joebob051977 Posted July 17, 2008 Share Posted July 17, 2008 With a $500 start-up budget I am still cash-strapped, but after a year I am learning to love it. I am finding out that operating like this gives me some very distinct advantages. I am learning what I absolutely need and what I can live without nor do I make frivolous purchases. If I want something, I really have to sit down and figure out if I can operate without it. Most of the time the answer is, yes, I can operate without it. Coin-counting - a scale or by hand; Vending Software - Excel Spreadsheet; Locating Service -HAHAHA! Office- an old kitchen table; Coin Bags - Ziplock and a Sharpie; Luxury purchase - $20 cash box. Dream purchase - attend a trade show While at times I wish I had more money to start with, I am glad that I started with so little. I have been able to fine tune my vending skills before I get bigger. My mistakes are less costly at this stage and I am able to avoid mistakes because I can't afford to spend money on anything except machines and candy. I really enjoy the perspective that being in this situation gives you. Now, I am ready to move on to the next phase of growing a little faster. Joe Link to comment Share on other sites More sharing options...
desert_gold_hound Posted July 17, 2008 Share Posted July 17, 2008 Yea I know what it is like to be straped. I am down $180 and havenet even got my licence, or insurance. I have 2 machines that I will be placeing as soon as I get those two things. I do have a little bit I can invest each month so this helps. I have a few things going for me, and a few things that don't look good. I will be doing my best to overcome the bad and bring out the good. Good luck Link to comment Share on other sites More sharing options...
joebob051977 Posted July 17, 2008 Author Share Posted July 17, 2008 I am with you. I started with only $500. $100 was for my assumed name. $35 was for my Sam's Club membership. I spent $20 on business cards since I thought color would look nicer. I spent another $20 on a portfolio so that I would look more professional when I was locating. I wasted $180 on used machines. The machines were pulled off the route for a reason. I ended up buying a Triple Super Chrome from Gumball Machine Warehouse. I put too much candy in it my machine, another lesson learned. Now I only start off with 1 bag of candy per head until I learn what sells best and how well each product does at each location. I don't want too much money tied up in candy that is just sitting in my machines. In a perfect world you would be able to calculate exactly how many vends each head would get and fill your machine to meet that need exactly. Good Luck, Joe Link to comment Share on other sites More sharing options...
Beer980 Posted July 17, 2008 Share Posted July 17, 2008 Yep you do get a lesson in money management real quick when you start out with a small budget. It does lay the groundwork for your business in learning to grow within your means. When I started I was not real crazy about buying Vendstars but I got a couple of good deals on Ebay. I had decided to get a few for a quick ROI to get more of the ones I wanted. Another idea to add some cash is to have a garage sale and split half of the money into the business. I added a few hundered into my account a few months ago by doing this. You can buy a machine or so and get rid of stuff you don't use anymore. I started with $800 so I know how it is. I have spent about $1200 and have about $300 in the bank. It gets better every month. Link to comment Share on other sites More sharing options...
ahha Posted July 18, 2008 Share Posted July 18, 2008 With a $500 start-up budget I am still cash-strapped, but after a year I am learning to love it. I am finding out that operating like this gives me some very distinct advantages. I am learning what I absolutely need and what I can live without nor do I make frivolous purchases. If I want something, I really have to sit down and figure out if I can operate without it. Most of the time the answer is, yes, I can operate without it. Coin-counting - a scale or by hand; Vending Software - Excel Spreadsheet; Locating Service -HAHAHA! Office- an old kitchen table; Coin Bags - Ziplock and a Sharpie; Luxury purchase - $20 cash box. Dream purchase - attend a trade show While at times I wish I had more money to start with, I am glad that I started with so little. I have been able to fine tune my vending skills before I get bigger. My mistakes are less costly at this stage and I am able to avoid mistakes because I can't afford to spend money on anything except machines and candy. I really enjoy the perspective that being in this situation gives you. Now, I am ready to move on to the next phase of growing a little faster. Joe I am in the same boat.... It's kinda discouraging at times... I got a $1000 loan and spent some of my own money as well. But I did not get to buy as many machines as I wanted to. Because of all the loss I have taken so far on this business. I have lost ALOT of candy and have some very poor producing locations. Plus I do use a locator for every machine Link to comment Share on other sites More sharing options...
dperry Posted July 18, 2008 Share Posted July 18, 2008 When I started, I purchased some online books on vending. Not the greatest investment for me. I have not bothered with fictitions names, insurance nor licensing. Of those three, I'll prolly be buying the insurance soon. I too made some bad machine purchases when I was starting. I bought some candy king machines from a coworker for WAY too much money. Piece-o-crap machines that they are, I was glad when it was one of those machines that got lost when one of my locations closed it's doors with my machine inside of it. Saved me the trouble of throwing the machine away. I've since learned that if you can't get a really good deal on ebay or craigslist, that it's cheaper to just buy new from the manufacturer. I typically don't buy used machines unless I can get the for about 75% of new. When it costs $50 (includes shipping) to buy a new machine, what's the point of paying $40 for a used one and then have to pay shipping on top of that? When you buy a new, you get exactly what you want. When you buy used, you usually have to buy a new lock, or even some spare parts to fix it up. All your savings will be wasted and you still have a used machine. But I digress... Yes, you have to make some really hard choices when you are strapped for cash. You do learn exactly what it is you need, and what you can do without. $140 electric coin counter? Or $7 plastic coin counting tube from OfficeMax? Do you buy 15 different flavors of gumballs, or buy one flavor and make due? Do you buy a mini-van, or do you do your servicing in your wife's Yaris? But like you said, making your choices is easy, since you have so few choice available. Link to comment Share on other sites More sharing options...
grumpy Posted July 19, 2008 Share Posted July 19, 2008 Being strapped for cash is actually a bonus for start ups, it help creates that hunger for success come hell or high water. When you do not have to worry about money it makes the decisions that much harder as you are now actually responsible for the choice (not just by default of no cash). And boy can I waste money on that better idea, I'm much better now that I have somewhat matured and figured out that sometimes low tech is truly the best way to go. Link to comment Share on other sites More sharing options...
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