business plan for atm machines

ATM Business Plan Template

Written by Dave Lavinsky

ATM Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their ATM companies.

If you’re unfamiliar with creating an ATM business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an ATM business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an ATM Business Plan?

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

Why You Need a Business Plan for an ATM Business

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

Sources of Funding for ATM Businesses

With regards to funding, the main sources of funding for an ATM business are personal savings, credit cards, bank loans, and angel investors. When it comes 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 ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for ATM companies.

Finish Your Business Plan Today!

How to write a business plan for an atm business.

If you want to start an ATM business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your ATM business plan.  

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 kind of ATM business you are running and the status. For example, are you a startup, do you have an ATM business that you would like to grow, or are you operating a chain of ATM businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the ATM industry.
• Discuss the type of ATM business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of ATM business you are operating.

For example, you might specialize in one of the following types of ATM businesses:

• Independent ATM owner/operator: This is the most common type of ATM business in which an individual owns one or multiple ATM machines that can be located in a variety of places such as retail stores, shopping malls, and more.
• Mobile ATM: The owner/operator of this type of ATM business will book their mobile ATMs for events such as festivals or conventions.
• Bitcoin ATM: This type of ATM machine is for cryptocurrency transactions rather than traditional banking transactions.
• ATM installation and maintenance: This type of business provides installation and maintenance services for an ATM owner/operator.

In addition to explaining the type of ATM business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of transactions completed, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the ATM industry.

While this may seem unnecessary, it serves multiple purposes.

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

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason 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 ATM business plan:

• How big is the ATM industry (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 target market for your ATM business? 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 ATM business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of ATM business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

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

Finish Your ATM Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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 ATM businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes online money transfer apps and traditional banking establishments. You need to mention such competition as well.

For each such competitor, provide an overview of their business 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 type of ATM business are they?
• 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. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

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

• Will you make it easier for customers to access your ATM?
• Will you offer products or services that your competition doesn’t?
• 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 ATM business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of ATM company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide mobile ATMs, bitcoin ATMs, or ATM installation services?

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

Place : Place refers to the site of your ATM company. Document where your company is situated and mention how the site will impact your success. For example, is your ATM business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your ATM marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

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 ATM business, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to install your Xth ATM, or when you hope to reach $X in revenue. It could also be when you expect to expand your ATM business to a new city.  

Management Team

To demonstrate your ATM business’ potential to succeed, 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 managing ATM businesses. 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 as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an ATM business.  

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 revenue 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 install 5 ATMs in retail locations around your city, and will you charge a $2.00 fee for each transaction? 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

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your ATM business, this 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 lender writes you a check for $50,000, 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 ensure 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.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a ATM business:

• Cost of the ATMs
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

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 office location lease or a list of locations in which your ATMs will be installed.  

Writing a business plan for your ATM business is a worthwhile endeavor. If you follow the free template above, by the time you are done, you will have an expert ATM business plan; download it to PDF to show banks and investors. You will understand the ATM industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful ATM business.  

ATM Business Plan FAQs

What is the easiest way to complete my atm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your ATM business plan.

How Do You Start an ATM Business?

Starting an ATM business is easy with these 14 steps:

• Choose the Name for Your ATM Business
• Create Your ATM Business Plan
• Choose the Legal Structure for Your ATM Business
• Secure Startup Funding for ATM Business (If Needed)
• Secure a Location for Your Business
• Register Your ATM Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your ATM Business
• Buy or Lease the Right ATM Business Equipment
• Develop Your ATM Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your ATM Business
• Open for Business

Learn more about   how to start your own ATM business .

Don’t you wish there was a faster, easier way to finish your ATM business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .  

Other Helpful Business Plan Articles & Templates

ATM Business Plan Template

Written by Dave Lavinsky

ATM Business Plan

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

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their ATM businesses.

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

Executive Summary

Business overview.

SecureVault ATM Company is a startup ATM machine business located in Santa Cruz, California. The company is founded by Lacie Bryon, a vending machine manager who owns multiple machines throughout the city of Santa Cruz. She has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current locations where her name and reputation precedes her.

SecureVault ATM Company will provide reliable and secure ATM services to customers while creating mutually beneficial relationships with the location providers. There is an increased drive by consumers for cash and SecureVault ATM Company plans to build profit from that increase, particularly as the business grows. All SecureVault ATM machines will be in convenient and easily accessible locations, making it especially easy for consumers to access the ATM machines and return to it whenever needed.

Product Offering

The following are the services that SecureVault ATM Company will provide:

• Convenient and secure ATM cash withdrawals
• ATM cash machine services for tourists and out-of-country visitors
• Bank deposits that will transact within 24 hours
• Secure video panels and safety mechanisms within the machines ensure secure and safe transactions
• Proprietary app “ATM @My Location,” quickly sources and offers driving instructions to the nearest available ATM within the SecureVault ATM machines in the region
• Secure account information printouts with receipts
• Day to day management of ATM locations to maintain clean machines and surrounding areas

Customer Focus

SecureVault ATM Company will target residents of Santa Cruz. They will also target visitors from the U.S. and international visitors within the popular beach city. They will target business owners who are interested in partnerships built via the ATM machine locations. They will target businesses who will want to market services or products via the ATM app.

Management Team

SecureVault ATM Company will be owned and operated by Lacie Byron, a vending machine entrepreneur who owns multiple vending machines throughout the city of Santa Cruz. She has recruited her virtual assistant, Kayleigh Thompson, to join the startup on-site.

Lacie Byron has been a self-employed entrepreneur for over fifteen years. She has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current vending locations where her name and reputation precede her.

Kayleigh Thompson, the former virtual assistant, will join SecureVault ATM Company as an Administrative Assistant on-site. She will oversee all day-to-day administrative tasks. She will also be on-call for ATM emergencies 24/7 each day.

Success Factors

SecureVault ATM Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of SecureVault ATM Company
• Secure ATM machines that accept out-of-country debit and credit cards
• SecureVault ATM Company creates partnerships with area businesses with the intention of building up both businesses and creating mutually beneficial profitability.

Financial Highlights

SecureVault ATM Company is seeking $200,000 in debt financing to launch its SecureVault ATM Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for SecureVault ATM Company.

Company Overview

Who is securevault atm company.

SecureVault ATM Company is a newly established, full-service ATM machine business in Santa Cruz, California. SecureVault ATM Company will be the most reliable, secure and convenient choice for residents, visitors and tourists from out of the country, as well as those from the surrounding communities. SecureVault ATM Company will provide a comprehensive menu of ATM choices and services for any customer to utilize. Their full-service approach includes a comprehensive set of options for cash withdrawals, deposits and other banking transactions.

  SecureVault ATM Company will be able to serve hundreds of customers on a regular basis. The team of professionals in SecureVault ATM Company are highly qualified and experienced and each member of the team is trained to easily serve customers. SecureVault ATM Company removes all the headaches and issues of trying to find an ATM machine, particularly in an unfamiliar city, and ensures all issues are taken care of expeditiously while delivering the best customer service.

SecureVault ATM Company History

SecureVault ATM Company is owned and operated by Lacie Bryon, a vending machine entrepreneur who operates multiple vending machines throughout the city of Santa Cruz. She has been in business for over 15 years and has built excellent relationships with the business owners from whom she rents space and electricity and, as a result, has several offers to place her ATM machines in the current locations where her name and reputation precede her.

Since incorporation, SecureVault ATM Company has achieved the following milestones:

• Registered SecureVault ATM Company, LLC to transact business in the state of California.
• Has a contract in place for a 10,000 square foot office in a midtown building.
• Reached out to numerous contacts to include SecureVault ATM Company in their current and future location plans.
• Began recruiting a staff of three and two office personnel to work at SecureVault ATM Company.

SecureVault ATM Company Services

The following will be the services SecureVault ATM Company will provide:

Industry Analysis

The ATM machine industry is expected to grow during the next five years to over $30 million. The growth will be driven by ATM machines placed in new locations, particularly as new communities form. The growth will also be driven by new industries or sectors that conduct business in rapidly-growing cities. The growth will be driven by entrepreneurs who prefer to own and operate a business without an employer or oversight by others. Costs will likely be reduced as ATM partnerships share the costs on a more equitable level of a 50/50 split. Costs will also be reduced as new technology paves the way for improvements to ATM servicing capabilities.

Customer Analysis

Demographic profile of target market, customer segmentation.

SecureVault ATM Company will primarily target the following customer profiles:

• Residents of Santa Cruz
• U.S. visitors and international tourists
• Potential business partners for ATM placement/services
• Potential business partners who will market their business via the ATM app

Competitive Analysis

Direct and indirect competitors.

SecureVault ATM Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Quick Cash Company

Quick Cash Company provides ATM machine access throughout the Santa Cruz and Highway 1 Corridor. ATM machines are located within strip malls and adjacent to laundry facilities. The ATM machines provide cash in twenty-dollar increments up to a value of $200. The ATM machines do not accept bank deposits, nor do the ATMs accept cash deposits. There are no receipts provided. Quick Cash Company is owned and operated by Gerrie and Sandy Doney, entrepreneurs who have been in the ATM business for over ten years. The ATM machines provided by Quick Cash Company are utilized heavily near the beach amusement park area and are also popular near the southern beach portion of the Santa Cruz city. Quick Cash Company has a singular goal: that of providing cash; all other transactions are omitted from the services provided.

MoneyLink ATM Services

MoneyLink ATM Services is bank-owned and operated as a convenience for the customers of the Redwood Bank. The day-to-day management of the ATM machines owned is contracted out to a security company that refills the ATM machines with cash on a regular basis and maintains the ATM machines as needed. The Redwood Bank provides services for customers of the bank, including conducting transactions if cash or checks are deposited and paying out up to $400 if the withdrawals are from a bank customer.

MoneyLink ATM Services operates 10 ATM machines in various parts of the city of Santa Cruz, with two ATM machines near tourist shops and mini-mall stores in the downtown area of the city. The ATM servicing company maintains the ATM machine by filling them with cash as needed; however there is no cleaning of the areas around the machines, nor cleaning of the machines themselves. There are no services offered at the ATM machines, other than withdrawals and deposits.

Harrison & Company

Harrison & Company is a legal limited liability company formed between four brothers who own and operate ATM and vending machines throughout the Santa Barbara, California area. They recently expanded their business to include Santa Cruz and other beach areas. There are twenty food vending machines in the business and 15 cash vending machines within the company, each serviced and maintained by the siblings in Harrison & Company.

The food vending machines owned by Harrison & Company are located primarily in strip malls and convenience stores, where visitors can access easy and convenient cash. Harrison & Company carefully evaluates each suggested location before placing a vending or ATM machine on any site, due to the increased risk of theft or other invasive tactics by unscrupulous visitors. Harrison & Company maintain the ATM machines and food vending machines on a daily basis and have created strong and lasting partnerships with other businesses in the area in order to secure the prime locations for their machines.

Competitive Advantage

SecureVault ATM Company will be able to offer the following advantages over their competition:

• SecureVault ATM Company creates partnerships with area businesses with the intention of building up both businesses and creating mutually beneficial profitability

Marketing Plan

Brand & value proposition.

SecureVault ATM Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of services and cash products to consumers.
• SecureVault ATM Company offers reasonable partnership value and steady income levels for partners.

Promotions Strategy

The promotions strategy for SecureVault ATM Company is as follows:

Word of Mouth/Referrals

SecureVault ATM Company has built up an extensive list of contacts over the years by providing exceptional service and expertise to her clients. Current partners and potential partners are eager to take part in the relationships of SecureVault ATM Company and help spread the word of SecureVault ATM Company.

Digital Advertising

SecureVault ATM Company will contract with a digital marketing expert to access local and regional marketing campaigns.

Social Media Campaign

SecureVault ATM Company will also contract with a social media manager to announce the launch via a series of call outs across several channels to build up to the launch date. ATM locations and specifics of the services offered will be included in the social media campaign efforts.

Print Advertising

SecureVault ATM Company will secure local newspaper ads to announce the new ATM machines in the targeted communities and regional areas. They will also send a direct mail targeted flyer to all residents within Santa Cruz county.

Website/SEO Marketing

SecureVault ATM Company will fully utilize their website. The website will be well organized, informative, and list all the services and products that SecureVault ATM Company provides. The website will list their contact information and will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “ATM machine that accepts international debit and credit cards” or “ATM machine near me”, SecureVault ATM Company will be listed at the top of the search results.

The pricing of SecureVault ATM Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for SecureVault ATM Company. Operation Functions:

• Lacie Byron will be the Owner and President of the company. She will oversee all staff and manage partners and new partnership relations. She has spent the past year recruiting the following staff:
• Kayleigh Thompson, who will take on the role of Administrative Assistant and manage the office administration and act as the emergency contact.

Milestones:

SecureVault ATM Company will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel employment contracts for the SecureVault ATM Company
• 6/1/202X – Finalize contracts for SecureVault ATM Company partnerships
• 6/15/202X – Begin networking to find potential partners and ATM locations
• 6/22/202X – Begin moving into the SecureVault ATM Company office
• 7/1/202X – SecureVault ATM Company opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for SecureVault ATM Company are the fees they will charge to customers for the usage of their ATM services.

The cost drivers will be the overhead costs required in order to staff SecureVault ATM Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

SecureVault ATM Company is seeking $200,000 in debt financing to launch its ATM machine business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

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 ATM Customers Per Month: 1,600
• Average Revenue per Month: $56,500
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, atm business plan faqs, what is an atm business plan.

An ATM business plan is a plan to start and/or grow your ATM 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 ATM business plan using our ATM Business Plan Template here .

What are the Main Types of ATM Businesses? 

There are a number of different kinds of ATM businesses , some examples include: Independent ATM owner/operator, Mobile ATM, Bitcoin ATM, and ATM installation and maintenance.

How Do You Get Funding for Your ATM Business Plan?

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

What are the Steps To Start an ATM Business?

Starting an ATM 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. Develop An ATM Business Plan - The first step in starting a business is to create a detailed ATM business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your ATM 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 ATM business is in compliance with local laws.

3. Register Your ATM Business - Once you have chosen a legal structure, the next step is to register your ATM 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 ATM 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 ATM Equipment & Supplies - In order to start your ATM 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 ATM 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 successful ATM business:

• How to Start an ATM Business

How to Start an ATM Business (Complete Guide for 2024)

Starting a business may be a significant step to financial freedom. And it might surprise you, but you can actually start your own ATM business and make money off the fees when people withdraw cash. So, here’s how to start an ATM business.

• Invest in a new or used ATM machine or consider leasing one
• Find a high-traffic location where using cash is common
• Hire a cash delivery service to handle reloading the machine
• Ensure enough cash on hand to refill the machine monthly or as needed
• Plan for more minor expenses such as receipt paper, the phone connection for the machine, insurance, and ongoing maintenance

This article offers a complete guide on starting an ATM business in 2022. An ATM business is a cool source of passive income.

We’ll look at the complexities, legalities, and what life is like as an ATM owner. But I’ll also cover whether you need a business license, how much you can make off ATM fees, and what the first step in creating your business model is.

Let us dive in!

Step-by-Step Instructions on Starting an ATM Business

Starting an ATM business can be a great way to make money and provide a valuable service to customers. However, it is important to understand the process and the steps involved in order to ensure success. Here are 14 steps on starting an ATM business:

Step 1: Research the Market

Before you start your ATM business, it is important to research the market and understand the competition. Look into what other businesses are offering in terms of services, fees, and locations. This will help you determine if there is a need for your services in the area and if you can offer something unique that will set you apart from other businesses.

Step 2: Choose Your Location

Choosing the right location for your ATM business is essential for success. Consider factors such as foot traffic, visibility, security, and accessibility when selecting a location. You should also consider any local regulations or zoning laws that may affect your business.

Step 3: Obtain Licenses & Permits

Before you can open your ATM business, you will need to obtain all necessary licenses and permits from local authorities. This may include a business license, sales tax permit, or any other permits required by law in your area.

Step 4: Purchase Equipment

ATM machines are expensive pieces of equipment that require regular maintenance and upkeep. Before purchasing any equipment, make sure to research different models and compare prices from different vendors to get the best deal possible.

Step 5: Find Suppliers & Vendors

You will need to find reliable suppliers and vendors who can provide you with cash for your ATMs as well as other supplies such as paper rolls or receipt tape. Make sure to research different suppliers before making any decisions so that you can get the best prices possible.

Step 6: Set Up Your Business Structure

Before opening your ATM business, it is important to set up a legal structure such as an LLC or corporation so that you can protect yourself from personal liability in case of any legal issues or disputes with customers or vendors. Consult with an attorney or accountant who specializes in setting up businesses so that they can help guide you through this process.

Step 7: Create a Business Plan

A well-written business plan is essential for success when starting an ATM business. Your plan should include information about your target market, pricing structure, marketing strategy, financial projections, and more. This document will serve as a roadmap for running your business and should be updated regularly as needed.

Step 8: Secure Financing

Securing financing is one of the most important steps when starting an ATM business since it will determine how much money you have available for startup costs such as equipment purchases or marketing expenses. Consider applying for loans from banks or investors if needed in order to get enough capital for launching your business successfully.

Step 9: Market Your Business

Once everything is set up and ready to go, it’s time to start marketing your new ATM business! Developing a comprehensive marketing strategy that includes both online and offline tactics will help ensure that potential customers know about your services and where they can find them when they need them most!

Step 10: Train Employees & Install Equipment

Once all of the necessary paperwork has been taken care of and financing has been secured, it’s time to start training employees on how to use the equipment properly so that they can provide excellent customer service when helping customers use their ATMs! Additionally, make sure all equipment is installed correctly according to manufacturer instructions before opening up shop!

Step 11: Open For Business!

After all of these steps have been completed successfully it’s finally time to open up shop! Make sure everything is ready before opening day so that customers have a positive experience when using your ATMs!

Step 12: Monitor Performance & Adjust As Needed

Once everything has been set up properly it’s important to monitor performance regularly in order to ensure everything is running smoothly at all times! Additionally make sure adjustments are made as needed based on customer feedback or changes in market conditions so that you stay ahead of competition!

Step 13: Expand Services & Locations As Needed

As demand increases over time consider expanding services offered by adding additional features such as check cashing or bill payment options at select locations in order increase revenue potential even further! Additionally consider expanding into new locations if there appears enough demand in those areas too!

Step 14: Stay Up To Date On Regulations & Trends In The Industry

Finally make sure stay up-to-date on regulations related specifically related ATMs industry as well as trends within this sector so that you remain competitive at all times! Additionally consider attending conferences related specifically related ATMs industry too so that you stay ahead of competition at all times!

Frequently Asked Questions

How much does it cost to start an atm business.

A new indoor ATM machine is approximately $2,500. Outdoor machines are closer to $10,000. Renting space for the machine can be $100 per month. A phone line for connecting to other banks is $30 a month. Replacing receipt paper is $50 per month, and armored cash delivery can be as much as $500 per month.

And occasionally, you’ll have maintenance costs on the machine, especially if it’s outside.

But there is no exact figure that translates into the cost of starting an ATM business. I would like to believe that anyone who wants to start a business would have a budget they want to work with.

Alternatively, you may want to find out how much it will cost to generate a business plan for the finances or adjust your budget.

A number of factors influence how much money you may need to own an ATM business. Let us look at them.

Cost of ATM Machine

The cost of an ATM varies based on the model, size, and age.

You can get a machine between $2000- $3000 if it’s going INDOORS. In addition, you can choose to purchase a brand new ATM or refurbished machine. Determining the type of machine is a crucial aspect for ATM business owners.

As I said above, automated teller machines at ATM locations that are outside can cost closer to $10,000 since they have to be both weather-proof and more secure from theft.

You may want to invest in a new machine as it usually comes with a warranty. However, if you buy used machines, it may require lots of repairs, reducing the gross profit.

After settling the issue of the ATM, up next is looking for a good location.

Again, it helps if you find small business owners willing to rent out a space to you. In addition, whatever rent you agree to should not be so much that it leaves you with little or no profits.

Alternatively, you can suggest sharing the revenue from the ATM business with the location owner. This way, you are sure to avoid extra losses.

Some places will naturally benefit from having an ATM in their location (cash-only restaurants, for example) and be happy to let you place your machine for free. But others may want a fee of $100/month.

Business Structure

Another factor that affects the cost of starting an ATM business is the business structure.

You can choose between a Limited Liability Company or an incorporated business. Usually, creating a legal document may range from $150- $200.

In addition, you may have to visit the State Attorney General’s office to register the business. The cost of the registration varies depending on the business entity. However, the range is between $10- $700.

Licenses and Permits

Before you start an ATM business, you must follow your state’s licensing requirements.

You must have thought of a business name which you will register with your county clerk. In addition, you may opt for a limited liability company.

This protects you from personal liability. Furthermore, you should get all necessary business licenses and permits by paying all required fees before commencing the business.

Purchasing ATM insurance is not compulsory.

You can decide to get it or not. The cost depends on what plan covers the machine and/or cash. The number of employees and location of the business may also influence it.

But on average, expect it to cost about $500/year to insure an ATM for up to $1,000,000 in general liability coverage.

However, remember to check if an insurance policy already covers the location. If it does, this will determine the type of insurance to purchase.

Most people who start the ATM business are available to run it.

However, if you have the vision to expand to other locations, you may need to hire workers. And either way, you’ll need a system to reload the cash into the machine(s) periodically. Armored car service is the most secure but can run $500/month.

Alternatively, there are other services that can do it for about $50/visit.

So, think about how crime-ridden the neighborhood is where you have the machine, how busy it is, and how often it will need to be refilled.

Ongoing smaller expenses

As I said above, you’ll need to refill receipt paper as needed, which should cost about $50/month.

Then you’ll need a phone line so your ATM equipment can connect to other financial institutions. That is often about $30-40/month.

Thank you to Robinson’s Barbershop of Kenner, LA for choosing @advantageatm_ as it’s ATM partner! Mr. Robinson has been a successful business owner for 20+ years. We’re happy we could help! pic.twitter.com/4UcQikHRoG — cash is king. (@advantageatm_) July 11, 2020

Is owning an ATM profitable?

Yes, owning an ATM is a profitable business.

There is an ATM almost everywhere you go. They may be your only option when you are in dire need of cash but far from your local bank branch.

You may wonder what I mean by ATM business is profitable since they are affiliated with big financial institutions. However, that is not what I am talking about. Instead, I mean those ATMs you find in gas stations or convenience stores without the big names on them.

One of the key motivating factors for venturing into any business is profit. Now, to the burning question at the back of your mind: how do ATM owners get profit?

A specific transaction fee is deducted whenever a person withdraws money from the ATM. As a result, the ATM owners get paid a price of about $3 per transaction. In addition, ATM owners earn from interchange fees of about $0.10- $0.20 for each transaction.

According to Bankrate:

“An ATM operator fee or surcharge fee is charged by ATM owners to non-customers using its ATMs.”

This is another way private ATM owners make money. The average cost of surcharge fee is $3.08. Whenever someone withdraws cash from your ATM, you earn an ATM fee of about $3.

Therefore, your profit will depend on how much cash people withdraw within a period. According to ATM Depot, the average number of transactions on one ATM is 180 within a month. Therefore, you can make an average of $540 every month.

If you have more than one ATM or location is in a region with high foot traffic, then you are sure to make more profits.

Well this is different. Never seen them filling the atm before…now i know what those trucks with money are for XD pic.twitter.com/NG0q9Q35ZS — Andrew (@ajskateman) July 20, 2015

Who fills money in ATMs?

The bank obviously refills ATMs at banks or is owned by them.

However, if you are unfamiliar with the ATMs, you may wonder who actually fills these private ATMs with money since they are not affiliated with any bank.

Suppose you are the outright owner of the ATM business. You can refill the machine without involving a third party. This option may be stressful, but it is the path to maximizing profit from the business.

One problem that ATM owners may face is having enough money to refill the machine. Therefore, ATM owners must have much cash as capital for refilling.

Another issue they may face is security.

ATM business owners need to find the safest time to refill the machine. If something goes wrong, they may lose a huge amount of cash. This is primarily a risk for the free-standing type of ATMs.

Therefore, it is not uncommon for ATM owners to hire a cash management company to take care of refilling the machine with money.

Of course, this method reduces the overall profit.

But you can have your peace of mind intact. Working with a cash management company is a secure way of handling funds. The company will also have insurance which means double coverage if anything happens when filling the machine with money.

In addition, ATM owners may seek partnerships with an ATM processor.

The ATM processor is responsible for filling the machine with money. They help them map out business processes and strategies for filling the machine with cash. Although ATM owners would have to pay for this service, there is better security coverage.

WinSouth Credit Union, a financial institution based in Northeast Alabama, has partnered with ATM USA, an ATM outsourcing company, to deliver three ATMs to its new branches. #WinSouthCreditUnion #ATMUSA #ATMoutsourcing Read more: https://t.co/BWX4QIlU6R pic.twitter.com/2Q96ErcNfK — АО «САГА Технологии» (@SAGA_Tech) September 25, 2021

Are ATMs a dying business?

No, the ATM business is not a dying sector.

Some people would like to argue that the world is going digital. Therefore, there is no future for ATMs.

And 50 years from now, that will likely be true.

However, as long as cash is still in circulation, there will always be a need for ATMs. Cash has been around for thousands of years, and it will not lose relevance overnight. This is because it is the most accessible means of payment.

Many people are adopting the cashless policy.

They prefer to pay for goods and services with their debit or credit cards. The world is going digital fast. Nevertheless, ATMs are evolving to meet the need of people in the digital world.

Digital payments are risky, and that is why cash will persist. It is not easy to keep track of digital transactions. However, there is proof of transaction in your email. It would contain personal information putting you at risk of identity theft.

In addition, digital payment is a contributing factor to the digital divide.

Some people do not have access to the internet required for digital transactions. Others do not have the necessary skills to manage digital finances. Individuals living in rural areas, the unskilled, and the aged are at a disadvantage with digital transactions.

On the other hand, cash is quick.

You don’t have to wait for proof of transaction status or deal with issues of insufficient funds. Furthermore, cash is accessible to everyone irrespective of social class, educational background, or tech skills.

The events of 2020 and beyond have actually increased the usefulness of ATMs.

Banks are restricting the number of individuals who come in to follow the social distancing regulations. ATMs can be fitted with big screens for advert placement. In addition, ATMs in stores may increase foot traffic and boost business.

Found this on an atm/change machine in the casino when I went to change a 20. Someone’s having a rough start to their Vegas weekend! #Vegas #nofunds pic.twitter.com/Skm8QHgDZK — Heath Johnson (@heathjohnson80) February 15, 2020

Where is the best place to put an ATM?

The best locations for ATMs are indoor locations with a lot of foot traffic, restaurants or bars that are cash-only, or locations adjacent to large flea markets or swap meets as long as events happen regularly .

So as you may have guessed, the biggest factor that influences the success of the ATM franchise is location.

Therefore, it is essential to consider a good location because you can only profit when people use your ATMs. Here are some factors to consider before choosing a location.

Areas where cash is preferred : the ATM location should be where cash is the staple for transactions. Some organizations accept only cash, which makes them one of the best places to put an ATM.

High traffic areas : areas with more traffic increase the chances of using the ATM. This is because it is in a visible location that is easy to access. In addition, high traffic areas may make customers feel safer when using the ATM.

Other ATMs in the areas : suppose there are other machines. You may need to do a thorough investigation before placing your ATM there. If the other ATMs are old and in poor condition, you have nothing to worry about. Also, if the foot traffic is incredibly high, there may not be much competition. If otherwise is the case, you should avoid these locations.

The following are the best places for putting your ATM:

• Gas stations 
• Convenience stores
• Parking lots
• Clubs and bars
• Restaurants
• Event centers
• Universities and other institutes of learning

So I would never withdraw money from a free-standing ATM (cash machine), a converting a red phone box into one is admittedly a clever idea pic.twitter.com/ncaPMYHebb — The Travelphile (@TheTravelphile) September 1, 2019

What are the types of ATMs?

There are two types of ATMs: Freestanding and Through-the-wall ATMs.

In urban cities, you can find an ATM on almost every corner, gas store, and phone line. People can use their cards (debit or credit) to withdraw cash from any location. In addition, some ATMs allow for checks and cash deposits.

Let us take a look at the difference between the two.

Free Standing ATMs

Free-standing ATMs are the most popular ATMs owned by ATM operators. They are unattached to a wall or a building.

Instead, they are held by the ground. Free-standing ATMs are often provided to increase customers’ convenience, especially for organizations that accept only cash. For example, they are popular at movie theaters, grocery stores, and restaurants.

However, these machines do not receive deposits from customers for safety reasons. The benefit of free-standing ATMs is that they can be placed in any good location provided there is enough space and a constant power supply.

Through-the-wall ATMs

Through-the-wall ATMs are attached to the wall of a building or business.

This type of ATM offers more security features than its counterpart. Only the machine’s exterior, where customers can do their transactions, is on the outside.

The filling the ATM with money and other things take place behind the wall, out of prying eyes. However, through-the-wall ATMs require much space. This is because it requires constructing a room(s) based on the number of machines.

So, if you are opting for this type of ATM, do not forget to include construction costs in your budget plan. In addition, you may need to discuss the price of the area with the property owner.

Special thanks to our awesome business partner Citizen State Bank for our new ATM machine. This will better serve our students, staff and patrons. They are a great partner. ⁦ @AndrewRikli ⁩ ⁦ @PLCSchools ⁩ pic.twitter.com/vkYTu76jhV — Jeff Johnson (@papiojeff) April 22, 2019

What is a good name for an ATM business?

Finding a good name for an ATM business is a crucial decision of a sole proprietorship. The name is a representation of the business. Let us examine the steps in choosing a good name for an ATM business.

The first thing that influences a choice of name is the goals and vision you have for the business. You need to ask yourself fundamental questions like: “what is the target market? what emotions do you want to evoke in them?”

A clear answer to these questions helps to improve your understanding of the best ways to appeal to your potential customers.

Next is the fun part, which is brainstorming.

I would advise you to use paper and pen/pencil. Imagine what adjective you would like to be associated with your business. Allow the creative juice to flow and keep writing them down as they come.

Here are some brainstorming techniques:

• You can work with the ATM business location
• You can use words that evoke some emotions like secure cash ATM, Happy ATM, etc
• You can use word puns or combine words in a fun way like Money Mill ATM, Great Citizens ATM, etc
• There is the option of keeping it short and simple, like Safe ATM
• In addition, you can use a name that represents something for you, like your favorite celebrity, your family name, etc.

Furthermore, you can try a business name generator.

The software will ask some questions that it will utilize in generating the ideal name for your business. It is okay if you do not like the name. It can be the spark you need to get name ideas flowing.

Finally, register the business name.

Before going to the appropriate office to register, it would help to find out whether the business name you chose is available. It should not come to you as a surprise if someone has already used your desired name to register their business.

What are the worst mistake to avoid when starting an ATM business?

Starting an ATM business can be a great way to make money, but there are some mistakes that can be costly. Knowing what these mistakes are and how to avoid them is essential for success.

Not Doing Your Research

One of the worst mistakes you can make when starting an ATM business is not doing your research.

You need to understand the industry, the regulations, and the competition in order to be successful. You should also research the different types of ATMs available and decide which one is best for your business. Additionally, you should research potential locations for your ATM and determine if they will be profitable.

Not Having a Business Plan

Another mistake to avoid when starting an ATM business is not having a business plan.

A business plan will help you stay organized and focused on your goals. It should include information about your target market, pricing structure, marketing strategy, and financial projections. Having a well-thought-out plan will help ensure that you are making informed decisions throughout the process of starting your business.

Not Understanding Regulations

It is also important to understand all of the regulations that apply to ATMs in your area before starting an ATM business.

Different states have different laws regarding ATMs, so it is important to familiarize yourself with these laws before getting started. Additionally, you should make sure that you are compliant with any federal regulations related to ATMs as well as any local ordinances or zoning requirements that may apply in your area.

Not Having Enough Capital

Having enough capital is essential when starting an ATM business.

You need enough money to cover start-up costs such as purchasing or leasing an ATM machine, obtaining necessary permits and licenses, and marketing expenses.

Additionally, you need enough money to cover operational costs such as maintenance fees and cash replenishment fees until your business starts generating revenue from transactions fees charged by customers using the machine.

Not Having Proper Insurance

Finally, it is important to have proper insurance when starting an ATM business in order to protect yourself from potential liabilities or losses due to theft or vandalism of the machine or other unforeseen circumstances.

Make sure that you have adequate coverage for both property damage and liability so that you are protected in case something goes wrong with your machine or someone gets injured while using it.

The ATM business is profitable.

And it can be the key to financial freedom for you. But it’s not always easy to start an ATM business, and there are some significant start-up costs to think about.

You can also read a recent article on my website about the keys to financial freedom.

There are essential factors you must consider to get the best from an ATM business. It helps if you choose a good and catchy name for the ATM business.

Also, get it registered and licensed to avoid any trouble with the law.

Before you venture into the ATM business, take time to study the location and the type of ATM best suited for it. In addition, make concrete arrangements concerning how the machine will be refilled with cash when necessary.

I hope this article has been useful in guiding potential ATM owners. Make the right decision today!

Image by Peggy und Marco Lachmann-Anke from Pixabay

Jeff Campbell

Jeff Campbell is a budget-master, father, full-time blogger, Disney-addict, musician, and Dave Ramsey fan. Click Here to learn more about me. Click Here to learn more about my site. Editorial Policies.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name and email in this browser for the next time I comment.

Top Related Posts

53 Clever Ways to Earn Extra Money on the Side in 2024

In my house, it seems like we are always a little short on cash. So I looked into the best ways to earn extra money on the side. Some of the best ways to earn extra cash include: Starting a...

How Do Beginner Bloggers Make Money? (2024 Complete Guide)

Blogging is one of those things we hear about as a side hustle or full-time income that seems too good to be true. So how do beginner bloggers make money? Initially, most beginner bloggers make...

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

• TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

See how it works  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

• BY USE CASE

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

Secure Funding, Loans, Grants Create plans that get you funded

Business Consultant & Advisors Plan seamlessly with your team members and clients

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans
• WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

• Sample Business Plans

Atm Business Plan

Additional revenue potential, a simple business model, and several tax benefits make starting an ATM business an excellent choice for emerging entrepreneurs. However, entering the marketplace without proper planning can expose your business to risk.

Need help writing a business plan for your ATM business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared an ATM business plan template to help you start writing yours.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an ATM business plan?

Writing an ATM business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, marketing strategy:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

Depending on your business details, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name and type of your ATM business: mention details about your ATM business type and the services it will offer to consumers. For instance, here are a few popular ATM business types: 1. Retail ATM Business: This type of ATM business involves placing ATM machines in retail locations such as gas stations, convenience stores, and other busy areas. 2. Mobile ATM Business: This business model involves transporting ATM machines to mobile locations such as fairs, festivals, etc. 3. Bitcoin ATM Business: It is a type of kiosk allowing users to buy or sell bitcoins using cash or debit cards.
• Company structure of your spa business whether it is LLC, partnership firm, or some other.
• Location of your ATM business and why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your ATM business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your ATM business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use various sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

An ATM business plan’s product and services section should describe the specific services and products offered to customers. To write this section should include the following:

ATM Machines:

Atm services:, fees & charges:, value-added services:, emphasize security:.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, your business plan’s sales and marketing strategies section should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s essential to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your ATM business.

7. Management Team

The management team section overviews the individuals responsible for running the ATM business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Founder/CEO:

Key managers:, organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the ATM industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your ATM business should only include relevant and essential information supporting your plan’s main content.

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

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

This ATM business plan sample will provide an idea for writing a successful ATM plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready ATM business plan to impress your audience, download our ATM business plan pdf .

Related Posts

Bookkeeping Business Plan

Internet Service Provider Business Plan

Business Plan Writing Process Guide

Best AI Business Plan Creators

Design Cover Page of Business Plan

How to Choose a Business Location

Frequently asked questions, why do you need an atm business plan.

A business plan is an essential tool for anyone looking to start or run a successful ATM company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your ATM business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your ATM business.

How to get funding for your ATM business?

There are several ways to get funding for your ATM business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors, venture capital.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your ATM business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your ATM business plan and outline your vision as you have in your mind.

What is the easiest way to write your ATM 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 ATM 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.

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

How To Write a Winning ATM Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for ATM businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every ATM business owner should include in their business plan.

Download the Ultimate ATM Business Plan Template

What is an atm business plan.

An ATM business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an ATM Business Plan?

An ATM business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective ATM Business Plan

The following are the key components of a successful ATM business plan:

Executive Summary

The executive summary of an ATM business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your ATM company.
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your ATM business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your ATM firm, mention this.

You will also include information about your chosen ATM business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an ATM business plan. Conduct thorough market research to determine industry trends and document the size of your market.

Questions to answer include:

• What part of the ATM industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now and, if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.  

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, an ATM business’ customers may include banks, retailers, or other businesses.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those who might be influenced to buy your products or ATM services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your ATM business via a combination of these marketing channels.

Operations Plan

This part of your ATM business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an ATM business include reaching $X in sales. Other examples include adding new products/services, launching a new marketing campaign, or expanding to a new target market.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific ATM industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup ATM Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup ATM Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup ATM business.

Sample Cash Flow Statement for a Startup ATM Business

You will also want to include an appendix section which will include:

• Your complete financial projections.
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.).
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your ATM company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know what to include in your ATM business plan, it’s time to get started. Our free ATM business plan template helps you organize your thoughts and ensure that you haven’t left anything out.

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Finish your business plan today!

Other Helpful Articles

Developing Your ATM Business Contract Plus Template

• Business Ideas
• Registered Agents

How to Start an ATM Business in 14 Steps (In-Depth Guide)

Updated:   January 18, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The ATM industry is expanding at a rapid rate across the world. As of 2020, the market hit $20.18 billion and is projected to grow at a compound annual growth rate (CAGR) of 4.9% from 2021 to 2028.

For savvy entrepreneurs interested in pursuing this sizable market opportunity, understanding the key steps involved in building a successful ATM business is critical. What does it take to get started? What are the most important factors in running a profitable ATM operation?

This guide will walk you through how to start an ATM business. Topics include opening a business bank account, registering an EIN, marketing your brand, sourcing ATMs, and more. Here’s everything you need to know to start your own ATM business.

1. Conduct ATM Market Research

Market research is essential to starting a ATM machine business. It offers insight into your target market, local market saturation, trends in products and services, and more. There are two types of market research, primary and secondary, both are important for beginning a brand.

Some details you’ll learn through market research include:

• This upward trajectory is expected to continue.
• One forecast projects the global ATM market will reach $25 billion by 2026, up from $18 billion in 2021.
• Driving this growth is rising demand in developing regions like Asia Pacific and Latin America as personal incomes increase and more people want to withdraw cash.
• In the US specifically, market saturation remains low compared to other countries.
• There are only around 9 ATMs per 10,000 adults in the US, versus over 12 per 10,000 adults in Canada. This gap indicates there is room for more ATM expansion domestically.
• Profitability prospects for ATM operators are also favorable.
• Transaction fees from banks and surcharges collected from customers can produce strong cash flows.
• Well-located machines in high-traffic areas like gas stations, convenience stores, and entertainment venues can generate over $1,000 per month in gross revenue.
• After costs, operators can realistically target $200-500 in net monthly profits per ATM. For an operator with 20 well-situated machines, this translates to $4,000-$10,000 in monthly recurring cash flow.
• The upfront investment to acquire and install an ATM is around $2,500-$3,500 on average. With strong cash-on-cash returns, payback periods of 6-12 months are achievable.

Overall, market conditions point to a sizable and lucrative opportunity in the ATM industry right now. With steady growth on the horizon and attractive profit potentials from individual machines, the market offers a stable source of cash flow for operators who target strategic, high-traffic locations and provide reliable customer service.

Keep in mind that starting a Bitcoin ATM (or any other cryptocurrency ATM) business may require more initial financing and can be more difficult to achieve.

2. Analyze the Competition

Understanding the competitive landscape is key for any new business, and ATM operators are no exception. Competitive analysis tells you how to market your business, where customers are more likely to use ATMs, and what your target market is looking for in an ATM provider.

There are a few angles aspiring operators should analyze to size up competing ATM businesses:

• First, look at the number of ATMs already installed in your target geographic area. Tools like VISA’s Global ATM Finder allow you to search for ATMs by city and zip code.
• High concentrations of existing machines in an area make it more challenging to find vacant high-traffic sites in retail stores and other locations.
• National chains like Cardtronics and large independent players often have ATM fleets numbering in the hundreds or thousands.
• Analyze the monthly transaction volumes of competitors’ machines at locations you are considering. Higher volumes signal you may struggle to attract customers.
• Evaluating fees is also important. Check competitor surcharge amounts and if they adjust pricing during peak hours. You may find opportunities to undercut higher fees.
• Search online reviews of major operators. Poor feedback for lack of service and maintenance may present a competitive opening if you deliver better customer service.

Doing this competitive homework will help identify potential business gaps you can fill and sites where inserting a machine could be profitable. Performing ongoing competitive research as you scale your operation is key to staying strategic.

3. Costs to Start an ATM Business

When launching an ATM operation, the upfront costs consist of acquiring the machines, preparing sites, and handling initial licensing and compliance needs. There are also ongoing business expenses to consider.

Start-up Costs

• ATM Purchase – The biggest start-up cost is purchasing the ATM units themselves. New machines typically run $2,000 – $3,500 per unit depending on features. Opting for used/refurbished ATMs can reduce this upfront equipment investment to around $1,500 – $2,500 per machine.
• Site Preparation – When placing ATMs in retail locations, any construction or electrical work required to prepare the site will add startup costs. Budget around $500 – $1,000 per location for minor renovations or wiring work needed.
• Installation – Professional installation of the ATMs by a technician averages $300 – $600 per machine depending on location specifics.
• Cash Load – Each ATM will need an initial cash load in the cash cassette to service customer withdrawals. This can be $3,000 or more per unit depending on machine capacity and anticipated transaction volumes.
• Licensing – Certain states require specific ATM operation licenses that cost around $200 per year. Research regulations in your target markets.
• Insurance – General liability insurance for an ATM business runs $600 – $1,000 per year typically. Worker’s compensation is also required if hiring employees.
• With these factors, total startup costs for a small 1-2 machine operation may range from $10,000 – $20,000. For larger operators placing 5-10+ units, expect initial investments between $30,000 – $60,000.

Ongoing Costs

• Transaction Fees – Processing networks charge fees per withdrawal, usually $0.25 – $0.50 per transaction. With higher transaction volumes, these fees add up.
• Cash Management – ATMs need routine cash reloads, which cost around $150 per service visit. Budget around $5,000 – $10,000 annually for cash management across a fleet.
• Maintenance – Annual maintenance contracts for servicing, cleaning, and inspecting machines run $200 – $300 per ATM
• Wireless Connectivity – For ATMs with cellular data connections, wireless modem plans are around $30 per month per unit.
• Location Rent – Rental fees to the host business for placing an ATM on their site average $100 – $300 monthly per location.

By planning for both the initial investment needed to start ATM operations as well as ongoing costs, new entrants can properly size their opportunity and budget. Partnering with an established operator via a profit-sharing or revenue-share arrangement can also help reduce startup capital needs.

4. Form a Legal Business Entity

When starting an ATM business, choosing the right legal structure is key to limiting liability and supporting growth over time. Here is a breakdown of options entrepreneurs have and considerations for each:

Sole Proprietorship

A sole proprietorship is the simplest and most common entity for small businesses with one owner. There is no formal registration needed beyond standard business licenses. However, the owner has unlimited personal liability for debts and legal claims, which is risky in the ATM industry where security and cash handling exposures exist.

Partnership

Forming a general partnership splits ownership between two or more people. This improves capital resources and allows dividing labor, but still imposes unlimited liability on all partners. Partnerships also dissolve if a partner exits, disrupting operations.

Corporation

Establishing a corporation creates a separate legal entity from the owner and shareholders. This shields personal assets and eases taking on investment. However statutory regulations impose heavy recordkeeping and formalities. Double taxation of profits can also be financially inefficient for smaller ATM operators.

Limited Liability Company (LLC)

Forming a limited liability company (LLC) combines the flexibility of a partnership with the liability protections of a corporation. LLCs limit legal and financial risks to the business itself. They can be owned by one or multiple partners and allow passing profits directly to personal returns. LLCs also have fewer reporting rules than corporations.

5. Register Your Business For Taxes

One key tax-related task when starting an ATM operation is obtaining an Employer Identification Number (EIN) from the IRS. This unique identifier number is essentially the business’s equivalent of a social security number.

All business entities except sole proprietorships need an EIN for federal tax purposes. Having one simplifies filing business returns, opens access to benefits like health insurance deductions, and legitimizes the operation.

Applying for an EIN is free and can be done entirely online via the IRS website . Simply navigate to the EIN Assistant page and respond to a series of basic questions about the business structure and activities.

In the end, an EIN will be provided immediately that can be used to open business bank accounts, apply for licenses, and file taxes. The whole process only takes about 15 minutes.

In addition to the federal EIN, proper state-level tax compliance steps are needed. Most states require registering for sales tax collection and reporting if selling taxable goods.

Since ATM surcharge fees are considered taxable in most states, obtaining a sales tax permit is recommended. This can be acquired by submitting a business license application with the state revenue or taxation department (deadlines and costs vary by state).

6. Setup Your Accounting

Robust accounting practices are essential for any successful ATM operation. With frequent cash transactions and inventory management needs, having disciplined financial tracking and controls in place is a must.

Accounting Software

Using dedicated QuickBooks accounting software provides an easy way to log all revenue and expenses, generate financial statements, and automate tax filings. QuickBooks seamlessly syncs transaction data by connecting to the business bank accounts and credit cards. This eliminates manual data entry and ensures records are comprehensive and accurate.

Hire an Accountant

Partnering with an accountant or bookkeeper is also advisable. They can handle tasks like monthly reconciliations, produce financial reports, and ensure compliance with all IRS rules and tax obligations specific to the ATM industry. Expect to invest around $200 – $500 per month for basic bookkeeping assistance.

Open a Business Bank Account

Keeping personal and business finances strictly separate is also key. All revenue generated from ATM transactions, surcharges, and cash loading fees should flow into dedicated business accounts. Having distinct accounts avoids co-mingling funds and simplifies reporting.

Apply for a Business Credit Card

Obtaining a dedicated business credit card is recommended to keep purchasing and payments separate as well. Business cards don’t rely solely on personal credit scores, making it easier to qualify and obtain higher limits. Expect credit lines around $5,000 – $10,000 to start.

7. Obtain Licenses and Permits

Before installing and operating any ATMs, entrepreneurs must research and acquire all required federal, state, and local licenses and permits. Find federal business requirements through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

At the federal level, ATM operators must register with the Financial Crimes Enforcement Network (FinCEN) as a money services business. This helps ensure regulatory compliance with anti-money laundering laws. Registration can be completed easily online by creating a user account and submitting basic business information. There is no cost.

States may also require specific ATM licenses, particularly those with greater regulation of the industry like Florida, Louisiana, and Texas. These state ATM licenses allow for legal placement and operation within that jurisdiction and typically cost around $200 annually.

Most cities and counties additionally mandate standard business licenses for all commercial entities, including ATM operators. These help verify the legitimacy of the business and ensure awareness of local rules. Business license fees are generally around $50 – $100 per year.

Zoning permits may be needed to install ATMs in certain designated areas or if any construction modifications are required at a host location. Approval should be obtained before commencing work to avoid violations. Fees range from $150 – $500 depending on the jurisdiction.

Finally, some states mandate ATM operators to register as security guards since they handle cash. These registrations ensure operators have gone through proper vetting and background checks. Costs are typically under $100 annually for security guard cards.

Doing due diligence to get properly licensed at all levels will help ATM entrepreneurs remain compliant. Regularly consulting with qualified legal counsel can also help navigate evolving regulations in this industry.

8. Get Business Insurance

Given the cash handling and security risks in the ATM industry, having adequate business insurance coverage is strongly advised. Being underinsured can put the entire operation in jeopardy if claims or losses occur.

Not carrying general liability insurance means the business is fully responsible for legal expenses if customers are injured at an ATM site and decide to sue. Even frivolous suits can bankrupt unprotected businesses through legal fees alone.

If an ATM is damaged or cash is stolen in a break-in, not having property or crime coverage means bearing the full replacement and monetary losses personally. Just one major incident could make it impossible to continue operating.

Not having worker’s compensation insurance while employing staff exposes the business to cover all costs if an employee gets injured on the job. This creates major financial liabilities. And the same is true for banks and other business in this industry – it’s very volatile and just one misstep is problematic.

To get insured, entrepreneurs should first determine the specific policies and coverage amounts needed through a licensed broker or advisor. Useful resources to connect with qualified agents include TrustedChoice.com and NextInsurance.com .

The agent will help evaluate risks, recommend optimal coverage plans, and solicit quotes from reputable providers. Expect to budget around $1,000 – $2,000 annually for comprehensive liability, property damage, and other protection policies recommended for ATM operators.

Being properly insured gives ATM business owners invaluable peace of mind. Having the right policies in place keeps the focus on growing operations, not worrying about incurring catastrophic costs in potential worst-case legal or property damage scenarios down the road.

9. Create an Office Space

Having a dedicated office space can provide ATM operators with key infrastructure to run and grow their business. Here are some potential options entrepreneurs can consider:

Home Office

A home office offers a convenient and affordable choice for very early-stage operators. Administrative tasks like bookkeeping and customer service can be handled from home to minimize costs when just starting. Expect to invest around $500 – $2,000 to set up a comfortable and functional home workspace.

Coworking Office

As the business scales, a coworking space like WeWork provides a step up in professionalism and resources. Coworking spaces offer turnkey offices to rent monthly, with reception services, meeting rooms, WiFi, and other amenities. Average costs range from $300 – $800 per month depending on the location and office size needed.

Retail Office

For more established operators with several employees, leasing a small private office may be better suited long term. This provides dedicated space only for your team and customers, with more flexibility to customize. Average monthly rents start around $1,000 – $2,000 for 1-3 room offices.

Commercial Office

Operators with large ATM fleets may benefit from more warehouse-style space for staging, storage, and preventative maintenance work. Small industrial spaces of 2,000 – 5,000 square feet can be leased for $3,000 – $5,000 monthly.

10. Source Your Equipment

The core equipment needed for an ATM operation is the machines themselves. New entrepreneurs have several options to acquire this critical hardware:

Major ATM manufacturers like Triton sell machines directly ranging from $2,000 – $4,000 per unit. New units come with full warranties and the latest features.

Buying Used

Purchasing refurbished or second-hand units can reduce upfront costs substantially. Used ATMs with some wear but good working order run $1,000 – $3,000. Vet quality carefully before purchasing.

Some ATM providers offer short-term rental programs for special events or to test potential sites. Typical rental rates are $100 – $200 monthly per machine. This avoids large capital outlays upfront.

Leasing through an ATM sales company allows the use of new machines without purchasing. However, monthly costs of $150 – $200 per unit are higher long-term than buying.

11. Establish Your Brand Assets

Developing a strong brand is crucial for ATM companies to stand out and be remembered. This starts with securing foundational brand elements like:

Getting a Business Phone Number

Establishing a professional business phone line conveys legitimacy and organization to customers. Services like RingCentral provide toll-free numbers, call routing, voicemail, and other features essential for managing calls professionally.

Creating a Logo and Brand Assets

A polished logo helps new ATM brands craft an identity and recognition. Services like Looka make it easy to develop a custom logo, color palette, typeface, and supporting visual assets. A contemporary, tech-focused logo can align well with the ATM industry.

Having visually consistent designs across all touchpoints, from machine decals to websites to promo items, will strengthen brand recall.

Creating Business Cards and Signage

Business cards enable networking and serve as walking advertisements. Providers like Vistaprint offer quick and affordable card printing. Having cards on hand is useful for introducing the business at trade conventions or sales meetings.

External signage at high-visibility ATM locations also builds awareness. Vistaprint signs convey professionalism to customers engaging with the machines.

Purchasing a Domain Name

Securing a short, memorable domain creates a digital identity. The “.com” version of the brand name should be purchased from registrars like Namecheap . Take time to brainstorm unique, brand-relevant domain options during registration.

Building a Website

ATM operators need an informational website detailing their services, machines, and contact options. Users expect sites to be mobile-friendly and easy to navigate.

Operators can build basic sites themselves with drag-and-drop tools like Wix to control costs. For more advanced websites, hiring freelance web developers on Fiverr is affordable.

12. Join Associations and Groups

Joining relevant local organizations and online communities can provide invaluable connections and growth opportunities for new ATM entrepreneurs.

Local Associations

Industry associations like the ATM Industry Association offer networking, training, and advocacy. Memberships start at around $275 per year. Attending association trade shows to connect with other operators is highly beneficial.

Local Meetups

Services like Meetup help locate various local small business meetups to mingle with other entrepreneurs and learn from their experiences. Look for relevant finance or business networking-oriented groups within a reasonable driving distance.

Facebook Groups

Facebook communities enable crowdsourcing advice from thousands of fellow operators globally. The ATM Business for Beginners has over 70,000 engaged members each.

Participating in these online discussions helps navigate the industry learning curve faster by accessing others’ knowledge.

13. How to Market an ATM Business

Implementing marketing initiatives is essential for ATM companies to attract customers and build their brand. Some proven strategies include:

Personal Networking

Leveraging one’s network and cultivating referrals from happy existing customers can provide free and valuable word-of-mouth promotion. Offering rewards or discounts for referrals is one way to incentivize this. For example, giving a $10 credit for every new customer referred creates goodwill and expands reach faster.

Digital Marketing Ideas

• Search engine optimization to improve visibility for online searches like “ATM near me” or “ATM cash withdrawal”
• Google Ads geo-targeted to the service area to attract customers looking for convenient ATM access
• Facebook ads to rapidly test different marketing messages and target demographics
• Email marketing focused on retention and loyalty rather than acquisition
• Content marketing through blogging about ATM technology and business operations
• Live demonstrations on YouTube or TikTok to showcase the machines in action

Traditional Marketing Ideas

• Flyers distributed to local businesses, libraries, and events to provide awareness
• Sponsoring local events, fairs, and festivals with booth presence and signage
• Vehicle wraps or billboards placed in high-traffic areas around town
• Direct mail postcards to neighborhoods announcing new machines and locations
• Newspaper ads touting benefits like no-fee withdrawals or high maximums
• Radio ads with unique value propositions using humor or memorable jingles

While digital channels provide excellent tracking and costs per lead, traditional tactics can assist with branding efforts. Evaluating options based on the target customer profile will guide new operators on where to focus when ramping up their marketing.

14. Focus on the Customer

Providing exceptional customer service is crucial for ATM companies to keep users satisfied and gain referrals. With ample ATM options available, operators need to focus obsessively on service to stand out. Some ways to improve customer focus as an ATM company include:

• Quickly resolving issues when machines malfunction or run out of cash is critical.
• Customers will remember speedy responses that get devices working again promptly, reinforcing reliability.
• Slow repairs or prolonged downtime will erode trust.
• Answering questions and listening to feedback also matter.
• Following up after service calls with emails or calls to ensure issues stay resolved makes a big impression.
• Customers appreciate that extra mile of care.

With so many competitors, service is how ATM operators differentiate. Providing white glove assistance and promptly addressing problems earns loyal users who refer friends and family. However poor service risks losing accounts to other operators. Obsessing over the customer experience, not just hardware, is key.

You Might Also Like

October 29, 2023

0  comments

How to Start a Bitcoin ATM Business in 14 Steps (In-Depth Guide)

The global crypto ATM industry hit a $71.9 million evaluation in 2021 and is ...

The ATM industry is expanding at a rapid rate across the world. As of ...

September 23, 2023

How to Start a Bank in 14 Steps (In-Depth Guide)

The banking industry is growing and evolving in the United States. The current compound ...

Check Out Our Latest Articles

How to start a dog clothing business in 14 steps (in-depth guide), how to start a vintage clothing business in 14 steps (in-depth guide), how to start a bamboo clothing business in 14 steps (in-depth guide), how to start a garage cleaning business in 14 steps (in-depth guide).

How to Start an ATM Business

When a consumer needs access to cash, most are willing to pay a few dollars in service fees at the nearest ATM. Automatic teller machines strategically placed in public locations around town is a profitable way for entrepreneurs to earn a comfortable passive income.

Learn how to start your own ATM Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start an ATM Business by following these 10 steps:

• Plan your ATM Business
• Form your ATM Business into a Legal Entity
• Register your ATM Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your ATM Business
• Get the Necessary Permits & Licenses for your ATM Business
• Get ATM Business Insurance
• Define your ATM Business Brand
• Create your ATM Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your ATM Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our ATM Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your ATM Business?

Business name generator, what are the costs involved in opening an atm business.

While this type of business venture does not require an office space or a lot of supplies, there are a few things you will need to purchase. Total investment will be defined by how many machines you plan to start with. Each machine will cost between $3,000 and $10,000, depending upon the style you purchase. Each machine should have at least $2,000 in cash on a rotating basis. The only other items you should need is an insurance policy, a bag for transporting cash, tools for routine machine maintenance, and a reliable vehicle. Each machine must have access to a phone line or the Internet and you will need a computer for checking the status of each machine.

What are the ongoing expenses for an ATM Business?

Most machines require a minimum of $2,000 cash per week. Cash should be loaded in on a rotating basis. Many banks will charge your business a surcharge and merchants charge a monthly rent fee or commission, depending upon the contract both parties have agreed upon. New business owners are urged to conduct thorough research regarding your market, so that margins are correctly set from the beginning. This will help ensure higher profit margins for your ATM business.

Who is the target market?

Your ATM business is there to serve anyone who may need quick access to cash. Restaurants, bars, strip malls, convenience stores, and shopping malls are a great place to start.

How does an ATM Business make money?

An ATM business charges each customer a fee when they draw money out of their account.

The standard fee is $2.50 to $3.00 per transaction.

How much profit can an ATM Business make?

It’s important to choose high-traffic areas for your terminal locations. Successful business owners report an average of $500 per month, per ATM machine.

How can you make your business more profitable?

The more machines you have strategically placed, the higher your profits. Many new business owners find comfort in investing in franchises. Once you have learned the intricacies if this business venture, considering passing that knowledge on to new entrepreneurs by offering franchise opportunities.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your ATM Business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an ATM business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

ATM businesses should consider requiring clients to sign a services agreement before installing a new machine. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and so on.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your ATM Business needs and how much it will cost you by reading our guide Business Insurance for ATM Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an ATM Business

Unlike most business ventures, an ATM business requires little to no marketing. While you will not be directly interacting with your customers, you will communicate regularly with your merchants. Develop strong connections with them to ensure a long-term, mutually beneficial relationship. Networking with business owners in the community is a great way to ensure your name is recognized. When an entrepreneur opens a new business, your merchants will pass your name along, helping to solidify your business’ positive reputation.

How to keep customers coming back

It’s important to remember that each customer is coming to you out of convenience. Do not earn a reputation for having machines that are low on cash or always broken. Strive to deliver what they need, when they need it, at all times.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Are you seeking a business investment that doesn't require an immense amount of time or investment? Do you enjoy interacting with other business owners throughout the community? If so, opening an ATM business may be the perfect business opportunity.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an ATM Business?

The amount of time spent managing this type of operation varies, depending upon your skill set and the number of ATMs you own. Each machine must be kept in working order at all times. It should also contain enough cash to dispense 24/7. Anything less, and your business is losing money. Most ATM business owners have a regular route they tend to each day, where they check to ensure everything is working as it should. The rest of your team’s time is divided between administrative duties and nurturing relationships with vendors, banks, and the businesses that house your machines.

What are some skills and experiences that will help you build a successful ATM Business?

There is no formal training for owning an ATM business. Since this investment requires a significant amount of cash be on hand at all times, entrepreneurs must be skilled at handling cash and budgeting for future needs. A business degree or background is recommended. Strong interpersonal skills would also prove beneficial, as you will need to develop relationships with vendors, banks, and business owners throughout the community.

What is the growth potential for an ATM Business?

Consumers love convenience, making an ATM business a worthy long-term investment. The potential for growth is significant, as these small machines can be strategically placed wherever customers may need quick access to cash. A well thought out business plan will help you define and reach your short and long-term goals for growth and profit.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting an ATM Business?

Successful ATM business investors offer the following advice:

• Conduct thorough research prior to purchasing your machines. Choose one manufacturer and use them for all your machines. This will prove beneficial as you and your team learn how to repair and replace parts over time.
• While it will require more start-up capital, purchase a new machine with a 1-year warranty on parts. Older equipment leaves you open for potential issues and may not be equipped to handle evolving banking requirements/laws.
• Make sure you understand EMV and that your machines are EMV compliant .
• Have each of your merchants sign an agreement.
• Map out your route with locations fairly close together to cut down on operating costs.

How and when to build a team

Most new ATM business owners start out managing the business alone. If your goal is to spread out over a large area, it may be necessary to hire additional team members for servicing. When considering hiring new team members, review their background and job history thoroughly, as they will be regularly handling a significant amount of cash. Additionally, each team member should have the knowledge and skills needed to perform routine maintenance on your machines.

Useful Links

Industry opportunities.

• ATM Industry Association

Real World Examples

Further reading.

• Mistakes to Avoid When Starting an ATM Business
• Interview with an ATM Business Owner

Have a Question? Leave a Comment!

Small Business Trends

How to start an atm business.

There are locations without nearby banks, and there are businesses that operate on a cash basis. That’s part of the reason why the ATM business continues to thrive. The success of an ATM business depends on factors like location selection, ongoing maintenance, and efficient management. Even one machine can generate several hundred dollars of passive income per month.

Conduct thorough research and planning to maximize your chances of profitability and growth in the ATM industry. And consider the option of an atm franchise as a viable business opportunity.

Why Start Your Own ATM Business?

Here are the top three reasons for starting your own ATM business:

• Passive Income : One of the primary reasons to start an ATM business is the potential for passive income. ATMs generate revenue through transaction fees, which can provide a steady stream of income without the need for constant oversight.
• Diversification : Adding ATMs to your business portfolio can diversify your income streams. It can be a complementary business if you already operate a retail store, gas station, or any location with foot traffic.
• High Demand : ATMs are in high demand as people continue to use cash for various transactions. Offering convenient access to cash can attract customers to your location.

For broader guidance, see how to start a business that can apply to the ATM sector.

Initial Steps in Launching Your ATM Business

There are steps to take to lay the foundation for your ATM business. Each step is equally important in the process:

• Business Plan : Start by creating a comprehensive business plan that outlines your goals, budget, and growth strategy. Define your target market and location preferences.
• Financing and Budgeting : Determine your startup costs, including the purchase of ATMs, installation expenses, and ongoing operational costs. Consider how you’ll finance the business and create a budget.
• ATM Procurement : Choose the type of ATMs you want to deploy (e.g., cash dispensing or cash recycling), and decide whether you want to buy or lease them. Find reputable suppliers or manufacturers.
• Location Selection : Identify high-traffic locations for your ATMs. Negotiate agreements with property owners or business managers to place your ATMs on their premises.
• Regulations and Compliance : Research and comply with all federal, state, and local regulations related to ATM operation and financial services. This may include obtaining necessary licenses and permits.

Research and Legal Considerations for an ATM Owner

Market Research is crucial. As an ATM owner, you must understand your target market and location demographics. Analyze foot traffic, nearby competitors, and consumer demand for cash access. Identify potential atm locations with a high demand for ATMs.

Continuing with research and legal considerations:

• Competitive Analysis : Research your competitors in the ATM business. Identify their pricing strategies, service quality, and customer satisfaction levels. Differentiate your business to stand out.
• Legal Considerations : Pay attention to legal and regulatory requirements, including Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. You may need to establish processes for compliance.
• Contractual Agreements : Create contracts or agreements with property owners or businesses where you’ll place your ATMs. These agreements should outline terms, revenue sharing, and responsibilities.
• Insurance : Consider insurance coverage to protect your business from potential liabilities, such as theft or vandalism of your ATMs.
• Financial Planning : Consult with financial professionals to ensure you have proper accounting, tax planning, and financial reporting systems in place.

Understanding the common business structures can help in making an informed decision. You can also refer to a business startup checklist to ensure you’ve covered all bases.

Starting an ATM business can be a profitable venture, but it’s essential to conduct thorough research, plan carefully, and adhere to legal and regulatory requirements to ensure a successful and compliant operation.

Selecting ATM Locations

Choose locations with high foot traffic to ensure a steady flow of potential customers. Places like shopping malls, airports, gas stations, or busy urban areas can be ideal. Understanding how to get an atm is crucial for setting up your business.”

There are other factors that contribute to the success of the ATM location you choose:

• Demographics : Consider the demographics of the area. The income level and cash usage habits of the local population can influence the demand for ATMs.
• Competitive Landscape : Research existing ATM providers in the area. If there are too many ATMs in close proximity, it may lead to excessive competition and lower transaction volumes.
• Security : Prioritize safety and security. Ensure that the chosen locations have adequate lighting and security measures to protect the ATM from theft or vandalism.
• Accessibility : Opt for locations with easy access for customers. A well-placed ATM should be visible and convenient, encouraging people to use it.
• Agreements : Negotiate favorable agreements with property owners or business managers. Consider revenue-sharing arrangements or fixed rental fees.

Convenience Stores

Placing ATMs in convenience stores can be a lucrative strategy due to the high foot traffic and customer convenience. Here are some benefits:

• High Traffic : Convenience stores and retail outlets typically attract a steady stream of customers, increasing the likelihood of ATM usage.
• Convenience : Customers often appreciate the convenience of accessing cash while shopping, which can lead to increased spending.
• Profit Sharing : Some retail stores may be open to revenue-sharing agreements, reducing the initial placement costs for ATM operators.
• Hours : Many convenience stores are open 24/7, and an interior ATM within an open store may feel more secure than a drive-up outdoor ATM machine.

Retail Stores

Retail stores have the same benefits as convenience stores, with high traffic and the customers’ need for convenience. In addition, retail stores often have security measures in place, which can help protect the ATMs from theft or vandalism.

Cost to Start an ATM Business

Sourcing and purchasing an atm machine.

There are various types of ATM machines, each with different features and costs. Here are some common types:

• Cash Dispensing ATMs : These ATMs dispense cash and are the most common type. Prices can range from $2,000 to $8,000 or more, depending on features and capabilities.
• Cash Recycling ATMs : These ATMs accept and dispense cash, recycling deposited bills. They tend to be more expensive, with prices ranging from $6,000 to $15,000 or more.
• Mobile ATMs : These are ATMs mounted on trailers or vehicles and are suitable for events or temporary locations. Costs can vary widely, depending on customization and features.
• Used ATMs : You can also consider purchasing used ATMs, which can be more affordable, but make sure they are in good working condition and compliant with regulations. of each.

Operating Costs for ATM Business Owners

• Transaction Processing Fees : You’ll pay fees to a transaction processor each time a customer uses your ATM. These fees can vary, but they are usually a fixed amount per transaction.
• Maintenance and Repairs : Budget for regular maintenance and occasional repairs to keep your ATMs in working order.
• Cash Loading : You’ll need to periodically load cash into the ATM, and this cost will depend on the machine’s usage and location.
• Communication Costs : ATMs require an internet or phone line connection for transaction processing, which may incur monthly fees.
• Insurance : Consider insurance to cover theft, vandalism, and other potential liabilities.
• Rent or Revenue Sharing : If you have agreements with property owners, factor in rental fees or revenue-sharing percentages.

Operationalizing Your ATM Business

The day-to-day operations of an ATM business include predictable tasks.

Regular Maintenance and Cash Loading

Regular maintenance involves keeping your ATMs in good working condition. This includes cleaning, software updates, and hardware inspections.

• Cash loading is the process of replenishing the ATM’s cash supply. You’ll need to monitor cash levels to ensure the machine doesn’t run out.
• Consider setting up a schedule for maintenance and cash loading based on usage patterns at each ATM location.

Security Measures for Your ATM Machines

Security is crucial to protect your ATM equipment from theft, vandalism, and fraud. Install security cameras and alarms near your ATMs.

• Use tamper-evident seals to detect any unauthorized access to the ATM’s internal components.
• Educate your partners and location hosts about security measures and procedures.

Building Partnerships with Local Small Business Owners

Building strong partnerships with property owners, businesses, or financial institutions can be beneficial. Negotiate mutually beneficial agreements that outline responsibilities and revenue-sharing arrangements.

• Consider forming alliances with businesses in high-traffic areas to expand your ATM network.

Managing and Tracking Transaction Fees

Keep detailed records of transactions, including the number of withdrawals, deposits, and transaction fees collected.

• Track revenue and expenses associated with each ATM location to assess profitability accurately.
• Use ATM management software to monitor and manage your entire network efficiently.

Marketing and Expanding Your ATM Business

Market your ATM services to potential locations and small businesses. Highlight the convenience and benefits of having an ATM on their premises.

• Explore new locations with high foot traffic to expand your network.
• Offer promotional incentives, such as reduced transaction fees, to attract more customers to your ATMs.
• A website startup guide can provide valuable insights for establishing your online presence.

Networking and Relationship Building

Join business associations and your local Chamber of Commerce, and attend local business events. That will help you make the connections you need to expand your machine placements.

Digital Presence and Local Advertising for ATM Operators

Every business should have a website and a social media presence. You can use those platforms for advertising existing and new locations, and promote your ATM services.

Opportunities for Growth in the ATM Industry

Partnering with a financial institution can be a strategic move for an ATM business. It can provide access to additional ATMs and financial resources.

• Financial institutions can also help with cash replenishment and transaction processing.
• Negotiate terms and agreements that align with your business goals and objectives.

FAQs: How to Start an ATM Business

How profitable is owning an atm machine.

An ATM business can be profitable, but it depends on factors like location, transaction volume, and operational efficiency.

Is it easy to have an ATM business?

The level of difficulty can vary, but with proper planning and management, running a successful atm business can be relatively straightforward.

What are the potential risks of starting an ATM Business?

Risks include theft, vandalism, machine malfunctions, and changes in transaction fee regulations. Adequate security measures and contingency plans are essential.

How much can I expect to earn from each ATM machine?

On average, an ATM can generate several hundred dollars to over a thousand dollars in revenue per month. The earnings per machine vary widely depending on location, transaction fees, and usage.

How many machines does the average ATM Company Have?

The number of machines can vary widely. Some ATM operators start with just a few machines, while larger operators may have hundreds or more.

Image: Envato Elements, Depositphotos

Your email address will not be published. Required fields are marked *

© Copyright 2003 - 2024, Small Business Trends LLC. All rights reserved. "Small Business Trends" is a registered trademark.

How to Start an ATM Business in 5 Steps

If you’d like to make a little extra money on the side or want to transition out of your 9-5 job, you might want to know how to start an ATM business. In just 5 steps, you can own and operate an ATM machine that brings in passive income almost immediately.

You don’t need a business license or any specific entrepreneurial training or experience to start an ATM business. Just complete the required documentation, select your ATM machine type, find a location, set a surcharge, and start making a profit. Here, we’ll tell you how to start an ATM business today!

Step 1: Get Compliant with Paperwork

When starting an ATM business, you have to complete the required documentation . The following forms and documentation are necessary in order to even get your machine. This proves that you are qualified to operate an ATM machine and helps set you up for success. This process is designed to make purchasing and operating an ATM machine seamless.

Required Documentation

Your ATM processor will require an equipment order form. This is where you choose the equipment you want and indicate whether you or someone else will handle installation. You will also need to document what your surcharge will be (see below) and what denominations your ATM will dispense.

Next is the ACH form so that your revenue can be deposited into your bank account! Your driver’s license is required to prove your identity and pass a background check. You cannot run an ATM business if you have been found guilty of a felony or financial crime.

A voided business check verifies the legitimacy of your linked bank account. For the purposes of running an ATM business, the account must be a checking account, not a savings account.

The ATM Operator Agreement and application tells banking partners who they are working with and ensures all federal regulations are met. You will need to complete and submit a W-9 form as well. Since you will be making money from your ATM machine, you’ll need to document your earnings for tax purposes.

Finally is the ATM processing agreement. This document lists your rights and obligations as the ATM owner as well as the rights and obligations of the ATM processor. It’s the legal contract between you and the ATM processor that runs your ATM machine program. This agreement also ensures you receive your payment as agreed upon.

Other Applicable Documentation

You may or may not need to complete these forms. They don’t apply in all situations. For example, a business license and permit might only be necessary if your local government requires it. Otherwise, you can register as a sole proprietor under a “doing business as” business name.

A placement agreement, or site location agreement (SLA), would only be necessary if you are planning to install your ATM machine in a location that was owned by someone else. This document serves as a contract between you and that third party and outlines each party’s responsibilities and share of the revenue.

Like all insurance, ATM insurance is completely optional. You can opt to purchase it and account for the cost when calculating your potential profit after operation costs. Or you can test your luck without it. Kind of a gamble here, but if you work with an insurance company that is associated with the ATM Industry Association (ATMIA), they can guide you toward a policy that meets your specific needs.

Last is the wireless agreement. This allows the ATM processor to send you a wireless modem which converts your signal from Internet to cellular and speeds up your connection. Again, this is optional and can be done on your own timeline.

Step 2: Select ATM Type

When choosing ATM equipment, there are three necessary decisions you have to make: ATM type, manufacturer and model, and new or refurbished. 

You have a lot of options when it comes to choosing ATM equipment . First you must decide the ATM type. There are free-standing, through-the-wall (TTW), and wall mount ATM machines.

Free-standing ATMs offer the most flexibility when it comes to placement. They can be installed anywhere there is a power source. They have a small footprint which is helpful when planning around available floor space in a store.

TTW ATMs are bulkier but more secure because the interface, the back of the machine, is secured within the wall extending into the next room. This can make accessing the machine to replace currency a little safer.

Wall mount ATMs can be mounted to a wall, table, or countertop. This can be convenient if your location doesn’t have a lot of extra space available. This is also a more practical choice for small businesses and low-traffic locations.

Manufacturers and Equipment Options

Two of the most popular ATM manufacturers are Hyosung and Genmega. Both produce high-quality, reliable equipment. ATM Depot also offers the full lines of Triton and Hantle (Tranax) machines.

Each of these market-leading manufacturers produces sturdy ATM equipment that lasts upwards of ten years. Just remember that pricing will vary based on the manufacturing company, machine type, and features. You can get more information about manufacturer and equipment options in our ATM Buyers Guide .

New vs. Refurbished

You also have the option of purchasing your ATM machine new or refurbished. New machines are recommended for first-time independent ATM deployers (IADs) who are just starting an ATM business. The new technology informed by feedback from IADs and users makes new ATM machines easier to use.

However, purchasing a refurbished machine could save you some money and therefore speed up your ROI and increase your profit. It’s also better for the environment to reuse electronic equipment rather than having it sent to the landfill.

Step 3: Find a Location

Choosing the right location is very important when it comes to making a profit from your ATM business. You have to find a location where there’s a great need for an ATM machine. Where do people go where they need cash to pay for goods and services? Where is there a large gap between one ATM machine and the next? What are the areas of your city with the most foot traffic? And who might you have to partner with in order to place your machine in a strategic spot?

Who Will Own the Space?

Before you should even think about ordering an ATM machine, you need to know where you’re going to put it. Choosing the perfect ATM location is a very strategic process. You have to consider factors such as visibility, ease of access, and competition. 

The first decision you have to make when choosing a location is whether you want to rent your own space, supply a space you already own, or coordinate with a site location owner. If you rent or purchase your own space, you have to factor that into your operating costs and adjust your business model accordingly to still make enough of a profit for it to be worth it.

The same is true of partnering with a site location owner. Depending on the agreement you set up, you could end up splitting your profits with the owner of the location where you choose to install your ATM. Keep this in mind when calculating your potential profit.

What Are the Best ATM Locations?

When it comes to choosing the right location for your ATM machine, you really have to consider what’s best for you and your business specifically. And you have to work with the locations available to you. Generally speaking, the best ATM locations typically share the same characteristics: cash only, high traffic, good reviews, liquor license, distance from other machines, and convenience for you.

Locations that are cash only or that encourage cash transactions create the demand that your ATM supplies. If people need cash, they need an ATM. This is good for business. So is high traffic. 

The more people who pass by and see your ATM on a regular basis, the more business you’re likely to get. High traffic areas also provide a certain level of security and comfort among users. Isolated machines away from security cameras or the public eye present an increased risk of vandalism and theft.

If you partner with a store owner, you want your ATM to be placed in a store or business that has good reviews. The more customers that store gets, the more business your ATM is likely to get. 

Locations with liquor licenses are good options, too. They are open late, so that extends the hours of operation of your ATM machine and offers more opportunities for transactions. Plus, it’s reasonable to have an increased surcharge at these locations, too (more on surcharge later).Finally, you have to consider the proximity of your machine to you as well as to other machines. The closer your ATM is to other machines, the more competition you have to get customers. But you also want the machine to be convenient for you to access. The more time and money you spend getting to your machine for maintenance and surveillance, the less profit you make.

What Are the Most Profitable ATM Locations?

There are some specific business types that tend to be more profitable due to increased surcharges, high demand, and large volume of patrons. These include casinos, gentlemen’s clubs, hotels, nightclubs and bars, convenience stores and gas stations, restaurants, barbershops and salons, microbreweries, and parking lots.

Keep in mind that profits will vary based on each individual business’s success. When looking for an optimal location for your ATM, choose a business that is busy, regularly brings in customers, and has good potential for staying in business for a while.

Step 4: Set Your Surcharge

The surcharge is the fee customers or users pay for the service your ATM machine offers. For each transaction made on your ATM machine, you make the surcharge amount in return. Setting your surcharge is a very strategic process. You want to offer a competitive surcharge while also setting yourself up to make as much profit as possible. 

The average ATM surcharge fee is about $2.50. Depending on the competition in your area, you can raise or lower that fee amount. And you can change it at any time. 

You might want to start with a low surcharge to encourage people to use your machine as you are just getting started. Or, alternatively, you might want to set a higher surcharge to meet your ROI quicker and start profiting sooner. The choice is up to you.

You also want to consider whether or not you’ll be sharing any portion of the revenue with a third party like a site location owner. If you are, you might opt to set a higher surcharge so that you make more after the site location owner’s share.

Step 5: Start Making Money

It is possible to make a good amount of money from an ATM business. When you’re just starting out, you will want to undergo a modicum of trial and error to get your business model just right. But with an ATM business, you have a low overhead and many opportunities for growth.

As long as people use your machine, you will make money. Getting people to use your machine is the hard work that you have to do once everything is set up. But once you do, you should expect to be making at least $450 monthly gross revenue. That’s 180 transactions a month at $2.50 each.

You can expect 40%-70% annual ROI from any location that warrants 80-100 transactions monthly. To make $1,500-$2,000 monthly in profit, you would need to own and operate 5-10 ATM machines. This is certainly possible if you can establish an efficient routine with your first machine and find optimal locations for subsequent machines. 

How to Start an ATM Business

If you want to know how to start an ATM business, it’s actually very easy. In just a few steps you can start making money. It will require a little bit of work to develop a routine with your machine and test different surcharge amounts and marketing strategies. But there are very few steps involved between completing the required paperwork and beginning to make money.

The best part about running an ATM business is that most of the factors that determine your success are in your control. You decide how much to invest in equipment, where you want your machine, who to work with, and how much you’d like to make per transaction. If you still have questions regarding how to start an ATM business, you can speak with an ATM Depot representative. Contact us today!

Leave a Reply

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

How ATMs Work

Financial institutions, atm troubleshooting, members area, local atm providers, atmdepot.com.

• First Name *
• Last Name *
• Email * In order for your cancellation request to be completed as soon as possible, you must provide the email address you use to sign in to the Members Area here.
• Phone * Just in case we can't reach you by email we'd like an alternate contact to confirm your cancellation request when it has been completed.
• Yes, I am 100% sure that I would like my subscription cancelled as soon as possible. I do not need to learn any more about the ATM Business.
• Note: Your current membership rate will be terminated once you cancel and if you decide to join again in the future you will be charged the then-current rates.
• Name This field is for validation purposes and should be left unchanged.
• Phone This field is for validation purposes and should be left unchanged.

Schedule Your Call Below

Home » Financial Services

A Sample ATM Business Plan Template

An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without direct interaction with bank staff.

ATMs were originally developed as cash dispensers, and have evolved to provide many other bank-related functions. Anyone can start an automated teller machine business as long as they have the financial capacity, license, network, and business exposure.

The global ATM market size reached USD 20.18 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.9 percent from 2022 to 2028. The total number of ATMs in the United States is 425,000, Independently owned ATMs deployed 222,000 ATMs, and the Average ATM fee/Convenience fee is $2.77 (source-National ATM Council).

Steps on How to Write an ATM Business Plan

Executive summary.

Pickford Cash© ATM Services, Inc. is an American-based business that will operate independent automated teller machine services all across the United States. Although our business will be based in New Haven – Connecticut where we intend to position our automated teller machines (ATM) all across the city, we have plans to spread across major cities in the United States within record time.

Pickford Morgan is the founder and CEO of Pickford Cash© ATM Services, Inc.

Company Profile

A. our products and services.

• Cash withdrawals, deposits, transfer funds, or obtaining account information
• Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, income taxes, etc.)
• Printing or ordering bank statements
• Updating passbooks
• Cash advances
• Cheque Processing Module
• Paying (in full or partially) the credit balance on a card linked to a specific current account.
• Transferring money between linked accounts (such as transferring between accounts).

b. Nature of the Business

An ATM Services business is meant to operate the business-to-consumer model or transfer completely to a business-to-business approach.

c. The Industry

Pickford Cash© ATM Services, Inc. will operate in the Automated Teller Machine industry.

d. Mission Statement

Our mission is to make cash withdrawals, cash deposits and other financial services more accessible to all and sundry and the services will also include blockchain and cryptocurrency transactions.

e. Vision Statement

Our vision is to build an ATM services business that will have an active presence all over New Haven – Connecticut and other key cities in the United States of America.

f. Our Tagline (Slogan)

Pickford Cash© ATM Services, Inc. – Financial Services Any Time, Any Day, and Anywhere!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Pickford Cash© ATM Services, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• ATM Custodian/Manager
• Admin and Human Resources Manager
• Sales and Marketing Manager
• Information Technologist
• Call Center Executives.

i. Ownership/Shareholder Structure and Board Members

• Pickford Jude (Owner and Chairman / Chief Executive Officer) 51 Percent Shares
• Gordon Wisdom (Board Member) 14 Percent Shares
• Jude Soares (Board Member) 13 Percent Shares
• Paul Nelson (Board Member) 12 Percent Shares
• Zara Rodrick (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Effective structures to help consumers enjoy a seamless digital experience when making use of our ATMs
• Highly experienced and qualified employees and management
• Active presence in key locations across cities
• Access to finance from business partners
• Water-tight strategies on how to expand beyond the major markets
• Good returns on investment for our investors.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established banks with ATMs and other independent ATM service companies and traditional banks
• Inability to retain our highly experienced and qualified employees longer than we want.

c. Opportunities

• Partnerships and mergers between established banks are becoming more frequent.
• Digital banking services are taking over
• 46 percent of people exclusively use digital channels for their financial needs
• Good support structure for independent ATM service companies in the United States of America.

i. How Big is the Industry?

It is safe to say that the Automated teller machine (ATM) industry is a massive industry. This is so because the total number of ATMs in the United States is 425,000 (source-National ATM Council), and Independently owned ATMs are 222,000 (source-National ATM Council).

ii. Is the Industry Growing or Declining?

The Automated teller machine (ATM) industry is growing rapidly and available data shows that the market surpassed USD 20 billion in 2020 and is anticipated to grow at a CAGR of 4 percent between 2022 and 2027.

iii. What are the Future Trends in the Industry?

New technologies, like machine learning/artificial intelligence, predictive behavioral analytics, and data-driven marketing, are what will determine the future trends in the Automated teller machine (ATM) industry.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niche ideas when it comes to automated teller machine (ATM) business, and they are as follows;

• Cash Dispenser ATM
• White Label ATM.
• Yellow Label ATM
• Brown Label ATMs.
• Onsite ATMs.
• Offsite ATMs.
• Crypto Exchange Platform.

v. Can You Sell a Franchise of your Business in the Future?

Pickford Cash© ATM Services, Inc. has plans to sell franchises in the nearest future and we will have a strong physical presence in key financial hubs (cities all across the world).

• The arrival of a new ATM company within our market space
• Unfavorable government policy and regulations.
• Cyber security challenges
• Liability problems
• Continuously changing consumer demands especially as it relates to how they expect ATM service companies to serve them.

i. Who are the Major Competitors?

• Capital One
• Bank of America
• Wells Fargo
• BankMobile Vibe
• ATM Money Machine, Inc.
• Cardtronics
• ATM Marketplace of Florida, Inc.
• Phoenix Cash Systems A Division Of The World Is Mine Corp
• Micro Resources International
• Hyosung America | ATM Solutions
• Payroll Corporation (“Mr. Payroll”)
• Bitbox ATM machines

ii. Is There a Franchise for an Automated teller machine (ATM) business?

Yes, there are franchises for Automated teller machine (ATM) businesses are here are some of them;

• ACFN – Initial investment: $39,230 – $63,820
• Bitbox ATM machines – Initial investment: $38,590 – $157,980
• Payroll Corporation (“Mr. Payroll”) – Initial investment: $68,800 – $328,000
• ATM Money Machine, Inc. – Initial investment: from $2,100
• BitCash USA – Initial investment: $13,500 – $250,000

iii. Are There Policies, Regulations, or Zoning Laws Affecting Automated Teller Machine (ATM) Business?

In the United States of America, the automated teller machine (ATM) machine business, like all financial services is regulated at both the state and federal levels. Each of the 50 states and the federal government has passed its own body of laws that may apply to financial services providers.

Please note that because of the scope, scale, and dynamism of the automated teller machine (ATM) services industry, the sector is often regulated by multiple regulators, both within certain types (e.g., multiple government regulators) and across types (e.g., governmental, self-regulators, and market regulators).

Please check with your zoning or planning department to find out what options are available to you.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to do business with us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who will make use of our automated teller machines.

iii. Income Level

There is no cap on the level of income of the people that can use our automated teller machines.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that can make use of our automated teller machines.

v. Language

There is no restriction when it comes to the language spoken by the people that can make use of our automated teller machines. We have different language options in our ATM machines.

vi. Geographical Location

Anybody from any geographical location will be welcome to make use of our automated teller machines.

vii. Lifestyle

Pickford Cash© ATM Services, Inc. will not restrict people based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share our Events in Local Groups and Pages.
• Turn our Social Media Channels into a Resource
• Develop our Business Directory Profiles
• Build Relationships with players in the financial services industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), and referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Pickford Cash© ATM Services, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each transaction. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the automated teller machine industry, the finance and banking industry, and freelancers to help refer clients to us.

Pickford Cash© ATM Services, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need cash supplies per time means that Pickford Cash© ATM Services, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, processing, and feeding cash in our ATMs. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Pickford Cash© ATM Services, Inc. will make available to her clients;

• Payment via automated teller machines

d. Return Policy, Incentives, and Guarantees

At Pickford Cash© ATM Services, Inc. we will refund our clients when the transaction does not pull through but the customer was charged. We will also guarantee our customers the safety of their card details and financial details.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide an excellent return on investment (ROI) and customer service to all our clients and investors. We will work with effective CRM software to be able to achieve this.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting investors and strategic partners like banks et al that will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at an ATM Services Business?

• The office is open for the day
• ATMs are loaded with cash
• Documentation and other administrative works are conducted throughout the day
• Marketers go out in the field to market our services
• Transactions are facilitated and pending queries are resolved
• Maintenance of the server and all payment gateways are carried out as scheduled.
• Maintenance and servicing of ATM machines
• The report for the day is written and submitted to the required authority
• The office is closed for the day.

b. Production Process

There is no production process when it comes to the Automated teller machine (ATM) business.

c. Service Procedure

When it comes to the service procedure of ATM service providers, it is important to note that the internet service provider (ISP) plays an important role in ATMs. This provides communication between ATM and host processors. When the transaction is made, the details are input by the cardholder.

This information is passed on to the host processor by the ATM. The host processor checks these details with an authorized bank. If the details are matched, the host processor sends the approval code to the machine so that the cash can be transferred.

Please note that to use a cardless ATM, you need to open the app on your mobile device, choose the linked bank account you want to withdraw from, and tap your phone against the designated reader. To complete the transaction, the ATM will then prompt you to either type in your PIN (just as if you had inserted your physical card).

d. The Supply Chain

Pickford Cash© ATM Services, Inc. will rely on major banks to supply cash to us.

e. Sources of Income

Pickford Cash© ATM Services, Inc. makes money (commissions and charges) from offering the following services;

Financial Plan

A. amount needed to start your automated teller machine (atm) services company.

Pickford Cash© ATM Services, Inc. would need an estimate of $1.2 million to successfully set up our automated teller machine (ATM) company in the United States of America. Please note that this amount includes cash in our ATMs and the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Internet Infrastructure and Software Development – $250,000
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $80,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing, Equipping and ATM machines – $350,000
• Capitalization Base: $500,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Pickford Cash© ATM Services, Inc. will not build a new facility for our ATM service company; we intend to start with a short–term lease for locations where we intend to install our ATMs.

d. What are the Ongoing Expenses for Running an ATM Services Company?

• Server maintenance
• Transaction fee to third-party providers
• Transport and logistics
• Utility bills (internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $65,000 Per Year
• ATM Custodian / Manager – $42,000 Per Year
• Admin and Human Resources Manager – $39,000 Per Year
• Information Technologist – $38,000 Per Year
• Accountant – $35,000 Per Year
• Call Center Executive / Customer Service Executive – $30,000 Per Year.

f. How Do You Get Funding to Start an ATM Service Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your service.

At Pickford Cash© ATM Services, Inc. our fee will be based on the volume of transactions on our payment platform. But averagely, we charge between $1.50 to $3.50.

b. Sales Forecast?

• First Fiscal Year (FY1): $500,000
• Second Fiscal Year (FY2): $750,000
• Third Fiscal Year (FY3): $1.2 million

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Pickford Cash© ATM Services, Inc. will be between 2 and 5 percent.

d. Profit Margin of an ATM Service Company 

The average net profit margin of Pickford Cash© ATM Services, Inc. is approximately 12%. The average net profit margin can be higher or lower depending on our additional service offerings and the number of our overhead expenses.

Growth Plan

A. how do you intend to grow and expand .

Pickford Cash© ATM Services, Inc. will grow our automated teller machine (ATM) services company by first installing our ATMs in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Pickford Cash© ATM Services, Inc. plan to expand first to Los Angeles – California, New York City – New York, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

We intend to expand to these locations because available statistics show that the cities listed above have the highest and most thriving financial markets in the United States.

The founder of Pickford Cash© ATM Services, Inc. plans to exit the business via merger and acquisition. We have placed structure and processes in place that will help us achieve our plan of successfully merging with one of the leading players in the finance and banking industry or even in the automated teller machine (ATM) services industry. With that, we can rest assured that the business will be under the care of a well-structured management team.

More on Financial Services

How to Start an ATM Business: A Complete Playbook for 2022

Written by welcome read – august 15, 2022, written by welcome read  – august 15, 2022.

1:   ATM Business Introduction

2:   set up your corporation, 3:   find and secure locations, 4: buy and install atm machines, 5: manage your atms, are you thinking of starting an atm business if so, you’re in luck. this playbook will provide you with all the information you need to get started in 2022., we’ll go over everything from setting up your corporation to finding and managing locations. so whether you’re a new entrepreneur or just looking to expand your portfolio, read on for all the info you need to know about starting an atm businesses., 1: atm business introduction, before you get started on creating your atm business, it’s important to understand how the industry works. business owners in the atm industry are able to generate revenue through the surcharge and processing fees that customers pay when withdrawing money. through purchasing and placing atms within different high-traffic businesses in your area that are filled with your cash, you’re able to generate a steady stream of passive income., now you might be wondering, just how much money are you able to make from each machine well, with an average atm surcharge of $3 per transaction and an average of 180 transactions per month, your atms have the potential to generate over $540 per month in gross revenue or around $6,500 per year..

With most ATM machines costing around $3,000, that means that the average ATM owner is able to make their investment back in just under six months! Now there are obviously other costs to account for such as maintenance and rev shares with store owners, however, even if you cut the income you receive in half, that’s a yearly return of over 100%, try doing that with real estate.

2: set up your corporation, now that you’ve learned the ins and outs of the atm industry, it’s time to get started. in order to start an atm business, you first need to create a legal entity. whether you’re looking to create an llc, s-corp, partnership, or any other type of company, you’re going to need to file the appropriate paperwork., you can hire a lawyer to help you do this or use one of the many online tools available like zenbusiness . this is a great platform that will allow you to quickly and easily get your business off the ground without having to deal with a mountain of paperwork or the fees of a lawyer., once you’ve finished this step, we recommend that you create an official business plan to help you organize your thoughts into an actionable roadmap. make sure to include your sales process, budget, target market, competition, pricing strategy, and operational plans..

Now that you have a legal entity and a business plan, it’s time to get a bank account. While this may seem like a fairly simple step, as a result of the Bank Secrecy Act (BSA) , which is a law that requires banks to adopt certain procedures to prevent money laundering, you may run into some difficulties. While some large banks may have an aversion to opening bank accounts for ATM businesses, smaller community banks are often more willing to do so, so make sure to try both.

Finally, you can start working on marketing materials like a logo, website, and social media profiles to ensure that potential customers can find you online. tools like squarespace can help you quickly create great looking websites and other tools like canva can help you design your logo, business cards, and more with easy to use, plug and play templates., 3: find and secure locations, once you’re done setting up your company, it’s time for the fun part, making money. to do this you’re going to have to start finding locations that you can place atms. often times this is one of the most difficult steps for people because it involves calling or visiting businesses in-person and selling them on the idea of letting you place an atm in their location., to streamline this process, we recommend creating a simple sales pitch outline that you can give to the owners of the businesses that you visit. once you’ve created a pitch that you’re comfortable with, call around to locations in your area to see if they have an atm. some of the most profitable location types include bars, nightclubs, dispensaries, convenience stores, and really any cash only business that you can find..

Now that you know which businesses in your area don’t have an ATM, you can visit those locations and give your pitch. If they’re interested in letting you place an ATM in their business, you can then get them signed up and get the ATM delivered.

Make sure you create a lawyer approved contract that details the commitments of the agreement and have the business owner either sign it in person or send it to them online via a tool like pandadoc ., so now that you have locations that have agreed to let you place an atm in their businesses, you’re going to need to purchase and install those atms. there are many different atm machines for you to choose from but we highly recommend that you purchase something like the hyosung halo ii . this atm is arguably the most reliable atm on the market and is relatively affordable coming in at only $2,310 on the legacy atm marketplace ., additionally, if you order from legacy atm, we’ll ship the atm directly to you or your target location at no cost (if you’re in the united states)..

Once you’ve taken delivery of your ATM, it’s time to install it. In order to do this you’re going to need several tools including a dolly, scissors, hammer drill, and respective drill bit for the floor type. Start by taking the ATM out of the packaging and placing it in the spot that you and the business owner have agreed upon. You’re then going to want to drill four holes 2-3/4″ deep using a 1/2″ drill bit before hammering in your anchors and tightening them with a 3/4″ wrench.

Once your ATM has been secured to the ground, you’re going to need to plug it into the nearest AC power outlet and connect it to the internet via the ethernet wires provided or an ATM wifi router package.

Now that you have power and internet, you can start programming the ATM. In order to do so you’re going to need to partner with a reputable ATM processor that will serve as the critical link between your machines and the various payment networks including Visa, Mastercard, Discover, American Express, etc. This will ensure that customers can make secure transactions at your ATM and all surcharge is directed towards the correct account(s).

Should you choose to process with Legacy ATM , we can walk you step-by-step through the entire programming process while providing you with lightning fast processing, simplified fees, and automated reports and notifications to help keep you informed about your ATMs.

Now that you’ve found locations and installed your ATMs, it’s time to monitor your machines and ensure that they’re all running properly. It’s important to routinely check each ATM to make sure that they aren’t having any issues and that they are stocked with a sufficient amount of cash. Legacy ATM Processing provides you with automated notifications and reports so that you’re able to quickly respond to any issues regarding low cash balances or errors (We also provide 24/7 phone support should you run into any issues with your ATM).

While a large portion of this business model is passive, you still need to make sure that you’re properly maintaining the ATMs in your fleet. Put aside a few hundred dollars per year for each machine to make sure that you have the budget to replace any broken parts or hire a technician if needed. Every second your ATM is down is time that it isn’t making you money so it’s essential that you stay on top of any issues that pop up.

Final thoughts, so, there you have it. everything you need to know in order to start your own atm business. of course, this is just a basic overview and there are many details that we can’t cover in a single blog post. but, if you want more information or have any questions, please don’t hesitate to contact us., we would be happy to help get you started on your new venture. and remember, when it comes to atms, the sky is the limit, p.s. you can also click here to browse our selection of atm machines and find the perfect one for your business. thanks for reading and good luck with your future endeavors.,      contents, 1.   atm business introduction, 2.   set up your corporation, 3.   find and secure locations, 4.   buy and install atm machines, 5.   manage your atms.

Like what you see? Share with a friend.

Like what you see?

Share with a friend.

Ready to get an ATM for your business?

How to Start a Profitable Atm Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a atm business plan., 3. develop a atm brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for atm., 6. open a business bank account and secure funding as needed., 7. set pricing for atm services., 8. acquire atm equipment and supplies., 9. obtain business insurance for atm, if required., 10. begin marketing your atm services., 11. expand your atm business..

Starting an ATM business requires a thorough understanding of the market to identify potential opportunities and challenges. A comprehensive market analysis will help in making informed decisions and strategizing effectively. Here are some key points to consider:

• Research the current demand for ATMs in your target area by looking into the number of existing machines, their usage rates, and locations.
• Identify your potential customers, such as retail businesses, entertainment venues, or areas with high foot traffic, and understand their specific needs.
• Analyze competitors in the region to evaluate their services, fees, and customer satisfaction levels, which can offer insights into market gaps and areas for improvement.
• Study demographic and economic data to predict future ATM usage trends, focusing on population growth, tourism rates, and the overall economic health of the area.
• Evaluate the regulatory environment to ensure compliance with all laws and guidelines governing ATM operation and understand any potential legal barriers to entry.

Are Atm businesses profitable?

Yes, ATM businesses can be very profitable. The key to success in ATM business is to have a good location and keep your machines well-maintained and up-to-date. Additionally, many ATM businesses use a variety of marketing tactics to draw in customers, such as offering discounts and loyalty programs. If done correctly, an ATM business can generate a steady stream of income.

Starting an ATM business requires a well-structured plan to outline your strategy and financial projections. A detailed business plan will serve as a roadmap for establishing and growing your ATM operations. Consider the following crucial components when drafting your plan:

• Executive Summary: Summarize your business goals, target markets, and competitive advantages.
• Market Analysis: Research the demand for ATMs in your chosen locations, and understand your competition.
• Operational Plan: Describe the day-to-day operations, including how you will install, maintain, and service your ATMs.
• Marketing Strategy: Detail how you will attract venue partners and promote your ATM services to the public.
• Revenue Model: Explain how you will earn money, such as surcharge fees, and project your income and expenses.
• Risk Management: Identify potential risks and outline strategies to mitigate them.
• Financial Projections: Include projected profit and loss statements, cash flow forecasts, and a break-even analysis.
• Appendix: Provide supporting documents, such as contracts, legal documents, and technical specifications of your ATMs.

How does a Atm business make money?

ATM businesses make money by charging fees for transactions. These fees are paid by customers for withdrawing cash from the ATM, making balance inquiries, and other services. The fees paid by customers are the main source of income for ATM businesses.

Creating a strong ATM brand entails developing a distinct identity that resonates with customers and sets your services apart from competitors. A well-defined brand can foster trust and recognition, ensuring that your ATMs are the preferred choice for consumers seeking convenient cash access. Consider the following steps to cultivate your ATM brand:

• Identify your target market and tailor your branding to appeal to their preferences, whether they are tech-savvy millennials or value-driven baby boomers.
• Choose a memorable name and logo that reflects the professionalism and reliability of your services, while also being easy to recognize at various locations.
• Develop a unique value proposition that highlights the benefits of using your ATMs, such as superior security features, user-friendly interfaces, or widespread accessibility.
• Ensure consistent branding across all touchpoints, including the physical appearance of your ATMs, user interface screens, receipts, and marketing materials.
• Invest in quality customer service and user experience, as positive interactions with your brand will encourage repeat use and word-of-mouth recommendations.
• Utilize social media and online marketing to build a community around your brand, engaging with customers and gathering feedback to continuously improve your services.

How to come up with a name for your Atm business?

When coming up with a name for your ATM business, think of words that evoke a sense of trust and safety. Consider words such as secure, trust, or safety. Additionally, it may be helpful to use a pun or play on words to make your name memorable. Lastly, be sure to research the name you’ve chosen to make sure it’s appropriate and hasn’t been taken by another business. With these tips, you’ll be sure to come up with a great name for your ATM business!

Embarking on the journey to start an ATM business requires you to officially register your venture. This step is crucial for legal operation, tax obligations, and establishing credibility with both suppliers and customers. Below is a guide to help you navigate the formalization of your business registration:

• Choose a Business Structure: Decide on the most suitable business entity for your ATM business, such as a sole proprietorship, LLC, corporation, or partnership.
• Register with the State: File the necessary paperwork with the state where your business will operate. This may include articles of organization for an LLC or articles of incorporation for a corporation.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, which is also necessary if you plan to hire employees.
• Register for Taxes: Register with state and local tax authorities to obtain any necessary permits for sales tax, payroll tax, and other business taxes.
• Acquire Business Licenses and Permits: Secure any local, state, or federal licenses and permits required to operate an ATM business legally in your area.
• Open a Business Bank Account: Set up a dedicated bank account for your business transactions to keep finances separate from personal ones.

Resources to help get you started:

Access vital resources specifically compiled for ATM entrepreneurs aiming to gain insights on market trends, operational best practices, and strategic business growth:

• ATM Marketplace: A comprehensive source for the latest news, technology, and market trends in the ATM industry. https://www.atmmarketplace.com/
• National ATM Council (NAC): Offers resources, advocacy, and industry updates for ATM service providers and entrepreneurs. https://www.natmc.org/
• ATM Industry Association (ATMIA): Provides access to global reports, best practices, and networking opportunities for ATM professionals. https://www.atmia.com/
• International Journal of Electronic Banking (IJEBank): Features scholarly articles on trends and innovations in electronic banking, including ATMs. https://www.inderscience.com/jhome.php?jcode=ijebank
• PaymentsJournal: A hub for news and analysis on the payments industry, including ATM operations and technologies. https://www.paymentsjournal.com/

Starting an ATM business requires a thorough understanding of the legal requirements, including obtaining the necessary licenses and permits. This process can vary depending on your location, the type of ATM business you plan to operate, and the specific regulations in place. Below are the key steps to ensure you have all the required documentation to legally run your ATM enterprise:

• Research state and local regulations: Different states and municipalities have unique requirements for ATM businesses. Contact your local government or visit their website to understand the specific licenses and permits needed.
• Register your business: Before applying for licenses, you'll need to register your business with the appropriate state authorities and obtain a Federal Employer Identification Number (EIN) from the IRS.
• Apply for a business license: Secure a general business license from your city or county clerk's office to legally operate in your chosen location.
• Obtain specialized ATM permits: Check if your state or local government requires a special permit to operate ATMs, especially if you're placing them in public or semi-public areas.
• Compliance with banking regulations: Ensure compliance with federal banking regulations, such as the Bank Secrecy Act and Anti-Money Laundering laws, which may require additional registrations or reporting.
• Contact financial institutions: Establish relationships with banks or credit unions, as you may need to partner with them and ensure your ATMs meet their network and security requirements.

What licenses and permits are needed to run a atm business?

Licenses and permits will vary depending on the state and location, but generally, businesses need a business license, a regulatory license from the state (if necessary), zoning permits to operate in certain areas, and a license from the ATM manufacturer. Additionally, some states may require additional permits or licenses for ATMs. In some cases, a business may also need to register with state or local authorities as a money services business.

Starting an ATM business requires careful financial management and securing adequate funding. A dedicated business bank account is integral to keeping your finances organized and professional. Here's how to navigate this crucial step:

• Research banks that offer business accounts with low fees and good customer service. Consider those that provide additional services like online banking and merchant services.
• Prepare the necessary documents such as your business registration, EIN, and personal identification to open your account.
• Once your account is open, determine your initial capital requirements. This may include the cost of purchasing ATMs, cash to stock the machines, insurance, and funds for maintenance.
• Explore funding options like small business loans, lines of credit, or partnerships if your initial capital isn't sufficient. Crowdfunding and angel investors are also viable sources of funding.
• Develop a solid business plan to present to potential lenders or investors, showcasing your projected earnings and the growth potential of your ATM business.
• Consider applying for business credit cards to manage smaller expenses. They can also help build your business credit profile for future financing needs.

When setting pricing for ATM services, it is crucial to strike a balance between competitive rates and profitability. Here are some guidelines to consider for creating a pricing structure that can attract customers while ensuring your business thrives:

• Research the Market: Review the fees charged by other ATMs in your target area to establish a competitive range.
• Cost Analysis: Calculate your operational costs, including machine maintenance, cash loading, rent (if applicable), and transaction processing fees.
• Surcharge Fees: Set a surcharge fee that customers will pay per transaction. This fee should cover your costs and desired profit margin but remain fair to customers.
• Interchange Revenue: Understand the interchange fees you'll receive from card issuers, as this will supplement your income from surcharge fees.
• Dynamic Pricing: Consider implementing dynamic pricing where fees vary based on location, time of day, or transaction volume.
• Volume Discounts: Offer discounts or lower fees for high-traffic locations where transaction volumes are greater.
• Compliance Costs: Account for regulatory compliance costs in your pricing to avoid impacting your bottom line.

What does it cost to start a Atm business?

Initiating a atm business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$6,000 - $28,000 for launching such an business. Please note, not all of these costs may be necessary to start up your atm business.

Starting an ATM business requires careful selection of the right equipment and supplies to ensure reliable service and customer satisfaction. It's important to invest in quality machines and maintain a stock of necessary items for smooth operations. Below you'll find guidance on how to acquire the necessary equipment and supplies for your ATM business:

• Research ATM models from reputable manufacturers and compare features such as cash dispensing speed, security measures, and customer interface.
• Consider purchasing both new and refurbished machines to balance cost and reliability.
• Ensure the ATMs comply with current security standards, including EMV technology for chip cards.
• Choose an ATM management software for monitoring, reporting, and managing your network of machines.
• Set up relationships with cash loading services, or plan for secure cash transportation if self-filling the ATMs.
• Stock up on receipt paper rolls, printer ink cartridges, and other consumables to minimize downtime.
• Acquire maintenance tools and cleaning supplies to keep the ATMs in optimal condition.
• Consider a maintenance contract with a professional service provider for technical support and repairs.

List of Software, Tools and Supplies Needed to Start a Atm Business:

• Atm hardware and software
• Security cameras and monitors
• Computer and network equipment
• POS terminals and software
• Bank accounts and merchant services
• Business insurance
• Employee training materials
• Branding and marketing materials
• Online presence and e-commerce
• Legal documents and contracts

Securing the right business insurance is a critical step in safeguarding your ATM business against potential risks and liabilities. It's essential to understand the types of coverage that may be required to protect your investment and ensure your operations run smoothly. Here are some key points to consider:

• General Liability Insurance: This can provide protection against claims of bodily injury or property damage that occur at your ATM location.
• Property Insurance: This helps cover the ATM machines themselves in case of theft, vandalism, or natural disasters.
• Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, this can protect your business from claims of negligence or failing to perform your professional duties.
• Data Breach Insurance: Given the sensitive nature of financial transactions, this coverage can protect you in the event of a security breach that compromises customer data.
• Business Interruption Insurance: If an unforeseen event causes your business to halt operations temporarily, this insurance can help cover lost income and expenses.
• Consult with an Insurance Broker: An experienced broker can help you navigate the complex landscape of business insurance and find a policy that fits the unique needs of your ATM business.

Starting an ATM business requires not only the right equipment and locations but also effective marketing to attract clients and users. Your marketing efforts should focus on highlighting the convenience, security, and accessibility of your ATMs. Here are some strategies to get the word out about your ATM services:

• Build a Website: Create a professional website showcasing your ATM services, locations, and contact information. Optimize it for search engines to help potential clients find you online.
• Utilize Social Media: Leverage social media platforms to reach a broader audience. Regular posts about your ATM locations and features can engage potential customers.
• Partner with Businesses: Establish partnerships with businesses that can benefit from having an ATM on their premises. Offer them a share of the transaction fees as an incentive.
• Local Advertising: Advertise in local newspapers, radio, and community bulletin boards. Consider offering special promotions to new locations to boost interest.
• Attend Trade Shows: Participate in local business expos and trade shows to network with business owners and promote your ATM services directly.
• Referral Program: Implement a referral program that rewards current clients for referring new locations or businesses to your ATM services.

Expanding your ATM business is a pivotal step in scaling operations and increasing revenue. To ensure a successful growth, it's important to analyze market demand, strategically choose locations, and offer excellent customer service. Here are some key points to consider while expanding your ATM business:

• Research the market to identify underserved areas or high-traffic venues where additional ATMs could be beneficial.
• Build relationships with business owners and negotiate placement contracts for your ATMs in their establishments.
• Invest in newer, more advanced ATM machines that offer a wider range of services to attract more users.
• Implement a robust maintenance and service plan to ensure all your ATMs are functioning properly and reliably.
• Consider diversifying your services by offering cashless transaction options such as mobile payments or contactless withdrawals.
• Enhance your marketing efforts to raise awareness about your ATM locations and services.
• Regularly review and analyze the performance of your ATMs to make informed decisions about further expansions or adjustments.
• Explore partnerships with financial institutions or other businesses to leverage their customer base and increase transactions.

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

How to Start an ATM Business With a Business Plan

Published Jan.26, 2024

Updated Apr.23, 2024

By: Noor Muhammad

Average rating 5 / 5. Vote count: 6

No votes so far! Be the first to rate this post.

Table of Content

An ATM business is a type of business that operates and owns automated teller machines that dispense cash and offer other banking services to customers. Customers find ATMs easy and dependable to get cash from, and business owners can earn extra money from transaction fees and ads. But to start an ATM business, you need to plan, research, and invest in how to run an ATM if you’re an ATM business beginner. This ATM business plan sample will provide an idea for writing a successful ATM plan.

How to Write a Business Plan For an ATM Business

A business plan is a roadmap that explains how to start an ATM business step by step. A business plan like a microfinance business plan lays out what you want to achieve, how to set up an ATM, and the strategies. So, whether you are looking to secure funding or keep tabs on your progress, a solid business plan is the key.

Your ATM machine business plan should explain how to start an ATM business with no money and cover the following sections:

• Executive Summary – A brief overview of your entire business plan, highlighting the key points and the primary purpose of your ATM business. Should make the reader curious, and tell your business idea, market chance, edge over others, money highlights, and pros and cons of the ATM business.
• Company Overview – A full explanation of starting an ATM business, with its past, mission, vision, values, goals, and objectives. Should also have information about your ATM business license, legal form, owners, managers, and place, as explained in our collection agency business plan .
• Market Analysis – A complete study of the market you work in, with the industry changes, size, growth, and future. Should study the customer groups, needs, likes, and actions, as well as the competition, strengths, weaknesses, chances, and risks.
• Business Strategy – A clear explanation of how you will operate your ATM business, including your business model, your value proposition, your revenue streams, your cost structure, your pricing strategy, your distribution strategy, your customer service strategy, and your risk management strategy.
• Financial Plan – A projection of your business’s financial performance, including your income statement, balance sheet, cash flow statement, break-even analysis, and financial ratios. It should also include your funding requirements, your sources of funding, and your assumptions and estimates. For example, refer to our credit repair business plan .
• Marketing Plan – A detailed plan of how you will promote and market your business, including your marketing objectives, your marketing strategy, your marketing mix, your marketing budget, and your marketing metrics.

What is the Growth Potential for an ATM Business?

According to a report by Grand View Research, the global ATM market size reached USD 22.80 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2023 to 2030.

Image Source – Grand View Research

Here’s some more intriguing insight that shows the growing ATM market:

• There are around 3.5 million ATMs installed worldwide. 
• The total number of active ATMs in the US is between 520,000 and 540,000.
• The average withdrawal at an ATM amounts to around $80. (Source – Astute Analytica )

More and more people want automation, convenience, and security in the banking sector, especially in countries like China and India. This makes the industry grow. Also, new technologies, such as biometric authentication, smart ATMs, and mobile ATMs, can create more chances for the industry.

How much an ATM business can grow depends on many things, such as the place, the customers, the competitors, the number of transactions, the transaction fee, and the costs of running the business. Usually, an ATM business can profit 15% to 40% based on the number of machines, the number of transactions, and the bank business plan . But an ATM business also has problems, such as security risks, rules to follow, and costs of keeping and filling them.

Composition of an ATM Business Plan

To illustrate the composition of a business plan for ATM machines, we will use a sample ATM business plan for a fictional ATM business start-up called CashZone. CashZone is an independent ATM deployer (IAD) that operates and owns a network of ATMs in Florida. CashZone offers cash withdrawal, fund transfer, bill payment, and mobile top-up services. CashZone generates revenue from surcharge fees, interchange fees, and advertising fees.

Here is the company overview section of CashZone’s business plan that will explain how to start an ATM business in Florida:

Company Overview

CashZone is a start-up company that operates and owns ATMs in Florida. CashZone was founded in 2023 by Alex Right and Lucie Haynes, two entrepreneurs with experience and expertise in the ATM and banking industry. CashZone is registered as a limited liability company (LLC) in Florida and operates under the trade name CashZone Services.

CashZone wants to give customers easy, dependable, and safe cash access and make extra money for the business owners. CashZone wants to be the best ATM owner and operator in Florida, with top-quality machines having new features and functions and good advertising chances for local businesses.

CashZone’s goals and objectives are to:

• Start its ATM business in 2024, starting with 10 machines in strategic locations in Florida.
• Expand its ATM network to 50 machines by 2026, covering more areas and customer segments in Florida.
• Achieve a market share of 10% in the industry in Florida by 2026.
• Generate USD 500,000 in revenue and USD 100,000 in net profit by 2026. Refer to our financial advisor business plan to learn more.
• Establish strategic partnerships and alliances with local businesses and financial institutions to increase its customer base and market share.

CashZone’s management team and staff consist of:

• Alex Right, Co-Founder, and CEO, oversees strategy and vision with 10+ years in banking. Has an MBA and bachelor’s in business.
• Lucie Haynes, Co-Founder and COO, manages daily operations and supervision with 8+ years in banking. Has a bachelor’s in engineering and ATM certification.
• Chang Lee, CFO, handles financial planning, analysis, and reporting with 6+ years in accounting and finance. Has a bachelor’s in accounting and is a licensed CPA.
• Lisa Kirk, CMO, leads marketing and sales with 5+ years in marketing and advertising. Has a bachelor’s in marketing and digital marketing certificate.
• Tom Smith, CTO, oversees technology and innovation with 4+ years in IT and software. Has a bachelor’s in computer science and a software/security certificate.
• 5 ATM operators and technicians maintain and repair machines, load cash, and reconcile. Have ATM operations experience and training.

Keys to Success

The keys to success for CashZone are:

• Providing high-quality ATM machines that are secure, reliable, and user-friendly.
• Choosing strategic locations with high traffic, visibility, and demand for ATM services.
• Offering competitive surcharge fees that are affordable for customers and profitable for the business.
• Building a strong relationship with customers.
• Leveraging technology and innovation to enhance the functionality and efficiency of the ATMs.
• Marketing and branding the business effectively to attract and retain customers.

Industry Analysis

The ATM industry is a large and growing industry. ATMs provide cash and convenience services to millions of customers worldwide. According to Market Research Community, ATM Market size was worth USD 21.41 Billion in 2022, accounting for a CAGR of 4.8% during the forecast period (2023-2030), and is projected to be worth USD 32.65 Billion by 2030.

Image Source – Market Research Community

ATMs are very popular and widely used in the US. But the US ATM market also has some problems, like less people using cash, more people using digital payments, too many ATMs in some places, and higher costs and risks of running ATMs.

CashZone ATM wants to serve the people of Florida, who are about 22 million in 2024. Florida is a big and diverse state in the US, where many people need cash and convenient services. Florida is an appropriate place to do business because of:

• Flexible rules
• Affordable expenses
• Strong economy
• Great infrastructure
• Booming tourism industry.

CashZone ATM’s target market segments are:

• Tourists – Florida is a popular tourist destination. Florida received approximately 137.6 million visitors in 2022 (Source – Visit Florida). Cash is helpful for tourists who want to give tips, go street shopping, try local food, and have fun. They also like ATMs that are easy to use, trustworthy, and safe and have options for different languages, money types, and cash amounts.
• Retirees – Florida is a retirement haven, hosting over 4.2 million seniors (20.1%) aged 65 and above (Source – Consumer Affairs). Retirees need cash for paying day-to-day bills, meeting medical expenses, shopping for groceries, etc. Retirees also prefer ATMs that are accessible, easy to use, and safe, as well as offer features such as big fonts, voice guidance, and fraud prevention.
• Immigrants – Florida is a melting pot of cultures, with over 4.6 million foreign immigrants (21.2%) living in Florida (Source – Migration Policy Institute). Immigrants spend cash on things like sending money home, buying what they need, and more. Immigrants also prefer ATMs that are multilingual, multicultural, and affordable, as well as offer features such as currency conversion, money transfer, and low fees.
• Low-income households – Florida is a state with high poverty and income inequality. According to U.S. Census Bureau data, over 2.87 million (12.7%) people are living in poverty in Florida. Low-income households need cash for various purposes, such as paying rent, utilities, transportation, etc. Low-income households also prefer ATMs that are convenient, reliable, and economical, as well as offer features such as no minimum balance, no surcharge, and no overdraft.

Your ATM Marketing Strategy

The marketing strategy section of CashZone’s business plan should include the following information:

• The marketing objectives, such as increasing brand awareness, customer acquisition, customer retention, and revenue growth.
• The marketing mix, such as the product, price, place, and promotion strategies for the ATM business.
• The marketing budget, such as the allocation of funds for each marketing channel, method, and tool.
• The marketing metrics, such as the key performance indicators (KPIs) and targets for measuring the effectiveness and efficiency of the marketing strategy.

For example, CashZone’s marketing strategy can be summarized as follows:

Marketing Objective

CashZone aims to increase the number of customers and transactions by 20% in the first year of operation.

Marketing Mix

• Product – ATMs with cash withdrawal, fund transfer, bill payment, and mobile top-up. ATMs have biometric authentication, mobile integration, and smart features.
• Price – $2.50 surcharge fee per transaction. Interchange fees from banks and advertising fees from merchants and advertisers.
• Place – 50 ATMs in Florida at gas stations, convenience stores, shopping malls, and hotels. High traffic, visibility, and demand.
• Promotion – Online advertising, social media, flyers, referrals, and word-of-mouth. Discounts, coupons, and loyalty programs for customers and merchants.

Marketing Budget

$10,000 for the first year of operation, which is allocated as follows:

• Online advertising – $4,000 for Google Ads, Facebook Ads, and Instagram Ads, targeting customers by location, demographics, interests, and behaviors.
• Social media – $2,000 for Facebook and Instagram, posting content and engaging with followers and customers.
• Flyers – $1,000 for printing and distributing 10,000 flyers, featuring CashZone’s logo, slogan, services, locations, and contact information.
• Referrals – $1,000 for a referral program, where customers and merchants earn $10 for each referral.
• Word-of-mouth – $2,000 for building a positive reputation and image by providing excellent service, quality ATMs, and competitive prices.

Marketing Metrics

• Brand awareness – The percentage of potential customers and merchants aware of CashZone and its services, measured by online impressions, social media followers, and flyer distribution.
• Customer acquisition – The number of new customers who use CashZone’s ATMs, measured by the number of transactions, surcharge fees, and interchange fees.
• Customer retention – The number of repeat customers who use CashZone’s ATMs, measured by the frequency of transactions, loyalty program enrollment, and referral program participation.
• Revenue growth – The increase in the total revenue of CashZone, measured by the sum of surcharge fees, interchange fees, and advertising fees.

OGSCapital for Your ATM Business Plan

If you are confused about how to make an ATM business plan and looking for a professional and reliable business plan service, you have come to the right place. At OGSCapital, we have a team of experienced and qualified business plan consultants who can help you understand how to start an ATM machine business with our ATM business plan and related consultation services. We have been experts in making business plans for more than 17 years, and we have helped over 5,000 clients from 42+ industries get over $2.7 billion in money with our top-notch and tailored business plans.

We understand it’s a challenge of how to open an ATM business. We can help you create a strong and strategic business plan highlighting your benefits, market size, edge over competitors, and financial goals. We will also offer helpful tips and support on how to start and run an ATM business. No matter what your purpose is for having a business plan, we can make one that suits your requirements and expectations.

We have reasonable and flexible prices based on how challenging and urgent your project is. We ensure timely delivery, confidentiality, and quality of our work. Contact us today to get started!

Frequently Asked Questions

How much does it cost to start an ATM business? 

Starting an ATM machine in the US costs between $1,200 for a used model to $3,000 for a new, freestanding machine. But that’s not all. Setting it up and maintaining it costs extra. Hence, expect to budget $2,000-$5,000 or more to start an ATM business when accounting for all costs.

Is it worth it to start an ATM business? 

Are you confused about how to own an ATM machine for profit? ATM business profit in the US can be significant, with estimates of $450-$750 per month per machine. Starting ATMs in high-traffic areas can process over 800 transactions monthly, with potential gross profits of $6,624+ annually per machine. However, profitability depends on location, surcharge fees, and transaction volume.

Download ATM Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Start a Vending Machine Business in 2024: A Detailed Guide

Oil and Gas Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

We earn commissions if you shop through the links below.  Read more

ATM Business

Back to All Business Ideas

How to Start an ATM Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on November 4, 2021 Updated on May 15, 2024

Investment range

$3,550 - $11,100

Revenue potential

$36,000 - $220,000 p.a.

Time to build

0 - 3 months

Profit potential

$29,000 - $66,000 p.a.

Industry trend

One automated teller machine, or ATM, can provide its owner with a small stream of passive income. A collection of ATMs placed in heavily trafficked areas, on the other hand, can provide a small business owner with a tidy profit.

Even in today’s digitized world, people still need cash. At the same time, ATM machines have evolved with the addition of improved security measures, foreign currencies, and even cryptocurrencies.

Of course, starting any new business takes time, knowledge, and patience. Read on, move through the launch and development process step by step, and soon you’ll have your own successful business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

The first step is to determine if starting an ATM business is viable for you. Think of it as a way to test the idea’s true potential.

At this point you’ll want to consider the following:

Pros and cons

What are the downsides and benefits of launching an ATM business? As a rule of thumb, any viable business idea has more advantages than disadvantages.

Below are some pros and cons of an ATM business:

• Passive, undemanding work – One of the most passive business models out there. Just put your machines in place, maintain them and collect your profits.
• Client and location choice – As an ATM operator you choose who you work with and where you place your machines.
• Steady income – Assuming steady foot traffic, ATM use is relatively steady and predictable, and available 24/7.
• Relatively recession-proof – No matter the economic climate, people need to get cash — perhaps even more so during a recession.
• High retention – Many customers regularly use ATMs, providing steady repeat business for you and the location owner.
• Repetitive work – Running an ATM business can be monotonous.
• No real strategy – Besides adding new machines and locations, there’s little strategy involved in the ATM business.
• High liability – Given the involvement of significant amounts of cash, insurance rates will be relatively high and there is always the risk of theft.

ATM industry trends

In many countries around the world, customers still choose cash as their favored payment option due to convenience. Technological advancements mean customers expect faster and more secure withdrawals.

Industry size and growth

• Industry size and past growth – Market analyst Grand View Research valued the global ATM market at about $20 billion in 2020.(( https://www.grandviewresearch.com/industry-analysis/atm-market ))  
• Growth forecast – The industry is expected to expand an additional 5% through 2028.
• Number of ATMs – There were more than 470,000 ATMs in the US in 2018, more than half of which were independent.(( https://www.akleg.gov/basis/get_documents.asp?session=31&docid=22687 )) 

Trends and challenges

Trends in the ATM industry include:

• Latest ATMs offer new features, such as facial recognition technology or flight booking capability
• Smart ATMs have improved security against fraud
• Digitalization of banking services is driving growth in ATM industry
• Mobile ATMs are increasingly used for major events, such as festivals and sports

Challenges in the ATM industry include:

• High risk of fraud hinders market growth
• Competition with bank-operated ATM terminals

Popular ATMs

What kind of people work in ATM terminals?

• Gender – 86% of ATM technicians are male, while 14% are female.(( https://www.zippia.com/atm-technician-jobs/demographics/#gender-statistics ))
• Average level of education – A third (34%) of ATM technicians hold an associate degree and 27% hold a bachelor’s degree.(( https://www.zippia.com/atm-technician-jobs/education/ ))
• Average age – The average age of an ATM technician is 43 years old.(( https://www.zippia.com/atm-technician-jobs/demographics/#age-statistics ))

How much does it cost to start an ATM business?

Startup costs for an ATM business range from $3,500 to $11,000. On average, an entrepreneur spends about $7,300 to get an ATM business up and running.

The majority of this initial capital will go towards purchasing your first ATM, which can range from $3,000 to $10,000 each, depending on functionality. Additional fees and marketing costs will also be in order to start your business entity and build your initial branding.

Outside of the ATM itself, you may need some tools and equipment to help you install and service them. Here is a list of items you may need to purchase to get started:

• ATM(s) – used or new
• Dolly / Furniture moving equipment

The table below shows a more detailed initial cost breakdown.

How much can you earn from an ATM business?

Most ATMs charge a user fee of $1 to $3 per transaction, which is the sole source of revenue for the business owner. 

Gaming industry veteran Lieberman Companies estimates that one-third of US consumers use an ATM at least once a week , and that ATMs average 6-10 transactions per day. At about $2.50 per transaction, that would mean $20 in daily revenue per ATM. This means that your first ATM machine, assuming it’s well placed and functional 24/7, should pay for itself in less than a year. 

In your first year, you could work from home as a solopreneur and install 5 ATMs in good locations, bringing in more than $36,000 in annual revenue if a machine averages 8 transactions a day. If you give the local business $0.50 per transaction, your annual profit would be around $29,000.

In your second year, the average number of daily transactions per ATM could increase to 10, bringing in more than $45,000 in annual revenue and $36,000 in annual profit.

As your brand gains recognition, you could increase your ATM terminals to 20 and raise  charges to $3 per transaction. At this stage, you’d rent an office and hire staff, reducing your profit margin to around 30%. With annual revenue of $220,000, you’d make a tidy profit of $66,000. 

What barriers to entry are there?

Barriers to entry for an ATM company are relatively low. Significant challenges for new entrants include:

• Competition – Many of the best locations already have ATMs, as the industry is already relatively mature, due to low barriers to entry.
• Tech complexity – The rise of biometrics, “Internet of Things”-functionality, and other high-tech capabilities mean a prospective business owner may need further IT education to learn how to best use the latest ATMs.
• Security and compliance – Storing and transporting large amounts of cash always poses a risk, and the ATM industry is heavily regulated , with new bills introduced all the time.
• Rise of digital – Increased use of credit cards and smartphone payments may curb ATM usage in the coming years.

Related Business Ideas

How to Start a Check Cashing Business

How to Start a Credit Repair Business

How to Start a Merchant Cash Advance Business

Step 2: hone your idea.

Now that you know what’s involved in starting an ATM business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

A prospective ATM business owner should observe their local area and retail outlets to record where ATMs tend to be located and how often people use them.

You should consider possible untapped markets in your area. Maybe there are a few big box stores that have no in-house ATMs? Also, maybe your town is dominated by older ATMs and would respond to an influx of newer, more advanced models with broader functions?

If you plan on placing your ATMs throughout the city, it’s a good idea to map out in advance the route you will take to service them and estimate the frequency of your maintenance.

Additionally, you should consider the security measures you plan to include on your ATMs’ digital interface and on the lockbox you’ll use to transport the cash to your bank. Most ATMs require a minimum weekly balance of around $2,000, which is refilled as needed. A new business owner should perform thorough research on cash requirements and likely demand at the machine’s location.

Finally, think about why you are entering the ATM business. Your main objective should be based on the value of a good ATM: ease of use, efficiency, and security.

What? Decide on your ATM offerings

There are many different types of ATMs to consider: online or offline, white-label or brown, onsite or offsite, standalone or networked. Industry advisor Greenstar ATM provides a summary , with a short description of each:

• Online ATMs – Always connected to internet; real-time transactions and monitoring
• Offline ATMs – Connected only to bank’s database, fewer functions
• White Label ATMs – Operated by non-bank entities
• Brown Label ATMs – Owned by ATM providers but managed by the bank whose brand is on the machine
• Onsite ATMs – ATMs in a bank or retail outlet and operated by that business
• Offsite ATMs – ATMs operated by a third party but placed in malls, hospitals
• Standalone ATMs – ATMs unconnected to a bank network, with limited services
• Networked ATMs – ATMs connected to the network of the ATM provider

Industry advisor ATM Depot outlines the convenience and flexibility of another type of ATM , mobile ATMs, which can be installed almost anywhere. Your ATM business model could include taking several mobile ATMs to local fairs, festivals, sporting events, and other major gatherings to take advantage of temporary intense demand.

Lieberman Companies provides this short guide of ATM types , including a list of the top brands and how to buy your machines. A new ATM business owner would do well to look into the latest in biometric technology and cloud-based functionality concerning ATMs. For your ATM business, you could also consider a leasing or rental operation. ATM businesses like ATM Money Machine and Goldstar ATM , among others, provide ATMs for purchase or lease.

How much should you charge for ATM transactions?

In general, ATM fees are not really a strategic choice for the business owner to make. Their fee levels, as detailed here by market analyst Value Penguin, are determined and restricted to a small range of options by federal laws and regulations. The standard fee is $2-3 per domestic transaction, or $5 plus 3% of the transaction value for international activity.

Who? Identify your target market

As a new ATM business owner, consider where cash is the most needed in modern business and entertainment spaces. Beyond banks, consumers need cash at casinos, festivals, concerts, traditional bars, sporting events, hobby shops, and other older retail spaces.

These are some of the most lucrative locations for an ATM, but you might research specific opportunities and markets in your area.

Where? Choose an ATM location

Here are the points to consider while selecting an ATM location:

• Customer Base: Identify the demographic you want to cater to, whether it’s residents, students, or working professionals.
• Foot Traffic: The location should have high foot traffic for maximum visibility and use. Busy commercial areas or shopping complexes are ideal.
• Accessibility: Ensure the location is easily accessible 24/7 and is not obstructed by physical barriers.
• Safety: Select a location that’s well-lit and visible to provide a sense of security to users. Avoid secluded or hidden spots.
• Parking: If the location allows for nearby parking, it can increase accessibility.
• Nearby Businesses: Locations near banks, retail stores, or restaurants can increase the usage of the ATM due to increased cash transactions.
• Competition: Avoid locations with many existing ATMs to reduce competition and increase profitability.
• Rent and Maintenance Costs: Consider the cost of renting the location and any maintenance costs.
• Legal Regulations: Ensure the location meets all zoning laws and banking regulations for ATM installations.
• Security Infrastructure: Opt for a location where security measures like CCTV cameras can be easily installed.
• Internet Connectivity: ATMs require strong, reliable internet connections to function, so ensure the location can support this.
• Space and Power Supply: The location should have enough space for the ATM and a reliable power supply.
• Climate Control: Consider the potential need for climate control equipment (like heating or cooling) for extreme weather conditions.
• Customer Convenience: The location should be in a place where it’s easy and convenient for potential users to stop and withdraw cash.
• Visibility: An ATM should be visible from a distance to draw in potential users. Signage can be used to increase visibility.
• Future Growth: Consider future development plans in the area.

Step 3: Brainstorm an ATM Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “ATM” or “cash”, boosts SEO
• Name should allow for expansion, for ex: “NextGen ATM Services” over “Airport ATM Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an ATM Business Plan

Here are the key components of a business plan:

• Executive Summary: Present a concise overview of your ATM business, highlighting its focus on installing and operating ATMs in strategic locations to offer convenient cash access.
• Business Overview: Describe your business’s operation of placing and managing ATMs, focusing on high-traffic areas like shopping centers, entertainment venues, or transportation hubs.
• Product and Services: Detail the service of providing ATMs, including installation, maintenance, cash replenishment, and transaction processing.
• Market Analysis: Assess the demand for ATMs in your target areas, considering factors like foot traffic, availability of nearby banking services, and consumer cash needs.
• Competitive Analysis: Compare your ATM services to other providers, focusing on advantages such as strategic location placement, lower transaction fees, or superior machine uptime.
• Sales and Marketing: Outline your strategy for securing ATM locations, including negotiations with property owners and marketing to potential site hosts.
• Management Team: Highlight the experience and skills of your team, particularly in areas like financial services, machine maintenance, and business negotiations.
• Operations Plan: Describe the operational process, including site selection, ATM installation, cash management, and technical support.
• Financial Plan: Provide an overview of financial aspects, covering startup costs, revenue streams from transaction fees, and operational expenses.
• Appendix: Include supplementary documents such as contracts with site owners, ATM service agreements, or market research data to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to ATMs. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your ATM business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding an ATM business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for ATM Business Licenses and Permits

Starting an ATM business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your ATM business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur means taking on a lot of different roles and functions, from marketing to accounting. It can get overwhelming and difficult to manage so many diverse activities! Luckily there are a lot of excellent software programs and tools to help you with specific business tasks. 

You may want to use industry-specific software, such as MorphisCM , ATM Boss , and STANDER , to manage cash inventory, analyze transaction data, forecast currency usage, and more. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Strategic Placement: Identify high-traffic locations with limited ATM access, such as malls, gas stations, or entertainment venues, to maximize visibility and usage.
• Fee Transparency: Clearly communicate any fees associated with your ATMs to build trust with customers, as transparency can positively impact user experience and retention.
• Branding and Signage: Develop a distinct and recognizable brand for your ATMs, and invest in clear signage to enhance visibility and brand recall at each location.
• Partnerships with Businesses: Forge partnerships with local businesses, offering them a commission for hosting your ATMs, creating a mutually beneficial arrangement that expands your network.
• Promotional Offers: Run occasional promotions, such as fee discounts or cashback incentives, to attract new users and encourage existing customers to continue using your ATMs.
• Mobile App Integration: Explore partnerships with banking apps or develop your own mobile app to help users locate your ATMs easily and provide added convenience, increasing customer satisfaction.
• Social Media Engagement: Leverage social media platforms to share updates, promotions, and user testimonials, creating an online community that fosters trust and brand loyalty.
• Customer Feedback: Actively seek and respond to customer feedback to address concerns and enhance the overall user experience, demonstrating a commitment to customer satisfaction.
• Local Advertising: Utilize local advertising channels, such as community newsletters, radio spots, and local events, to reach a broader audience and reinforce your presence in the community.
• Security Assurance: Emphasize the security features of your ATMs in your marketing materials to reassure users about the safety of their transactions, helping build confidence in your brand.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your ATM business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your ATM business could be:

• Hi-tech ATM service provider – biometric security, “smart” or cloud-based functionality
• Ease-of-use, responsive touch screen functionality
• Lively or colorful branding
• Mobile ATM specialist

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an  ATM business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in banking for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in ATM. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an ATM business include:

• Installation Specialist
• Repair Specialist
• Maintenance Staff

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run an ATM Business – Start Making Money!

Your earnings depend on the number of machines you can deploy. How many ATMs will you be able to purchase and operate? The location of these machines is also important. 

Ideally, these machines should be located in areas with high foot traffic, such as retail outlets. But consider installing your machines in areas where there are many unbanked or underbanked consumers, and areas that are not served by the big banks. That way, you’ll also be helping the community by providing the people with convenient access to cash.

Now that you have the knowledge you need to start a business, it’s time to get out there and put your plans into action!

• ATM Business FAQs

ATM owners make money off the transaction fees added to each ATM withdrawal from the machine. Each time a customer makes a withdrawal from the ATM, the customer agrees to a predetermined fee for the service. The fees vary based on the bank and ATM network, and are charged either at the time or as an item on the customer’s bank statement.

The average ATM processes approximately 300 transactions monthly. At about $2.50 per transaction, the owner would stand to make approximately $750 per month per machine.

The owner / operator of the ATM is responsible for filling the machine with cash on a periodic basis, either through their own team or by hiring a 3rd party provider. The typically minimum weekly balance is around $2,000.

To monitor and maintain the functionality of your ATMs, regularly use remote monitoring systems to track their status. Establish a maintenance schedule for cleaning, inspecting for damage, and performing software updates. Monitor cash levels and implement efficient cash management practices. Have a reliable technical support system in place to address any issues promptly.

The amount of money an ATM holds can vary based on factors like ATM model, location, and cash replenishment frequency. ATMs typically hold a range of cash denominations to accommodate various withdrawal amounts.

The profitability of ATMs can vary depending on location and transaction volume. Areas with high foot traffic and limited access to bank branches or ATMs, such as busy shopping centers, airports, train stations, and tourist areas, tend to be more profitable.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an ATM Business Name
• Create an ATM Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for ATM Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an ATM Business - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

10 Profitable Electronic Business Ideas

Esther Strauss

Published on July 29, 2022

In this digital age, businesses related to electronics hold great potential. So if you’re looking for a business opportunity, look no further than ...

No thanks, I don't want to stay up to date on industry trends and news.

• MARKETPLACE
• DOWNLOAD BUSINESS KIT

How to Write an ATM Company Business Plan + Sample Template

ATMs, also known as automated teller machines, are an appealing business to operate due to the passive nature of the business. But the industry has faced unexpected changes over the past few years that should cause pause before moving forward with the idea.

ATM manufacturing alone is an $185 million dollar industry in the United States according to reports . Independent owners of these machines take a small fee from each transaction that occurs with the unit. The more machines you’re able to acquire and position in high-traffic locations, the more revenue you can generate.

The challenge within this industry has been impacts of the global pandemic. People aren’t going to be gathering in crowds, attending baseball games or fairs the same way they used to. In turn, cashless payment options are becoming more prevalent, cutting the need for paper assets where germs could spread more easily. As a result the industry size is expected to shrink through 2025.

In spite of this global shift, ATMs will continue to work in some areas. Just like magazines and other industries on that have been on the decline decades, you can still build a profitable business with the right approach. You’ll just need to be more creative and aware of the changing consumer behavior. According to major news outlets , cash is still the most used method of payment in the United States.

ATM machines are expected to decline in use over the next 5 years.

If you’re thinking about purchasing a set of machines, be sure to write a detailed business plan first so you understand the strengths and weaknesses of the business model. This post we provide detailed instruction on how to write a business plan in this industry. We even include free templates you can download and update. Let’s do this thing!

Executive Summary

Start with a brief description of your proposed ATM business by writing down an introduction for it in this section. Include a little bit about the company as well, a quick rundown of the services your ATM business will offer, and the customer focus you’ll be reaching with this kind of business.

Introduction

Introductions are important in a formal business plan. This gives your readers a quick run-through of what your ATM business is without getting too technical. A simple introduction of your business name, location, and the services you’ll be offering will suffice since more details will be thoroughly explained later on.

A sample introduction can be like this:

Cash 2 Go is an ATM business center located inside Pennsylvania Station, New York. The ATMs deployed will have cash withdrawal functions, balance checker options, bills payments services, and fund transfer services. The ATM center is accessible 24 hours a day and seven days a week.

Just by this introduction, you can already tell the name of the business, where it will be located, the services the machines will carry and the hours it is going to be accessible to the public. Assuming the venue is open, the machines could be making you money 24/7 365.

You do not have to provide extreme amounts of detail in this section. You’ll tackle the details in the next sections of the document.

Company Description

Where can I find a cupcake ATM machine?

Why have you decided to put up an ATM business? Who will be the ones running this? A little background on your company will be of great help. This gives your reader an idea of what your business setup will be such as who is in charge of accounts, who will handle the replenishing of cash, and who is responsible for machine repairs and maintenance.

Again, just list down the roles briefly for you will have the opportunity to list down a detailed management structure later on.

ATMs are already known to dispense cash but what other services will your ATM business cover? In this section, write down an introductory list of services your business will be offering.

In this case, you service is simple. You provide access to cash. However, be sure to offer any unique aspects of your vending machines that could be used to differentiate the service.

• Distribution of bills in different denominations ($10, $20, $50)
• Some machines will allow you to make specialty purchases like stamps.
• Does a certain portion of your proceeds go toward charity? That could be a differentiator.
• Does you ATM machine have a green element and use less energy than competitors? This could sway environmentally aware consumers to use your service.

Customer Focus

You’d be surprised to know that not everyone uses ATMs. The younger generation has adopted the ATM more than senior citizens. Also be aware of the location you plan to place the ATM. If you’re installing the machine into an international airport, you may want to consider adding paper assets from other countries. Understand what the customers of your area truly need and adapt.

In this section, briefly state your customer focus for your ATM business since this will come in handy in visualizing the entirety of the business for your readers.

Mission Statement

An ATM machine in Rome.

Even a simple ATM company business will need a mission statement. It will serve as the business’s goals so you can be steered in the right direction when you’re making important business decisions. It also helps you achieve success.

Related Reading: How to Write a Lemonade Business Plan for Kids + Sample Templates  

Here is a sample to give you an idea of how a mission statement would look like:

Cash 2 Go promotes ease of banking. We aim to provide cash for your needs as well as other banking services such as fund transfers and bills payments all at the convenience of one machine. One unique element of our machines is that we allow donate 5% from each transaction to the the Planetary Whale Fund. We also aim to make every transaction as secure as possible and to have our machines up and running twenty-four seven.

With this statement, you can tell how Cash 2 Go’s objectives are to dispense cash, provide basic banking services, and to ensure all their machines will be online all days of the week.

Any shortcomings will mean that the ATM company business has failed in following their mission statement. So make sure to practice and meet these objectives to provide a one hundred percent satisfaction rate from your customers.

Company Concept

ATM company businesses have a fairly simple concept. The main concept is to be able to provide cash for those who need it and cannot go to the banks at the moment. But if you need anything more to add, now is the time to write it down here.

Other concepts you might want to consider:

• Providing a deposit function for both cash and checks
• Viewing and requesting statements
• Adding the option to buy cryptocurrency
• The ability to buy lottery tickets or stamps

Do note that you’ll have to look for machines’ that can accept cash and checks since basic ATMs will only dispense cash.

Market Analysis

We are moving toward being a more cashless society.

The ATM company business has been around for a while and everywhere you go, you’ll probably spot a machine. But that shouldn’t hinder you from putting up your own. Writing up a market analysis will help you figure out if the ATM industry in your desired location is feasible or not so this will give you an idea of what to expect of your ATM business before you decide to operate.

In this section, expound further on the customer focus you mentioned above, study the industry around you, and do a competitive analysis to size up the competition you will possibly meet.

Target Market

Who are the people you are targeting for your ATM company business? Determining this before you start your operations helps you decide the services you’re going to offer, where to place your ATMs, and how to market your business.

Let’s take for example the people who need cash. That would be the people living in rural areas that have no access to banks within the vicinity and would be in need of ATMs. You can also include tourists and young adults who are relying on their parents’ debit cards.

Just be clear which market your business is catered to so you’re not lost on how to advertise your ATM business.

Industry Analysis

Are ATM businesses feasible? More importantly, is there a growth in ATM businesses around your proposed location? Studying the ATM business industry is crucial to the success of your business. An analysis will help you determine if you should push through with it or not, or if you should change some factors such as location to help your business become a success.

Remember that if you come across any results that show your business is not feasible, don’t blame the industry analysis. In a way, it helped you to stop putting up your business before you can push through with it otherwise you would have lost a big investment. So don’t skip this section of the business plan.

Competitive Analysis

There will be ATM businesses around your area so it’s best to note their pros and cons. Do they operate twenty-four seven? Do they accept deposits? How about bills payments? What rates do they have? These are the things you can take note of and compare with your own ATM business so you know which areas you can improve upon so that your business will be better than theirs.

Management Structure

An ATM business may not have a lot of staff since you’ll be letting the machines do all the work for you. But the maintenance behind it takes a few people.

Here are just some of the crew behind getting an ATM business to operate:

• IT Admin or Maintenance Team
• Sales and Marketing Manager
• Customer Service Representative

The number of departments or staff will vary depending on how big your company will be.

Product Line and Services

ATMs won’t be obsolete for many years if not decades.

As mentioned above, ATMs aren’t just known for dispensing cash. If you wish to have fund transfers, bills payments, cash, and check deposits, then you may also add them in this section.

Just be sure that the machines and system that you get for your ATM can carry all the features you wish for it to hold. Make sure you get the right specifications so you won’t have any trouble fixing things up in the future.

Also, make sure your system is secure. ATM hacks are common and hackers evolve through time. Have your IT admin do updates and security patches if need be. Make sure your security alarm and CCTV cameras are also functional so if anything happens, you can find the culprit fast.

Sales and Marketing

How do you market your ATM company business? Well, for a service that’s more of a necessity for a lot of people, advertising your ATM business shouldn’t be difficult.

Related Reading: Download Liquor Store Business Plan Sample Template + Doc

Location plays a great deal. Choose one where there is a lot of foot traffic and with shopping and food establishments around you. Chances are, people will need cash to pay for something so when they’ll spot your ATM conveniently within the vicinity, they’ll use it at once.

You can also advertise on social media and in print so you can reach a lot of people whether young or old.

Financial Plan

A financial plan helps you check the supplies you need to purchase, how much to charge for rates, and how long will it take you to reach break-even. This may seem intimidating but with a proper breakdown and a careful analysis, it will help you estimate how much to provide for your capital.

Funding Request

Business startups get their money by asking for a loan from the bank, inviting friends and families to invest in you, or simply to use a portion of your savings. But the most common one is usually to loan from the bank.

Banks will need some documents and even a business plan from you before they analyze whether or not to grant you a loan so prepare everything you need and make sure this plan will be able to convince them.

Financial Forecast

List down all the materials you need in building that ATM company business. Here is a list of things you might need and things you will be spending on:

• Permits and licenses
• Automated Teller Machines
• Rental space
• A head office
• Marketing materials
• Armored vans or delivery vans to transport your money in and out
• CCTV cameras
• Payroll for your staff
• Maintenance Fees
• Revenue splits with other businesses

Make sure your rates will also match the competition surrounding you so you do not overcharge. With these rates, you can then compute how long it will be for you to reach break-even per machine. By offering revenue splits with business owners, you can increase your chances of being placed in high-profit locations.

Operational Plan

Plan out a schedule for when you want to put your business plan into action. Don’t worry if the dates are all tentative. An operational plan just gives you a timeline for a possible startup date.

Here’s an example:

Date Plan [Insert Date Here] – Finalize the permits, licenses, business registration, and location for your ATM business. [Insert Date Here] – Start purchasing all your machines and system. [Insert Date Here] – Hiring and training your staff. [Insert Date Here] – Load money unto your ATM and start operations. [Insert Date Here] – Achieve objectives and reach break-even.

Every business will have a lot of references and documentation going on which includes photos, a list of expenses, permits, and many other legal documents. This is the section of the business plan where you’ll be able to file them.

Download Templates

Here are the ATM business templates you can download for free in PDF or Word Doc file types.

• ATM Business Plan PDF Template
• ATM Business Plan Template Word Doc
• ATM Businesses may be costly due to the machines and systems you will be purchasing. But note that with a proper business plan and a good location, you’ll be able to profit off of it soon.
• Automated Teller Machines can be purchased brand new or second-hand. Just make sure it’s not broken down if you decide on a second-hand machine to use to fit your budget. Buying used ATMs is a smart approach since you’ll invest less to start the business and will have lower financial risk.

In conclusion, an ATM business has the flexibility to be a small business venture managed in your spare time with the ability grow into a large corporation with thousands of locations. What matters is building a network of consistent locations that are profitable and an operation planning for filling machines with cash and making repairs. After all you won’t make a nickel in this business if the ATMs aren’t stocked with cash or operating correctly.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

Know someone interesting that should be interviewed on the website? Tell us about them here. 

About the Author: Patrick Limdico

Related Posts

Legit Pitch Scripts for New Vending Machine Locations

9 (Profitable) Locations to Park a Food Truck

805+ “Squeaky-Clean” Laundromat Business Name Ideas

Blend & Brand: 1005+ Smoothie Shop Name Ideas You’ll Remember

How to Start an ATM Business in 5 Steps: Beginner’s Guide

Have you ever wondered how to start an ATM business? If you have, then this step-by-step guide is for you. According to statistics, the global ATM market size reached USD 20.18 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.9% within the next few years. Undeniably, now is the best time to capitalize on this money-making opportunity.

Starting an ATM business is a big undertaking, and it's important to understand all of the steps before you begin. In this guide, we'll cover everything you need to know on how to start an ATM business.

Advantages of starting an ATM Business

Before getting into the nitty-gritty, let's discuss why you should consider starting an ATM business. Here are some of the advantages:

Predictable Income Stream

You know what's better than having an income stream? Having a predictable income stream. Your customers will always need cash, meaning you'll have a steady stream of revenue from ATM transactions.

Low Maintenance

Once an ATM is installed, there's not much maintenance required or ongoing costs that you need to worry about. This also means you don't have to keep up with the latest technology trends since your machines won't need frequent updates.

Potential For Growth 

As stated before, the ATM market is growing, and you can capitalize on this trend by adding more machines to your network . This means that as your business grows, so does your potential for income growth.

Flexible Work Hours

With an ATM business, you're in charge of your own hours. This means you can take a holiday when needed or work fewer hours if that works better for your lifestyle.

Importance Of A Well-planned Strategy 

Now that you know some of the advantages of starting an ATM business, it's time to discuss the importance of having a well-thought-out strategy. A well-thought-out strategy can help you be successful in your ATM business. It can help you mitigate risks such as cash flow issues or customer complaints, giving you more time to focus on expanding your business . 

It can also help you identify areas of improvement and prioritize tasks so everything runs more smoothly. Having a well-planned strategy is key to ensuring the success of your business. Aside from the points mentioned above, it helps you stay organized so that you can track your progress and make sure everything is going according to plan.

5 Steps to Start an ATM Business

In this section, we'll discuss how to start an ATM business in detail:

1. Conduct Market Research

Market research is an essential part of starting any business, and it's no different when it comes to ATMs. This subsection provides a guide for conducting market research for an ATM business.

Determine The Start-Up Costs And Profitability

Starting an ATM business has a high start-up cost, so it's important that you understand how much money you need to invest. To do this, you'll need to research the cost of buying or leasing ATM machines, as well as other associated costs such as installation fees and maintenance fees. It's also important to take into account the potential profits and ROI (return on investment).

Identify The Target Market

When starting an ATM business, it's important to identify your target market. Think about who you want to provide services for and where they would be located. This will help determine the type of ATMs you need to buy and where you should install them. A good way to go about this is to research the local market and determine what types of ATMs would be most suitable for that specific area.

Evaluate Competition 

Your competition plays a major role in how successful your ATM business will be. It's important to understand who else is operating ATMs nearby and what services they are offering. This will help you determine where to position your ATMs and how to differentiate your services from their offerings. 

Find The Right Location

Ideally, you should find an area with a high number of potential customers and low competition. This could include locations such as:

Convenience stores: For lots of convenience store customers, smaller payments are commonplace compared to other larger stores. These miniature purchases can take a toll on credit card processing fees, which is why many stores set an established minimum for credit cards. With this in mind, it's no surprise that ATMs remain close at hand whenever feasible.

• Gas Stations: Gas stations are popular locations for ATMs. Customers typically need to purchase gas before leaving a gas station, so it makes sense that they'd want access to cash while they're there.
• Casinos: For a casino to thrive, it is essential for customers to be able to easily exchange their cash for poker chips and use those same funds at slot machines. As such, ATMs are an integral component of any successful gambling establishment.
• Bars and Restaurants: Cash-only establishments require customers to bring in the amount of money they plan on spending. This can be inconvenient for many people, so ATMs are often placed nearby for their convenience.
• Retail Stores: For larger retail stores, it's not uncommon to see ATMs situated near checkout lanes. This gives customers the opportunity to withdraw cash for larger purchases if needed. Another example could be gifting shops like Hidden Gym , The Garden , Top Level , or No Kids Allowed .

Once you've identified an ideal location, it's important to negotiate a good deal with your vendor or landlord. This will help ensure that you get the best price and terms for your business.

2. Complete Legal and Financial Requirements

This subsection discusses how to own an ATM legally and the requirements you must fulfill to become properly licensed:

Register The business

Registering your business is an imperative and essential step; it's the first step to paying taxes, raising funds, establishing a bank account, and other fundamental elements of starting a successful company. But before you register your business, you must first think of a business structure that fits your needs. Here are the main options:

• Sole Proprietorship is the most typical setup for small businesses. It has no legal separation between the company and its owner. All revenue is received by the proprietor, who also bears complete responsibility for any business-related debts, losses, or liabilities. Subsequently, taxes on all income earned through their enterprise are reported on a personal tax return form.
• General Partnership is a general partnership involves two or more individuals joining forces to create a business. They share the profits and losses of their enterprise, and each partner is responsible for any debts incurred by the partnership.
• Limited Liability Company (LLC) is a business structure that brings together the traits of corporations and sole proprietorships or partnerships while providing assurance that owners are not held personally responsible for any debts.

Obtain An ATM Business License And Other Necessary Permits

In order to launch your own ATM business, you will need an atm business license and permits from local, state, and federal governments. You must register a "Doing Business As" (DBA) name with the government as well as obtain health-related permits through OSHA in addition to trademarks, copyrights, and patents for all intellectual properties associated with the new venture. There may also be industry-specific requirements that necessitate additional licenses or permits before beginning operations.

Depending on your location, you may need to obtain state-level and regional licenses or permits. The individual requirements for obtaining these vary significantly across different areas of the country, so make sure to check with both your state government and any local city or county websites for specific details. Alternatively, reach out directly to an appropriate contact in those jurisdictions who can help provide more information about getting authorized.

Set Up A Business Bank Account

You will need to open an exclusive business bank account in order to start your new ATM venture. This is necessary for separating personal funds from the money generated by your enterprise and also helps draw a clear financial line between the two entities.

Having a dedicated bank account also allows you to easily track all of the income and expenses associated with your business. Moreover, it can be used for setting aside money for taxes and other payments like rent or utilities. It is recommended that you look around to find out which banks offer the best interest rates, fees, and features before signing up with one of them.

Finally, don't forget to set up a secure payment processor account to make it easier for customers to transact using their ATM cards.

Protect Your Business With Insurance

Business insurance is an important step in launching an ATM business, as it helps protect you from potential liabilities and other unforeseen risks associated with operating a company. Some of the typical components of an ATM business insurance policy include the following:

General Liability Insurance: This coverage protects your business from claims involving bodily injury, property damage, and other losses that may arise out of the ordinary course of business operations.

• Property Insurance: This type of insurance covers any damage to and theft of physical property, such as ATMs or their components.
• Product Liability: This coverage helps protect your business from claims related to product defects or malfunctions that could lead to customer injuries or other losses.
• You should speak with a qualified insurance representative who can help you understand the exact coverage needed for your particular enterprise. This will ensure that your business is adequately protected from any potential risks or liability claims in the future.

3. Choose the Right ATM Machine

Now that you have the basics covered, you can start looking into the types of ATMs available and decide which ones will best fit your needs. This section covers the different types of ATMs that are available and how to choose the right one for your business.

Determine The Type Of ATM Machine You Need 

The first step in choosing an ATM machine is to determine what type of machine you need. You can find ATMs that accept cash, debit/credit cards or both. You will also want to consider the features offered by each machine, such as whether it offers cash advances and the types of receipts that are printed out. Most ATMs these days come with a range of advanced features, so you should research them carefully to make sure they meet your needs before making a purchase decision.

Compare ATM Machines And Suppliers 

If you're considering incorporating an ATM into your business, it's essential to familiarize yourself with the different models available and how they can help bolster your small business. Here are three of the best-known types of ATMs:

• Genmega Onyx: The Genmega Onyx ATM Machine is a noteworthy upgrade from the rudimentary G2500 base model. With its modernized aesthetic, larger display, and responsive touch keys, the Onyx provides an ideal solution for any retail space. Not only does it look great, but it works flawlessly too! The Onyx ATM is an attractive, cutting-edge machine that offers unparalleled features such as EMV, ADA, and PCI compliance. Whether installed in a hotel or gas station, this remarkable ATM will encourage customer transactions with its modern design that looks professional yet stands out from other locations. The Onyx costs around $2,445.00. 
• Hyosung Halo II: The HALO II is the most popular ATM available, providing an unbeatable value compared to other cash dispensers. Not only does it offer a UL 291 business hours safe and EMV card reader for added security - but with its PCI 3.0 compliant keypad and TLS (Transport Layer Security) transmission encryption, you can rest assured your personal information will remain secure and private while using this device! Starting at just $2,295.00, the HALO II is an affordable, reliable solution with a sleek design and plenty of features to ensure your customers enjoy the experience.
• Genmega GT3000: If you are seeking a secure and efficient way to offer ATM services, consider an in-wall option such as this "through-the-wall" Automatic Teller Machine. Perfect for businesses wanting to provide outdoor access without having the bother of a separate unit, it provides convenience with unparalleled safety measures. One thing to note about in-built ATMs is that they require a minimum wall thickness of at least 6.3 inches to be built around them, providing extra protection and insulation against theft. The Genmega GT3000 is the most expensive ATM on this list, coming in at $3,445.00.

4. Install and Operate the ATM Machines

In this subsection, you will learn how to install and operate ATMs.

Install the ATMs 

Installing an ATM is a process that involves several steps to ensure the successful operation of the machine. The first step involves choosing the right spot for your ATM. Selecting the proper spot for your ATM is essential. For safety reasons, it should be situated away from any back door, wide window, or external entrance to guarantee maximum security. To maximize coverage of its location, position the machine near a rear wall as much as possible; yet if you need more visibility and convenience for customers, put it closer to the front area so that visitors can locate it easily.

Once you have selected a site, you must securely attach the ATM to the wall or floor. To do this, start by marking holes in the wall or floor where your ATM will be installed. Then, drill out a hole in each of the marked areas to allow for the securing of brackets that will hold the machine. Attach these brackets to the outer walls and inner walls to securely mount your ATM.

After mounting your ATM, connect it to an electrical outlet to provide power. Depending on the type of ATM you have, the connection method may vary. For example, some machines are powered by a 110-volt AC outlet while others require 12-volt DC wiring for power supply. Additionally, use electrical tape or wire nuts to cover any exposed wires and ensure safety from electric shock or fire hazards.

Set Up And Manage The Software

Once the ATM is securely installed, you will need to configure its settings. Start by adding or updating information such as customer accounts, transaction fees, and service options. You can do this through the ATM's software panel. Once done, select which services will be available on your machine and set up a system for managing cash withdrawals/deposits and other transactions.

If you have any problems when installing an ATM, like if it can't connect to the internet or doesn't have power, check if all the wires are connected correctly. Make sure that they are plugged into the right outlets and that there is no exposed wiring. If all of these things look okay, but it still isn't working, ask someone who knows about machines for help.

Maintain The ATMs 

Finally, it is important to maintain your ATM machines on a regular basis. This includes checking for any visible signs of wear and tear or damage, such as cracks in the external casing, faulty buttons or keyboards, and other issues that could affect customer experience. Additionally, keep up with software updates and security patches to ensure optimal performance of the machine. You should also set up a schedule to clean the ATMs, such as once every week or two weeks, in order to remove any dirt, dust, and debris.

5. Market and Promote the ATM Business

Now that you have successfully installed and set up your ATMs, it is time to start marketing and promoting your business. So how do you go about this? Below, we have outlined some key strategies that you can use to market your ATM business and increase its visibility among customers.

Develop a Marketing Strategy 

Developing a comprehensive marketing strategy is essential for any business, and this includes ATM businesses. Start by defining your target audience and customer profiles, then develop clear objectives and plans for how you will reach them. This could include things like creating a website, developing content such as blogs or videos to promote the business, advertising in local newspapers or on social media platforms, attending trade shows, or even setting up booths in public areas.

Offer Additional Services 

If you want to offer extra services like mobile banking, bill payment, and money transfers with your ATM, first think about if it is a good idea. Ask yourself if it will help make your business better. If yes, then figure out how to make it happen. For example, you may need to get more machines or change the software in them. Then, market these additional services to your customers.

Create A Customer Loyalty Program

One of the best ways to increase customer engagement and loyalty is through a rewards-based customer loyalty program. This could involve offering discounts or cashback when customers use your ATMs, as well as creating promotional offers or special events for them.

Challenges Faced In The ATM business

One of the biggest challenges faced by the ATM business is staying ahead of the competition. With technological advancements constantly occurring and new players entering the market, it can be difficult to keep up with customer demands. Additionally, as more innovative solutions become available, such as mobile payments and online banking, ATMs may become obsolete in some areas. To stay ahead of the competition, you must continually adapt and innovate to remain relevant.

Another challenge is dealing with security threats. ATMs are vulnerable to cyberattacks and skimmers due to their digital connections and access to customers' financial data. It is essential for ATM businesses to take measures to protect their machines from such threats, as this can affect customer experience and loyalty.

Finally, ATM businesses also face the challenge of complying with regulations from different countries or regions. Regulations vary from place to place, so it is important for ATM businesses to be aware of all applicable rules and regulations in order to remain compliant.

Frequently Asked Questions

How much is an atm.

The cost of an ATM will vary depending on the features and capabilities it offers. Generally, basic machines can range from $2,500 to $6,000, while more advanced machines can cost up to $10,000.

Is The ATM Business Dying?

With statistics showing that ATM transactions are steadily rising and mobile banking solutions continuing to gain traction, the ATM business is far from dying. In fact, it is a growing industry with many opportunities for businesses and customers alike.

Is An ATM Business Profitable?

By processing 5-12 transactions a day, you can bring in $15-$25 of gross profit each day. So if your retail business has just one ATM, it could yield an income potential of approximately $450 to $750 per month!

How Much to Start an ATM Business?

The cost of starting an ATM business will vary depending on the size and scope of your operations. Generally, you'll need to budget for the cost of the machines, installation, and licensing fees. Additionally, you'll need to factor in costs for setup, marketing, maintenance, and customer support. All in all, you can expect to invest anywhere from $10,000-$50,000, depending on the extent of your operations.

What Are the Pros and Cons of An ATM Business?

The pros of an ATM business include the potential for high returns, convenience for customers, and the ability to build customer loyalty. The cons of running an ATM business include hefty upfront costs and ongoing maintenance costs, threats from cyberattacks or skimmers, and having to comply with regulations.

How To Start An Atm Business With No Money?

Starting an ATM business with no money is possible, but it can be difficult. Depending on the regulations of your area, you may be able to partner with a bank or financial institution that will provide the machines for free in exchange for a percentage of profits. You could also try raising capital through investments or crowdfunding platforms. Your family is another potential source of funds, as well as grants from the government or private foundations.

In conclusion, the key to successfully launching an ATM business is preparation and research. Make sure you know what kind of machines you need, how to properly install them, where they should be located, and how to set up and manage the software. Additionally, it is important to keep up with regular maintenance and to promote your business through a well-developed marketing strategy. With the right preparation, you can successfully launch an ATM business that provides customers with convenient access to cash.

Elevate your entrepreneurial game with actionable advice and inspiring interviews from high-level entrepreneurs, business owners, and overall badasses in the game. Get more insight and inspiration on our blog posts , podcast episodes , or invite-only community . 

Alex Quin is a full-stack marketing expert and global keynote speaker. Founder and Chief Marketing Officer of UADV Marketing - a member of the Forbes Agency Council.

More Insights and Inspiration

The Entrepreneur's Guide to Mastering Communication Skills

Discover the transformative power of effective communication in entrepreneurship. Master the art of articulation and persuasion with our essential guide for every entrepreneur.

10 Legit Online Jobs for Teens to Earn Extra Money in 2024

Explore 10 exciting online jobs for teens. From content creation to virtual assistant roles, discover how you can start earning money online and gain financial independence.

Get inspirational content straight to your inbox

Make boss moves in bold attire.

Inspire Your Hustle

ATM Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » ATM

Are you about starting an ATM business ? If YES, here is a complete sample ATM business plan template & feasibility report you can use for FREE .

An automated teller machine is an electronic device that enables customers of financial institutions to perform financial transactions such as cash withdrawals, deposits, transfer of funds, or obtaining account information at any time and without the need for direct interaction with bank staff.

ATMs were originally developed as cash dispensers, but have evolved to provide many other bank-related functions. Anyone can start an automated teller machine business as long as they have the financial capacity, license, network and business exposure. Below is a sample ATM business plan template that will help you to successfully write yours within record time.

A Sample ATM Business Plan Template

1. industry overview.

Independent ATM business operators are not banks but they install their ATM machines, fill them with cash and earn money every time a customer withdraws money from their ATM machines.

Once the money is taken out of your ATM, it is re-deposited into a bank account of your choice on a daily basis along with the surcharge fees. A portion of the surcharge fee is typically paid to the merchant in the form of a commission or split.

Additional revenue can be made on each ATM transaction in the form of interchange. All your machines can be monitored online through a portal where you can see real time information about how much cash is in each machine and how many transactions and fees have occurred.

The total cost of ownership of ATM network services is high, wherein buyers can expect to pay more than 100 percent of the benchmark purchase price per year in additional fees. Besides annual membership fees, buyers must pay transaction fees every time their cardholders use ATMs in the network. These fees include per-transaction switch fees paid to the ATM network provider, usually about two to ten.

The Automated Teller Machine industry is a thriving sector of the economy of the united states and statistics shows that the total number of ATMs in the United States is 425,000 (source-National ATM Council), Independently owned ATMs deployed- 222,000 (source-National ATM Council) and Average ATM fee/Convenience fee- $2.77 (source-National ATM Council).

Average commission payment-$.50-$1.00 (based on my analysis of 100+ portfolios and 10,000+ locations), and Average interchange net income-$.10-.20 (based on my analysis of 100+ portfolios and 10,000+ locations).

The costs for new machine, is between $2000 – $2500 and higher end machine with multiple cassettes and dispensers can run anywhere from $3000 and $6000. Fiserv Inc., CU Cooperative Systems Inc., Vantiv Inc., First Data Corporation and US Bancorp, ATM Network Services are the leaders in this industry.

A recent report published by IBISWorld shows that the ATM industry is highly concentrated, with the two largest companies controlling an estimated 66.7 percent of revenue in 2018. Major players have been extremely aggressive in acquiring smaller payment software companies and expanding their operations over the past five years, and IBISWorld expects further concentration as these trends continue.

Currently, NCR Corporation and Diebold are the largest US-based ATM manufacturers. Competition from abroad has tightened profit margins and prices on ATM systems. Consequently, most of the industry’s largest players operate in related industries to diversify their revenue sources.

There is a particular emphasis on self-service kiosk stations, payment, cash handling software and maintenance services. The ATM machine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business.

2. Executive Summary

Fin Tech® ATM Services, Inc. is a US licensed and incorporated business that will operate independent automated teller machine services all across the United States.

Although our business will be based in Santa Fe – New Mexico where we intend positioning our automated teller machines (ATM) all across the city, but we have the plans to spread across major cities in the United States within record time.

We are in the business to perform financial transactions such as cash withdrawals, deposits, transfer funds, obtaining account information and other sundry services, at any time and without the need for direct interaction with bank staff. We are aware that there are several independent ATM service operators with ATM outlets all around Santa Fe – New Mexico, which is why we spent time and resources to conduct our feasibility studies and market survey.

Our customer care is going to be second to none in the whole of Santa Fe – New Mexico. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they make use of any of our automated teller machines.

Fin Tech® ATM Services, Inc. will ensure that all our customers are given first class treatment whenever they use our ATM machines. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are.

We have put plans in place to operate a mini but standard call center/customer complaint center that will operate on a 24 hours basis for the sole purpose of resolving customer’s complaints. Fin Tech® ATM Services, Inc. is a family business that is owned by Lawrence Mullen and his immediate family members.

The business will be managed by his son Johnson Lawrence, a graduate of Business Administration who has extensive experience working with one of the leading ATM machine services companies in the United States of America. He will bring his wealth of experience and expertise to help build and grow Fin Tech® ATM Services, Inc.

3. Our Products and Services

Fin Tech® ATM Services, Inc. is in the industry for the purpose of making profits and we will ensure that we go all the way to make available a wide range of services as it relates to the industry in the United States of America. Here are some of the services that will be available in our ATM machines;

• Cash withdrawals, deposits, transfer funds, or obtaining account information
• Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, income taxes, etc.)
• Printing or ordering bank statements
• Updating passbooks
• Cash advances
• Cheque Processing Module
• Paying (in full or partially) the credit balance on a card linked to a specific current account.
• Transferring money between linked accounts (such as transferring between accounts)

4. Our Mission and Vision Statement

• Our vision is to build an ATM machine service that will have active presence all over Santa Fe – New Mexico and other key cities in the United States of America
• Our mission is to establish an ATM machine business that will make available a wide range of services at affordable charges to residents of Santa Fe – New Mexico and other key cities in the United States of America where we intend installing our ATM machines.

Our Business Structure

Our intention of starting an automated teller machine (ATM) services business is to build a standard business that has ATM machines in strategic positions in key cities around Santa Fe – New Mexico and of course other key cities across the United States.

We will ensure that we put the right structures in place that will support the kind of growth we have in mind while setting up the business. In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• ATM Custodian/Manager
• Admin and Human Resources Manager

Sales and Marketing Manager

Information Technologist

• Client Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
• Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• In charge of signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Answerable for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

ATM Custodian/Manager:

• Ensures that proper records of transactions are kept and our ATM machines does not run out of cash
• Ensures that all our automated teller machines are in tip top state and function efficiently at all times
• Interfaces with third – party suppliers (vendors) and our banks
• Controls cash distribution and supply inventory all across our ATM machine locations
• Models demographic information and analyze the volumes of transactional data generated by customers
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages and monitors the organizations ATM machine network and website
• Responsible for installing and maintenance of ATM machines, computer software and hardware for the organization
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner

6. SWOT Analysis

Our intention of starting our automated teller machine (ATM) business with a dozen machines installed in strategic locations around Santa Fe – New Mexico is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install more machines.

We are aware that there are several ATM machines in Santa Fe – New Mexico and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Fin Tech® ATM Services, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Fin Tech® ATM Services, Inc.;

The strategic locations we intend installing our ATM machines, the business model we will be operating on, wide range of functions in our ATM machines, competent team members and our excellent customer service culture will definitely count as a strong strength for Fin Tech® ATM Services, Inc.

A major weakness that may count against us is the fact that we are a new automated teller machine (ATM) business and we don’t have the financial capacity to compete with older independent ATM companies when it comes to spread.

• Opportunities:

The fact that we are going to install our ATM machines in some of the busiest streets in Santa Fe – New Mexico, provides us with unlimited opportunities to reach out to a large number of people who are likely going to make use of our ATM machines.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our ATM locations; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power which will ultimately affect ATM transactions. Some other threats that may likely confront us is the arrival of a new ATM machine in same location where ours is located and also down time due to technical problems from our technical partners.

7. MARKET ANALYSIS

• Market Trends

The recent trend in this line of business shows that the price of ATM network services has been increasing at an estimated annualized rate of 1.0 percent in the three years to 2017. Greater demand for services and a lack of competition have facilitated this upturn in service prices.

Still, a decline in some of vendors’ input costs has tempered the magnitude of growth in rates for services. Meanwhile, price volatility has been low in recent time. External factors such as demand from commercial banking and consumer spending will impact industry performance.

It is now a common phenomenon for ATM machines companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their ATM machines to meet their needs; in essence, the use of technology helps ATM machine businesses to maximize supply chain efficiencies.

No doubt data collected from customers goes a long way to help automated teller machine businesses serve their customers better.

8. Our Target Market

Perhaps the ATM machines business has the widest range of customers; everybody who owns a bank account has one or more things that they would need in an ATM machine. It is difficult to find people who own bank account and ATM cards who don’t make use of ATM machines.

Our competitive advantage

The competition that exists in the automated teller machine line of business is stiff because anyone can start the business despite the fact that it can be financial demanding. The automated teller machine (ATM) business requires expertise and any serious minded entrepreneur is likely to make good profit out of it.

One thing is certain, we will ensure that we have a wide range of services available in our ATM machines at all times. It will be difficult for customers to visit our ATM machines and not see the product that they are looking for. One of our business goal is to make Fin Tech® ATM Services, Inc. a one stop ATM machine.

We can boast of our ability to quickly adopt new technology, effective cost controls and proximity to key markets. So also, our excellent customer service culture, highly competitive services, reliable and easy to use automated teller machines and the visibility of our ATM machines and competent team members will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Fin Tech® ATM Services, Inc. is established with the aim of maximizing profits in the automated teller machine line of business and we are going to go all the way to ensure that we do all it takes to sell our services to a wide range of customers.

Fin Tech® ATM Services, Inc. will generate income by offering the following services via our automated teller machines (ATM);

10. Sales Forecast

One thing is certain when it comes to automated teller machine (ATM) business, if your machines can perform a wide variety of services and are centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Santa Fe – New Mexico and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the automated teller machine industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Santa Fe – New Mexico.

Below are the sales projections for Fin Tech® ATM Services, Inc., it is based on the location of our business and other factors as it relates to automated teller machine (ATM) services startups in the United States;

• First Year: $240,000
• Second Year: $550,000
• Third Year: $950,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and or major competitors positioning their ATM machines in same locations where ours are. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing locations to install our ATM machines, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Santa Fe – New Mexico.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Santa Fe – New Mexico and every other city we intend installing our ATM machines.

In summary, Fin Tech® ATM Services, Inc. will adopt the following sales and marketing approach to win customers over;

• Give our ATM machines a unique look, by painting them with bright colors or putting a large neon sign on it, so that it is easily recognizable to customers.
• Creates a basic website for our business, so as to give our business an online presence (list the locations of our ATM machines)
• Joins local independent automated teller machine associations for industry trends and tips

11. Publicity and Advertising Strategy

Despite the fact that our ATM machines will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our automated teller machine (ATM) business.

Fin Tech® ATM Services, Inc. has a long term plan of installing our ATM machines in various locations in major cities in the United States of America which is why we will deliberately build our brand to be well accepted in Santa Fe – New Mexico before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Fin Tech® ATM Services, Inc.;

• Sponsor relevant community programs
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our ATM machines are located.

12. Our Pricing Strategy

We will ensure that we conform to the price model as established by the regulatory body in the United States of America.

• Payment Options

Due to the nature of ATM machines, there are no options when it comes to payment for services other than to insert your ATM card in the ATM machine and then the machine will dispense cash or provide the information or services you requested for. We will make money from the service charge per transaction.

13. Startup Expenditure (Budget)

When it comes to starting an automated teller machine (ATM) business, the major areas you would spend the bulk of your cash is in the purchase of ATM machines, loading the ATM machines with cash and of course renting or leasing warehouse facility.

Aside from that, you are not expected to spend much except for paying of your employees, and the purchase of vans. These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring Business Consultant – $2,500.
• Insurance ( general liability , workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• Cost for Warehouse remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for the purchase of ATM machines – $25,000
• The cost for the purchase of 2 fairly used delivery vans- $20,000
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $50,000.
• The cost of launching a website: $600
• Miscellaneous: $10,000

We would need an estimate of five hundred thousand dollars ($500,000) excluding the working capital to successfully set up our automated teller machine (ATM) business in Santa Fe – New Mexico. Our target working capital is five hundred thousand dollars ( 500,000 ) and that is what we intend loading in our various ATM machines.

Generating Startup Capital for Fin Tech® ATM Services, Inc.

Fin Tech® ATM Services, Inc. is a family registered business that is owned and financed by Lawrence Mullen and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $800,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

It is an established fact that the future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our most important goals of starting Fin Tech® ATM Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our services (services charges) a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Fin Tech® ATM Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing ATM machines: In Progress
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility for warehouse and remodeling: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with banks and vendors – suppliers of all our needed products and ATM machines: In Progress

Related Posts:

• Bitcoin ATM Business Plan [Sample Template]
• Financial Advisor Business Plan [Sample Template]
• Insurance Agency Business Plan [Sample Template]
• Payday Loan Service Business Plan [Sample Template]
• Loan Officer Business Plan [Sample Template]

• 212 best farm names

How to Start a $15M/Year ATM Business

October 2, 2023

Want to start earning a passive income? People still need cash and learning how to start an ATM business (ATM means automatic teller machine) can be a great way to make a passive income. Take it from someone who is already an ATM owner.

I was a cop working 60 to 80 hours a week and neglecting my family. My back was really against the wall. I decided to start an ATM business to start earning passive income.

From starting a side business in 2017, Paul Alex grew to $15 million in annual revenue with his company ATM Together. Now, he helps people automate their own ATM businesses. He makes it easy to:

• Buy ATMs at wholesale cost
• Get a free payment processor
• Find the best rates on internet
• Locate a bank that serves ATM businesses
• Place your first ATM
• Access vaulters and technicians

Perform market research

Create an atm business plan, prepare for atm business operations, find an atm location, buy an atm (and other equipment), install and operate the atm, grow the atm business, what does atm stand for, how much is an atm machine, do i need office space for an atm business, how to buy an atm machine business, start your own atm business, how to start an atm business.

Starting an ATM business requires a simple seven-step process:

Find out how to start an ATM business by following the steps below.

Starting an ATM business will require understanding the ATM industry. We’ve got you covered with the information you need to become an independent ATM deployer. We’ll answer ATM industry questions like:

• How much to start an ATM business?
• How much can an ATM make?
• How much time do you need to spend on an ATM business?
• How profitable is an ATM business?

How much does it cost to start an ATM business?

Starting an ATM business isn’t expensive. Paul told us:

You can start an ATM business for under $6,000.

He broke the costs down to:

• ATM Cost: $2,100 • Limited Liability Company: Under $1,000 • Business license: Under $1,000 • Internet modem: $150 • Internet service: $7 per month • Tools: $300-$500 • Gas: 65.5 cents per mile using IRS Mileage Rate • ATM liability insurance: Under $1,000

How much money can you make owning an ATM machine?

Your ATM investment earns approximately $9 to $15 per day according to Paul. That converts to $3,285 to $5,475 annually or $456.25 monthly at $2 per transaction.

Paul also told us:

You can add toppers and sell ad space to earn an additional $50 to $250 per location each month.

That means to make the $15 million annual revenue he earns, you would need approximately 4,600 ATM machines. Don’t worry, you can start off with one ATM and build from there.

Check out the rest of the interview with Paul.

How much time does investing in ATMs require?

Running an ATM business will take different amounts of time depending on the strategies you use. If you manage all your ATMs yourself, it will take your drive time plus up to 15 minutes to fill each machine.

But Paul told us you can hire employees or pay other companies to do it for you. That makes owning ATM machines completely passive income.

How much money is in an ATM?

The average ATM may hold up to $200K, but you might not want that much cash in your ATM at any time. Many machines keep less than $10K in the machine at any time.

Depending on the manufacturer and the bills in the machine, you will have between one and four dispensing cassettes that hold 1,000 to 4,000 bills each. That means in rare scenarios, an ATM could hold up to $1.6M.

Next, you’ll want to create an ATM business plan to document how your ATM company will operate. A successful ATM business plan will include the following sections:

• Executive Summary: Briefly cover the main points in your business plan in a single page.
• Company Overview: Explain what makes your ATM business different.
• Industry Analysis: Show your knowledge of the ATM industry both locally and nationwide. This will help you choose suppliers for your ATM operational plan.
• Customer Analysis: Describe your target customer and how you’ll reach them.
• Competitive Analysis: Explain how you’ll differentiate yourself. For instance, Paul helps people find their first location and provides all the vendors to get started.
• Marketing Plan: Detail how you will approach product, price, placement, and promotion in your ATM business.
• Operations Plan: Explain how you’ll provide customer support, refill machines, and find new ATM locations.
• Management Team: Provide the long-term goals for your organization, the roles you’ll need to fill, and the experience of anyone who is already on the team.
• Financial Plan: Document your expected revenue and expenses. Then create three- to 10-year estimates of your annual earnings. Provide any prior year net income statements, cash flow statements, and balance sheets.
• Appendix: Document every website you used to research ATM businesses in your appendix.

Check out our article on writing a business plan for more information.

There are certain things that every ATM operator will need to do run a successful ATM business. You’ll need to:

• Select an ATM business name.
• Choose your ATM business legal structure.
• Get business licenses.
• Open a business bank account.
• Get business insurance.

Keep reading for more resources about starting an ATM business.

Select an ATM business name

You’ll want to consider the name for your ATM business carefully because it will represent your brand for the lifetime of the company.

Some tips for choosing a memorable name for an ATM business include:

• Choose a business name that is low-cost and easy to pronounce, like ATM Together.
• Check name availability as a website, social media accounts, and on the USPTO .
• Think about how branding and marketing will fit with your ATM machine business name.

Paul told us:

I wanted to help people build small businesses with ATM machines, so I named it ATM Together because we work together to help the business owners succeed.

Check out our article about naming a small business for more information on choosing a name.

Choose the legal structure for your ATM business

Next, you’ll need a legal business structure for your ATM business. You’ll go to the Secretary of State and register the business name in each state where you’ll provide ATM machines.

You want to register as a limited liability company.

Want to know more about how the business model impacts ATM providers? Consider the following.

• Limited Liability Company (LLC): This business model protects ATM operators from personal liability for business liabilities and debts. You can have single or multi-member LLCs with pass-through taxation, and also turn it into an S-Corporation . You’ll have to pay self-employment taxes.
• S-Corporation (S-Corp): An S-Corp provides liability protection and pass-through income like an LLC, but has limits on the number of shareholders. You’ll also file with the IRS to be considered an S-Corp. If you work within the company, you’ll need to pay yourself a salary, too.
• C-Corporation (C-Corp): This business entity is entirely separated from its owners and must have a separate tax ID number. Should your ATM business grow large enough to go public you can have unlimited shareholders. C-Corps are taxed on both personal income and business income, which causes double taxation.
• Sole Proprietorship: While a sole proprietorship is inexpensive and may not require any registration, you do not want to use a sole proprietor structure for your ATM business because it leaves the business owner personally liable for all debts and commitments of the ATM company. Compare LLCs and sole proprietors .
• Partnerships: There are different types of partnerships, but these are primarily used when you start an ATM business with more than one business owner. You’ll need a legal agreement in place for partnerships to resolve conflicts.

While most businesses use these five structures to start an ATM business, there are plenty of other models for your business venture.

Next, we’ll discuss business licenses.

Get business licenses

You’ll need an ATM business permit to comply with local requirements and zoning codes. Check with your city for the inspection requirements because each state and municipality has its own requirements. You may also need:

• Class C Liquor License: Get this when businesses sell alcohol in the same location as your ATM machine. Consult a lawyer to see if your state requires this.
• Sign Permit: Your state’s Department of Transportation (DOT) may require a sign permit for ATM signage on pedestrian malls, highways, and parking areas.

You will also need bank accounts for an ATM machine to accept credit or debit card transactions.

What banks accept ATM business accounts?

You’ll need a business bank account for your ATM machine to deposit the funds that people transfer from their bank account. Unfortunately, many ATM machine businesses have trouble finding a bank to work with.

That’s because an ATM machine requires lots of cash, which means that the bank has to do more work. The ATM business bank account will also normally have low balances, which makes it harder to earn money on the interest.

ATM Together helps you find banks that are ATM business-friendly, or you can check out the list of banks suggested by ATM Depot .

Using other banking products, like a small business loan, business credit card, and money market account may help convince banks to be more friendly to your ATM business.

Get business insurance

You’ll want small business insurance to operate an ATM business. Some of the risks you’ll want to consider include lawsuits and theft of machines or cash. Most of these will be covered in a Business Owners Plan (BOP).

Other common small business insurance policies your ATM business may want include:

• General liability insurance: This covers damage to property as a result of your products or services, plus accidents and injuries that happen on your property or while interacting with your machines. It will normally be included in the BOP.
• Workers’ compensation insurance: This policy is required for small businesses that have employees. It protects against on-the-job injuries by paying medical bills and lost wages.

You can learn more about small business insurance or reach out to Simply Business to get an insurance quote from 16 small business insurance companies.

You’ll need to find locations to place your ATMs. Some popular places for ATM locations include:

• Convenience stores: Gas stations and convenience store customers will often want to withdraw cash.
• Retail stores: Some retail stores only accept cash payments. Plus some people just like having cash on them and prefer to make cash withdrawals at the same time as they shop.
• Hotels: People traveling will often need cash for tipping. Providing an ATM in hotels and other hospitality locations can be highly profitable.
• Casinos: Most casinos are all-cash businesses. Just make sure you’re dealing with legally operated casinos, or your ATM equipment (and money) may be confiscated during a police raid.
• Cash-only businesses: Some business ventures only accept cash and will need an ATM in the location. Some businesses that only accept cash include adult entertainment venues and dispensaries. Again, make sure these businesses are operating legally, or you could get in trouble for money laundering.
• Newly opened small businesses : You can reach out to new small business owners who have a retail space and offer to place an ATM in their location.

You’ll need to buy ATM machines and other equipment to start an ATM business. Every ATM business will need:

• At least one ATM machine: You’ll need at least one ATM machine for each location.
• Computer: You’ll need a computer to manage your business, keep track of revenue and business expenses, plus work on marketing activities.
• Internet line: Every ATM needs access to the internet. According to Paul, you can get internet access for $5.99/month through Verizon or AT&T.
• Phone line: You’ll need a way for customers to reach you, plus older ATM machines use phone lines for the internet connection.
• Square reader: You’ll want a Square reader to process business credit card and debit card transactions if you sell ATM machines to gas stations, convenience stores, and other small businesses that operate them.
• Debit card processing account: An ATM processor authorizes and processes the transfer of funds. Plus they create a log of every time money changes hands so you can easily view a report of your ATM transactions. Working with a company that already has this set up will make starting an ATM business easier.
• Currency notes: You’ll need money in ATMs to provide to potential customers. Depending on the location, ATM machine, and programming, you’ll need at least $10K in $20 bills for each machine, but casino ATMs will need a $100 slot, $20 slot, $5 slot, and $1 slot. If each slot has 2,000 bills in it, that means you’d need $247K to fill the machine, plus a way to pay out coins.
• Security camera: You’ll want to have security cameras to protect your investments. There are optional security cameras for an ATM machine, plus you may want one in your business or home office and vehicle.
• Safe: You’ll want a discreet safe in your vehicle and home because you’ll be transporting large amounts of money at times. If you pay a company to manage the collection, you can skip this.
• Tools for routine maintenance: Varies by machine, but should probably have drill, screwdrivers, levels, and other tools.
• Alarm system: Anywhere you’ll store cash, make sure to have an alarm system.
• Handgun: A friend of mine who owns an ATM business recommends carrying a gun when you are loading and unloading cash from machines. If you hire a vaulter, you won’t need this.
• Body cam: You only need this item if you are carrying a gun. This is a personal suggestion because it will help you defend yourself if you have to use protection.

Paul uses Hyosung Halo 2 machines and Bitcoin ATMs . Plus you can buy full routes and add toppers to sell ad space for $50 to $250 per location.

You’ll need to install all your machines in their new locations. Plus you’ll have to operate them by restocking money routinely. We’ll look at each of these next.

How to install ATM machines

To install an ATM machine, you’ll need to:

• Take the box off the machine.
• Grab the box with the receipt paper and keys.
• Unlock the machine.
• Take out any styrofoam liners or any other shipping materials.
• Place the receipt paper in the receipt holder.
• Reset the default code.
• Program the ATM.
• Connect Ethernet or WiFi.
• Fill the cassettes with money.
• Bolt the machine to the wall.
• Test the ATM machine.

Buying an ATM will require some learning during the cash machine setup. Paul suggested:

Program the ATM at your home or office so that you can learn what you’re doing privately.

How to manage an ATM location

One of the things you’ll need to consider about how to start an ATM machine business is how you will refill the machines. You have three main options:

• Fill them yourself.
• Hire vaulters.
• Hire employees.

Let’s look at each of these to understand how to get ATM machines refilled.

Maintain ATM yourself

When you first start an ATM business, you’ll want to keep startup costs low. The easiest way to do that is to do all the work yourself. That means you’ll need to learn how to work on ATM machines and how to refill ATM machines.

Make sure to switch up your schedule. You don’t want to have a set routine because that makes it where people can plan to rob you easier.

If you track each machine individually, you should be able to tell when it is getting low and go refill it. Then refill any of the ones that are on the way to it. Next time reverse the order.

You should hire someone to manage the ATM machines once you get to 10 ATM machines.

But which option is better: hiring a vaulter or hiring employees?

Hire vaulters

Vaulting services are companies that manage the refilling of your ATM for you. First National ATM provides a great overview of how to start an ATM business with no money using a vaulter.

They use the following ATM price example:

Monthly Service Fees per ATM

• Cash lending fee: Prime rate + 4 points • Cash management fee: 3 cents per transaction • Cash Insurance: $25 insurance on vault cash • Armored courier: $80 per trip

They subtract those costs from the monthly revenue, which they assume will be $3 per transaction and 500 transactions per month. Effectively, their example means you are paying approximately 17% of revenue to operate the machines. That sounds way better than doing it yourself or managing employees if you want passive income.

But what does it take to hire employees?

Hire employees for an ATM business

If you want to be more active in providing ATM services, you can hire employees. This business strategy would work if you are particularly good at multiple aspects of the ATM business.

For instance, ATM Together helps people get their first ATM machine location, automate the business income, and find ATM technicians.

In general, the operating costs will be higher if you hire employees because you’ll have to implement time tracking, payroll systems, and other types of ongoing expenses.

When you hire employees, you’ll need to:

• Prepare to hire people.
• Create a job description.
• Screen applicants.
• Conduct interviews.
• Provide a job offer.
• Onboard employees.
• Improve your employee retention.

We go into more detail on hiring in other blogs. Whether you DIY, contract a vaulter, or hire, there’s still a lot to do to become a successful business. Read on for a play-by-play for growing your ATM business.

In addition to the initial equipment costs, finding a financial institution to work with, and placing and supporting your first machine, you’ll want to grow the ATM business because you’ll probably want to build more income than the couple hundred dollars you make on the first machine.

You’ll want to:

Create an ATM business website

Reinvest in the business, add toppers, reduce costs, market your atm business.

At a minimum you’ll want to create an ATM website with the following pages:

• Services page
• Testimonials
• ATM business FAQs page
• Contact page

These pages will help your target market understand what you do, how you do it, and how much you charge as an independent sales organization. Learn more about website building .

As you make money, you’ll want to find more ATMs for sale so you can buy them and make more surcharges from the transaction fees. You might also want to make an ATM purchase to sell to people who want to manage their own ATM.

ATM Together makes it really easy to make a profit when you buy ATM machines at wholesale and then provide the ATM machine for sale. You can charge a one-time fee or monthly fees if you provide support to your customers.

An ATM topper is a screen that attaches to the top of an ATM to diversify your income stream. With an ATM your primary revenue is from surcharge revenue, but an ATM topper lets you earn revenue from ad views.

You can use the ads to promote your own products and companies, products and services in the store, or even outside businesses that the target market might like.

You can make $50 to $250 per machine depending on the foot traffic.

Check out how the Smartcast ATM Topper works.

Credit card processing fees are a portion of your ongoing expenses. If you’re doing all this yourself, you could pay as much as 2.9% + 10 cents per transaction fee.

Meanwhile, other processors claim they can provide free payment processing. I assume the credit card costs are baked into the prices of other services they offer. See the picture below to see places where ATM Together might make profits that cover the processing network.

Reducing the fees can impact how much cash you have to buy more ATM machines. There may be other ways to save money, like outsourcing the maintenance of your machines or providing cash to vaulters to earn a percentage of their returns.

Let’s say you’re paying a Stripe processing fee of $2.9% + 10 cents per transaction, but by joining ATM Together , you pay 0% and $0 per transaction.

The change makes it so every 10,000 transactions, you can afford another three machines.

There are numerous ways to market your ATM business including:

• Optimize your website for search engine optimization (SEO)
• Reach out to new small businesses and offer to place a machine
• Offer incentives for making cash purchases at stores
• Offer a loyalty program or monthly subscription to frequent users of your ATMs
• Partner with online banks to provide cash services through your ATMs.

Make sure to pay your taxes

Nothing hurts the income of a small business like getting hit with a hefty tax bill for failing to pay your taxes. You especially don’t want to fall behind, given the IRS is charging $450 for failure to file , plus you’ll owe the full tax amount and 4% to 9% interest for failure to pay.

ATM business FAQs

ATM means automated teller machine. An automated teller machine may dispense cash, manage money transfers, accept checks, buy and sell Bitcoin, and facilitate other financial transactions that make accessing funds more convenient for customers.

Next, we answer “How much does an ATM cost?”

ATMs cost between $1,900 and $29,000 depending on the style of ATM, functionality, and security. Some common pricing for ATM machines include:

• New ATMs: $2,700 to $17,000 with an average cost of $6,250 • Used and refurbished ATMs: $1,900+ (or around 80% of the cost of a new machine) • New wall-mounted ATMs: $6,800 to $12,500 • High-end ATMs: $29,000+

You’ll also have operational costs like cash replacement, data connection, electricity, and receipt paper.

Yes, but you can use a home office and the costs will help pay for your mortgage or rent.

When you’re looking for ATM machines for sale, one option is to buy ATM businesses. You’ll want to:

• Research the market and understand the industry.
• Raise money to purchase the ATM business.
• Find reputable ATM machine suppliers and compare prices.
• Consider location options and potential profitability.
• Research the business to establish whether they have a very high volume location or if they are using a cheap ATM.
• Obtain necessary licenses and permits.
• Negotiate a purchase agreement. See step 5 in our blog about buying a business .
• Sign the contract.
• Set up a reliable cash management system.
• Market your business to potential clients.
• Provide excellent customer service and maintain the machines regularly.

Starting an ATM business can be a highly profitable venture. It’s similar to starting a vending machine business that provides money to customers. Check out our extensive resources on vending to see how you can apply them as you learn how to start ATM business operations.

Have you seen unique ATM strategies? Share them in the comments.

80% of businesses fail... Learn how not to.

Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.

Brandon Boushy

Related articles

How to Start a $188K/Year Pig Farm Business (2024)

How to Get Started with a Pig Farming Business

1. get experience and tour a piggery, 2. start making local connections, 3. consider the expenses of farming pigs.

Animal Costs

Equipment costs.

Other Costs

• Soil preparation products
• Veterinary costs- PetPigWorld estimates you can expect to $20-500 per visit depending on the care needed.
• Storage and cooling

4. Build a Business Plan and Make Things Legal

5. search for funding sources.

6. Start Producing Pork

7. get products to market.

• Acquire and verify needed permits- Go to NASDA.org for requirements for your state
• Create packaging for the products or buy some from Berlin Packaging
• Choose prices for the items- USDA has a guide on costs and returns
• Select possible buyers
• Do market research
• Make sure you can meet production needs
• Talk to stores and show them your products

Consider Farmer’s Markets

Get creative with other options, 8. market your hog farm brand.

Use Social Media and a Website

• Squarespace

Invest in Good Branding

9. consider expanding.

Top Influencers

• Jerod McDaniel
• Julie Robinson

Not Everyone Succeeds at Pig Farming, but It’s Possible If You Treat It Like a Business

How to Start a $100K/Year Massage Business (Step-By-Step Guide)

1. Make a Plan

How Do I Start a Massage Business?

Start-up costs.

• Training and Education
• Massage Room Décor
• Deposit (if you're opening an office)
• Equipment and Supplies (table, oils, stools, and sheets)
• Accountant or Accounting Software (QuickBooks)
• Marketing Materials

Ongoing costs

• Lease (if renting an office)
• Laundry and Cleaning
• Website, Phone, Internet

2. Purchase Equipment

What Equipment and Supplies Do I Need?

Choose safety, protect your body.

• Massage Table
• Massage Chair
• Linens and Towels (Have enough to change between each client)
• Oils, lotions (You may get a discount from a supplier if you purchase in bulk)
• Candles and Music
• Laundry and Cleaning Equipment
• Carrying Equipment

3. Licensing and Certification

License or Certification?

Defining license or certification, 4. training and education.

• National Holistic Institute
• National University of Health Sciences
• Myotherapy College of Utah
• Cortiva Institute Schools of Massage Therapy

Board Certification Training and Specialization

• Sports Massage
• Military Veteran Massage
• Oncology Massage
• Clinical Rehabilitative Massage

5. Location: Home or Office?

How do I Start a Massage Business from Home?

You need a big room, don't forget the other tasks, save money and be free.

How do I Start a Massage Business at an Office?

Rent a room, purchase later, where do i rent a massage therapy space.

• American Massage Therapy Association (AMTA)
• Associated Bodywork & Massage Professionals (ABMP)

6. Business Registration

What Type of Business is a Massage Business?

Local registration, 7. insurance, personal health insurance, 8. write a business plan.

• Executive Summary
• Company Description
• Market Analysis
• Marketing Plan

Personal Funds and Business Loans

Zero-interest credit card, 10. marketing.

Scheduling Applications

• Hubspot Meetings Tool

Social Media

11. Customer Service

Create a stress-free environment., keep your hygiene in check., be personable, but don't be pushy, give clients self-care tips., 12. financial goals and massage business profits.

Cancellation Policy

Can you make good money as a massage therapist, 13. take care of your body.

141 Profitable Rental Business Ideas (2024)

Do you have items you don’t use often?

We all buy items we need and then stop using them. Depending on what they are, you might be able to make great money by renting them out.

We’ve compiled 141 of the best profitable rental business ideas to help you find an idea that works for you. We’ve broken rental businesses into 10 categories so you can pick a rental business idea that’s perfect for your lifestyle and business dreams.

[su_note note_color="#dbeafc"] Click on any of the links below to learn more about the section you want.

Should I Start a Rental Business?

How to choose a rental business idea, rental business industry overview, 12 real estate rental businesses, 6 wedding rental business ideas, 34 vehicle rental business ideas, 10 party rental business ideas, 23 equipment and tool rental business ideas, 4 furniture rental business ideas, 8 tech rental business ideas, 9 clothing rental business ideas, 23 experience offerings perfect for rental businesses, 12 random profitable rental business ideas, 1 rental business idea to avoid, rental business faqs.

• Which Rental Business Will You Choose? [/su_note]

Author’s Note

Due to the sheer number of rental business options available, we did not review them all. We list dozens of niche rental markets in 10 categories then share specifics of some of the best rental business ideas below them. We hope you enjoy the way this piece is written; it allows us to provide you with lots of ideas and inspiration without getting too long.

Let’s start by discussing whether it makes sense to start a rental business.

A rental business can be a good side hustle or a small business if you have time and in-demand assets. Rental businesses have high profit margins and are sustainable because they don't need to replenish their inventory constantly.

Some reasons to start a rental business include:

• Profit margins: Rental businesses can have higher profit margins than traditional retail businesses. For example, bike rentals can have 60-70% margins, while party rentals might have 40-50% margins.
• Sustainable business model: Rental businesses don't need to replenish their inventory constantly.
• Asset ownership: Rental businesses own an asset or inventory, giving them control over their primary source of revenue.

You can also automate or provide value-added services to increase the profits of rental business ideas.

Keep reading to learn how to choose a great rental business idea for you.

When choosing a rental business idea, you can consider things like:

Competition

Let’s look at how each of these will impact whether a rental business idea makes sense in your area.

Research your local market to determine your area's demand for rental services. For instance, running a beach rental company in a desert doesn’t make sense. On the other hand, it makes perfect sense if you live near the beach.

Consider the competition in your area. You’ll want to compare how many competitors are in your area to the average for the U.S. population.

For example, the U.S. has 10,360 equipment and tool rental companies, meaning there is one tool and rental business per 32,000 people.

If your town has ten companies and 20K people, it’s probably not a great rental business idea. Meanwhile, you should start one ASAP if your location has a million people and no equipment rental businesses.

You can broaden the scope of your rental products to improve your rental business offerings and create more demand. Just make sure that the products make sense with each other.

For instance, it wouldn’t make sense for a party rental company to start offering construction equipment rentals.

Next, let's look at how some of the best rental business ideas are performing in today's economic environment.

The rental industry has grown over the past decade, but its growth has been heavily weighted toward areas like weddings, car rentals, party supplies, and real estate rental businesses.

Each rental industry has different growth rates and revenue. The table below shows some of the main sectors of the rental industry.

It should be noted that the size of real estate rentals is so large that it makes up nearly 90% of the revenue for rental business ideas. Don’t expect rentals to stop any time soon.

Note that we use IBIS World and NYU Stern throughout this blog as references. Both are useful resources for understanding all kinds of industries.

Next, we’ll look at some of the best rental businesses for real estate agents and others who love buying property.

Property rentals are the most profitable rental business on the planet. They account for 90% of the rental services revenue and 5.15% of U.S. GDP. They include:

1. Long-term house rentals 2. Shop spaces for rent 3. Vacation rentals and Airbnbs 4. Commercial spaces for rent 5. Conference room rentals 6. Garage rentals

7. Storage rentals 8. Office space rentals 9. Rent rooms in a house 10. Venue rentals 11. Campsite rentals 12. Land activities

These are by far the most profitable rental business ideas. Below, we share info and inspiration for getting started in a few of the most lucrative real estate rental niches.

Long-Term Home Rental Business

45.2 million people rent their homes and spend an average of $1,300 each month. That means the long-term rental business industry makes over $700 billion each year, making it the best rental business idea on the list.

The way this rental business works is a little different than many others. You will commonly see a small paper loss (-.76%) until market conditions change. Conditions that improve profits include:

• Rent increases: The average rental increases 5.77% per year , but in any given year, locations can range from -16.1% to 33.89%.
• Refinance for lower interest rates and payments: A 1% reduction in interest rates saves approximately $20K per $100K financed over the life of the loan, while refinancing without taking out some of the equity saves approximately $45 per $10K additional equity.
• Pay off the property: Yields nearly 90% monthly profits.
• Sell the property: When you sell a property, you can make profits from the difference between the price you sell it for and the sum of the pay-off amount and selling costs.

After making any of these moves, your profits increase substantially. In the meantime, your cash flow and net worth are steadily increasing. Once you reach 10 houses with 20% equity, you’re a millionaire.

This is an ideal rental business idea for real estate agents. Thach Nguyen built his real estate business investing in single-family rental properties. He’s since expanded into multi-family units and apartments and makes around $800,000 in monthly revenue using this business model. Hear his insights in this interview:

Shop Space for Rent

When you own a commercial building and rent a shop to a local business, you benefit from the asset appreciation of the building and the cash flow from the shop owners. The margins will be similar to how long-term home rentals work, but you’ll have other factors that impact the rental.

A rental business focused on shop spaces starts with having a commercial space for rent. This can mean a fairly large initial investment compared to other options on this list.

The plus side is that they have a higher profit margin than residential renting—around 30-50% on average, compared to a 10-15% average across the rental market for residential or vacation rental properties.

Bear in mind that renting out shop space doesn’t need to mean someone occupies an entire storefront. Some brick-and-mortar businesses add revenue streams by renting spaces within their store to other small businesses.

For example, a grocery business could offer pop-up booth space to local farmers, or a retail store could rent display space to local artisans. You could also offer short-term shop rentals for a seasonal business that only needs the space for a few months a year. There are various ways to start a successful rental business by offering shop space to another entrepreneur with their own business.

Airbnb Rentals

• Average Annual Revenue: $201K • Average Profit Margins: 8.10% • Startup Cost: $100K-$3.5M • Time to Revenue: 6-18 months • Annual Market Growth Rate: 2.20% • Best For: Homeowners, frequent travelers, people with hospitality experience

Airbnb commanded 20% of the vacation rental market in 2023, with a global user base of over 150 million people. It’s also one of the fastest and most affordable ways to start your own rental business and among the top rental business ideas for homeowners.

The variety of business models based on Airbnb is one advantage of this business idea. You can start small and rent out a room in a house, or invest in multiple vacation rentals to manage for higher rental business revenues.

NICASA was started with a single property in 2009 and has grown to 22 properties, generating up to $400,000 a month in revenue. Hear founders Sid and Eva’s advice for those starting Airbnb rental companies in this interview:

Commercial Spaces for Rent

• Average Annual Revenue: $298K+ • Average Profit Margins: 44.6% • Startup Costs: $500-$5K • Time to Revenue: 1-3 months • Annual Market Growth Rate: -0.3% • Best For: Strong salespeople and negotiators, entrepreneurs who want a passive income

Shopfronts aren’t the only type of commercial business renting. Other business rental space that you could offer includes:

• A small warehouse for rent by owner
• Office space rental
• Conference room rental
• Commercial kitchen rental for pop-up or mobile food businesses
• Storage rental business for mobile construction industry businesses

There are certainly other rental business ideas in the commercial space niche, too. Renting commercial space has the potential to be a very profitable rental business idea.

The initial investment is also typically high, as with any rental business idea today that’s based on owning property or land. That said, the cost per square foot is usually much lower than for residential property, particularly for spaces like warehouses, which can translate to higher profit margins.

The wedding industry is full of business ideas that are profitable if you provide quality rental services. Some of the most profitable businesses in the wedding industry are:

1. Wedding dress rentals 2. Wedding suit rentals 3. Wedding decoration rentals

4. Photo booth rentals 5. Tux rentals 6. Venue rentals

Want to learn more about wedding business ideas? Consider the following insights on why photo booth rentals make a great wedding rental business…

Photo Booth Rentals

• Average Annual Revenue: $50K • Average Profit Margins: 7.3% • Startup Costs: $1K-$10K • Time to Revenue: 1-6 months • Annual Market Growth Rate: 0.3% • Best For: Photographers and visual artists with strong customer service, communication, and organization skills

If you’re looking for unique rental business ideas, a photo booth rental service could be an excellent option. Photo booths are popular event rentals for school dances, birthday parties, and other types of celebrations, too, expanding your potential sources of revenue.

Since the majority of these events happen on weekends or in the evenings, this is one of those small rental business ideas you can easily run as a side hustle.

That’s how Josh Pather started. Within three years, he was doing over 800 events a year and turned it into his full-time job. Today, he averages $500,000 a month in revenue. Hear how he got started in this podcast interview:

Pro Tip: Check out our interview with a wedding photographer to learn more about the wedding industry.

Next, let’s discuss car rental businesses.

Vehicles are among the most commonly rented items. It is estimated that 46.8 million cars will be rented in 2024, and the car and truck rental market is expected to grow by 11% per year through 2025.

These are just the tip of the iceberg for a rental business idea related to vehicles. From a bike rental business to hourly truck rental, construction equipment, or boat rental businesses like canoe and kayak rentals, there are a lot of options in this category. Let’s take a closer look at some options.

1. Race car trailers 2. Antique car rentals 3. Electric car rentals 4. Exotic car rentals 5. Golf cart rentals 6. Horse carriage rentals 7. Racecar rentals 8. RV rental business 9. Boat rentals 10. Trailer rental business 11. Truck rentals 12. Trolley car rentals 13. Racecar trailer rentals 14. Food truck rental 15. Bike rental business 16. E-bike rentals 17. Mobile bar rentals

18. Mobile solon rentals 19. Snowmobile rentals 20. Moped scooter rentals 21. Motorcycle rental business 22. Limousine rentals 23. ATV rental business 24. Kayak rentals 25. Canoe rentals 26. Electric scooter rental 27. Fishing Boat Rentals 28. Horse trailers 29. Jet ski Rental 30. Pontoon Boat Rentals 31. Sailboat rentals 32. Scooter rentals 33. Segway Rentals 34. Yacht rentals

• Average Annual Revenue: $5M+ • Average Profit Margins: 6.8% • Startup Costs: $100K-$3.5M • Time to Revenue: 6-18 months • Annual Market Growth Rate: 2.0% • Best For: Mechanics, car experts, and collectors

Car and truck rentals have seen steady growth in the past few years as business travel rebounds and vacationers cooped up during pandemic lockdowns get back on the road. This makes 2024 a great time to start car rental businesses.

The main downside of a car rental business is that it has a relatively high initial investment. Car rental companies also often have fairly high ongoing costs for things like insurance and storage of the rental fleet when it isn’t in use.

The flip side of this is that car rental can be very profitable—one of the reasons it’s among the most popular rental business ideas. Ronnie Danelian started Legends Car Rentals in 2015, and today their fleet of exotic cars brings in around $175,000 a month in revenue. Hear how he built his business in this YouTube interview:

Bear in mind, too, that you don’t need a whole fleet to get started. Car collectors and car owners who only use their vehicles occasionally can rent out the vehicles they already own. You can find more tips in this blog post on how to start a car rental business.

Boat or Bike Rentals

• Average Annual Revenue: $285K+ • Average Profit Margins: 6.8% • Startup Costs: $100K-$3.5M • Time to Revenue: 6-18 months • Annual Market Growth Rate: 2.0% • Best For: Mechanics and vehicle repair pros with excellent sales, marketing, and customer service skills

If you’re looking for a vehicle rental service that has a lower initial investment, boats and bikes are an excellent way to go. This is the best rental business to start for individuals who are mechanically inclined and can handle the maintenance and repair of their fleet themselves, reducing the potential expense of running this type of business.

The cost to start rental business ventures involving boats or bikes varies largely depending on the type of equipment you plan to rent out. For instance, a kayak rental business at a resort or campsite requires lower startup funds than a luxury yacht charter company.

If you live in a large urban area, a bike or scooter rental business can be a profitable idea. Last-mile public transportation is often lacking in these markets, and your company can be very successful if you can fill that need.

You can also combine these vehicle rentals with related services to add revenue streams. For instance, you can offer a fishing rental service as an add-on to boat rentals, or provide guided tours as an extra service for visitors renting bikes or scooters.

A lot of the things people need to throw a great party aren’t items they’ll just find around their homes—and aren’t things they’ll use very often (if ever again). This is what makes a party rental business a smart investment: you’re providing equipment that many people won’t have reasonable access to otherwise.

Just like there are a lot of different types of parties, there are many ways you can make money with rental equipment or a party supply rental business. This includes things like furniture rental of chairs and tables for dinner parties, fun items like karaoke machines or bounce houses, or the space where people host gatherings as an event rental business. Here are our top party rental business categories:

1. Bounce houses 2. Party bus rental 3. Party tent rental 4. Costume rentals 5. Margarita machine rentals

6. Holiday decor rental 7. Masquerade costume rentals 8. Popcorn machine rental 9. Prop rentals 10. Inflatable rentals

Party Bus Rental

• Average Annual Revenue: $689,656 • Average Profit Margins: 8.8% • Startup Costs: $1K-$100K • Time to Revenue: 3+ months • Annual Market Growth Rate: 0.7% • Best For: Outgoing and social entrepreneurs, people with event planning and party planning experience

For those who want a unique and profitable party rental business, a party bus fleet is a strong contender. For one thing, there are multiple revenue streams built right in. You can rent out just the bus, or provide full service with snacks and drinks for an extra fee.

Along with this, it offers a lot of flexibility. There’s the potential for passive or side income if you put effective processes in place. More hands-on and extroverted entrepreneurs can put their people skills to work, hosting party games or other activities while the group is on the go.

The initial investment to start a party bus rental business is also lower than you might expect. If you don’t have a ton of startup cash and are mechanically inclined, you can repurpose used school buses or similar vehicles and save on that initial expense. 

Construction equipment is expensive, and the average person only needs it occasionally. This is what makes it ideal as rental equipment, particularly for avid DIY-ers or construction pros who already have the tools and want to make a bit of extra profit from them.

Compared to something like a home or car rental business, an equipment rental business has a lower initial investment, even if you’re starting from scratch.

While construction equipment offerings like crane, dump truck, or mini-dumpster rental involve more sizeable initial investments (and require more storage space), renting out smaller gear as a power tool rental business or camping equipment supplier can make for excellent equipment rental business ideas.

As camping rental businesses prove, a tool rental business doesn’t need to be focused on construction projects. There are lots of other categories that can be very profitable. Depending on where you live, a business in ski and snowboard rentals, fishing equipment rentals, or similar outdoor adventure gear can be very profitable.

Another growing category is a medical supply rental business, which can help older adults stay independent longer or be a godsend for people in recovery from illnesses or injuries.

The bottom line is, the equipment rental industry is broad. Here are some ideas within the niche to get you started:

1. Power tool rentals 2. Crane rental business 3. Dump truck rentals 4. Dumpster rental business 5. Fishing equipment rental 6. Forklift rentals 7. Generator rental 8. Heavy equipment rental business 9. Hunting gear rental 10. HVAC rental 11. Landscaping supply rental 12. Lighting rental

13. Medical supply rental 14. Moving equipment 15. Music instrument rental 16. Construction equipment rentals 17. Porta Potty rental 18. Portable sink rentals 19. Scaffolding and ladders 20. Small equipment rental business 21. Camping equipment 22. Beach gear rental 23. Catering equipment

A furniture rental business is among the top businesses you can start with what you already own.

Short-term furniture rental includes things like tables and chairs for events. You could also rent out furnishings on a more long-term basis, for example, to furnish a short-stay apartment or during the infancy of a new child. Here are some of the most lucrative furniture rental options to consider:

• “Furniture rental near me” businesses
• Animal crates and haulers
• Artificial plant rentals
• Baby equipment rental

Baby Equipment Rental

• Average Annual Revenue: $2.1M+ • Average Profit Margins: 3.9% • Startup Costs: $500-$250K • Time to Revenue: 3+ months • Annual Market Growth Rate: 2.7% • Best For: Moms, childcare professionals, organized and system-oriented entrepreneurs

Items like cribs, strollers, and playplaces are must-have equipment for parents. That said, they’re also items with a fairly short useful life, and not all new parents have the money (or the space) to buy a bunch of stuff their kids will grow out of in a few months.

A baby equipment rental business can be an especially smart move for parents looking to make some side income. As your kids outgrow their gear, you can clean it up and rent it out to other parents who need it. If you want to grow the business, you can use the profits from these early rentals to invest in new gear and grow your revenue potential.

Similar to construction equipment, high-tech gear can be costly. It also becomes obsolete fairly quickly, which makes it a poor long-term investment for individuals.

Individuals or businesses who have a short-term need for professional recording equipment, drones, or other technology often see it as more cost-effective to rent than to buy. That creates an opportunity in the rental market for people who do own this gear to make more profit from it.

Here are some tech rental business categories worth considering:

1. Online broadcasting 2. Audio rental business 3. AV equipment rental 4. Camera & lens rentals

5. Dehumidifier rental business 6. Drone photography rentals 7. Lighting rental 8. Photo booth rentals

Drone photography rentals

• Average Annual Revenue: $50K • Average Profit Margins: 7.3% • Startup Costs: $1K-$10K • Time to Revenue: 1-6 months • Annual Market Growth Rate: 0.3% • Best For: Photographers and visual artists, tech-literate and creative entrepreneurs

Drone photography has a lot of applications. It’s a great way to get shots of outdoor events like festivals and concerts. Many event planners also use it to record events like weddings, while realtors can use drones to document properties for potential buyers to see online.

This variety of potential customers is what makes drone photography rentals a smart business option. You can focus exclusively on drone photography, or have this as an additional service to a broader camera rental business.

Mile High Photography has made its name working with everything from marketing and advertising professionals to party planners, and they bring in more than $35,000 a month in revenue. See how they built their business in this YouTube video:

People don’t like buying things they’ll only use once—and that applies to things they wear, too. From tuxes to prom dresses and Halloween costumes, here are some of the best types of clothing to start a rental business:

1. Clothing rental 2. Costume rental 3. Designer accessory rentals 4. Handbag rentals 5. Evening gown rentals

6. Fine jewelry rentals 7. Formalwear rentals 8. Fur coat or faux fur rentals 9. Prom dress rentals

Your business doesn’t need to stop with renting equipment out to use. Offering services and experiences related to that equipment creates new ways to earn revenue from it.

For instance, if you have experience as a construction professional, you can rent out your power tools and teach classes on how to use them. That’s twice the revenue potential from the same gear.

Guided tours are another way to leverage your knowledge and equipment in tandem. For example, offering curated fishing excursions, or renting the camping gear to participants in a wilderness retreat.

Here are some ideas for rental experience businesses:

1. AR experiences 2. Dolphin experiences 3. Manatee experiences 4. VR experiences 5. Curated adventures 6. Dive tours 7. Hand gliding rentals 8. Horseback riding rentals 9. Hunting excursions 10. Kiteboarding rentals 11. Skilled trade lessons and power tool rentals 12. Paddleboard rentals and tours

13. Parasailing 14. Scuba lessons 15. Skydive excursions 16. Snorkeling excursions and rentals 17. Sunset cruises 18. Surfboard rentals 19. Tubing rentals 20. Water activities 21. Windsurfing 22. Flyboarding rentals 23. Ski and snowboard rentals

Just about anything can be rented for a profit if there’s someone else who wants to use it! Here are some final random ideas you could turn into your own rental business:

1. Booth rental business ideas 2. Camping trailer rentals 3. Float rentals 4. Hobie cat rentals 5. Hunting equipment rental 6. Kiteboarding rentals

7. Kombucha stands 8. Lawn sign rentals 9. Movie projector rental 10. Sporting goods rentals 11. Toy rental 12. Tubing rentals

Do not start a movie rental business. People can watch as many movies as they want on streaming services for a small monthly fee, making a movie rental business a dead business model.

What are the most profitable things to rent out?

The most profitable rental business category by far is renting out property. Like we mentioned earlier, these account for 90% of rental industry income in the United States. In terms of profitability, commercial space tends to have higher margins, though home and apartment rentals are also a very profitable industry.

How profitable are rental businesses?

Rental business ideas can be extraordinarily profitable. For instance, an Airbnb can be profitable as a rental business idea with as little as 50% occupancy.

While the average Airbnb may lose money (a little bit) on paper, ultimately, it has the potential to increase in value. Profit margins can approach 50% or higher when the property is owned outright.

What profits should I expect from an equipment rental business?

An equipment rental business idea will have different profit margins depending on the economic environment and the equipment.

U-Haul has had gross profit margins of 28% to 40% and net margins of 1% to 20% since 2009. Meanwhile, United Rentals , the largest equipment rental company in the U.S., has gross profits between 25% and 43%, with net profits between -4% and 22% during the same periods.

What are the most profitable rental business ideas to make money in 2024?

While property rentals tend to make the most revenue, equipment rentals can have a higher profit margin. This is because there are fewer ongoing costs to maintain and own them. This is particularly true of durable, long-lasting equipment like power tools.

Which Rental Business Will You Choose?

There are numerous rental businesses to choose from. You just need to decide which is right for you. Consider what you already own, the network of people you know, and the value of the items before choosing which to pursue.

Then you need to create the business and start marketing your rentals. As you start making money, reinvest in other assets to rent, and you’ll build an empire in time.

So which rental business will you start?

Become a business owner in less than 90 days

Start your 10-day free trial of the UpFlip Academy and learn how to start your own business from scratch.

Get business advice straight to your   Inbox 

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

How an Ex-Police Officer Made $12 Million in 3 Years After Buying ATMs for $2,100 and Operating Them as a Side Hustle He initially considered real estate but felt it would require a lot of cash and create more debt (and stress) with a mortgage and the overhead expenses of maintaining a property.

By Laila Maidan Jan 2, 2024

Key Takeaways

• As a police officer, Paul Alex decided he would be better off by investing in cash-flowing assets.
• He initially bought six ATMs and scaled to 30 with the profits he earned.
• A decent minimum return on an ATM should be at least $200 a month per machine, he said.

This article originally appeared on Business Insider .

Paul Alex entered the police force as a trainee with the plan to build a career in law enforcement in the San Francisco Bay Area.

Alex, 35, hit the ground running, eventually becoming a detective in the narcotics task force before being assigned to the special victims unit. By 2020, he had scaled his way up to a salary of $133,000, with benefits bringing him up to an annual salary of over $272,000, according to California state archives viewed by Insider.

While his career set him up for financial stability, his weekly working hours could range from 60 to 100 hours.

"I didn't have any personal freedom," Alex said. "I was neglecting my personal life. I wasn't hanging around my family who I love. I'm a big family guy. And at the end of the day, I realized, this can't be life."

The deeper realization that a salaried career wasn't going to be his future was during periods when overtime was paused, which would cut his pay drastically, he said. Some months, his biweekly paycheck would be $2,000 after deductions. This meant he always had to save for those low months to cover his bills, which could range from $5,000 to $6,000 a month, he said.

"What really was a morale killer was the fact that you want to move ahead in life. And I feel it kept you static when that happened," Alex said.

He decided that investing in cash-flowing assets would be a way out of the paycheck volatility. He could then use his salary for discretionary purchases such as vacations, cars, and additional investments.

He initially considered real estate but felt that it would require a lot of cash and a mortgage that would create more debt. Plus, he believed that the overhead expenses of maintaining a property would add to his stress. He'd have to hold any rental income in cash in case he had to cover the mortgage due to missed rent or repairs.

In 2017, Alex came across the idea of investing in ATMs through a colleague who had been researching the business. He began joining social media groups about it, watching YouTube videos from others who had done it, and reading any material he could.

It was a business model that was out of his comfort zone because he knew nothing about it. But the draw of it was that it had a low-cost barrier to start; relative to buying real estate, an ATM could cost less than $3,000. It also had lower risk because if the ATM wasn't generating a return, he could relocate the machine, which he refers to as a floating asset. And finally, it was a quick way of starting a side hustle because once a machine was placed on location, it could start generating a profit almost immediately.

Alex decided to pursue it as a side hustle in 2018. By March 2021, he had left the police force and made it his full-time job where he provides the ATMs for those who also want to embark on this business.

From January 2021 to April 2023, Alex's profit and loss statements viewed by Insider show a total sales of $12 million and a net profit of about $3.5 million for his company ATMTogether, a provider of ATM machines and services. His company Merchant Task Force, which provides credit-card terminals, shows an income of $844,000 and a net profit of $742,000 for the same period.

Scouting locations

In 2018, Alex took two weeks off from work and used that time to scout the city for ideal locations.

He looked for high-traffic areas that had an incentive to have an ATM on site. This included tourist areas and city spots that were populated with nightclubs, restaurants, and valets to target zones where staff was tipped. He also looked for small businesses that offered cash back at checkouts, which was a nuisance to the business because they had to be sure there would always be enough dollar bills in the register.

Alex would pitch the businesses as though he was offering a service. He would be responsible for providing and maintaining the machine at no charge to them. He recalled cold calling over a hundred businesses and physically walking into over 20 locations.

"When I started this and I had gone out there and I was getting nos and yeses, wins and losses, It was very difficult for me to go back to work and not think about my business. And I think that's what caught me, was just the fact that I was growing something for myself and I wanted to continue to grow it."

He initially had the idea of starting with three ATMs but by the time he was done, he was able to secure six locations: three liquor stores, two barber shops, and one nail salon in the San Francisco Bay Area. The first three were incentivized by cashback and the last three by cash tips.

Once the machines arrived on location, he loaded each ATM up with about $2,000 to $3,000 in cash.

Not every location was a grand slam. Alex noted that a decent minimum return on an ATM should be at least $200 a month per machine. Within the first month, Alex could already tell that the only three machines producing a return were the ones he placed at the liquor stores. They had a net profit of about $250 to $500 a month per location from fees charged for withdrawals. In contrast, the lower traffic locations were only producing $25 to $100 a month. He let the machines sit for two months before deciding it was time to move them.

Alex also found a mentor from Facebook who was successful in the business. Based on his mentor's advice, he moved the three machines to two convenience stores and another liquor store. From there, they began to bring a net profit almost immediately, with the highest return being $600 a month, he said. He suddenly had six operational machines that brought in roughly $3,000 a month in net profit, he said. It took him approximately six months to get a return on his investment.

Funding the businesses

While Alex had enough cash saved to purchase the machines, he realized he would need the bills to stock the ATMs. So instead, he signed up for two personal credit cards and used them to buy the hardware, he said. They were cards that specifically offered zero interest for the first 12 months, he noted. This would give him enough time to create cash flow without incurring interest every month.

When he purchased his first set of six machines, Alex assumed he got a good discount, which was $2,100 an ATM. He would later realize it was a bad deal because it required him to pay a 30% commission from the fees his ATMs charged. While the sales agent he worked with told him it was standard practice, he later realized it wasn't the only way.

The next set of machines would be purchased from his mentor. They were both new and refurbished and cost between $1,800 to $2,200 depending on the model.

Additional costs for the ATMs included an internet wireless modem for $150, a monthly internet charge of $6.99, and installation by a technician of $300.

Alex would gradually use the profits from his ATMs to buy more machines. And by 2020, he had accumulated 30 ATMs across the San Francisco Bay area that were operative. Each brought in anywhere from $250 to as much as $1,500 a month in net profit.

Altogether, these little assets cash flowed anywhere between $9,000 to $12,000 a month in net profit, he said. While his side hustle didn't make up for his salary, he was fully able to cover his bills with the profits. This was enough to make him want to leave his job in 2021 to build a business in this sector.

During this time, he met an ATM provider who he partnered with and they scaled to become a provider of ATMs. This allowed him to sell off his machines so that he could become remote.

Even while in the act of building his side hustle, Alex still had doubts running through his mind. The chatter from those around him kept him questioning his ability to carry this through. Some of his colleagues thought it was a bad idea to invest in an unknown business and told him he should just pick up extra hours instead. In hindsight, he's glad he kept going.

"Invest in yourself. Self-education is everything," Alex said reflecting on his journey. "All this started from a friend of mine, giving me an idea, and then me taking that idea and doing my due diligence and just researching it, buying books, watching videos, reading, reading, reading to the point where I was comfortable enough to execute it on my own."

This story was originally published in June 2023.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• Lock Want to Start a Simple Business That Helps the Planet? After 'One Night's Worth of Research,' He Started an Eco-Friendly Gig and Now Makes $200,000 a Year
• I've Negotiated High-Pressure, Multi-Million-Dollar Deals for Artists Like Bruno Mars and Enrique Iglesias — Here's the Strategy That Always Helps Me Win
• Lock This Toxic Money Habit Is Becoming More Common — If You've Picked It Up, Your Finances Are at Serious Risk , Expert Warns
• 'This Year Almost Broke Me': Tom Schwartz Reveals 'Scandoval' Almost Shut Down His Restaurant After Losing 80% of His Business
• 'Not What Anybody Signed Up For': A Legal Expert Weighs in on the Labor Rule That Could Destroy Franchising
• Lock Anyone Can Try the Simple Strategy That One Billionaire Investor Used to Make His First Million Dollars Tax-Free

Most Popular Red Arrow

These coworkers-turned-friends started a side hustle on amazon — now it's a 'full hustle' earning over $20 million a year: 'jump in with both feet'.

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

These Are the 10 Most Profitable Cities for Airbnb Hosts, According to a New Report

Here's where Airbnb property owners and hosts are making the most money.

An Iconic Las Vegas Casino Is Shuttering This Summer After 34 Years

The Mirage will close on July 17.

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.

This Couple Turned Their Startup Into a $150 Million Food Delivery Company. Here's What They Did Early On to Make It Happen.

Selling only online to your customers has many perks. But the founders of Little Spoon want you to know four things if you want to see accelerated growth.

Successfully copied link