In this blog post, we are going to talk about the low-risk nature of the vending machine business. 

As the times are changing, more and more people want to own their own businesses and this, in turn, has led to a rise in the number of startups all around the world but especially in India.

More than 40 startups entered the coveted unicorn club in India in 2021 and this is just the beginning.

In this age of startups, it is essential to be careful while starting your own business. If you’re going to invest your savings into building your business, the pros and cons have to be considered.

All businesses have a certain l  associated with them, some higher than others. 

If you’re just starting out, a business with low risk can give you a little taste of what it is like, and then you can move on while slowly increasing the intensity of risks you take.

One such business with comparatively low risk and high returns is the Vending Machine Business.

Vending machine industry has been growing very rapidly in recent years and it has a huge potential in terms of market size and growth opportunities, especially in India. 

Vending machines come with lots of benefits like 24*7 snack & food availability, less manpower requirement, low initial investment, contactless ordering, etc. This has attracted many people to start this vending machine business. 

 

Let us see Why is Vending machine Business is less risky?

 

First is Low startup cost

One of the most attractive parts of this industry to business owners is the low start-up or initial costs. One can buy a vending machine at a minimal price of around Rs.1.5 lakhs only. You don’t need a huge investment and you can grow at your own pace, with the budget that you want.

 

The second is Low operational costs

The operational costs aren’t very high. You’ll just have to figure out the space to keep your stock and hire someone part-time or full-time for the refilling of products in the vending machine. 

Other miscellaneous costs include electricity and internet but these are not required everywhere. At most of the sites, clients provide these facilities to operate the vending machines. 

 

Starting small reduces the risk

You may start with 1 vending machine. By starting with a single unit, you can estimate how much money you might be able to make while learning the intricacies of the business. 

If you realize it isn’t the right fit for you then you would not have lost a lot of money thus reducing the financial risk.

 

Next is Simplicity

If done correctly, it is so much less complex than some other types of food and restaurant businesses. Procurement of products from vendors and refilling them in vending machines are the two main functions that you need to manage and streamline in order to make profits and scale your business. 

Gathering customer feedback and implementing them is also very easy in this business. You can place products based on your client’s demand and requirements to have good sales at each site. 

For new entrepreneurs with limited funds and limited knowledge of the inner workings of the industry, it is a very good option.

 

High Return on Investment and faster payback

Vending machine startups have a high return on investment. One can typically recoup the investment within less than 12 to 18 months. 

There are multiple revenue sources associated with vending machines like monthly sales, rental income, and ad revenue. Also, the average margins in vending machine business are around 25%.

All these income sources help in achieving profitability much faster than any other food business. 

 

Last but not least – You control the business growth

You can grow at your own pace and with the finances that you are comfortable with and eventually scale out when you are confident. The major benefit of this business is the flexibility that it allows you to experience. You can decide your own hours and can decide if you want this to be your side business or a full-time deal.

So, if you are planning to start a Vending Machine Business or need help with your current setup, reach out to us today! Daalchini provides a franchise opportunity using which you can start your own vending business in your city or state. Daalchini helps you with everything required to start and grow this business.