Starting An ATM Business? Don’t Make These Mistakes
Are you planning on starting an ATM business? The reality when it comes to ATMs is that there's never been a better time than right now to invest in the ATM industry because many people still prefer to use cash for payment. Although it doesn't show any sign of slowing down, it's quite possible that you could make several common mistakes that most new ATM business owners make. Thankfully, in this article, we will break down some common mistakes that new ATM business owners have made over the years so that we can save you the time, money, and hassle of making similar mistakes yourself. Overestimating Potential Cash Flow One of the first mistakes that you do not want to make as an ATM business owner is to overestimate your monthly cash-flow. This typically happens because there's a common misconception that it's easy to make an average of $500 per ATM location, per month. Sadly, even if $500 per location, per month, sounds good, the reality is that it's not uncommon for an ATM business owner to bring in an average of $300 monthly income per location. The truth is that many times the average income per location is actually lower than that. It's quite possible that you could even have some months where you bring in $200 monthly income per location so it's always best to never overestimate your monthly cash flow because you could find yourself in a hole financially if you overestimate cash flow and depend on the money that won't come in. Don’t Purchase Used ATM Equipment When it comes to ATMs, another mistake that you absolutely do not want to make is the mistake of purchasing used ATM equipment. The reason why you don't want to purchase used ATM equipment it's because with the latest EMV requirements, and changes to the financial industry, it's always best for ATM business owners to invest in new ATM equipment rather than purchasing used equipment when starting a new ATM business. Besides purchasing new equipment to stay on top of the latest EMV requirements, it's also best to consider purchasing new equipment over used ATM equipment because of the fact that when you purchase new equipment, you're going to have the benefit of having a 2-year warranty for your ATM machine.
Having a warranty is huge because it means that should your ATM machine have problems that require repairs or maintenance, it's going to cost you nothing to get those repairs done because your machine will be under warranty. Underestimating The Capital Requirements Of Each Machine We've offered you several important mistakes to think about so far, another common mistake that you absolutely must be on the lookout for is underestimating the capital requirements of each machine. Most ATM machines require at least an average of $2,000 per week so if you were to start out with 10 machines, you should expect to have at least $20,000 or more in working capital to use on a weekly basis. Even though we've talked about mistakes that you do not want to make as an ATM business owner, the good news is at ATMs will still continue to be one of the best businesses that anyone can start in 2020 because of the simple fact that there's always going to be a demand for cash by someone. If you've been “on the fence” wondering if starting an ATM business is right for you, you can have confidence that the ATM industry is a very stable place to be since cash will continue to be one of the preferred payment methods for the years to come.