How to Open a Gym: Your Step by Step Guide (2024)


June 12, 2020

How to Open a Gym: Your Step by Step Guide (2024)

Do you love fitness and think “Wouldn’t it be awesome to open my own gym?” In an exclusive interview with the founder of Lab Athletics based in Bellingham, Washington, we asked Jake Brog to share his story.

As Jake’s launch demonstrates, creating your own fitness brand shouldn’t require you to invest hundreds of thousands of dollars. Best of all, Jake opened his gym business using nothing more than a credit card. Not only was his launch a success, but he was able to pay off his debt without paying any interest.

Following steps taken by Jake, you can learn how to start a gym from scratch.

Step 1: Become a fitness coach or instructor.

Fitness Trainer

Jake is not a serial entrepreneur. Like many young adults, he worked several different jobs before realizing his two passions in life – helping others and fitness.

Unlike some gym owners, Jake Brog did not initially think to himself, “I want to start my own gym.” As you’ll see, that desire came later.

At first, he became a volunteer firefighter. To pay his bills, Jake was a personal trainer and did fitness instructing on the side. Within months, he was managing the gym’s coaching staff and all the core tasks associated with running a fitness facility. Before long, he knew he’d found his professional calling – to open a gym of his own.

Watch the full interview with Jake here:

Get the necessary credentials.

Even if your gym trains you as an instructor, you should consider training from an accredited, third-party organization. There are a number of highly-reputed agencies that offer fitness instructor certifications. Among them are:

And the best part about becoming a certified fitness instructor or personal trainer is that it costs much less than other forms of training. When you are ready to start a gym business, you’ll have all the expertise you need without having to spend $20,000-50,000+ on a formal, college education.

Fitness Instructor Certification Prices

Find a gym that will help you gain experience.

The U.S. Bureau of Labor Statistics notes that fitness instructors are in high demand, with jobs expected to increase by 13% over the next eight years.

If you’re thinking seriously about opening a gym, you should apply for a job as a fitness instructor at a local facility.

Jake worked hard at his fitness job, and before long, the gym promoted him. He quickly gained leadership skills like time management, budgeting, delegation, and conflict resolution. These skills helped Jake to not just open a gym but to also run a gym well.

Step 2: Itemize your gym startup and operating costs.

Man Calculating Gym Business Cost

Like any business startup, launching a fitness facility costs money. Taking the time to itemize every cost of opening a gym can help you create a plan for launch and profitability.

You don’t have to start your own gym. there are plenty of opportunities to buy a gym or a franchise if you’d prefer.

What’s the difference between startup and operating costs?

Startup expenses are one-time costs. Here are some common startup costs associated with opening a gym:

  • Lease security deposit (or 10-30% down payment of the commercial property purchase price)
  • Gym equipment ($1,000+)
  • Starter bar ($275+)
  • Olympic bar ($400+)
  • Fitness matting (flooring)
  • Weight sets (each plate usually costs $75+)
  • Crossfit rig (if applicable)
  • Business attorney
  • Accountant
  • Branding (logo and website)
  • Company computer
  • Bookkeeping software

In contrast, operating costs are ongoing expenses. These costs usually entail the following:

  • Rent
  • Utilities
  • Insurance
  • Equipment replacement
  • General maintenance
  • Advertising

What’s the difference between variable and fixed costs?

The operating cost of starting a gym usually involves both variable and fixed expenses.

Your fixed costs remain the same month-after-month, such as rent and utilities.

Variable costs increase as you get more clients. For example, more clients mean more wear and tear on your equipment, and this could increase your equipment replacement costs.

Frequently forgotten costs when opening a gym.

Jake noted that some expenses took him by surprise. Like most business owners, he realized he needed insurance. Without insurance, he risked losing his business completely should a tragedy occur. If you need commercial insurance, get a quote here.

Fitness flooring is another business expense that new gym owners don’t often think about when building their business plan. Soft flooring is important because it reduces the risk of injury for yourself and your students.

Step 3: Keep expenses low, but stay away from low-quality gym equipment.

The more you spend, the harder it will be for your gym business to last.

That said, be careful about sacrificing quality for a lower price. If paying too little for certain kinds of equipment will only force you to replace that equipment later, it will end up costing you more money in the long run.

When shopping for a location, look for industrial spaces over commercial spaces.

industrial spage gym

A danger that many gym startups encounter is succumbing to the pressure to find a commercial or shopping center storefront. According to Jake,

If you look at the survival rate of gyms that are in industrial areas versus commercial, hands down you’re going to have so many more gyms that have been successful in industrial areas.

Reflecting on his decision to lease in an industrial area, Jake says,

My best business decision during launch was finding a very affordable space to start my gym in.  It allowed me to start my business without a crazy amount of risk, pay off my equipment loans fast, and become profitable in the first 12 months.

Start small.

Jake started his gym in a single industrial storage bay with a few hundred square feet. The smaller area allowed him to pay less for rent and more on quality equipment.

When opening a gym, it’s not important to do everything. Instead, figure out what you need in order to succeed.

When you start small, you can grow gradually with the confidence that increasing your space and equipment will generate profits right away. Today, Jake leases four bays and is already needing more space to keep up with demand.

When shopping for fitness equipment, think quality over quantity.

Poor-quality equipment will require you to replace it sooner. Additionally, bad equipment increases your risk of injury and can lower results for your clients.

Because of its high quality, Jake’s favorite equipment brand is Rogue Fitness. And because Jake saved money on rent, he was able to invest in top-level equipment.

Rogue fitness is a very high-quality brand. They’re made in the U.S.A. These guys [crossfit big rigs] we’ve had for five years, and they’re not going anywhere.

When you start your own gym, keep in mind that there are certain costs that you should not cut corners on. Don’t be afraid to spend a little extra if you are confident that it will be a worthy, long-term investment.

Step 4: Consider all your funding options

Jake did not have $10,000 just lying around. What he did have were determination and great personal credit.

Why do you need a business plan to start your own gym?

Man Writing a Business Plan

After deciding to open his own gym, Jake created a business plan. Initially, he built his gym business plan hoping that it would help him secure a business loan.

Even without a loan, Jake’s gym business plan did force him to do his homework. In his plan, he outlined the following key sections:

  • A quick summary of the business (elevator pitch)
  • A detailed company profile
  • A description of the target fitness market
  • Legal setup
  • A list of products, services, and pricing model
  • A plan to generate revenue from day one
  • Financial projections

For most small businesses, writing a business plan allows you to pitch lenders and investors. While not every gym requires outside funding, an extra injection of cash can help you build your business faster.

For a detailed example of a business plan, check out the SBA’s business plan page here.

What do you need to secure a business loan?

In Jake’s case, no amount of business planning would open doors for him to get a traditional business loan.

“What I found out is: the business plan is awesome, but in the real world, the banks are like, ‘We’re probably not going to loan you any money because you have no skills in business.’”

The truth is that most business startups usually can’t get a traditional business loan. Even the SBA prefers to qualify businesses that have existed for a few years and have already demonstrated their ability to create profits.

Jake leveraged a 0% introductory interest rate on a credit card to launch his gym!

Since a traditional business loan was out of the question, Jake got creative. Due to his good credit score, Jake qualified for a credit card with a 0% introductory interest rate.

And here’s the kicker. Having built a solid business plan, Jake knew that he had a good chance of making enough sales so that he could pay off his credit card debt before he would accrue any interest charges.

Step 5: Establish your financial goals.

Jake’s financial projections helped him establish realistic financial goals. Within months, not only was he successfully paying all his bills, but he was generating a modest profit.

If you’re considering buying an existing gym, make sure you you go through the following questions, which are critical to understand whether or not an existing business can meet your financial goals.

How much will you charge?

Any fitness business must decide what they offer clients and how much they must charge.

In our interview with Jake, he outlined different types of gym services. Typically, your gym should offer one or more of the following:

  • Monthly membership
  • Large, medium, or small group classes
  • One-on-one personal training

According to Jake, the most lucrative fitness pricing model is the large group class. That said, the larger the group, the more concerned you must be about the safety of your customers.

If your fitness approach involves low-risk exercises (such as those movements that do not involve heavy equipment), your classes can be larger. This model allows you to generate profits faster.

In Jake’s case, he chose the CrossFit model. While he does a lot of group classes, he knows that he must keep classes smaller. This approach also affects how he prices his memberships. Jake noted,

Basically, our memberships are between $149 and $170 a month.

He arrived at this number after calculating realistic financial goals based on his costs and the value he brought to the local fitness market.

Breaking even means that your business is no longer costing you money.

Break even graph

Over the course of his first year in business, Jake invested between $15,000-20,000.

To actually break even on rent and then also to start paying off the credit card – the debt that I’d incurred – I had to be making about $1,000 a month.

Jake’s personal bills and debt were very low, and his low cost of living further helped him break-even. After ten clients, he was paying his bills with a little extra to spare.

Break Even

Sales ($) = Costs ($)

You should also know how many clients/memberships your gym needs to be paying your bills. If you go too long and are unable to keep up with your costs, it will be much harder to stay in business and eventually enjoy those profits!

Profitability means that your gym sales are greater than your costs.

After you’ve broken even, your next goal should be to seek higher levels of profitability. To help them achieve profitability faster, most gym owners don’t take a paycheck right away.

Profitability

Sales ($) > Costs ($)

Once generating a profit, Jake’s first priority was to lower his debt. Since he had only so many months before his 0% interest promotion would run out, he committed himself to pay off his credit card as soon as possible.

It was about 6 months into the business where I finally felt comfortable that I had enough money coming in where I was going to be able to pay off that credit card debt that I’d incurred.

Sustainability means that your gym is successful enough for you to take a paycheck.

After generating a profit, your final goal should be sustainability. When you feel confident that your business can sustainably generate a profit, you can begin to enjoy greater perks.

If you’re talking about actually having some substantial profit, having some freedom, extra money in the bank account, for me the big landmark was about 100 clients.

Sustainability ensures that you have a regular paycheck (how much you make depends upon your financial goals). Additionally, financial freedom can allow you to hire employees so that you as the gym owner can have more time for yourself and your family.

Sustainability

Sales ($) = Costs ($) + Owner Paycheck ($) + Business Savings ($)

Today, Lab Athletics employs five people, and Jake is able to focus on more big picture decisions, such as how to grow his brand as a gym owner.

Step 6: Identify the type of person you want to join your gym.

People Running on Treadmill

You should never build one gym that fits every type of client. Like any small business, you should have specific kinds of people in mind in your community.

By defining who your target audience is, you can better understand what your customers need and how to deliver value to them.

What is their income level?

Jake knew that his approach to fitness catered to an audience with more financial resources.

Most of our clients are definitely high-end people that have pretty serious jobs.

This insight helped Jake create a strong pricing model, as well as tailor his training to those with a certain budget.

What is their age?

Your gym will typically serve an ideal age range. Because we all tend to lose functionality with age, your fitness model may be better suited for those that are older, younger, or middle-aged.

In Jake’s case, he specialized in helping middle-aged adults that are in generally good health. These ideal customers had known what it was like to be in amazing shape, and they wanted more than “general good health.”

We’re definitely catering to people that are initially coming in because they wanna lose some weight. They’ve let themselves go. They wanna be the athlete that they used to be back in high school or college.

What is their mindset?

When opening a gym, the mindset of your clientele will determine whether or not you can succeed. Fitness facilities need customers that are driven and know what they want. Oftentimes, those people just need a little direction and incentive.

Step 7: Incentivize gym membership referrals before spending money on advertising.

While Jake enjoys marketing and advertising, he knew that to succeed, his gym needed referral power.

How can your gym incentivize referrals?

Referral graph

Obviously, no one will refer friends and family to your business if your services are mediocre. When you get your first batch of clients, you must pay attention to their wants, needs, feedback, and results.

The best metric of how we’re doing as a gym is how many referrals we’re getting every month. If we’re not getting referrals, we’re not doing a good job.

When your customers are happy, they’re more likely to refer others. You can also offer discounts to your clients for referring their friends/family.

What should you do if a client is unhappy?

If feedback and results are negative, you may need to make some adjustments.

Especially in the digital space, negative reviews are sometimes unfairly accusatory. When you receive negative feedback, it’s important that you listen to the criticism and look for opportunities to improve your gym.

Above all, never attack critics. Instead, thank them, offer them a gift, ask probing questions, and commit to (realistic) changes. Even if you can’t win back an angry client, others will see your response and want to give you their business.

What kind of advertising works best for your gym business?

Social media pay-per-click (PPC) ads became one of Jake’s favorite mediums once he had achieved sufficient word of mouth for his gym. For middle-aged audiences, Facebook ads are among the best-performing in the fitness industry.

Step 8: Teach consistency among your clients.

You want to make sure your gym members to keep coming back. Not only is it important that you teach consistency, but you must also earn trust with your customers by delivering results.

Gym memberships last longer when your clients see results.

Jake and his team know that when clients see results – weight loss, bulk, or increased physical functionality – they will keep coming back.

Customer retention is more profitable than customer acquisition.

Customer Retention Graph

It is a proven fact in economics that constantly chasing new customers will cost you more money than retaining as many of your members as possible.

Since repetition is the key to results in fitness, creating ways to remind your clients to stay consistent should be part of your gym’s services. This could include encouragement during training sessions, follow-up phone calls, or even email newsletters.

At Jake’s gym, they showcase successful clients on a wall to inspire other members to persist toward their fitness goals.

Step 9: Scale your gym business from within.

man scaling business

Jake warns against jumping too fast towards a multi-location strategy.

Can you open more gym space at a low cost?

The fewer the costs you have to manage in your gym business, the easier it is to “ramp-up” (that is, break even with your costs and become profitable). In the fitness industry, it can take large gyms several years before they generate a profit simply because they started in too big a space.

The first bay I rented out was this back bay here – so just that one garage door. There was nothing in here. We didn’t have a bathroom. It was basically about 400-500 square feet of a garage unit. That was $250 a month… We have four bays now.

If you find an industrial location with the potential for slow expansion, you can build out your gym smarter, just as Jake did.

Can you add more classes?

In your current location, think about ways to exhaust its potential. Jake says,

We could always add more class times… Let’s say we’re doing large group training right now, we could also offer an additional service that is small group training for an additional cost.

Can you extend your gym hours?

Gym usage graph

If you have the time and employees to facilitate extended workout hours, you can cater to those that prefer to workout at different times of the day, including early morning or later in the evening.

Remember that opening a new gym location is a major expense.

With each new fitness center location, you will have to sign a new lease, pay more in utilities, and fill with equipment. It many ways, it’s like starting a gym all over again. Jake advises,

So there’s ways to scale inside your facility versus going and starting another gym, two other gyms, and actually just make that one facility a lot more profitable than going and trying to replicate facility, facility, facility.

Before you establish a new location, make sure that demand justifies the investment and that you’ve filled the space you currently occupy.

If you think at some point you’d want to sell your business, scaling too quickly could negatively impact the value of your business.

Step 10: Arm yourself to replicate success.

Once your gym is a success, you should look for big and small ways to replicate it.

Seek more training.

You and your team are worth investing in greater knowledge and fitness skills. Qualifying your staff to do more with less is a great way to increase your sales and lower your costs.

Jake also found that investing in a coach did wonders for his gym business and him as a gym owner.

You can learn so much and shortcut your success by learning from someone who is the professional you want to be or has been extremely successful doing what you want to do.

Read books that improve your mindset and soft skills.

Jake’s favorite book is The eMyth because it ultimately inspired him to open his own gym. Reading instructional and motivational books by experts can enhance your skills and improve your mindset.

Never stop challenging yourself.

At the end of the day, you are the one that must take calculated risks. When asked what advice he would give to those thinking, Should I start my own gym? – Jake Brog insists, “Do it! Just go for it!”

It worked for Jake, and it can work for you, too.


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A cleaning supplies list is essential to ensure you have the right tools for the job—on hand and ready to go. Every cleaning business will need similar cleaning supplies, but house and janitorial supplies will need different tools. If you offer green cleaning services, you’ll want environmentally friendly products that comply with the Climate Pledge (see below), a promise to be net zero carbon emissions by 2040. This list was created with the help of Christopher Mondragon from our cleaning course. Chris started Queen Bee Cleaning Service and is making around $1.4 million a year, so he knows the essential cleaning supplies to run a highly successful cleaning company. [su_note note_color="#dbeafc"] We’ve broken down the complete cleaning supplies list into the following categories: 
  1. Everyday cleaning supplies
  2. Natural cleaning supplies
  3. Cleaning supplies for kitchens
  4. Cleaning supplies for restrooms
  5. Cleaning supplies for bedrooms[/su_note]
Check out our first interview with Chris! [su_youtube url="https://www.youtube.com/watch?v=YcYIYdqegGA"] Before we get too far, here is a quick look at the selection process.

How We Chose Cleaning Products

We chose these products based on a house cleaning supplies list, but when there are different products people might like, we give you various options. In addition, we tried to include products that:
  1. Qualify for Amazon Prime. Get a 30-day free trial if you don’t already have Amazon Prime. Amazon also offers business prime accounts with tiers starting around $70 per year.
  2. Offer Subscribe and Save: This makes the process of reordering supplies easier as time goes on. You also get discounts. 
  3. Meet the Standards of Amazon Climate Pledge: (This website is cool. Check out their timeline. It’s awesome!)
If you’re just here for the cleaning supplies list pdf, download it below.

House Cleaning Supplies

Professional Cleaning Supplies Checklist The following supplies are ones that every cleaning company should have.

Glass Cleaner

Everyone will need a glass cleaner for windows and mirrors, make sure it’s on your cleaning supply list. If you’re focused on items for a cleaning business, we’d suggest getting two products:
  1. Windex Spray Bottles: This one is under $30 and perfect for teams.
  2. Windex Glass and Multi-Surface Cleaner: For under $25 you can get enough Windex to refill five Windex spray bottles.
These work for home cleaners or Airbnb cleaning services.

Aprons

Screenshot of aprons from Amazon website An apron is one of the must have cleaning supplies. There are a ton of options, but you’ll want an apron with at least two pouches to carry your cleaning materials. If you want to get snazzy, buy custom aprons with your cleaning business logo on it.

Vacuum Cleaner

No cleaning tools and equipment list would be complete without a vacuum cleaner. You’ll want a nice one, too. Consider buying some of the Commercial Vacuum Cleaners. Make sure it comes with attachments like a crevice tool. To get tough to reach places that other house cleaners might miss.

Wet Floor Signs

When you mop, wax, or polish tile, wood, or other hard surfaces, make sure your cleaners put out a wet floor sign to protect people from slipping and hurting themselves. This is especially important for a commercial cleaning supplies list. Get the 12 Pack of Wet Floor Signs, and you’ll have enough to start cleaning homes. Keep reading for more basic cleaning supplies.

Microfiber Mop 

You’ll need a good microfiber mop when cleaning properties with lots of hard floors. The professional mop linked below should be on your list of cleaning essentials: Professional Microfiber Mop and Pads Alternatively, you can get a Swiffer Sweeper. They are less sustainable than the microfiber ones, but you don’t have to wash the pads when they get dirty. Make sure to order refills, too.

Professional Mop and Bucket

Screenshot of mop and bucket from Amazon website No list of cleaning supplies for cleaning business operations would be complete without a Professional Mop  and Bucket. Don’t forget to create a subscription for new mop head refills. House Beautiful has a great list of household cleaning supplies and how often you should replace them. Typically, you’ll want to replace the mop head every ten to fifteen washes.

Microfiber Cloths

Cleaning supplies for business operations will need clean microfiber cloths. Whether you clean a house or a business, you’ll probably want to use color-coded cloth. The Multicolor Microfiber Cloths allows you to use a different color for each cleaning product you use. Don’t forget to train your team on cleaning things with the proper color code.

Rubber Gloves

You’ll need gloves, too. You might also want to color-code them for certain cleaning house cleaning tasks. For instance, you might want one color for the bathroom, one for cleaning the stove, and one for washing dishes. The 3 Pack of Rubber Gloves matches three out of five colors with the cloths so you can keep the color coding consistent across your household cleaning supplies list.

Black Trash Bags

Screenshot of drawstring trash bag from Amazon website You’ll want bags for dirty rags and trash. Black bags in bulk orders make the most sense for house cleaning companies. Click on the link below to find them on Amazon: 210  Black Trash Bags

White or Clear Trash Bags 

You’ll also want white or clear trash bags on your cleaning supplies checklist. These should be used for clean rags or clean sheets if you offer Airbnb cleaning services. 57 White Trash Bags

Neutral Floor Cleaner (Bona or similar)

You’ll want a floor cleaner that has a neutral PH level like Bona. You might also consider cleaning products like Rejuvenate All Floors Restorer. Bona just cleans, while Rejuvenate helps repair and extend the life of the flooring.

Disinfectant Cleaner

If you specifically want something that sanitizes and disinfects against Covid and other viruses or bacteria, you’ll want to make sure that the product is on the EPA list N. Check out the EPA video below to learn how to use the List N Finder. [su_youtube url="https://youtu.be/mrp7xscZ4LA"] As you collect items for your house cleaning supplies list, you’ll need to consider which disinfecting supplies make the most sense for your cleaning company.

Cleaning Bucket

Screenshot of cleaning caddy from Amazon website You’ll need something to carry cleaning items that won’t fit in your apron, so a cleaning bucket or caddy should be on your cleaning supply checklist. The link below will take you to the Amazon selections for caddies with wheels. These range from smaller ones for basic cleaners to larger ones that should go on a commercial cleaning supply list. Check them out! Cleaning Caddies With Wheels

Broom and Dustpan

You’ll want a broom and dustpan because sometimes vacuums won’t pick up debris on hard surfaces as effectively as a broom and dustpan. The set I chose to put on the list of cleaning products has unique features including:
  • Extendable handles 
  • Built-in comb and scraper
  • Dust cover
  • Extra layers of bristles for better floor cleaning.
I found this review to be remarkably beneficial despite the negative tone. They list more pros and cons, note some flaws that others say get better through use, and are really thorough. Save the house cleaning supplies list!

Natural Cleaning Solutions

These solutions are meant to help with the cleaning process and be extraordinarily environmentally friendly.

Blue Dawn Dish Soap

It’s good enough to clean ducks after oil spills, so it’s safe to use in your house. If you want dish soap that’s sensitive to the skin, Dawn is synonymous with a clean home. Buy it in bulk to save on shipping: Dawn Dish Soap

White Vinegar

White vinegar is great for deep cleaning kitchen appliances and other areas that need cleaning. You’ll need to dilute it with warm water for the best home cleaning results. Check out bon appétit’s blog about cleaning with white vinegar.

Hydrogen Peroxide

You might be familiar with hydrogen peroxide from cleaning wounds or using it as mouthwash, but did you know it deserves a spot on a cleaning supplies checklist? According to the Cleveland Clinic, hydrogen peroxide is an all-purpose cleaner that can be used on food, brushes, washing machines, grout, sinks, appliances, crime scene cleanups (it removes blood from clothes), and more. You’ll want some to keep your toilet brushes and other utensils clean for longer. You can get a gallon of hydrogen peroxide shipped straight to you from Amazon.

Baking Soda

Screenshot of baking soda from Amazon website Baking soda works great for deodorizing and cleaning metals. Some of the uses include:
  • Removing smells from a garbage disposal 
  • Water spot removal
  • Removing carpet stains
  • Drain cleaner
Find 46 more uses on Taste of Home. We added it to our cleaning supplies checklist and you can get baking soda on Amazon.

Lemons

There’s a reason almost every item on the cleaning product list has a lemon scent. Lemon juice smells good, keeps bugs away, gets rid of odors, and is acidic. If you want to make your own all purpose cleaners, you’ll want to have lemons. If you haven’t tried Amazon Fresh, it offers free 2-hour delivery on tens of thousands of products with any cart above $35 ($50 in NYC). Get lemons shipped to your door today. While you’re at it, order dinner. 

Cleaning Supplies for Kitchen

Your cleaning products list will need some special kitchen cleaning supplies.

Scrub Pads

Screenshot of scouring pads from Amazon website These are great for getting grime off the dishes and appliances. I tend to prefer the sponges where one side is a scrub pad and the other side a normal sponge. You can get an Multicolor Dual-Texture Sponges and have plenty of scrub pads and sponges. 

Eraser Sponges

Magic eraser sponges are excellent for stain removal, but don’t use them on items that are prone to scratching because when you get them wet they are abrasive. The link below will get a pack of 20 of these magical housekeeping supplies. Extra Large Eraser Sponges

Oven Cleaner

Screenshot of concentrated cleaner degreaser from Amazon website Ovens can get messy if you don’t clean them immediately after you cook. Products that require cooking directly on the rack can drip on the metal and get burnt onto the inside surfaces. You’ll need a degreaser to get them off. This is more of a deep cleaning task, but it makes a difference. Pro HD Degreaser and Refill

Stove Top Cleaner

Some homes have glass or ceramic stovetops. You’ll want a special cleaner for them. The Weiman Cooktop and Stove Top Cleaner Kit will get the job done without scratching the glass or ceramic

Multipurpose Kitchen Cleaner

You might want to consider the 1 Gallon Simply Kleen USA Multipurpose Cleaner if you want something that is environmentally friendly and intended to clean all hard surfaces. I would stick to Windex for glass surfaces, but Simply Kleen will work for cleaning your kitchen, bathroom, and floors. [su_youtube url="https://youtu.be/YcYIYdqegGA"]

Stainless Steel Cleaner

Stainless steel appliances can scratch easily, so you need to make sure you have products that won’t hurt them. If you want a product that is specifically for stainless steel, try Proline, but if you want one that will work on ceramic, stainless steel, enamel, and plastic, try Vim. Earth Friendly Proline Stainless Steel Cleaner Vim Creme 

Plastic scrapers

Screenshot of plastic surface scraper from Amazon website Plastic scraping utensils should be on a household cleaning products list because you’ll need them for cleaning paint or other gunk off walls, counters, and other hard surfaces. There are a few different types of scrapers in housekeeping cleaning supplies, so I provided you with some options.

Microwave Safe Bowl to Steam

If a microwave has hard-to-remove food stuck on it, you’ll want a microwave-safe bowl like the TOPHOME 4pcs Silicone Bowls. Just add some water to the bowl and microwave it until the steam loosens up the particles. The steam will loosen up the food making it easy to wipe off.

Dishwasher Detergent

Screenshot of dishwashing detergent from Amazon website If your cleaning business offers dishwashing services, you might want to have Lemon Scented Cascade Dishwasher Pods on your cleaning supplies list. Next, let’s look at cleaning supplies for house and office restrooms.

Bathroom Cleaning Supplies List

A bathroom is normally residential and includes a shower or bath, while a restroom is normally in a commercial space and does not include showers or baths.

Restroom Cleaner

Personally, I love the Scrubbing Bubbles Starter Kit. I’ve been using Scrubbing Bubbles since I was a kid and believe it should be on any bathroom cleaning supplies list. If you want home cleaning supplies in a larger volume try Mr. Clean Multipurpose Cleaning Solution.

Toilet Brush and Plunger Set

Screenshot of toilet brush and plunger set from Amazon website Another house cleaning supply you’ll need is a plunger and toilet bowl cleaner. The ones below are available separately or together in black or white and are super stylish. They are also magnetic and have a patented brush formation for easier cleaning. SimpleHuman Toilet Brush and Plunger

Pumice Stone 

If a toilet brush won’t get hard water stains off a toilet bowl, you might want to have an Pumice Stones with Handles to help get the hard water stains off. In Las Vegas, our water is so hard that we have to take a towel with warm water to our bathtubs any time someone uses it or they develop stains. If you have hard water keep that in mind. Keep reading for more items on the list of household cleaning products.

Tile and Grout Cleaner

Your list of cleaning supplies for housekeeping companies should include a good tile and grout cleaner like the Goo Gone Tile and Grout. Use it with the mini grout brush below and your cleaning supply checklist will prepare you to create cleaner bathrooms and hopefully earn some tips.

Mini Grout Brush

Screenshot of mini grout brush from Amazon website Grout is commonly overlooked when people and businesses clean homes. Add a mini grout cleaning brush to your housekeeper supplies to make your customers’ bathrooms sparkle. Consider these Professional Grout Brush Options available on Amazon.

Calcium, Lime, and Rust Remover (CLR)

Buying a CLR Pro Calcium Spray Bottles kit will make it where you can easily remove calcium, lime, and rust which may accumulate from hard water. Make sure to review the CLR FAQs before using it because it can damage materials where it is not meant to be used.

Squeegee

You’ll want a squeegee to clean showers with glass doors. Most people don’t use them when they take a shower, but it looks much better. I’d suggest a squeegee and microfiber window washer as the one for the cleaning company.  If you want an opportunity to increase your revenue, try offering to provide these to your customers. You can get one like the Shower Squeegee With Holder or better yet, order them.

Knee Pads

Screenshot of cleaning kneepad from Amazon website I know it sounds weird to suggest knee pads for a house cleaning supply list. If you spend time on your knees cleaning toilets, tubs, or other places that are hard to get to, NoCry Professional Knee Pads should be cleaning supplies must-haves. Your future self will thank you for wearing them. Next, we’ll provide a list of household supplies for bedrooms.

Products for Bedroom Cleaning

We have tips to go with the list of household supplies to clean the bedroom.

Extendable Duster

Bedrooms need to be dusted and sometimes it’s hard to reach places like fan blades above the bed. Stay professional with an extendable duster. There are a few different types to consider. We chose three of the best options:
  1. Budget: The SetSail 110” extendable duster has a removable duster that can be bent to fit in hard-to-reach space. It’s low cost and you can order replacement heads. You might also want the blind duster and window kit.
  2. Dusting Kit: The 6 piece dusting kit includes an extendable pole, 3 styles of microfiber covers to go over the bendable head, a hand duster, and a carrying bag. This one is the best option for your house supplies list.
  3. Swiffer Dusting Kit: Like the Swiffer Sweeper, the Swiffer Dusting Kit is something that many will want with their cleaning supplies for home. It comes with a handle and 12 Swiffer Heavy Duty Dusters. The dusters are disposable, so you’d need to replace them after each house. In addition, the handle is only three feet long. This is the best choice on a list of cleaning supplies for apartment tenants.

Wood Cleaner

If you love the smell of Lysol, the Lysol Disinfectant Wipes and Spray kit includes three products for cleaning house furniture and counters. For those who clean professionally, disinfectant wipes might not meet sustainability requirements if you work on LEED-certified buildings. They offer plant-based wipes in recyclable plastic on Walmart, but you’ll spend twice as much for the same number of wipes. Another alternative is an Method Daily Wood Cleaner. Method has a LEED Platinum factory (highest requirements besides the 100 LEED Zero certifications since 2018) and is highly focused on creating a more sustainable world. Check out Method’s video “from beach to bottle.” [su_youtube url="https://youtu.be/08qmB-ysqAQ"]

Fabric Refresher

Go with a familiar brand like Febreze or one that is more sustainable like Fresh Wave. Either way, your household supplies list should include an odor-removal spray for fabrics.

Pet Stain Remover

You can go with a cleaning spray like Angry Orange and scrub it out, which sounds like a lot of work. When thinking about cleaning supplies for home stain removal, I’d prefer something that has some power and is cordless like the Bissell Pet Stain Eraser PowerBrush. You can go with the Bissell Little Green ProHeat if you don’t mind the cord. Check out the Vacuum Wars comparison below. [su_youtube url="https://youtu.be/1wYahfdProc"]

Fireplace Cleaner

Quick N Brite is a fireplace cleaner that removes soot and other combustion products from the fireplace. If you don’t clean fireplaces and the chimneys, the risk of fires and poor indoor air quality increase. Make sure to add it to your cleaning supply list.

What Cleaning Products Do You Love?

This clean products list covers all the essentials you’ll need for cleaning homes, apartments, or businesses. If you haven’t already, download the free, printable cleaning supplies list for cleaning business operations below:  Get your free form! Are there all-purpose cleaners, scrubbing sponges, or other products you can’t live without?    

Want to start earning a passive income? People still need cash and learning how to start an ATM business (ATM means automatic teller machine) can be a great way to make a passive income. Take it from someone who is already an ATM owner.

[su_quote]I was a cop working 60 to 80 hours a week and neglecting my family. My back was really against the wall. I decided to start an ATM business to start earning passive income.[/su_quote]

From starting a side business in 2017, Paul Alex grew to $15 million in annual revenue with his company ATM Together. Now, he helps people automate their own ATM businesses. He makes it easy to:

  1. Buy ATMs at wholesale cost
  2. Get a free payment processor
  3. Find the best rates on internet
  4. Locate a bank that serves ATM businesses
  5. Place your first ATM
  6. Access vaulters and technicians

[su_note note_color="#dbeafc"]
Don’t worry if you don’t know what all these are right now. You will by the time we explain how to own an ATM. We’ll cover all of the following, and you can click to jump to the sections that interest you most:

How to start an ATM business

Business owner Paul Alex showing how to get ATM machine placement in a mall

Starting an ATM business requires a simple seven-step process:

  1. Perform market research
  2. Create an ATM business plan
  3. Prepare for ATM business operations
  4. Find an ATM location
  5. Buy an ATM (and other equipment)
  6. Install and operate the ATM
  7. Grow the ATM business

Find out how to start an ATM business by following the steps below.

Perform market research

Starting an ATM business will require understanding the ATM industry. We’ve got you covered with the information you need to become an independent ATM deployer. We’ll answer ATM industry questions like:

  • How much to start an ATM business?
  • How much can an ATM make?
  • How much time do you need to spend on an ATM business?
  • How profitable is an ATM business?

How much does it cost to start an ATM business?

Best practices include separate personal accounts and track mileage (concept illustrated by ATM owner in front of IRS mileage rates page)

Starting an ATM business isn’t expensive. Paul told us:

[su_quote]You can start an ATM business for under $6,000.[/su_quote]

He broke the costs down to:

ATM Cost: $2,100
Limited Liability Company: Under $1,000
Business license: Under $1,000
Internet modem: $150
Internet service: $7 per month
Tools: $300-$500
Gas: 65.5 cents per mile using IRS Mileage Rate
ATM liability insurance: Under $1,000

How much money can you make owning an ATM machine?

Your ATM investment earns approximately $9 to $15 per day according to Paul. That converts to $3,285 to $5,475 annually or $456.25 monthly at $2 per transaction.

Paul also told us:

[su_quote]You can add toppers and sell ad space to earn an additional $50 to $250 per location each month.[/su_quote]

That means to make the $15 million annual revenue he earns, you would need approximately 4,600 ATM machines. Don’t worry, you can start off with one ATM and build from there.

Check out the rest of the interview with Paul.

How much time does investing in ATMs require?

Considering time to ATM profit illustrated by man puffing out his cheeks in frustration while holding an analog clock

Running an ATM business will take different amounts of time depending on the strategies you use. If you manage all your ATMs yourself, it will take your drive time plus up to 15 minutes to fill each machine.

But Paul told us you can hire employees or pay other companies to do it for you. That makes owning ATM machines completely passive income.

How much money is in an ATM?

The average ATM may hold up to $200K, but you might not want that much cash in your ATM at any time. Many machines keep less than $10K in the machine at any time.

Depending on the manufacturer and the bills in the machine, you will have between one and four dispensing cassettes that hold 1,000 to 4,000 bills each. That means in rare scenarios, an ATM could hold up to $1.6M.

Create an ATM business plan

Next, you’ll want to create an ATM business plan to document how your ATM company will operate. A successful ATM business plan will include the following sections:

  1. Executive Summary: Briefly cover the main points in your business plan in a single page.
  2. Company Overview: Explain what makes your ATM business different.
  3. Industry Analysis: Show your knowledge of the ATM industry both locally and nationwide. This will help you choose suppliers for your ATM operational plan.
  4. Customer Analysis: Describe your target customer and how you’ll reach them.
  5. Competitive Analysis: Explain how you’ll differentiate yourself. For instance, Paul helps people find their first location and provides all the vendors to get started.
  6. Marketing Plan: Detail how you will approach product, price, placement, and promotion in your ATM business.
  7. Operations Plan: Explain how you’ll provide customer support, refill machines, and find new ATM locations.
  8. Management Team: Provide the long-term goals for your organization, the roles you’ll need to fill, and the experience of anyone who is already on the team.
  9. Financial Plan: Document your expected revenue and expenses. Then create three- to 10-year estimates of your annual earnings. Provide any prior year net income statements, cash flow statements, and balance sheets.
  10. Appendix: Document every website you used to research ATM businesses in your appendix.

Check out our article on writing a business plan for more information.

Prepare for ATM business operations

There are certain things that every ATM operator will need to do run a successful ATM business. You’ll need to:

  • Select an ATM business name.
  • Choose your ATM business legal structure.
  • Get business licenses.
  • Open a business bank account.
  • Get business insurance.

Keep reading for more resources about starting an ATM business.

Select an ATM business name

UpFlip business name blog on a laptop

You’ll want to consider the name for your ATM business carefully because it will represent your brand for the lifetime of the company.

Some tips for choosing a memorable name for an ATM business include:

  • Choose a business name that is low-cost and easy to pronounce, like ATM Together.
  • Check name availability as a website, social media accounts, and on the USPTO.
  • Think about how branding and marketing will fit with your ATM machine business name.

Paul told us:

[su_quote]I wanted to help people build small businesses with ATM machines, so I named it ATM Together because we work together to help the business owners succeed.[/su_quote]

Check out our article about naming a small business for more information on choosing a name.

Next, you’ll need a legal business structure for your ATM business. You’ll go to the Secretary of State and register the business name in each state where you’ll provide ATM machines.

Paul told us:

[su_quote]You want to register as a limited liability company.[/su_quote]

Want to know more about how the business model impacts ATM providers? Consider the following.

  1. Limited Liability Company (LLC): This business model protects ATM operators from personal liability for business liabilities and debts. You can have single or multi-member LLCs with pass-through taxation, and also turn it into an S-Corporation. You’ll have to pay self-employment taxes.
  2. S-Corporation (S-Corp): An S-Corp provides liability protection and pass-through income like an LLC, but has limits on the number of shareholders. You’ll also file with the IRS to be considered an S-Corp. If you work within the company, you’ll need to pay yourself a salary, too.
  3. C-Corporation (C-Corp): This business entity is entirely separated from its owners and must have a separate tax ID number. Should your ATM business grow large enough to go public you can have unlimited shareholders. C-Corps are taxed on both personal income and business income, which causes double taxation.
  4. Sole Proprietorship: While a sole proprietorship is inexpensive and may not require any registration, you do not want to use a sole proprietor structure for your ATM business because it leaves the business owner personally liable for all debts and commitments of the ATM company. Compare LLCs and sole proprietors.
  5. Partnerships: There are different types of partnerships, but these are primarily used when you start an ATM business with more than one business owner. You’ll need a legal agreement in place for partnerships to resolve conflicts.

While most businesses use these five structures to start an ATM business, there are plenty of other models for your business venture.

Next, we’ll discuss business licenses.

Get business licenses

You’ll need an ATM business permit to comply with local requirements and zoning codes. Check with your city for the inspection requirements because each state and municipality has its own requirements. You may also need:

  • Class C Liquor License: Get this when businesses sell alcohol in the same location as your ATM machine. Consult a lawyer to see if your state requires this.
  • Sign Permit: Your state’s Department of Transportation (DOT) may require a sign permit for ATM signage on pedestrian malls, highways, and parking areas.

You will also need bank accounts for an ATM machine to accept credit or debit card transactions.

What banks accept ATM business accounts?

You’ll need a business bank account for your ATM machine to deposit the funds that people transfer from their bank account. Unfortunately, many ATM machine businesses have trouble finding a bank to work with.

That’s because an ATM machine requires lots of cash, which means that the bank has to do more work. The ATM business bank account will also normally have low balances, which makes it harder to earn money on the interest.

ATM Together helps you find banks that are ATM business-friendly, or you can check out the list of banks suggested by ATM Depot.

Using other banking products, like a small business loan, business credit card, and money market account may help convince banks to be more friendly to your ATM business.

Get business insurance

You’ll want small business insurance to operate an ATM business. Some of the risks you’ll want to consider include lawsuits and theft of machines or cash. Most of these will be covered in a Business Owners Plan (BOP).

Other common small business insurance policies your ATM business may want include:

  • General liability insurance: This covers damage to property as a result of your products or services, plus accidents and injuries that happen on your property or while interacting with your machines. It will normally be included in the BOP.
  • Workers’ compensation insurance: This policy is required for small businesses that have employees. It protects against on-the-job injuries by paying medical bills and lost wages.

You can learn more about small business insurance or reach out to Simply Business to get an insurance quote from 16 small business insurance companies.

Find an ATM location

Paul behind a truck unloading ATM placement for best foot traffic

You’ll need to find locations to place your ATMs. Some popular places for ATM locations include:

  • Convenience stores: Gas stations and convenience store customers will often want to withdraw cash.
  • Retail stores: Some retail stores only accept cash payments. Plus some people just like having cash on them and prefer to make cash withdrawals at the same time as they shop.
  • Hotels: People traveling will often need cash for tipping. Providing an ATM in hotels and other hospitality locations can be highly profitable.
  • Casinos: Most casinos are all-cash businesses. Just make sure you’re dealing with legally operated casinos, or your ATM equipment (and money) may be confiscated during a police raid.
  • Cash-only businesses: Some business ventures only accept cash and will need an ATM in the location. Some businesses that only accept cash include adult entertainment venues and dispensaries. Again, make sure these businesses are operating legally, or you could get in trouble for money laundering.
  • Newly opened small businesses: You can reach out to new small business owners who have a retail space and offer to place an ATM in their location.

Buy an ATM (and other equipment)

You’ll need to buy ATM machines and other equipment to start an ATM business. Every ATM business will need:

  • At least one ATM machine: You’ll need at least one ATM machine for each location.
  • Computer: You’ll need a computer to manage your business, keep track of revenue and business expenses, plus work on marketing activities.
  • Internet line: Every ATM needs access to the internet. According to Paul, you can get internet access for $5.99/month through Verizon or AT&T.
  • Phone line: You’ll need a way for customers to reach you, plus older ATM machines use phone lines for the internet connection.
  • Square reader: You’ll want a Square reader to process business credit card and debit card transactions if you sell ATM machines to gas stations, convenience stores, and other small businesses that operate them.
  • Debit card processing account: An ATM processor authorizes and processes the transfer of funds. Plus they create a log of every time money changes hands so you can easily view a report of your ATM transactions. Working with a company that already has this set up will make starting an ATM business easier.
  • Currency notes: You’ll need money in ATMs to provide to potential customers. Depending on the location, ATM machine, and programming, you’ll need at least $10K in $20 bills for each machine, but casino ATMs will need a $100 slot, $20 slot, $5 slot, and $1 slot. If each slot has 2,000 bills in it, that means you’d need $247K to fill the machine, plus a way to pay out coins.
  • Security camera: You’ll want to have security cameras to protect your investments. There are optional security cameras for an ATM machine, plus you may want one in your business or home office and vehicle.
  • Safe: You’ll want a discreet safe in your vehicle and home because you’ll be transporting large amounts of money at times. If you pay a company to manage the collection, you can skip this.
  • Tools for routine maintenance: Varies by machine, but should probably have drill, screwdrivers, levels, and other tools.
  • Alarm system: Anywhere you’ll store cash, make sure to have an alarm system.
  • Handgun: A friend of mine who owns an ATM business recommends carrying a gun when you are loading and unloading cash from machines. If you hire a vaulter, you won’t need this.
  • Body cam: You only need this item if you are carrying a gun. This is a personal suggestion because it will help you defend yourself if you have to use protection.

Paul uses Hyosung Halo 2 machines and Bitcoin ATMs. Plus you can buy full routes and add toppers to sell ad space for $50 to $250 per location.

Install and operate the ATM

Service person using a dolly for delivery after you buy ATM machine

You’ll need to install all your machines in their new locations. Plus you’ll have to operate them by restocking money routinely. We’ll look at each of these next.

How to install ATM machines

To install an ATM machine, you’ll need to:

  1. Take the box off the machine.
  2. Grab the box with the receipt paper and keys.
  3. Unlock the machine.
  4. Take out any styrofoam liners or any other shipping materials.
  5. Place the receipt paper in the receipt holder.
  6. Reset the default code.
  7. Program the ATM.
  8. Connect Ethernet or WiFi.
  9. Fill the cassettes with money.
  10. Bolt the machine to the wall.
  11. Test the ATM machine.

Buying an ATM will require some learning during the cash machine setup. Paul suggested:

[su_quote]Program the ATM at your home or office so that you can learn what you’re doing privately.[/su_quote]

How to manage an ATM location

Young business owner loading cash into ATM

One of the things you’ll need to consider about how to start an ATM machine business is how you will refill the machines. You have three main options:

  1. Fill them yourself.
  2. Hire vaulters.
  3. Hire employees.

Let’s look at each of these to understand how to get ATM machines refilled.

Maintain ATM yourself

When you first start an ATM business, you’ll want to keep startup costs low. The easiest way to do that is to do all the work yourself. That means you’ll need to learn how to work on ATM machines and how to refill ATM machines.

Paul told us:

[su_quote]Make sure to switch up your schedule. You don’t want to have a set routine because that makes it where people can plan to rob you easier.[/su_quote]

If you track each machine individually, you should be able to tell when it is getting low and go refill it. Then refill any of the ones that are on the way to it. Next time reverse the order.

Paul told us:

[su_quote]You should hire someone to manage the ATM machines once you get to 10 ATM machines.[/su_quote]

But which option is better: hiring a vaulter or hiring employees?

Hire vaulters

Vaulting services are companies that manage the refilling of your ATM for you. First National ATM provides a great overview of how to start an ATM business with no money using a vaulter.

They use the following ATM price example:

Monthly Service Fees per ATM

Service calendar next to jar of coins and stacked bills

Cash lending fee: Prime rate + 4 points
Cash management fee: 3 cents per transaction
Cash Insurance: $25 insurance on vault cash
Armored courier: $80 per trip

They subtract those costs from the monthly revenue, which they assume will be $3 per transaction and 500 transactions per month. Effectively, their example means you are paying approximately 17% of revenue to operate the machines. That sounds way better than doing it yourself or managing employees if you want passive income.

But what does it take to hire employees?

Hire employees for an ATM business

If you want to be more active in providing ATM services, you can hire employees. This business strategy would work if you are particularly good at multiple aspects of the ATM business.

For instance, ATM Together helps people get their first ATM machine location, automate the business income, and find ATM technicians.

In general, the operating costs will be higher if you hire employees because you’ll have to implement time tracking, payroll systems, and other types of ongoing expenses.

When you hire employees, you’ll need to:

  1. Prepare to hire people.
  2. Create a job description.
  3. Screen applicants.
  4. Conduct interviews.
  5. Provide a job offer.
  6. Onboard employees.
  7. Improve your employee retention.

We go into more detail on hiring in other blogs. Whether you DIY, contract a vaulter, or hire, there’s still a lot to do to become a successful business. Read on for a play-by-play for growing your ATM business.

Grow the ATM business

ATM business growth illustrated by smartly dressed man holding upward-trending graph between two ATMs

In addition to the initial equipment costs, finding a financial institution to work with, and placing and supporting your first machine, you’ll want to grow the ATM business because you’ll probably want to build more income than the couple hundred dollars you make on the first machine.

You’ll want to:

  • Create an ATM business website
  • Reinvest in the business
  • Add toppers
  • Reduce costs
  • Market your ATM business
  • Pay taxes

Create an ATM business website

Paul standing in front of ATMs reminding potential owners to consider credit card processing fees

At a minimum you’ll want to create an ATM website with the following pages:

  • Home page
  • Services page
  • Testimonials
  • ATM business FAQs page
  • Contact page

These pages will help your target market understand what you do, how you do it, and how much you charge as an independent sales organization. Learn more about website building.

Reinvest in the business

As you make money, you’ll want to find more ATMs for sale so you can buy them and make more surcharges from the transaction fees. You might also want to make an ATM purchase to sell to people who want to manage their own ATM.

ATM Together makes it really easy to make a profit when you buy ATM machines at wholesale and then provide the ATM machine for sale. You can charge a one-time fee or monthly fees if you provide support to your customers.

Add toppers

An ATM topper is a screen that attaches to the top of an ATM to diversify your income stream. With an ATM your primary revenue is from surcharge revenue, but an ATM topper lets you earn revenue from ad views.

You can use the ads to promote your own products and companies, products and services in the store, or even outside businesses that the target market might like.

Paul told us:

[su_quote]You can make $50 to $250 per machine depending on the foot traffic.[/su_quote]

Check out how the Smartcast ATM Topper works.

[su_youtube url="https://www.youtube.com/watch?v=oVzIcWosp3w"]

Reduce costs

Credit card processing fees are a portion of your ongoing expenses. If you’re doing all this yourself, you could pay as much as 2.9% + 10 cents per transaction fee.

Meanwhile, other processors claim they can provide free payment processing. I assume the credit card costs are baked into the prices of other services they offer. See the picture below to see places where ATM Together might make profits that cover the processing network.

Reducing the fees can impact how much cash you have to buy more ATM machines. There may be other ways to save money, like outsourcing the maintenance of your machines or providing cash to vaulters to earn a percentage of their returns.

Example

Let’s say you’re paying a Stripe processing fee of $2.9% + 10 cents per transaction, but by joining ATM Together, you pay 0% and $0 per transaction.

Number of transactions 2.9% fee assuming $100 per transaction 10-cent fee Total savings by switching
1 $2.90 $0.10

$3.00

10

$29.00 $1.00 $30.00

100

$290.00 $10.00 $300.00

1000

$2,900.00 $100.00 $3,000.00

10,000

$29,000.00 $1,000.00 $30,000.00

100,000

$290,000.00 $10,000.00 $300,000.00

The change makes it so every 10,000 transactions, you can afford another three machines.

Market your ATM business

There are numerous ways to market your ATM business including:

  • Optimize your website for search engine optimization (SEO)
  • Reach out to new small businesses and offer to place a machine
  • Offer incentives for making cash purchases at stores
  • Offer a loyalty program or monthly subscription to frequent users of your ATMs
  • Partner with online banks to provide cash services through your ATMs.

Make sure to pay your taxes

Frustrated young woman wearing glasses holding laptop showing IRS failure to file page

Nothing hurts the income of a small business like getting hit with a hefty tax bill for failing to pay your taxes. You especially don’t want to fall behind, given the IRS is charging $450 for failure to file, plus you’ll owe the full tax amount and 4% to 9% interest for failure to pay.

ATM business FAQs

What does ATM stand for?

ATM means automated teller machine. An automated teller machine may dispense cash, manage money transfers, accept checks, buy and sell Bitcoin, and facilitate other financial transactions that make accessing funds more convenient for customers.

Next, we answer “How much does an ATM cost?”

How much is an ATM machine?

ATMs cost between $1,900 and $29,000 depending on the style of ATM, functionality, and security. Some common pricing for ATM machines include:

New ATMs: $2,700 to $17,000 with an average cost of $6,250
Used and refurbished ATMs: $1,900+ (or around 80% of the cost of a new machine)
New wall-mounted ATMs: $6,800 to $12,500
High-end ATMs: $29,000+

You’ll also have operational costs like cash replacement, data connection, electricity, and receipt paper.

Do I need office space for an ATM business?

Middle-aged woman ATM business owner working in a bright and tidy home office

Yes, but you can use a home office and the costs will help pay for your mortgage or rent.

How to buy an ATM machine business

When you’re looking for ATM machines for sale, one option is to buy ATM businesses. You’ll want to:

  1. Research the market and understand the industry.
  2. Raise money to purchase the ATM business.
  3. Find reputable ATM machine suppliers and compare prices.
  4. Consider location options and potential profitability.
  5. Research the business to establish whether they have a very high volume location or if they are using a cheap ATM.
  6. Obtain necessary licenses and permits.
  7. Negotiate a purchase agreement. See step 5 in our blog about buying a business.
  8. Sign the contract.
  9. Set up a reliable cash management system.
  10. Market your business to potential clients.
  11. Provide excellent customer service and maintain the machines regularly.

Start your own ATM business

Starting an ATM business can be a highly profitable venture. It’s similar to starting a vending machine business that provides money to customers. Check out our extensive resources on vending to see how you can apply them as you learn how to start ATM business operations.

Have you seen unique ATM strategies? Share them in the comments.

Did you know that 69 million vehicles need to be towed each year?

That’s nearly 190K people who call up a towing business every day.

We talked to Vanice and Vincent Serrano, founders of ASAP Towing, to find out how to start a tow truck business that makes more than $10M each year. They provide insights on how towing services make money, how to hire employees, how to become a tow truck driver, and more.

[su_note note_color="#dbeafc"] We’ll share insights, strategies, and tips. Click on one of the links below to learn more about starting a tow truck business, or just continue reading.

Tow Truck Business Case Study: ASAP Towing

Vincent grew up working in auto repair shops owned by his dad, but he wanted to have a business to call his own. They already owned a tow truck and had land, so they decided to start a new tow truck company.

The business venture was mostly Vanice and one employee during its first year. About 18 months in, Vincent had to quit his day job and work at ASAP full time because it was making $250K per year.

The local tow truck company offers towing services for breakdowns, lockouts, accidents, impounds, and more. Check out our interview with Vincent and Vanice below.

https://www.youtube.com/watch?v=l2GNPp07jPo

Learn About the Towing Industry

Before we discuss how to start a towing company, it’s important to learn all about towing and how the industry operates. We’ll discuss:

  • The cost to start a tow truck business
  • The amount towing vehicles makes
  • Industry profit margins
  • Major players
  • Industry outlook
  • Legal requirements
  • How to get a tow truck driver license

How much does it cost to start a tow truck business?

Vincent told us starting your own towing company requires around $10,000 to get a truck, licenses, and towing equipment. We’ll discuss individual costs more in other sections.

How much do tow truck drivers make?

ASAP towing owner gesturing to a webpage about average tow truck driver salaries in the U.S.

As of January 26, 2024, the average salary for a U.S.-based tow truck driver is $44,198, with a range of $38,820–$50,211, and an average hourly rate of $18.54.

You’ll normally want to pay yourself this salary in addition to some profits from the business when you are an owner-operator.

Your location, experience, employer, skills, and education may impact the pay for tow truck driver jobs. Some drivers will also get bonuses and tips.

According to Indeed, the tow truck driver salary is highest in the following cities:

  1. Milwaukee, WI
  2. Sacramento, CA
  3. Los Angeles, CA
  4. Austin, TX
  5. Las Vegas, NV

How much profit can a towing business make?

Transportation businesses normally make 30.59% gross margins and 5.91% net margins. Some people who own towing companies make up to 33.65% profit, which means that the Serranos are likely bringing in somewhere between $700K and $4 million in profits.

Who are the major players in the towing business?

Because many tow truck businesses are privately held companies, it is difficult to find accurate revenue numbers for the largest towing businesses. Along with ASAP Towing, some other large tow truck businesses include:

  • United Road Towing: Dun & Bradstreet (D&B) estimates United Road Towing’s annual revenue to be $99M.
  • Jamie Davis Towing: ZoomInfo estimates annual revenue is under $5M for this towing company.
  • Certified Towing: Revenue is estimated at $1M, according to D&B.

What is the towing industry’s outlook?

IBIS World values the U.S. towing industry at $12.5B and expects it to grow around 2.9% in 2024. They expect it to continue growing at a faster rate after inflation settles down.

Any industry that exceeds the GDP growth in the U.S. is a great one to enter as a business owner.

What are the requirements for a tow company?

Business man in a suit standing in front of a tow truck holding a clipboard with a paper stamped with the word "Requirements"

Before starting a tow truck company, you will need various tools, permits, and licenses. Consult your local small business office, the DMV, or a lawyer who specializes in tow truck businesses.

A tow trucking company will normally need:

  • Drivers with class B driver’s licenses
  • Business structure as a limited liability company (LLC) or corporation
  • Comprehensive auto insurance with uninsured motorist insurance and higher limits than the state minimum (no less than $250K, but $1M is better)
  • Business insurance
  • High physical damage insurance
  • An oversized vehicle permit (depending on what you will be towing)
  • Indictment management permit (if towing without consent)

How to Get a Tow Truck License

To drive a truck with below a 26,000-pound towing capacity, you only need a regular driver’s license. You’ll need a commercial driver’s license (CDL) for anything bigger.

That means you’ll need to take a CDL course, which takes about a month. Then you’ll need to pass the DMV test.

Next, we’ll look at how to start a tow truck business.

How to Start a Tow Truck Business

Starting a tow truck business requires special considerations because of the nature of dealing with vehicular accidents and repossessions. You’ll want to follow the process below to start a successful towing business:

1. Identify your target market.
2. Research local regulations.
3. Create a business plan.
4. Consider a startup loan.
5. Register your business.
6. Get the required licenses and permits.

7. Buy equipment and tools.
8. Develop a marketing strategy.
9. Get liability insurance.
10. Open a business bank account.
11. Provide excellent customer service.

Keep reading to learn how to start a towing business.

Step #1. Identify Your Target Market

RoadsideAmerica.com article on a desktop computer

Tow truck companies use multiple business strategies to bring in revenue. An indispensable strategy is identifying your target market. Potential customers include:

  1. Insurance companies: Companies like AAA and Roadside America need towing and roadside assistance for their customers.
  2. Government agencies: These entities impound cars and need someone to tow them. Not that there may be minimum truck requirements.
  3. Banks and lenders: Repossession services work with banks and lenders. Learn more about repo laws on the American Recovery Agency website.
  4. Motorists: Towing businesses can also work with civilians to tow vehicles when they break down or are otherwise immovable.
  5. Subcontracting: Many businesses outsource their towing needs.
  6. Automotive companies: A towing business might also work with car dealerships and auto auctions to deliver cars to dealerships or customers.

Step #2. Research Local Regulations

Every towing business needs to understand the local, state, and federal laws that the automobile towing industry operates under. Make sure to check the regulations for all levels of government based on the towing services you provide.

A tow truck operator will normally be governed by federal law in two scenarios:

  1. Maximum towing capacity for different types of trucks
  2. Interstate commerce laws, which come into play when commercial vehicles cross state lines

States and local governments will often have laws and regulations that govern the tow truck industry, including minimum tow truck insurance and CDL requirements.

Step #3. Create a Tow Truck Business Plan

You don’t have to write a towing business plan, but it won’t hurt. It will help you keep track of how your towing company is progressing toward its goals. Tow truck business plans should follow a process similar to this:

  1. Find customers.
  2. Get your permits and licenses to drive a tow truck.
  3. Start your company.
  4. Buy a tow truck.
  5. Start towing vehicles.
  6. Follow a marketing plan to take on more work.
  7. Buy more trucks.

Download our business plan template, then check out our interview with Mike Andes on how to write a business plan below:

https://www.youtube.com/watch?v=Seac5PbUZXk

Step #4. Consider a Startup Loan

Starting a towing business isn’t cheap. With the cost of a flatbed truck, tow truck insurance, commercial auto insurance, and small business insurance, you can expect to spend $10K to start a towing company. Other sites estimate the tow truck business startup cost can range from $62 to $2M.

The Small Business Administration (SBA) offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.

Step #5. Register Your Business

Registering a tow truck business will require you to:

  1. Choose a business name: You’ll want a tow truck business name that is available as a website domain name, social media handle, and registered business name with your secretary of state and the U.S. Patent and Trademark Office. Check domain availability on GoDaddy.
  2. Create a business structure: You’ll want to get either an LLC or a corporation when starting a tow company. You do not want to get a sole proprietorship because it will expose your personal assets to a lawsuit if you get in a wreck with the tow truck.
  3. Apply for an EIN: An employer identification number (EIN) is required to file taxes for business entities on the IRS website. It is also used to associate employee payroll taxes with the correct company.
  4. Acquire a sales tax permit: Most states have a sales tax, and you need to adhere to their requirements. This blog isn’t the place to discuss the permits for all 50 states, but Avalara has a guide on sales tax permits. Check it out.
  5. Labor law posters: All employers must display workplace posters that signal they’re following labor laws. You can download them from the Department of Justice website. You must also follow all hiring laws.
  6. Unemployment Insurance (UI): You’ll have to pay about $420 per employee on a federal level plus any state UI. Check the U.S. Chamber of Commerce for more information.

Step #6. Open a Business Bank Account

Having an open bank account for your business is crucial to keeping your personal finances and tow truck business finances separate. If you have a limited liability company or a corporation, you’ll also need it to get business loans and personal liability protection.

If you have a business bank account, you can also get a business credit card and potentially commercial truck financing.

Step #7. Get Tow Truck Business Insurance

Insurance inquiry form on a laptop

You’ll want a variety of insurance policies when you own tow trucks. You’ll want:

  • Auto liability insurance: covers the vehicle owner if one of their tow truck drivers gets in a wreck
  • Uninsured motorist insurance: covers your flatbed truck and your employee if an uninsured driver hits the vehicle
  • Workers compensation insurance: covers the medical fees and lost work if employees get hurt or killed on the job

When you own tow truck company assets, you’ll also want various types of business insurance, like general liability, a business owner's policy, and commercial property insurance. Try Simply Business to get quotes from many of the best business insurance companies.

Step #8. Get the Required Licenses and Permits

As stated, tow trucks may require you to apply for additional permits and licenses. We suggest anyone who wants to tow vehicles reach out to a local business law attorney to verify that they have complied with all laws and regulations.

Step #9. Buy Equipment and Tools

One of the major business expenses for a successful towing company is the cost of flatbed trucks for hauling wrecked vehicles. Some of the places you can find the different types of tow trucks include:

Step #10. Develop and Implement a Marketing Strategy

You’ll want to focus on marketing when starting a tow truck business. Vincent suggests using the following marketing for tow trucks:

  • Website
  • Google Ads
  • Instagram and Facebook
  • Videos platforms

Launch a Website

ASAP Towing owner gesturing to a smart phone showing a new towing company website

Creating a website helps people get the information they need about the services you offer, how much they cost, and where your business is located.

Some services you might list on your website include:

  • Roadside assistance
  • Repossession services
  • Impounding and storage
  • Vehicle auctions
  • Heavy-duty towing services

Tow places should optimize their website for search engines for search engines. For example, adding a Google Map location to their website’s footer can help it show up higher on Google.

Vincent told us he has one company that does his videos, another that does search engine optimization, and a third that does social media. You can find all-encompassing services, as well.

Google Ads

Your business budget should include some expenses for advertising on Google. Vincent told us:

[su_quote]We’re spending a little over $1,000 per month on Google right now.[/su_quote]

Instagram and Facebook

Vincent told us that he is fairly new to Instagram, but it is starting to provide some returns. He said he has found success on Facebook.

Videos

Like many business owners, Vincent is starting to get into video marketing.

When you start a tow truck business, you can create videos about the common types of calls a tow operator gets. You can also explain how to do things like change a battery, replace a tire, and what to do in an accident—but make sure not to give any legal advice.

How much should a towing business spend on marketing?

ASAP Towing owner pointing to a screenshot of a YEC article on how much business owners should spend on marketing

Established tow truck companies should spend between 2% and 10% of desired revenue on marketing, depending on whether they are marketing their towing business to businesses or consumers. Business-to-consumer companies normally spend more on marketing.

According to entrepreneur Thomas Minieri, new companies should spend up to 20% of their target revenue on marketing to help them grow faster. You will normally want to spend between 15% and 20% of your budget on advertising costs.

Despite the suggestions, many small business owners spend much less on marketing. For instance, both Kenneth and Vanice spend less than 1% of their revenue on marketing.

Step #11. Provide Great Customer Service

Tow companies need to provide great customer service. Whether you’re towing for law enforcement, a business, or people in need of repairs, you should try to be compassionate.

Towing companies often provide emergency roadside assistance, but some partner with other businesses to transport vehicles that are (often unintentionally) parked illegally. When someone gets their car towed, remember they may not have known that their car was parked improperly.

Now that you know how to start a tow truck business, let’s look at some frequently asked questions about the industry.

Frequently Asked Questions

We’ll start with the question on everyone’s mind:

How much do tow trucks cost?

There are a few different types of trucks:

  • Flatbed tow truck for sale
  • Ramp trucks for sale
  • Wrecker truck for sale
  • Integrated tow truck for sale

In most cases, expect to spend $25K or more.

How can I start a successful tow truck business with no money?

Concept of a tow truck owner in an orange vest with a crossed out stack of cash hovering over his shoulder

You have to start somewhere. Kenneth suggested the following solutions:

  1. Can you finance?
  2. Can you get a lease on a truck?
  3. Can you ask friends and family?

He also told us:

[su_quote]I went looking for a loan so I could buy a tow truck and found out that you can’t get a loan to start a business unless you’ve been in business for two years.

I wound up going into it on a lease, rent to own. The truck sold for $50,000. By the time I’m done paying for the truck, it’ll be $106,000.[/su_quote]

He went on to say:

[su_quote]The benefit of leasing is you can get into a vehicle with a limited amount of money. The downfall of it is, if you don’t find the right leasing company, you’re gonna be paying them to double whatever the original amount was. So do a little diligence and find out. If they say there’s no puny penalty for prepayment, make sure that the amount is going to be adjusted.[/su_quote]

There are more ways to fund a towing company.

Common funding paths include:

  • Personal funds or personal assets
  • A loan from family or friends
  • Funds from a business partner
  • Government programs

The SBA offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.

Running the tow truck company is what you will spend most of your time doing. This includes aspects like hiring employees, helping customers, keeping inventory in stock, accounting, and payroll.

Hiring Tips

Kenneth had a lot to say about hiring drivers. He said the most important aspects of drivers are:

  1. Do they have the required licensing?
  2. Do they stay in communication with the owner?
  3. Do they have mechanical experience, or are they willing to learn?

Without the required licensing, they won’t be able to earn money. But the other aspects are more important to focus on for the bigger picture. Here’s what he had to say about communication:

[su_quote][An employee is valuable] when they stay in contact with you and they keep you aware of what’s going on with your vehicle. If they’re having any problems, just tell me what your problem is. And I will give you the answer, ’cause my job is to help you.[/su_quote]

He also emphasized the importance of being mechanically inclined:

[su_quote]I’ve hired three people in the last month. I had to fire one quick because I explained to ’em, you know, the truck needs maintenance. I can’t be driving 16 hours a day and work on my truck, your truck, and everybody else’s truck.

It’s just not gonna happen. You have to take care of the truck. So, if you don’t know how to be a car mechanic, that probably is a tough spot to begin with.

I’m even willing to teach you what you need to know. I don’t have a problem with that because we succeed together as a team or we fail as a team.[/su_quote]

Top Towing Influencers

Find out what other people in the industry are doing:

Conclusion

We’ve covered how to start a tow truck company; now it’s your turn to get the licenses and permits, find some customers, get a truck, and start towing.

If you’ve already started one, what has been the most challenging part of starting an independent towing service?


Comments

Jennifer@ 2020-08-06 11:58:23

Can I open a gym without a certificate in fitness training?

Brandon Boushy@ 2022-03-10 09:24:08

Yes, but that would mean you would need to hire or partner with fitness trainers if you want to provide that service. While it's not technically illegal to offer advice without one, the quality of your advice will improve with more education on the matter. It can also be helpful to be certified in CPR.

Serg@ 2020-06-23 16:44:16

Jakes story is incredible! It just shows that you dont need MBA nor big capital to start a business. What he has achieved and the business he's built is nothing short of amazing!

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