When a customer needs cash, the majority is ready to spend a few dollars in service fees at the closest ATM. Automatic teller machines strategically positioned across town are a successful method for businesses to make a comfortable passive income.
Table of Contents
Follow these ten steps to start an ATM business:
Plan your ATM Company
Create a legal entity for your ATM business.
Register your ATM Company for Taxes
Create a Business Bank Account and a Credit Card
Set up Accounting for your ATM Company
Get the Permits and Licenses You Need for Your ATM Business
Purchase ATM Business Insurance
Establish your ATM Business Brand
Make a website for your ATM business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started with your ATM business. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting an ATM business?
While this form of company does not need an office or a large inventory of goods, you will need to acquire a few items. The total investment will be determined by the number of machines you want to begin with. Depending on the style, each machine will cost between $3,000 and $10,000. On a rotational basis, each machine should contain at least $2,000 in cash. The only other things you need have are an insurance policy, a cash bag, equipment for regular machine repair, and a trustworthy car. Each machine must have a phone line or Internet connection, and you will need a computer to check the condition of each unit.
What are the continuing costs of running an ATM business?
Most machines demand at least $2,000 in cash every week. Cash should be fed into the system on a rotating basis. Depending on the arrangement, many banks may charge your company a premium, and retailers will charge a monthly rent fee or commission. New company owners are encouraged to perform extensive market research so that margins are accurately established from the start. This will assist to guarantee that your ATM firm has larger profit margins.
Who is the intended audience?
Your ATM service is available to anybody who need rapid access to cash. Restaurants, pubs, strip malls, convenience shops, and retail malls are excellent starting points.
How does an ATM company generate money?
When a consumer withdraws money from their account, the ATM company charges them a fee.
How much money may you charge your customers?
The normal transaction cost is $2.50 to $3.00.
How much money can an ATM company make?
It is critical to choose high-traffic regions for your terminal installations. Successful company owners estimate an average monthly cost of $500 per ATM machine.
How can you increase the profitability of your company?
The more strategically positioned machines you have, the better your earnings. Investing in franchises provides comfort for many new company owners. Once you’ve figured out the subtleties of this company, think about passing that expertise on to other entrepreneurs by giving franchise possibilities.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal company organisation, such as an LLC or corporation, shields you from personal liability if your ATM business is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run an ATM business, certain state licences and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Contract for Services
Before installing a new ATM, ATM companies might consider forcing customers to sign a services agreement. By defining payment terms and conditions, service level expectations, and so on, this agreement should explain client expectations and reduce the possibility of legal problems.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote an ATM Business
Unlike other businesses, an ATM operation needs little to no promotion. While you will not directly contact with your consumers, you will communicate with your merchants on a regular basis. Make solid relationships with them in order to maintain a long-term, mutually beneficial relationship. Networking with local company owners is a terrific method to get your name out there. When an entrepreneur starts a new firm, your customers will spread the word about you, helping to establish your company’s good image.
How to Keep Customers Returning
It’s critical to remember that every consumer comes to you out of convenience. Don’t get a reputation for having machines that are constantly out of money or broken. Always strive to provide what customers need, when they require it.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.