There's a lot of talk in the "self help" financial industry about generating passive income streams.
The theory is that only with passive income streams can you achieve true wealth, these experts usually advocate starting your own business or real estate investing.
There is some truth to this of course, but these people are also in the business of making money by selling books and conventions, so take everything they say with a grain of salt.
Vending is often touted as one of these passive income stream businesses, but this is not the entire picture.
My experiences in vending suggest that yes, vending has the potential to be good financial return on your time investment but initially it is anything but passive.
Vending like any other new business start up requires a lot of initial cash and time.
One thing that vending does have in its favor that other businesses don't is that if you are willing to put in the time, you can start with a much smaller initial cash investment and grow your business slowly.
Obviously most businesses don't allow this kind of flexibility.
Here's what I consider to be the pros and cons of the vending business.
Vending Business Pros: •You can start with very little money.
•You can start part time.
•It is very easy to do.
•You do need any special skills.
•Besides the machines themselves, you need no special equipment.
•It's a cash business.
•It's easy to find good used cheap machines.
•You can make decent money once you get established.
•You get to be your own boss.
•No coworkers.
•Flexible hours.
Vending Business Cons: •There is a lot of competition.
•Because the economy is bad, businesses are closing and competition is increasing.
•Machines are easily stolen or broken into.
•The machines are pretty heavy when assembled and loaded with candy.
(Depending on the base, they can weigh about 50lbs) •It's hard to get good locations.
•There are some scams associated with vending like the various vending business opportunities or locator scams.
•Most large corporations don't allow vending machines.
•A lot of people think that vending is a scam.
•It takes a lot of machines until you start making decent money.
Each bulk machine only averages about $7 a head so I'm talking 400 or more machines.
•You are now 100% responsible for your own success or failure.
Personally I like vending.
I think it's a good match for my needs and my long term goals, but it's taking me a lot longer than I anticipated to grow my route.
Some of this is due to the bad economy and some is due to my own lack of initiative and motivation.
Without a doubt, a vending business holds you accountable.
If you lose locations and don't get new ones, guess what, your income drops.
You are now in control of your own business success for better or for worse.
The theory is that only with passive income streams can you achieve true wealth, these experts usually advocate starting your own business or real estate investing.
There is some truth to this of course, but these people are also in the business of making money by selling books and conventions, so take everything they say with a grain of salt.
Vending is often touted as one of these passive income stream businesses, but this is not the entire picture.
My experiences in vending suggest that yes, vending has the potential to be good financial return on your time investment but initially it is anything but passive.
Vending like any other new business start up requires a lot of initial cash and time.
One thing that vending does have in its favor that other businesses don't is that if you are willing to put in the time, you can start with a much smaller initial cash investment and grow your business slowly.
Obviously most businesses don't allow this kind of flexibility.
Here's what I consider to be the pros and cons of the vending business.
Vending Business Pros: •You can start with very little money.
•You can start part time.
•It is very easy to do.
•You do need any special skills.
•Besides the machines themselves, you need no special equipment.
•It's a cash business.
•It's easy to find good used cheap machines.
•You can make decent money once you get established.
•You get to be your own boss.
•No coworkers.
•Flexible hours.
Vending Business Cons: •There is a lot of competition.
•Because the economy is bad, businesses are closing and competition is increasing.
•Machines are easily stolen or broken into.
•The machines are pretty heavy when assembled and loaded with candy.
(Depending on the base, they can weigh about 50lbs) •It's hard to get good locations.
•There are some scams associated with vending like the various vending business opportunities or locator scams.
•Most large corporations don't allow vending machines.
•A lot of people think that vending is a scam.
•It takes a lot of machines until you start making decent money.
Each bulk machine only averages about $7 a head so I'm talking 400 or more machines.
•You are now 100% responsible for your own success or failure.
Personally I like vending.
I think it's a good match for my needs and my long term goals, but it's taking me a lot longer than I anticipated to grow my route.
Some of this is due to the bad economy and some is due to my own lack of initiative and motivation.
Without a doubt, a vending business holds you accountable.
If you lose locations and don't get new ones, guess what, your income drops.
You are now in control of your own business success for better or for worse.