ATM Business Plan Template
If you want to start a successful ATM business or expand your current ATM machine business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of ATM business plans.
The following ATM business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
ATM Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new ATM business located in [Location]. We sell ATM machines to local businesses around the city, especially those that only accept cash. Our machines can be used by any person who is either walking by the business or patronizing the establishment. The ATMs allow all cardholders to take out quick cash, so they can still make their purchase even if their card is not accepted or declined. Businesses who buy our ATMs also reap the profits of the fees that are charged with each withdrawal. Therefore, our ATM machines are guaranteed to increase sales, profits, and overall foot traffic for our clients.
Products Served
[Company Name] sells ATM machines to local businesses. We offer several models to choose from, all of which include large screen sizes, touch screens, and accessibility features. All of our models accept the following credit cards:
- Visa
- American Express
- Mastercard
- Discover
We also offer repairs, maintenance, and upgrade services for a fee.
Customer Focus
[Company Name] will primarily serve the [Location] area. The business and residential demographics of the area are as follows:
- 220,515 residents
- 126,168 workers
- Average income of $67,300
- 52,000 businesses
Management Team
[Founder’s Name] is a business consultant that helps businesses grow and attract more customers and foot traffic. He graduated from [University] with a degree in Business Administration. He also minored in Finance and worked for [X] years in the Finance and Banking industries. His years of business experience make him reliable in starting his own company and trusted by his clients and colleagues.
[Company Name]’s team will include highly skilled technicians for the ATM machines’ repair, maintenance, and upgrades.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- The city has multiple businesses and establishments that are great locations for ATM machines.
- Our ATM machines can be strategically placed in a high-volume area with a lot of direct traffic, and will thus be highly convenient to a significant number of passersby each day.
- The management team has a track record of success in business.
- Cash is an essential need for most people, even in the age of credit cards and cryptocurrency.
- The ATM machine business is a proven, successful business in the United States.
Financial Highlights
[Company Name] is seeking total funding of $100,000 of capital to launch.
Specifically, these funds will be used as follows:
- Commercial space lease and build out: $50,000
- Purchase of initial ATM machines: $30,000
- Working capital: $20,000 to pay for salaries and expenses until [Company Name] is cash-flow positive
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new ATM business located in [Location]. We sell ATM machines to local businesses around the city, especially those that only accept cash. Our machines can be used by any person who is either walking by the business or patronizing the establishment. The ATMs allow all cardholders to take out quick cash, so they can still make their purchase even if their card is not accepted or declined. Businesses who buy our ATMs also reap the profits of the fees that are charged with each withdrawal. Therefore, our ATM machines are guaranteed to increase sales, profits, and overall foot traffic for our clients.
[Company Name]’s History
[Founder’s Name] spent the past year researching the local market and planning out his ideas for an ATM business. [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation]. The business is currently being run out of [Founder’s Name] private office, but once the build-out on [Company Name]’s office location is finalized, all operations will be run from there.
Upon incorporation, [Company Name] was able to achieve the following milestones:
- Found a commercial location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] sells ATM machines to local businesses. We offer several models to choose from, all of which include large screen sizes, touch screens, and accessibility features. All of our models accept the following credit cards:
- Visa
- American Express
- Mastercard
- Discover
We also offer repairs, maintenance, and upgrade services for a fee.
III. Industry Analysis
Even in the age of credit cards and cryptocurrency, cash is still king. There are many establishments that still only take cash and other situations where cash is a more convenient form of currency than credit cards or checks. Therefore, ATMs are still essential pieces of equipment that help keep the global economy strong.
According to Grand View Research, the global ATM market was valued at $20.18 billion last year and is expected to grow at a compound annual growth rate of 4.9% over the next 10 years. This shows that ATMs are still essential and in demand. Banks need ATMs to provide their customers with convenient services and customers need conveniently located ATMs to help them with their purchases if their cards are not accepted. By no means are ATMs going away anytime soon, which means that businesses like [Company Name] have a great chance at succeeding.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve residents and businesses in the [Location] area.
The demographics of the town in which our business operates is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following customer segments:
- Small businesses: Smaller businesses need to take any form of income they can get. However, these businesses have a much harder time paying the fees charged for letting customers use credit cards. Having an ATM can help them take in more cash sales, which means they get a larger net profit.
- Local restaurants: Many local restaurants and food carts are cash only and therefore cannot take customers who only have credit cards. Furthermore, many customers prefer to tip their waitstaff in cash instead of adding it to their tab after their card transaction. Therefore, these businesses will greatly benefit from purchasing an ATM machine.
- Businesses/organizations that only take cash: Not every business has adapted to the 21st century. Some are resistant to accepting credit cards as a form of payment, while others just want to avoid fees. Providing nearby ATMs can prevent these businesses from losing sales simply because they don’t accept credit cards.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments provide either direct or indirect competition for customers:
Mountainside ATMs
Mountainside ATMs is a small local ATM vendor that provides ATMs to local partners and businesses. They install ATMs at convenient locations around the city, primarily in front of other local small establishments.
While Mountainside ATMs will continue to thrive, they are a small operation and do not have the resources to be a major competitor to [Company Name]. They also have high fees with each withdrawal, which prevents customers from using their machines again in the future.
Fountain City ATM Inc.
Established in 2015, Fountain City ATM Inc. is an ATM vendor for businesses in the restaurant industry. They provide convenient and easy-to-use ATMs for food carts and local restaurants that only take cash for their sales. These machines help keep these businesses going and prevent them from losing cardholders as customers.
While Fountain City ATM Inc. will continue to thrive, they will only provide competition in the restaurant industry. Since [Company Name] sells ATMs to multiple industries, this will not affect our overall sales too much.
ATMs USA
ATMs USA is a nationwide ATMs business that sells ATMs to businesses across the United States. They help any business that benefits from having a storefront ATM, including casinos and restaurants.
While ATMs USA will continue to thrive, their national presence prevents them from having a personal or local touch to their customer service. Many local businesses prefer to work with other local partners and therefore will be more inclined to work with [Company Name].
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s business is not limited to its location because ATM machines are portable and can be set up anywhere with electricity. Thus, it is easy to set up and distribute at all strategic points within the city.
- Great service: The company will offer in-house repairs, maintenance, and upgrades to every ATM machine that it manages.
- Management: Our management team has years of experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for [X] years, [Founder’s Name] knows all of the local leaders, newspapers, and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Convenient locations
- Significant personal attention
- High-end security features
Promotions Strategy
[Company Name] will target businesses and other public locations to secure locations for its ATM machines. [Company Name]’s promotions strategy to reach these businesses includes:
Telephone Marketing
The company will implement an aggressive phone sales blitz to target businesses to let them put their ATM machines in their locations.
Direct Mail
The company will create appealing marketing collateral to target businesses that want ATM machines in their locations.
Website/SEO
[Company Name] will develop a professional website that displays pictures of our locations and lists the services we provide. We will also invest in SEO so that the company’s website will appear at the top of search engine results. [Company Name] will also publish frequent newsletters and blogs to educate our customers on promotions and discounts.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Direct Mail
[Company Name] will blanket businesses within the city with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and provide other inducements for businesses to use our services.
Billboard Advertising
We will drive attention toward [Company Name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of businesses that can benefit from purchasing an ATM.
Pricing Strategy
[Company Name] will price its ATM machines moderately to ensure that businesses are getting a good deal while [Company Name] still makes a profit.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions including the following:
Administrative Functions
- Bookkeeping
- Marketing
- General administrative functions
- Hiring and training staff
Service Functions
- Purchase and sell ATM machines
- Provide excellent customer service
- Repair and maintain ATM machines
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Founder’s Name] is a business consultant that helps businesses grow and attract more customers and foot traffic. He graduated from [University] with a degree in Business Administration. He also minored in Finance and worked for [X] years in the Finance and Banking industries. His years of business experience make him reliable in starting his own company and trusted by his clients and colleagues.
[Company Name]’s team will include highly skilled technicians for the ATM machines’ repair, maintenance, and upgrades.
Hiring Plan
[Founder] will serve as the Supervisor of [Company Name]. In order to launch, we need to hire the following personnel:
- Delivery personnel (2 to start)
- Technicians (2 to start)
- Sales personnel (2 to start)
- Administrative staff (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from items sold from its ATM machines.
The primary cost will be the cost of the machines and their maintenance and repair. Marketing costs will also be a major cost driver, especially in the first few years as [Company Name] establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $100,000 of capital to launch.
Specifically, these funds will be used as follows:
- Commercial space lease and build out: $50,000
- Purchase of initial ATM machines: $30,000
- Working capital: $20,000 to pay for salaries and expenses until [Company Name] is cash-flow positive
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
