Vending Machines = Passive Income
I invested 32k to start a healthy vending business in Dallas TX. Why? Here’s my top five reasons. Let me know if any of these resonate with you.
1. Passive Income
Vending machines equal passive income. Granted, no business is entirely passive. But with vending machines, your work is minimal. You have two roles to play. Relationship builder and stocker. You maintain good relationships with your locations, and you fill the machines. You also buy products, go to the bank, monitor your machines remotely, etc. Yet most of those functions require little time and can be automated.
Vending machines work for you. They are always on. Daytime or nighttime, they will produce cash flow in the right location. That’s the beauty of the vending business. Additionally, the machines don’t call in sick. They don’t give you an attitude. They do their job. Yes, there’s minor upkeep involved, but it’s minor. Your role is one of manager. Vending really is a great passive income business.
2. Recurring Revenue
Vending machines provide snacks and drinks again and again. People buy repeatedly month after month. I’ve always been attracted to recurring business models. As an investor, I want multiple revenue streams with recurring cash flow. Rental properties, SAAS, and vending all offer a great way to make recurring, passive revenue for years after the initial investment. When I make conservative projections on my annual earnings, the ROI on my initial investment is fantastic!
3. Financial Freedom
I grew up poor. I don’t know what your situation is, but I decided a while back I never wanted to be poor again. I know the love of money causes terrible problems, but the lack of it causes suffering too. I remember growing up with a different situation than my friends and neighbors. Other kids got new school clothes, family vacations, and other nice things. It was a big deal for me to get a new pair of shoes. My mom drove a piece of junk car that smelled like gas fumes and broke down repeatedly. She worked two and even three jobs at a time. We were limited in options as a family. We never talked about money unless there was a lack of it. I want to give a different life to my family. I want my daughters to have options I never had.
4. Blessed to be a Blessing
I want to help others. As a Christian, I believe the Bible’s teaching that “it’s more blessed to give than to receive.” I would love to help people in need. A poor family that’s up against hard times. A non-profit ministry that wants to build an orphanage but lacks the funds. A friend who lost his job and can’t provide for his family. Helping others is critical to a good life. I do hope to be blessed in business. And I hope I can help others just like I’ve been helped on my path. A generous man paid my way through college. He was a wealthy Christian man with a generous heart. He simply cut a check. He was a huge blessing in my life. I want to pay it forward.
It is more blessed to give than to receive. – Jesus
5. Multiple Revenue Streams
It makes not since to have all our eggs in one basket, as they say. I don’t want to depend on one revenue stream for financial stability. If the only income you have is your day job, you are in a precarious position. What if you get fired? What if the company gets purchased and reorganized, and you don’t make the cut? I’d much rather have multiple revenue streams of recurring revenue.
One day I hope to have revenue coming from my Vending Mastery podcast, rental properties, a day job, vending machines, and maybe an SAAS company. But for now I’m just getting started with vending machines. Healthy vending is a great way to start a small business with low risk and low barrier to entry. So far, it’s been a great journey. Stay tuned and I’ll update you every step of the way. If you want a behind the scenes look at my vending business, just listen to the podcast. I share my journey one episode at a time.
Got Questions? Just ask! I’ll answer asap. I might even turn your question into a podcast episode.
Passive income here we come!