Top 6 Vending Franchise Business Opportunities

Wednesday, October 15, 2008

Regardless of the economy, one thing always remains constant: vending machines. One of the few truly recession-proof industries, vending is an all-weather kind of business that Americans of all demographics flock to year round, in almost all circumstances. This, combined with its very low initial investment, makes it the perfect home business for both the beginning business owner and the seasoned veteran. If you're thinking about starting one of your own, here are 6 business opportunities that you would do well to take a look at.

1. DVDNow

The cutting edge of the movie-rental business is the DVD rental kiosk, a trend that has already gained amazing traction in Europe and is now making its way into American culture, where this vending franchise is one of the first to take the stage. Instead of selling candy, like your average vending machine, this automated kiosk provides DVD rentals quickly and inexpensively at convenient locations like malls and grocery stores. The startup cost is very low; the machine makes money 24-hours a day; and so far, the competition is very slim, making this the perfect time to jump into this great home based business.

2. Allstate Investment Group

Many vending machines sell either candy and snacks or beverages, but what studies have shown is that each kind of machine sees far more profit when they're placed side-by-side than either machine could in a location by itself. Allstate has taken that information to heart, producing a machine that is built to sell both snacks and drinks, giving it a definite edge in the market. Furthermore, this work from home franchise is a proud member of the Better Business Bureau, proving the trustworthiness of their name and business model.

3. Vendstar

A stalwart player in the vending industry, this business for sale is adamant about setting up their franchisees for success. With solid machines and brand name products, which are proven to sell better than off-brands, Vendstar owners are set up with everything they need to pull in the $70/hour income that the average vending business can easily provide.

4. U-Turn Vending

With an initial fee of less than $8000, this operation is more than worth the cost. The key to U-Turn Vending's individuality in the business of vending is the design of their machines. Unlike stationary machines, U-Turn Vending machines spin, creating space for 4-times as many different kinds of merchandise as a normal vending machine. This increase of options draws greater consumer attention, thus making higher profits; something that every business owner wants.

5. American Vending Systems

Tired of vending the same old products that everyone sells, these franchises have taken a different route, specializing in only one kind of snack: the Buzz Bite. Containing an amount of caffeine equivalent to a cup of coffee, each chocolaty Bite is the perfect solution to the mid-day slowdown for customers ranging from students to corporate executives. If you want to vend something out of the ordinary, this is the choice for you.

6. The Love Maine Lobster Claw

This is probably the only work at home vending franchise that turns a profit from lobster. That's right, selling the world's only pick-your-own lobster tank with a built-in joystick-controlled crane, this business makes a game out of selling live seafood, and customers love it. For only the cost of restocking and feeding live lobsters, some franchisees have made as much as $750/week from a single machine: an impressive profit from a truly unique business.

Whether it sells seafood, movies, or candy, there is a vending franchise available to suit your interests and your business needs. One of the few businesses that deals primarily in cash, takes no toll on your credit, and pays 24-hours a day, 7-days a week; vending is no joke, and is sure to pay off well for new vending franchisee.

Starting a Cabela Retail Franchise

Cabala is a very famous store that caters to people who love the outdoors. Before you think about starting a retail store you must consider these things.

1. Is there a need for a Cabela franchise in your local community? You do not want to open a retail franchise in an area where it will not be profitable. You should go out and interview people and see if they know what type of merchandise they carry and if they would shop at the story that you are thinking of starting. Market research is crucial to knowing where to think about starting a Cabela retail franchise.

2. Evaluate how much knowledge you have of Cabela products. You need to have prior knowledge of the products that you will sell before you think about starting a retail store. These are some of the products that their franchise would carry: archery equipment, hunting equipment, ATV accessories, camping equipment, shooting gear, hunting dog accessories, clothing, fishing equipment, and boating equipment.

3. Compile a list of states that do not have a Cabela's if one of their retail franchises is not needed in your area. This would require moving to another state but if you are really serious about your idea, then it is well worth the sacrifice in the long run. Here are examples of states where there are no franchises: Tennessee, Virginia, North Carolina, South Carolina, Alaska, New Mexico, New Hampshire, and Oregon. These states all have consumers who could need a retail franchise in their state because many people love the outdoors. Many people who love the outdoors do not want to order everything they need online, they want to be able to see and touch the items that they need before they purchase them.

4. Assess your financial situation. In order to start a franchise you need start up capital and usually that requires a business loan. You need to know if you have good enough credit to secure a business loan. You also need to examine how this franchise would affect your household's finances.

5. Find potential investors or partners to help fund your franchise. This will help alleviate some of the financial burden on you. It also helps you if you cannot secure a large enough business loan to give you the necessary startup capital that is necessary.

6. Before you ask for a business loan, see how much the entire start up of a franchise in the location that you have chosen will cost. This will allow you to properly budget and ask for the correct amount of money from the bank.

Cabela's have been around since 1961. The company is even listed on the New York Stock Exchange and in 2006 sent out over 135 million catalogs to consumers. In the second quarter of 2008 their total revenue was 526 million dollars which is an increase of 16.6 %. If you decide to start a retail franchise and find the perfect location, necessary startup capital, and skilled and knowledgeable employees, then you will have a recipe for a profitable business. And remember, franchising is the best kept secret of the 21st Century!