How To Start An ATM Business — One profitable business that has been getting massive recognition and adoption recently is the ATM business. It is a pretty profitable venture, especially with the constant high demand for ATMs. A lot of businesses and people rely on them for their transactions. Therefore, if you want to start an Atm business, but you don’t know how to navigate your way. Then rest assured, this comprehensive guide will walk you through all the basic steps required to establish an ATM business. Continue reading to get started.
How to Start an ATM business
One beautiful aspect of the ATM business is that it doesn’t require any certificate. You only need to plan appropriately, put in hard work and execute your missions. Let’s look at the steps to start a profitable ATM business.
1. Draft a business plan
Having decided to start this business, your first step is drafting a business plan. Your plan should contain all information about the company from the start to the end, including the capital amount you have, where you want to establish the business, your profit goals, and many more.
Entirely your plan should be a summary of the business, alongside all other information related to the business, the type of ATM business you want to open, and whether it is an independent organization, sales, or financial institute.
The plan should also have an analysis of the industry, which means you must research the market, see what’s trending, and how you can improve your business once you start. It should also feature competitive and customer analysis, your marketing plans, managing and operating teams, etc.
2. Select a name for the business
Once you draft your business plan, it’s time to choose a name for the business. You will have to have a name that is unique to your business. Also, the name should be simple and memorable. Your business is there to stay for a lifetime, so make sure the title you give is one that even small children can easily remember.
Some of the best tips for choosing a business name are, first, make sure the name is available. The best way to know this is by checking online. You insert the name and see if there are other ATM businesses with that same name around you, you can also ask around physically. You can use online tools, too, to generate names for your business. Make sure the title reflects the specific services you offer.
3. Obtain your license and permits
Before starting any business in most states, you must obtain a license from the proper authorities. This will also protect your business in case of legal issues. Depending on your state, you will get a permit based on where or the type of ATM business you want to start.
If you want to install your ATM business in shops that sell alcohol or beverages, you will obtain a class C license. If you put the ATM business in a pedestrian hall, parking space, or highway, you will obtain a permit from the Department of Transportation DOT, etc
4. Obtain insurance for the business
The insurance you may require is based on the risks associated with the business. For example, if you establish a business in a place that has a high crime rate, you will need insurance that will protect your business from lawsuits. If there is a potential injury in the business, you will need general liability insurance to protect you in case of damage.
5. Choose a legal entity
Depending on the state you live in, once you start a business, you must also select a legal entity for that business. These entities will protect your business in case of disaster. There are many entities available, so you can choose the one that will best suit your business.
For example, there is a sole proprietorship where you are the owner of the ATM business, which means you will be responsible for any obligations and debts related to the business, the benefit of choosing a sole proprietorship is that it’s simple, cheap, easy to operate and set up.
There is also a partnership entity. From the name, the partnership is where two or more people establish the business, and they will be sharing both profit and losses. Another legal entity is a Limited Liability Company, where the business owner will not be the one that will handle the liabilities and debts of the business.
Limited Liability Company and C Corporation entities are similar, but in C Corporation, the business can have shareholders and has its tax ID too.
6. Get a funding source if necessary
Sometimes your capital might be enough to start a business; other times, you must look for other funding sources. If you have to look for funding outside your pockets, you can start with your family members and friends. You can also look for angel investors offering capital to start businesses. However, you must have a high growth potential before angel investors invest in your business.
7. Choose a location for the ATM business
One of the determinants of a successful ATM business is where the business is built. You will want customers to always line up in your shop, so ensure to choose the best location. The place should be accessible to your customers and has parking lots, and you should also inquire about the cost of establishing a business in the area. Some of the best places to start an ATM business are retail shops, gas stations, pharmacies, boutiques, etc.
8. Register the business with the internal revenue service (IRS)
Your next step is obtaining an Employer Identification Number EIN from the internal revenue service office. Before opening a business account in the bank, they might require you to submit an EIN because it’s how the IRS tracks your taxes. But if your business entity is a sole proprietorship, you don’t need to obtain an EIN. Instead, you will get a social security number and use it for tax payments.
9. Create a bank account solely for your business
It’s essential to create a bank account solely for your business. It’s not bad to have one account for your transactions, but it will confuse you because you might not be able to differentiate your personal money and your profit or capital. If you want to create an account for your business, choose the bank you want to be doing transactions with, prepare all the necessary documents, fill out the blank form, and, complete the required processes. Discuss with the bank the kind of account you want with the bank manager, then go ahead to open the account.
10. Create a marketing strategy
You need a marketing strategy to ensure your business is running properly and you have enough customers. Some marketing strategies you should obtain include a logo, creating your website, opening social media accounts, and many other business marketing strategies.
11. Buy the ATM software
To start an Atm business, you will need software popularly known as point-of-sale, popularly known as POS. The POS will be the machine that you will use for the transaction. Banking systems that offer POS systems include zenith, Wincor, and more. That’s it! By following the above steps, you are now ready for business.
Benefits of Starting An ATM Business
ATM business offers many benefits. Some of these benefits include
1. You will earn money
With every transaction made, you will earn profit from it. Everybody that uses your ATM, you will receive revenue. Even if it’s small. You might think the profit is minor, but imagine a thousand people making transactions simultaneously. You will earn more than a lot of other business owners.
2. Instant access to cash
Starting an ATM business will give you and your customer instant access to money. Also, if you are close to business areas, you will receive a lot of customers, especially in this era where people don’t like roaming around with cash due to security reasons; they prefer cardless transactions.
3. Put traffic in your store
Even with an ATM business alone, you will earn passive income. People always need money for their transactions, especially in local places that don’t accept cashless transactions. Additionally, if you incorporate ATM business and other businesses together, even if it’s a small-scale business, you will have hundreds of people knocking on your door to make a withdrawal, transfer, or purchase something. Also, people will prefer to come to your shop because they know you sell goods and services and provide money whenever needed.
There you have it! That’s how to start an Atm business. With the information above, you are ready to begin your pos business. There are numerous benefits associated with starting an ATM business including making profits, having access to instant cash, and putting traffic in your store. By following the above steps, you should be able to successfully begin your atm business.
Frequently Asked Questions
Is it hard to start an Atm business?
No, it isn’t. With proper planning and management, starting up an Atm business should be successful.
What type of Atm business is most profitable?
The most profitable Atm business is the full-service. It supports cash transfers, payment of bills, withdrawals, etc.
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