Calculate your return on investment
The return on your vending business should be higher than most other investments because there is more risk running a business and you need to pay yourself for the effort you put in.
Example:
A drinks vending business makes $20,000 in profit before tax in 2008
It cost the owner $80,000 to buy 10 soft drink vending machines
| Return on investment | Net profit for the year
Total cost of your machines |
$20,000 $80,000 |
|
| Equals | 25%
|
Having an idea of your Return on you vending Investment (R.O.I) helps you to compare the return from your vending machine business with other investments like shares, property and cash.
A minimum return you should be looking to achieve from your vending machine business is 25% or more.
We have not included any capital gains should you sell your vending business for a profit.