Vending Machine Business in India

Vending machine business in India is one of the best, profitable and budget-friendly business ideas to start in 2022.
“Investing money is the process of committing resources in a strategic way to accomplish a specific objective.”
― Alan Gotthardt

Pandemic has taught so many things to us, including the importance of financial stability. The vending machine business is one of that kind only.
You see, if we think about the present scenario, anything we purchase from a retail store, sanitization of that product before using it is a must.
In such circumstances, ‘Vending Machine’ is one of the most growing businesses in today’s time. Vending Machine is an automated machine that provides products in return for cash.
As I have mentioned, it is a good business opportunity, and if any person wants to earn money by staying at home, this is your thing. All you need is money for investment and good knowledge to start this business which brings you to us.
Further, we will be discussing the process of starting a vending machine business in India:

1. BUSINESS PLANNING

1. BUSINESS REGISTRATION

1. LICENSE AND PERMITS

1. INVESTMENTS/FUNDINGS

1. LOCATION (How to choose a location, factors affecting location)

1. LOGISTICS and Machines Required

HIRING (Outsourcing the project of hiring)

BUSINESS PLANNING

To start any business, small or big planning is the most common and vital part. First, you have to decide how much amount you want to invest. Then choose an appropriate vending machine you want to invest in because we have various types of vending machines in the market. Therefore, choose a vending machine that is in demand and budget-friendly. As per a few researchers, if you are a beginner and have no prior experience in this business, purchasing a franchise can be a good way. However, this idea would cost you a good amount, because it will save your advertisement expenses. You will also get a brand image, and you don’t have to spend on branding. While performing this step, you should also decide which products you will be dealing with. Accordingly, contact the manufacturers for inventory stock.

BUSINESS REGISTRATION:

The majority of vending machines provide food items like snacks, beverages and chocolates. In India, all the vendors who want to sell food items in the market have to first get their business registered by going for company registration.
After that, register for FSSAI (Food Safety and Standards Authority of India), which is a standard board for the registration of food businesses in our country.
For that, you don’t have to go anywhere. You have to go to the online website of FSSAI i.e. www.fssai.gov.in and fill in the necessary details regarding your business. After that, pay the requisite fee for the registration certificate and then get the license. It will provide a legal structure to your idea and make it valid legally.

LICENSE AND PERMITS:

As I have mentioned in the above point, that every food selling business has to have a certificate from FSSAI authority to run a food business in India but there also are other licenses and permits which are mandatory to run a vending machine business in India. For example, GST Registration and Trade License.
Every person selling or buying goods is said to be engaged in the trading business.
Therefore, eligible for a trade license, which you can get through the state government and now, after 2017, every good has applied tax on its sale, known as Goods and Service tax. Thus, GST registration is mandatory for the selling of products in India.

INVESTMENT / FUNDINGS:

Till this stage, you have a business plan, adequate licenses and a thorough idea of investment.
Now in this step, we will be discussing investment which is the soul of your company.
Cash flow is the most crucial thing in the trade. If you have continuous cash flow, it is beneficial for your business.
You can invest the amount from your pocket. It will reduce early liabilities of paying off EMIs etc. But if you don’t have your own money, you can pitch investors with your business plan along with good market research for investment in your business. Also, you can ask the bank for a business loan. As per a few market researchers, you require 1.5 lakh – 2.5 lakh rupees initially to start a vending machine business in India.

LOCATION:

Since this business is all about selling snacks and beverages through machinery, the location plays a very important role in sales. Above all, the spot has a direct impact on your sale.
Therefore, choose a crowded location that doesn’t have any other restaurant or café nearby but has a crowd fall.
Since snacks and beverages are preferences of youngsters, you should target places like- Colleges, Schools, Railway Stations, Airports, Hospitals, shopping malls, Parks, Office Complexes.
But keep this in mind the location should be crowded and target that age group which prefers this kind of food.

LOGISTICS AND MACHINES REQUIRED:

It is not a large-scale business that you will need multiple big machines, which is a good thing.
If you want to enter into this business line, you have two options for machines. Either you can purchase a brand-new one, or you can rent it out. But, the personal advice would be to buy a new machine because if you rent a vending machine, you will have to pay rent. Accordingly, even if you are not earning much, you have to pay rent to the landlord. It is a priority, and if you have a sufficient amount to purchase a vending machine, you should buy it. Otherwise acquire a vending machine on rent is also a good option.
If you are purchasing a franchise, getting a machine of the same brand is very important for the business.
The size of the machine is also a crucial factor to consider while choosing a vending machine and the kind of product you want to sell. If you want to sell products in large quantities, then go for Bulk machine and if you want to keep another payment option like payment through credit card, then go for the electronic.

HIRING AND MAINTAINANCE:

Vending machines are easy to use, and a person can control them remotely.
Therefore, you don’t really need to hire a workforce for the operations of the vending machine.
But if you have vending machines all around the town, you will not be able to operate every machine personally. Therefore, you need to hire a few technical experts who can look after vending machines on your behalf. It is circumstantial but hiring a person could be a good idea. People use machines in a very improper manner leading to damage the device. So, for the life of machinery, a person should be there near to machine always.

By- Monika Verma