Demand for CBD is on the up, and people are establishing all kinds of businesses to cash in. CBD vending machine businesses are slowly getting popular.
Starting a CBD vending machine business is relatively easy, but you might experience some legal hurdles if you live in certain jurisdictions.
Many people are drawn to CBD vending machine businesses because of how simple the business model appears; just erect a vending machine on a busy corner and make money.
But, there’s a good side and bad side to starting and operating a successful CBD vending machine business. In this post, we look at the pros and cons of a CBD vending machine business.
The Pros of a CBD Vending Machine Business
With a CBD vending machine business, you won’t need to hire a clerk, as the transactions are automated. The following are some of the other pros.
The initial investment cost is low: one of the barriers to starting a business is capital. But, when starting a CBD vending machine business, you don’t require a ton of money, which makes it easy for many people. If your funds are limited, you can go for a second-hand device, to upgrade the machines once the money starts coming in.
Passive income stream: once you install the vending machine at an appropriate venue, there isn’t even a build-up time, but the profits start to roll in. Unlike some transactions where business owners have to wait for a certain period to receive payment, CBD vending machines require cash payments, thus making for a steady source of passive income.
Minimal expenses: with starting a conventional business, apart from making the initial investment cost, there are other expenses to cater to, including workers’ salaries, rent, and day-to-day running costs. With a CBD vending machine business, you don’t need workers, and you don’t need to pay heavy rent, and the less the expenses, the better for your profits.
Easy maintenance: customers walk up to the vending machine, place their orders, make their payments, and take their goods. Everything is automated. But, depending on how busy your vending machine business is, you will need to show up during the week to clean it, refill the supplies, and collect money. You just need to spare a few hours per week to maintain it.
Sales come in round the clock: with a conventional business, customers need to show up during the operating hours to be able to buy. But, a CBD vending machine operates 24/7, which means, even a customer that walks up to it in the middle of the night can buy what they want. This arrangement boosts earnings. But, to ensure that your machine operates round the clock, you need to invest in quality, feature-rich vending machines.
You can minimize risk: when starting a retail business, you typically put a lot of capital into getting stock. If the business fails, you might suffer massive losses. But, when it comes to a CBD vending machine business, you can start with a reasonably small stock, and as you take notice of what is selling more, you add to the stock. With this approach, you are less likely to experience massive losses.
Become your own boss: at the end of the day, most of us want to achieve financial independence and live up to our standards. With a regular 9-5 job, it’s hard to achieve financial freedom, but you can achieve it by starting a successful business. One CBD vending machine business won’t make you a millionaire, but when you start and operate CBD vending machine businesses in multiple locations, there’s a potential to make massive profits.
You don’t require any special skills: when starting certain businesses, especially businesses connected to technology, you require special skills. It can seem almost impractical to open up certain businesses without relevant training. However, when you decide to open a CBD vending machine business, you don’t need any special skills. You simply move ahead and set up the vending machines and watch the money roll in.
The Cons of a CBD Vending Machine Business
The following are some of the challenges you may experience when setting up a CBD vending machine business:
Finding ideal locations: the ideal locations usually receive heavy traffic and are secure. Most of the time, these locations are already taken up by other businesses, which makes it hard to secure them for yourself. And so, it’s a challenge to find an ideal location to set up your CBD vending machine business.
Vandalism: if your CBD vending machine business is not located within a building, and it sits outside, it’s still vulnerable to attacks by vandals. And so, make sure that your CBD vending machines have security features, to deter theft and aid recovery after vandalism.
Competition: perhaps one of the reasons why you’re inclined to start a CBD vending machine business is because you find it an easy way of generating passive income. Surprise, surprise, many other people have spotted and exploited this opportunity, and many more are looking to exploit it. With stiff competition, with more CBD vending machine businesses appearing in the market, it can potentially lower your profits.
Pros and Cons of CBD Vending Machine Business
The Takeaway: CBD Vending Machine Business Pros and Cons
Many people are starting CBD businesses to cash in on the soaring demand for CBD products. One of the types of CBD business with rising popularity is the CBD vending machine business. Starting and operating a CBD vending machine business is not all rosy; there’s a good side and a bad side to it. Some of the pros include low initial cost, flexibility, and passive income; while some of the cons include vandalism and competition.
