THANK YOU

[usrwl76]

I would like to thank everybody for answering my questions. I plan on starting mid to end of September, and when I do I will start contributing other information besides questions. thanks again

[lurtsman]

You're welcome.... what's keeping you waiting so long? 

[usrwl76]

first, I am thorough and like to make sure all my T's are crossed and I's are dotted. second, I am working with a 500 month budget. for the month of July I will be purchasing all the license's required(we have three different cities clustered together), liability insurance, and misc start up expenses. I will then start to purchase machines in September. that brings up another question, TAXES. any insight?

[dperry]

It seems to me that people who are new to this business will place all their money and time and effort into the wrong things.  While some of these items may be a higher priority than some, they are still low on the totem pole compared to what REALLY is needed to get started.  I have to think that many people who have never owned a business before will go through all the trials and tribulations to set up their business, but will put less thought, money and energy into the core of their business.

Where you are sitting at now, with your licenses and your insurance, (and prolly stationairy and business cards, and fictitious name statement, or maybe an LLC) is a business in name only.  You don't make any money with the licenses, or the insurance or the business cards.

What happens if you go through all that and decide that vending is not for you?  If you have a corp or an LLC, will you now have to disolve it?  Let your licenses lapse?  Write off your insurance premiums?

In my mind, all the trappings of having a business can wait until you know for certain that this is the right business for you.  We've seen that it's isn't right for everybody and it's best to know this before spending too much money and effort on things that you won't be able to sell off to recoup your investment.  At least if you buy machines and decide that you don't like the business, then you can just sell them on CL or ebay.

The top 5 areas where you need to place your focus when starting this business are:

1) Machines --- You cant make money without your machines

2) Product --- You can't make money without selling product out of your machines

3) Locations --- You can't make money without having a location with which to sell your product from your machines.

4) See items 1, 2, and 3

5) See item 4

Then, when you are sure if this is the business for you, and if you feel the need to do the paperwork to become a business on paper for completeness and security, then this is the time to do so.

[lurtsman]

Thank you Dperry. I was thinking about staying up late to try to put together a post like that, and mine fell far short so I went to bed. (It was almost 1am anyway) I'd suggest reading Dperry's post again for anyone thinking about starting. Your entire first month of expenses is things that haven't made it into my budget and I'm already 7 months and 4000$ in with over 60 machines on locations and more ready to go.

I took some time to think about when I was getting started, and saw all the hurdles, and I had to ask myself: "What is my return on investment for those hurdles?" They don't have an RoI, at some point you may choose that you need, or want, to pay them. However my entire business was moot if I didn't place a machine out there. I got a couple doubles out and kept pursuing the "get machines on location" strategy, because that seemed to be where I found the quarters. If you get some great paperwork, and open your drawer to it being covered in quarters, please let me know. So far, I only find quarters in my machines that are out on location with product in them.

When I read Dperry's list and saw there was a 4 and 5, I couldn't help wondering what deserved to be up there with numbers 1 through 3. He nailed this dead on. If you are going charity, then your stickers/name badge are part of cost 3 (locations).

To describe my budget more in detail, this is what I've spent.

1. Machines

2589.17

2. Product

1266.10

3. Locations/charity stickers/tools for working on machines (I did not own a good ratchet set)

771.19

Originally, line 3 was going to be other kinds of costs, which I found out appear unnecessary, and so I spent the money on getting help locating when I was new. I'll be tossing another 42$ onto that bottom line as I've had to order more charity stickers for my machines as I have more locations than stickers.

You don't need to duplicate my expenses to be successful, but it should be a guide post that you are spending your money the right way. Over the next two months, I expect to collect about 850$, and I still have 4 spirals, a 10 way rack, and 1 double looking for homes. Those should bump up my average collections significantly. Going to go update my signature with my new totals for end of June, and beg for help with locating spirals/racks

[dperry]

first, I am thorough and like to make sure all my T's are crossed and I's are dotted. second, I am working with a 500 month budget. for the month of July I will be purchasing all the license's required(we have three different cities clustered together), liability insurance, and misc start up expenses. I will then start to purchase machines in September. that brings up another question, TAXES. any insight?

Being new and uninformed is the worst thing about starting a business.  I too started with only $500 (not $500 a month budget!  Just $500!), and I spent more money than I care to admit on things like ebooks and things like that.  I paid WAY TOO much for some crappy machines that I bought used from a co-worker friend.  So in the end I started out with 2 double venders and product.  And I went over budget to get that much. 

If I were starting today, I'd take that $500 and I'd be able to buy 5 gumball machines on stands and product and charity stickers and get them out there and making money.  Then I'd do it the next month and the next month and the next month after that (assuming I had that same $500 /mo budget that you have).

[BudLeiser]

Since were all chipping in with our mistakes:

I paid double what I should have for my first 5 machines $400. I gave $25 to 1stclassripoffs. I bought pistachios, peanuts, hot tomales, other candies and stickers that don't sell or hold up well.

Luckily I have no spent money on DBA, LLC or similar. I have signed up to pay sales tax though, luckily FL has tax exemption for 25c candies if your charity sponsored. I did it because they have $250 fines for not posting your sales tax id on the machine. (Maybe Jax can tell me if they ever enforce)

I am with everyone else on this. LLC, Insurance, DBA, Register etc once you get going. If I did all that with the other 3 businesses I tried to start. I wouldn't have the money to try this now.

My budget was $300 a mo. But I am way over budget already

[usrwl76]

been away for awhile and just got a chance to read your responses. all valid points and I will be taking your advice and purchasing machines in the next week or so.