The gumball machine business plan might seem like one of the simplest documents you could need to prepare. But even though the business model is not complex, that does not diminish the need for a complete document that outlines the vending machine service market and your potential profit over a three-year period. In order to adhere to the standards of review set forth by the Small Business Administration, your business plan will need to describe the vending machines, outline how you will allocate the start-up funding you get by category, look at competing businesses/products wherever appropriate, and estimate your sales and expenses for Year 1, Year 2, and Year 3. Other considerations for your gumball machine plan:
• How many units will you purchase?
• Do you know where all of them will be installed, or will you be looking for takers post-funding?
• What other people/companies have machines in place at the target locations?
• Who will you approach: restaurants, malls, gas stations, schools, truck stops, etc.?
• Do you have an ongoing maintenance cost for the machines, and if so what does it average per month?
• Will the business require an office of any kind, and if so how you do expect overhead to run?
• Any staffing needs, besides yourself as the owner?
These aren't the only questions to cover in the document but they are some of the big ones. The financial pro forma you have to develop should show three years of cash flow, revenue, profit and loss, and balance sheet statements as well as a use of funds chart, a break-even point, and preferably a sensitivity analysis showing how loan repayment can be delayed or accelerated depending on cumulative revenues. The SBA plan will also need to show a monthly breakdown for all of these financial tables during Year 1. MasterPlans can prepare this document for you if you want to outsource the headache. We have worked with dozens of smaller retailers and have a range of vending machine and gumball-type business plans under our belt. Call 877-453-2011 today!
