When you need access to cash, you may be willing to pay someone a few dollars so that you do not have to go to the bank and get it. Knowing how to start your own cutting edge ATM machine business can help you create a nearly passive source of income over the long-term. This is the basic reason that automatic teller machines can be profitable in public locations. Before getting involved with this type of business, make sure that you follow the proper steps along the way.

Determine Whether to Get Involved with a Franchise

Determine whether you want to get involved with an ATM franchise or start your own company. Many ATM franchises are available that sell you a name brand and the machines that you need. This provides you with a proven business plan, but it can also be more expensive than simply buying some ATMs by yourself.

Develop a Business Plan

After you decide between buying a franchise or starting your own independent business, write up a business plan. Your plan should include market and industry research, information about key roles within your company, and financial projections.

Seek Necessary Financing

Once you have a business plan, you can start approaching lenders and investors. If you decide that a business loan is in your best interests, contact the Small Business Association office in your area and ask for information about SBA loan providers.

Find Locations for Machines

Find locations that you can place your ATM. You need to look for public areas that get a large amount of foot traffic. For example, you may expect somewhere between 3 and 5 percent of people who pass by your ATM to actually use it. With transaction fees of $2 to $4, you can then calculate approximately how much money you can generate per month and year from a location.

You will need to talk to business owners and work out an agreement to place your ATM on the property. You will most likely to pay some type of rent or commission to the business owner.

Buy the Necessary Equipment

Buy the equipment that you need for your ATM business. You may want to start out with a single ATM and expand, or you could buy several right from the start. A single ATM will usually cost somewhere between $3,000 and $10,000; however, prices can greatly vary depending on what style of machine you get. You may also need to buy some extra equipment, such as a clip that you can fill with money to refill the machines.

In some cases, you may also need a truck that you can use to service the ATMs and move them around.

Set up a Legal Entity

Set up the legal aspects of your ATM business. If you plan on doing business under a business name, you will need to register it with your county clerk. You may also want to set up a business entity such as a limited liability company so that you can avoid any personal liability. This can be done by filing articles of organization with your state and then paying the appropriate filing fee.

You will also need to buy a business license from your city government.

Set Up the ATMs

Place the ATMs in the locations that you secure and set them up. They will require access to a phone line or the Internet. You will also need to set up a computer so that you can check the ATMs. Most ATMs allow their owners to get online and check their status. This will allow you to see how much money you need to take with you to fill them.

Tip Take time to choose a good location for your ATMs. The location is everything in this business.