1. Decide your goal: passive cash flow with a few machines, or scale to a full route/micro-market business.
2. Research locations: walk candidate sites, count traffic, and ask property owners about placement terms.
3. Choose machine type: snack, beverage, combo, coffee, healthy, micro-market, or specialty.
4. Budget & finance: calculate machine, inventory, permits, transport, and a 3-month cushion. See Financing section below for detailed steps.
5. Register & comply: form an LLC (or similar), obtain EIN, sales tax permit, and local health permits as required.
6. Acquire & equip: buy new or used; add cashless readers and telemetry to increase sales and reduce routings.
7. Install, stock & display contact: set prices, post service contact and machine ID as required by some states.
8. Track, optimize & scale: maintain records, rotate SKUs, monitor margins, and expand routes when profitable.

New Machines: reliability, warranties, modern features (cashless payments, telemetry, energy efficiency). Typical costs: $3,000–$10,000 depending on type. Better for operators who want lower maintenance early on.

Used Machines: 30–70% cheaper; e.g., used snack machine $1,000–$2,000. Tradeoffs: older tech, possible parts/repairs, no warranty. Upgrading with a card reader can extend value — smart for first-time operators testing markets.

Match the machine to your location demographics:

• Workplaces/Offices: snacks & drinks; coffee machines for larger firms (50+ employees).
• Schools & Universities: healthier options & cashless payments are popular; ensure K–12 compliance.
• Hospitals & Care Centers: 24/7 demand; variety (snacks, drinks, coffee) works well.
• Gyms: sports drinks, protein bars, healthy snacks.
• Hotels: lobby machines for late-night guests.
• Retail & Malls: placed near entrances and food courts for impulse buys.
• Transit Hubs: high volume, strong sales ($300–$1,500/month possible per machine).

Look for high foot traffic and captive audiences:

• Factories & warehouses (shift work)
• Office buildings (break rooms)
• Apartment complexes (lobbies, laundry rooms)
• Hospitals & nursing homes (24/7)
• Car dealerships & service centers (long waits)
• Schools & universities (many daily users)
• Gyms & fitness clubs (healthy vending)
• Transit hubs (airports, stations)

Machine costs: new $2,000–$10,000+ depending on type. Used: $1,000–$3,500 (snack vs soda differences).

High-level financing choices:

• Self-funding: No interest, fastest to deploy, preserves credit.
• SBA / Bank loans: Lower rates but longer approval and documentation (best for scaling).
• Equipment leasing: Preserve cash flow; typical payment example: $5,000 machine ≈ $150/month depending on terms.
• Business line of credit: Flexible for inventory and repairs.
• Revenue-share placements: Low upfront cost; split revenue with property owner, but margins reduce.
• Merchant cash advances: Fast but expensive — avoid unless necessary.

Step-by-step — prepare to finance

1. Calculate exact capital need: machine cost + inventory + permits + 3 months working capital. Example: $3,000 (machine) + $800 (inventory) + $200 (permits) + $1,200 (cushion) = $5,200.
2. Choose financing mix: start with self/loans/lease comparison — compare APR, fees, term length, and early-payoff penalties.
3. Documentation checklist: business formation docs, EIN, recent bank statements (3–6 months), tax returns, simple revenue forecast, machine quotes/receipts.
4. Shop local lenders & lessors: credit unions and equipment lessors often give good terms for small equipment.
5. Negotiate and finalize: prefer fixed monthly payments with clear amortization; avoid hidden fees.

Practical examples

Loan example: $10,000 loan at 8% APR for 36 months ≈ monthly payment $313. Use an amortization calculator for exact totals.

Lease example: $5,000 machine leasing at $150/month — preserves cash but increases long-term cost vs buying outright.

Margins in vending are healthy when managed: typical net profit averages 20–25% of sales; premium items (coffee, health foods) can reach 30–45%.

Quick formulas (use calculator above)

1. Monthly revenue = number of machines × avg monthly sales per machine.
2. Product cost = monthly revenue × product cost %.
3. Total monthly expenses = product cost + restock + commission + card readers + electricity + insurance + misc + financing + sales tax.
4. Net monthly profit = monthly revenue − total monthly expenses.
5. Break-even months (ROI) = initial investment ÷ net monthly profit (if positive).

Example (digit-by-digit): Machine cost $3,000, net monthly profit $300 → 3000 ÷ 300 = 10 months to break even (simple payback).

Upside strategies: add cashless payments (+15–20% sales), rotate seasonal items, use telemetry to reduce route frequency and theft loss.

Systems beat luck — build simple repeatable processes:

• Tracking: start with a spreadsheet or use vending software for telemetry and real-time reporting.
• Restocking: high-traffic machines weekly; lower traffic biweekly/monthly. Budget $200–$500/month per busy machine.
• Maintenance: keep a repair budget $50–$200 per call; retain a basic toolkit and spare parts for common failures.
• Electricity: typically $10–$50/month per machine depending on refrigeration and usage.
• Security & cash handling: anchor machines, empty cash boxes regularly and use cashless when possible.
• Customer service: post clear contact info and respond quickly to refunds/issues to maintain good property-owner relationships.

Basics (apply to most states):

• Business registration: LLC or sole proprietorship; register with Secretary of State; get EIN.
• Sales tax permit: collect & remit sales tax in most states (exceptions include OR, DE, MT, NH — verify local rules).
• Vending operator license / machine registration: many states require per-machine permits or decals (fees vary).
• Health permits: required for perishable/fresh food or coffee; check county/city health departments.
• Special permits: tobacco, alcohol, gaming or amusement devices often need extra licensing — some states ban tobacco vending entirely in certain contexts.
• Insurance: General liability; property owner may require proof of coverage.

Quick checklist to bring to property owners: Business registration docs (LLC), EIN, proof of insurance, proposed placement agreement (term, revenue share), and machine identification / service contact.

Concise highlights for each state. Always verify with state and local offices before launching.