby cars or any other vehicles etc. This is helping to protect the passengers and other surrounding properties. Already UBER is talking about buying these cars for their fleets and also developing its own Driverless Cars.

AirBnB and Oyo have increased the quality of the hotel’s experiences, while prices are pushed down. OYO redefined the End users experience at Hotel by uplifting the standard of rooms and services. Guest is ensured to receive the same treatment across multiple hotels. Now a day customers are NOT checking Hotel name and its credibility etc. Customer is checking whether the hotel is qualified by OYO or not. That assures the quality and minimum standard of services.

Many large companies that don’t own any thing, but they are controlling the majority of our life

1. Uber, Ola – Car services company, that integrated the distributed taxies

2. AirBnB and Oyo – Helped to integrate the smaller hotels and increased customer experiences.

3. Google – Search engine and Ads

4. Amazon Web Services, Microsoft Azure, Google Cloud – Provides the infrastructure to manage and run the applications at the fraction of original cost of buying a server.

So what is happening here?

Many IT Jobs are already suffering. Development tools are reducing the number of Developers required, Selenium like tools are replacing the Manual testing. We have built the tools that reduces the web application testing duration by 80%.

But the side effect of this is, many have lost jobs and income generation opportunities.

How Machine Learning works?

If you see the above business they don’t own any properties, but they control the activities as they use AI and ML that gives the information back to the application. One of the ways ML works is, it need a huge amount of transaction data to analyse and arrive at the patterns and learn from it.

To make the Machine learning’s Algorithm to work it requires a huge amount of data and feedback for it to create its own patterns, test, learn and deploy new ones. Many healthcare start-ups are using the AI and ML to scan the digitized the reports and it feeds the data to AI and its recreating the models to analyse.