Whether you are thinking about starting your own ATM empire or buying a machine for your own store, venturing into the ATM business can be a lucrative endeavor. Like any investment, it requires careful planning and execution to be successful.
Here’s a step-by-step guide to help you navigate the process of buying and setting up your first ATM. This is written for individuals looking to buy and place an ATM in their business- and for individuals looking to start an ATM company.
1. Conduct Market Research
NOT EVERY BUSINESS SHOULD HAVE AN ATM! Yes you read that from an ATM company who sells ATMs! Before diving in, conduct thorough market research. Identify areas with high foot traffic where an ATM would be convenient for users. Consider places like shopping centers, convenience stores, bars, salons, dispensaries, and other busy locations. Business that are cash only or business that offer cash discounts usually make the most sense. Businesses in areas with limited banks also make great locations.
2. Understand the Regulations
There are very few state and county restrictions however you do need to have a sponsor bank and ATM processor. Your ATM processing partner – like bpsands.com – will do this for you. More than likely your bank is going to request this information, so it is crucial that you partner with a reputable company who can set you up properly from the get go.
3. Create a Business Plan
If you are starting an ATM business – a solid business plan that outlines your goals, target market, competition analysis, and financial projections will help keep you on track. DEFINE YOUR GOALS! Write down the minimum monthly surcharge income you are willing to work for. Stick to that goal and if an ATM is not performing- come up with a plan to boost revenue- OR REMOVE THE ATM!
4. Secure Funding
Depending on your budget, you might need to secure funding. Explore different options like personal savings, SBA bank loans, independent investors or zero interest credit cards. Ensure you have enough capital to cover the cost of the ATM, installation, cash replenishment, and initial maintenance. Most investors and banks will require you to show success, so it is usually easier to get those after you have a few ATMs and can prove you know what you are doing.
5. Choose the Right ATM Model
There are various ATM models available, each with different features and prices. Popular brands include Hyosung & Genmega. We typically recommend the Genmega 2500 Series, the Genmega Onyx Series and the Hyosung Halo 2 Series. If you are buying an ATM for your business or starting an ATM business- and are completely new – BUY A NEW ATM! If you are not sure yet what you are doing – the only time you should buy a used ATM is if it is from a reputable supplier- you know it is compliant- and it comes with some sort of warranty. Do not just buy it off facebook marketplace, craigslist or at an auction. If you have issues- the person who you bought it from is not going to help.
6. Find a Reliable Supplier like bpsands.com
The purpose of this post is not only to self promote but to educate. Partner with a reputable ATM supplier. They should offer good after-sales service, warranties, and technical support. Look for suppliers with positive reviews and a track record of reliability. Look for companies with experience. We have been selling & servicing ATMs since 1998!
The internet makes it easy for fly by night companies who promise the world- but have limited credentials and or no track records. We have seen people who have amazing websites, business cards, flyers- who have only ever sold one or two ATMs ever! I understand everyone has to start somewhere- just like we did – but they should tell you that, not make themselves appear to be what they are not.
And last but not least- whatever you do – DO NOT PAY FOR AN ATM COURSE!!!
7. Select a Location
Choosing the right location is crucial for the success of your ATM. Look for high-traffic areas with limited ATM availability. Negotiate terms with the location owner, including revenue sharing, placement fees, and contract duration. If you are installing an ATM in your own store- put it in a spot that everyone sees it. Do not hide it in a corner!
8. Install the ATM
Once you have your ATM and location, arrange for installation. Ensure the site has the necessary electrical and internet connections. Work with professional installers to ensure the machine is set up correctly and securely. If internet is not available – get a wireless modem such as a DPL Wireless Modem. We sell them, they are relatively inexpensive with service plans around $9.99 each month. If you are operating an ATM placement business- we always recommend wireless modems with a reset cord, so you can remotely reboot the ATM.
9. Keep your ATM FULL!
After installation, keep the ATM full! Your goal is to never let the ATM run out of cash. Your ATM processing company – like Best Products – will make sure the ATM is linked to your bank account. This is our primary role.
10. Market Your ATM
Promote your ATM to attract users. Use signage, social media, and local advertising to increase awareness. Offer incentives like lower transaction fees or special promotions to drive initial usage. Ideal locations offer cash payment incentives. This can really boost usage.
Maintenance and Monitoring
Regular maintenance and monitoring are essential to keep your ATM operational and profitable. Monitor cash levels, transaction volumes, and machine performance. Address any technical issues promptly to avoid downtime. Keep your ATM clean! Wipe it down whenever you are filling it with a non abrasive mild cleaner such as Windex.
Final Thoughts
Buying an ATM can be a rewarding venture with the right approach. By following these 10 steps, you can set up your first ATM successfully and start generating revenue. Remember, the key to success is careful planning, thorough research, and keeping the ATMs operational (full of money and in good working order).
Good luck! If you have any questions- we are here to help you.