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Business Discussions | 25 February, 2024

How to Start an ATM Business

The financial services industry in Anchorage reflects the city’s commitment to providing diverse and accessible financial solutions to its residents. The integration of traditional banking, credit unions, fintech, and specialized services like ATMs contributes to the overall economic vibrancy of Anchorage, making it an attractive market for businesses in the financial sector.


Our team of Anchorage business plan writers has crafted a sample ATM business plan that aligns with the unique characteristics of the local financial services industry. This plan focuses on strategic site selection, technological innovation, and partnerships with existing financial institutions to ensure the success of the ATM business in Anchorage. Let’s explore the frequently asked questions to understand starting an ATM business thoroughly.


How to Start an ATM Business FAQs

1. How to own a ATM?

To own an ATM, you can either purchase one outright or enter into a placement agreement with an ATM operator. Purchasing involves buying the machine, while a placement agreement allows you to place your ATM in a location, sharing the profits with the business owner.


2. Do you need an LLC for ATM business?

You don’t have to create a limited liability company (LLC) for your ATM business, but many ATM owners choose it for legal protection. Here are the five common ways to structure a business:

  • Sole Proprietorship: One person owns and runs the ATM business. Simple to start, but the owner is responsible for all business debts.
  • Partnerships: Two or more people start the ATM business together. They share profits and losses. Easy to set up, but partners are jointly liable for business debts.
  • Limited Liability Company (LLC): Provides owners with limited liability, meaning they’re not personally responsible for business debts. Offers flexibility and pass-through taxation. Some downsides include limited availability in some states and self-employment taxes.
  • C Corporation: A separate entity from owners, providing limited liability. Owners aren’t personally responsible for business debts. However, C Corporations face double taxation – the corporation and shareholders pay taxes on profits and dividends.
  • S Corporation: Offers limited liability and allows passing business income to personal tax returns, avoiding double taxation. There are limitations on the number of shareholders.


Once you register your business, the state will provide official “Articles of Incorporation.” Keep this for setting up your bank account. It is  advised to consult with an attorney to choose the best legal structure for your company.


3. What do you need to start an ATM business?

Starting an ATM business involves steps like naming, funding, location selection, legal registration, banking setup, licensing, and insurance. Below is a simple guide on how to set up atm business. Ensure each step is completed to own an ATM business and operate successfully.

  • Choose Your ATM Business Name: Your business name is essential. Ensure it’s available by checking trademarks, state business name lists, and domain availability.
  • Secure Startup Funding: Determine if you need funding for your ATM business start up. Possible sources include personal savings, credit cards, grants, and bank loans.
  • Find Suitable Locations for Your ATMs: Consider places like convenience stores, retail stores, bars, gas stations, supermarkets, and pharmacies. Ensure the location allows you to charge reasonable fees.
  • Register Your ATM Business with the IRS: Register your business with the IRS to get an Employer Identification Number (EIN). This is necessary for opening a bank account and, if you plan to hire employees, for tracking payroll tax payments.
  • Open a Business Bank Account: Establish a bank account in your ATM business’s name. 
  • Get a Business Credit Card: Obtain a business credit card to separate personal and business expenses. Apply through your bank or a credit card company.
  • Get Required Business Licenses and Permits: Obtain necessary permits and licenses to operate your own atm machine business. 
  • Get Business Insurance: Choose insurance based on the risks associated with your ATM business. Consider liability insurance for potential lawsuits and property damage. Additional policies may include general liability insurance and workers’ compensation insurance if you have employees.

4. How to get into ATM business?

Choose the approach that aligns with your goals and resources – whether it’s buying an existing business, starting from the ground up, or offering specialized ATM services. Each option comes with its own set of challenges and opportunities, so weigh them carefully based on your business vision.

  • Buying an ATM business: How to buy ATM machine business? This option may involve acquiring machines, contracts, and established relationships. Careful research is crucial to to buy ATM business and to evaluate the potential of the existing business.
  • Owning a ATM business: How to start ATM business? If you are starting atm business from scratch, acquire essential equipment like ATM machines, a computer, internet and phone lines, scanner, square reader, debit card processing account, currency from various countries, security camera, safe, maintenance tools, and an alarm system. Create marketing materials including a logo, website, and social media presence to establish your brand. Additionally, purchase and set up necessary software, such as a Point-of-Sale (POS) system and back-office software, to ensure efficient operations. These steps will set the foundation for a successful ATM business that you can build and manage independently.
  • ATM service business: Another avenue is to offer services related to ATMs. How to own ATM machines? This could include maintaining, repairing, or upgrading ATMs for other business owners or operators. If you want to learn how to set up ATM machine in your area, continue reading.


5. Is ATM machine business profitable?

Owning an ATM machine business can be lucrative due to the constant demand for ATMs both for personal use and by businesses. Moreover, maintaining an ATM is cost-effective, ensuring higher profits for the ATM owner. ATM machines generate income by charging transaction fees, including fees for ATM usage, cash withdrawals, and deposits. Is the ATM business profitable? The most profitable ATM business is the full-service type, providing services like cash withdrawals, deposits, money transfers, bill payments, and check cashing.


6. How to start an ATM business with no money?

Starting or owning an ATM business without money may seem challenging, but with creative strategies, entrepreneurs can secure an ATM without an initial investment. First, explore grants and funding programs tailored for startup businesses, especially in the ATM industry, offered by organizations and government agencies. Engage potential investors by presenting a well-prepared business plan emphasizing the profitability of the ATM business. Consider leasing an ATM as a flexible payment option, ensuring you review the lease agreement thoroughly. Collaborate with local businesses on a revenue-sharing arrangement, installing an ATM on their premises without upfront costs. Essentially, if you have a credit history, explore building a credit line or obtaining a small business loan to finance the purchase and related expenses. These approaches offer viable paths to kickstarting an ATM business with limited financial resources.


7. How to become an ATM owner?

To become an owner in the ATM industry, a crucial starting point is creating a solid ATM business plan. This process is fundamental for understanding the ATM business model and understanding your market and strategy thoroughly. The plan acts as a guide for your ATM businesses and can be shared with potential funding sources if you require financial support. 


Below, you will find a template or sample of an ATM business plan. Use each section as your guide to navigate the world of owning an ATM and shaping a successful ATM business model.


Executive Summary 

Anchor ATM Services, a leading provider of automated banking services, is committed to delivering convenient and accessible solutions, ensuring users can access their funds securely. Established on October 15, 2017, in Alaska, our company, known as “Anchor ATM,” has emerged as a key player in Anchorage’s financial services industry, fostering a dedicated and loyal clientele.


The ongoing societal shift towards prioritizing convenient banking services has propelled the industry’s expansion, positioning Anchor ATM to excel in this dynamic market. Recognizing the escalating demand, the company strategically plans to relocate to a more prominent location, anticipating heightened foot traffic and increased service capacity.


To facilitate this strategic move, Anchor ATM is seeking a $500,000 loan through the Small Business Administration (SBA) Loan Program. These funds will be dedicated to acquiring a 1,000-square-foot commercial property in a prime area in Anchorage, inclusive of leasehold improvements. This investment aims to fortify the company’s infrastructure, fuel growth, and uphold the highest standards in client services.


The repayment strategy centers on a customer-centric business model, with a focus on retention and cultivating a high referral rate. The planned relocation is poised to drive substantial revenue growth, bolstered by increased customer foot traffic and expanded service capacity. This well-grounded financial projection forms a robust repayment plan, ensuring enduring financial sustainability and instilling confidence in lenders.


Under the adept leadership of Mr. Tim Brown, Anchor ATM is poised for success in its next phase of expansion. His guidance ensures the continuation of a legacy built on excellence, trust, and unparalleled customer experiences. Anchor ATM is well-positioned for sustained growth and leadership in the automated banking services sector.


Business Overview

Anchor ATM is a leading player in the dynamic world of Automated Teller Machine (ATM) operations, with a keen focus on delivering exceptional services in the vibrant community of Anchorage. 

Operating under a customer-centric philosophy, Anchor ATM has embraced a direct-to-consumer model, prioritizing accessibility and efficiency in ATM services. This strategic approach has played a pivotal role in establishing a strong presence and garnering the trust of our clients.


As part of our continuous commitment to innovation and service excellence, Anchor ATM is poised to expand our range of services to meet the evolving needs of our clientele. This move goes beyond mere diversification; it represents a significant step towards enhancing our capabilities and solidifying our position as a market leader.

To fortify our revenue streams, Anchor ATM remains dedicated to optimizing operational efficiency, exploring new market opportunities, and staying ahead of technological advancements in the ATM industry. As we embark on this journey of growth, our focus on delivering seamless, secure, and customer-friendly ATM solutions remains unwavering.


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Mission Statement

Our mission is to revolutionize the banking experience by offering cutting-edge automated solutions that prioritize user convenience and security. We aim to create a seamless and reliable platform for individuals to access their funds anytime, anywhere.


Vision Statement

Our vision is to be the forefront innovator in the financial technology landscape, setting new standards for accessibility and security in automated solutions. We envision a future where Anchor ATM is synonymous with the pinnacle of user-friendly and reliable banking experiences. Through continuous technological advancements and unwavering commitment to excellence, we aspire to redefine the way individuals connect with their finances, making financial transactions effortless, secure, and available at their fingertips, anytime, anywhere.


Core Values

Customer-Centricity: We prioritize the needs and experiences of our customers, aiming to provide ATM solutions that are not only technologically advanced but also seamlessly aligned with user preferences and expectations.

Integrity and Security: Upholding the highest standards of integrity, we are committed to ensuring the security of financial transactions through robust systems and protocols, building trust and confidence among our users.

Innovation: We foster a culture of continuous innovation, consistently exploring and adopting cutting-edge technologies to enhance our ATM services, staying ahead of industry trends and anticipating the evolving needs of our customers.

Reliability: Anchored on reliability, we strive to deliver consistent and dependable ATM services, ensuring that users can access their funds with confidence, 24/7.

Accessibility: We believe in making financial services universally accessible. Our commitment to providing convenient and accessible ATM solutions reflects our dedication to empowering individuals to manage their finances effortlessly.

Collaboration: We value collaboration, both internally and externally, recognizing that partnerships and teamwork are essential for achieving mutual success and advancing the capabilities of our ATM services.

Adaptability: In an ever-changing financial landscape, we embrace adaptability. We are agile in responding to industry dynamics, regulatory changes, and technological advancements to ensure our ATM solutions remain at the forefront.

Sustainability: Committed to environmental responsibility, we seek sustainable practices in our operations and contribute to eco-friendly initiatives, minimizing our environmental footprint while providing top-notch ATM services.


Goals and Objectives

Category Short Term  Medium Term  Long Term
Infrastructure and Network Expansion   Establish a robust network of ATMs in key locations. Expand the ATM network to cover a broader geographic region. Continue international expansion efforts.
Technology and Innovation  Implement advanced security features and compliance measures. Enhance user convenience through contactless transactions. Pioneer advanced technologies to stay at the forefront of innovation.
Customer Engagement  Enhance customer engagement through personalized services. Explore international expansion opportunities. Implement loyalty programs for a strong connection with users.


Market Analysis

Anchor ATM operates in a dynamic market that is undergoing notable shifts in response to technological advancements, changing consumer behaviors, and a continued demand for accessible financial services. 

Anchor ATM’s focus on a customer-centric approach aligns well with the evolving preferences of consumers. The emphasis on user convenience and security positions Anchor ATM to meet the demands of a diverse customer base in the Anchorage community.


Anchor ATM’s commitment to innovation, as reflected in the adoption of cutting-edge technologies, such as advanced security features and contactless transactions, positions the company as a leader in providing modern and secure ATM services.

Operating in the vibrant community of Anchorage, Anchor ATM benefits from local market dynamics. Understanding the unique needs and preferences of the community allows the company to tailor its services and engage effectively with its target audience.


In a competitive market, Anchor ATM’s ability to differentiate itself through personalized services and a diverse range of offerings will be crucial. Continuous innovation and strategic partnerships will play a vital role in staying ahead of competitors.


As Anchor ATM establishes itself in Anchorage, exploring opportunities for strategic expansion within the region or neighboring areas can be a viable avenue for growth. Identifying high-traffic locations and potential partnerships will be key considerations.


Market Trends

This section offers insights into the current trends within the financial services industry, enabling Anchor ATM to maintain a competitive edge and pinpoint emerging growth prospects. Through a thorough examination of pivotal market drivers, consumer behaviors, and industry challenges, Anchor ATM can proactively adjust and innovate its business model to cater to the dynamic and evolving needs of its customers.

Contactless Transactions: The adoption of contactless transactions is on the rise globally. Customers prefer the convenience and speed of contactless payments, prompting ATMs to integrate this technology for a seamless and hygienic user experience.

Biometric Authentication: Biometric authentication methods, such as fingerprint and facial recognition, are gaining popularity in ATM technology. This enhances security and provides users with a more secure and personalized transaction experience.

Cash Recycling Systems: Cash recycling ATMs are becoming more prevalent. These systems not only dispense cash but also accept and recycle deposited bills, optimizing cash management processes for both ATM operators and financial institutions.

Remote ATM Management: The ability to remotely manage and monitor ATMs is a growing trend. This allows for real-time updates, troubleshooting, and software upgrades without the need for physical intervention, enhancing operational efficiency.

Financial Inclusion Initiatives: There is a global push for financial inclusion, especially in emerging markets. ATM operators are increasingly focusing on expanding services to underserved areas, providing basic banking functions to individuals who may not have easy access to traditional banking.


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Products and Services

Anchor ATM Services will provide a comprehensive suite of ATM services, including:


Marketing Plan

To intricately connect with our target audience, Anchor ATM will implement a comprehensive multi-channel marketing strategy. This approach encompasses:

Partnerships with Retail Establishments

  • Forge strategic alliances with diverse retail establishments to enhance brand visibility.
  • Implement co-branded marketing initiatives to leverage the existing customer base of our retail partners.


Digital Marketing Campaigns Targeting Local Communities

  • Utilize geo-targeted online campaigns to reach specific communities and demographics.
  • Implement SEO and SEM strategies to enhance online visibility and drive traffic to our ATMs.


Social Media Engagement and Promotions

  • Develop engaging content on various social media platforms to build a strong online presence.
  • Run promotions, contests, and advertisements to create buzz and drive user engagement.


Collaborations with Banks for Joint Marketing Efforts

  • Establish partnerships with banks to co-promote our ATMs and leverage their established customer base.
  • Jointly participate in marketing campaigns and promotions to maximize reach and impact


Key Performance Indicators

To effectively track the company’s progress and ensure its success, Anchor ATM has identified the following key performance indicators (KPIs):


SWOT Analysis

SWOT Analysis - ATM business plan

Operational Plan 

As the cornerstone of our business success, the operational plan delineates key actions to ensure the efficient and effective functioning of Anchor ATM. This section provides a comprehensive overview of day-to-day activities, encompassing critical aspects such as operating hours, location, equipment, facility maintenance, compliance with government regulations, and risk management.


Operating Hours

Anchor ATM operates strategically, offering services seven days a week, 24 hours a day. This schedule is designed to maximize accessibility for our diverse clientele. Operating around the clock ensures that even clients with demanding schedules have the opportunity to access our services conveniently.

Furthermore, the 24/7 operation allows us to cater to a larger client base, promoting more evenly distributed appointments throughout the week. This flexibility enhances our capacity to serve a broad spectrum of customers, contributing to overall business growth.



Currently situated at A Street Convenience Store and Market, Anchor ATM benefits from an optimal location that has been instrumental in its successful trajectory. The positioning at this location has fostered a loyal clientele and amplified the demand for our services.

The choice of A Street Convenience Store and Market as the Anchor ATM’s location aligns with our commitment to accessibility and convenience for our customers. The continued success of our business is tied to our strategic presence in a location that caters to the needs of our diverse clientele.



Anchor ATM invests in state-of-the-art equipment to ensure the seamless operation of our services. Regular maintenance and updates are conducted to guarantee optimal performance and to meet industry standards. This commitment to technological excellence enhances the reliability and efficiency of our services.


Risk Management

To mitigate potential risks, Anchor ATM has implemented a robust risk management strategy. This includes thorough training for our staff, secure data handling procedures, and contingency plans for unforeseen events. Our proactive approach to risk management ensures the safety and security of both our customers and our business operations.


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Organizational Plan

The success of the ATM business is contingent upon a well-defined organizational structure that supports efficient operations and fosters growth. Anchor ATM’s organizational plan outlines the key roles, responsibilities, and reporting relationships within Anchor ATM to ensure clarity, accountability, and effective decision-making. 


Organizational Structure

Management Team

Tim Brown

Owner / CEO

Experienced CEO with over two decades of leadership in the financial services sector, driving Anchor ATM Services to remarkable success. Renowned for orchestrating strategic expansions, I’ve positioned the company as a key player in the industry by prioritizing innovation and operational efficiency. My hands-on approach and commitment to compliance ensure that Anchor ATM Services not only meets but exceeds customer expectations, delivering cutting-edge solutions in the fast-evolving financial technology landscape.

As a visionary leader, I have propelled Anchor ATM Services to new heights by fostering a culture of continuous improvement and leveraging technology to enhance customer experiences. My dedication to shaping the future of financial services, coupled with a proven track record of navigating regulatory complexities, sets the stage for sustained growth, profitability, and a legacy of excellence in the dynamic world of ATM services.


Personnel Plan

This personnel plan outlines the key roles within Anchor ATM Services, aligning with the business’s strategic goals and operational requirements.

Chief Executive Officer: Responsible for overall strategic direction and decision-making, driving the business’s vision and mission.

Chief Operations Officer: Oversees day-to-day operations, ensuring the efficient functioning of ATM services and implementing operational strategies.

Chief Financial Officer: Manages financial aspects, ensuring fiscal health, and sustainability, aligning financial strategies with business goals.

Operations Manager: Manages daily activities, including cash management, equipment maintenance, and staff scheduling.

Customer Service Representatives: Frontline staff handling customer inquiries and ensuring a positive customer experience.

Technical Support Team: Technicians and IT specialists responsible for the installation, maintenance, and troubleshooting of ATM equipment.

HR Manager: Manages recruitment, employee relations, and training initiatives to foster a cohesive and skilled workforce.


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Financial Plan

The financial projections presented here is a result of careful planning by the management team at Anchor ATM. These projections look ahead and are subject to securing the required funding. It is the responsibility of the audience to conduct their own thorough investigation.

Considering the current state of the market and the specifics of our business, we outline the expected funding needs for the initial year of operations in the following financial plan. This plan serves as a transparent guide, showcasing our commitment to sound financial practices and strategic management.


Start-up Expenses
Accounting & Bookkeeping $3,900
Bank Charges $660
Contractor Fees $76,132
Employee Wages $76,132
Employee Benefits $3,807
Cost of Goods Sold $120,154
Insurance – Business $5,400
Insurance – WCB $3,807
Legal Fees $1,980
Marketing & Advertising $30,000
Phone, Internet, Cable $1,860
POS System Fees $4,796
Office Expenses $1,800
Utilities $7,800
Contingency $6,000
Total Start-up Expenses $344,227
Prepaid Expenses $20,000
Inventory $63,315
Property, Plant, Equipment $500,000
Total Assets $583,315
Total Requirements $927,541
Start-up Funding
Start-up Expenses to Fund $344,227
Start-up Assets to Fund $583,315
Total Funding Required $927,541



The Pro Forma Income Statement outlines the company’s anticipated financial performance for the next three years, with gross revenue projections of $456,795 in Year 1, $629,776 in Year 2, and $813,124 in Year 3. Earnings before interest, taxes, depreciation, and amortization (EBITDA) show positive growth, reaching $111,548 in Year 1, $180,456 in Year 2, and $248,423 in Year 3. The Pro Forma Income Statement provides key insights into the company’s profitability and financial trajectory.


Pro Forma Income Statement Year 1 Year 2 Year 3 TOTAL %
GROSS REVENUE $456,795 $629,776 $813,124 $1,899,695 100%
Cost of Goods Sold $120,154 $161,868 $211,152 $493,174 26%
GROSS PROFIT $336,641 $467,908 $601,971 $1,406,520 74%
Operating Expenses
Accounting & Bookkeeping 3,900 3,900 3,900 11,700
Alarm System 1,020 1,020 2,040
Bank Charges 660 660 660 1,980
Contractor Fees 76,132 104,962 135,519 316,613
Employee Wages 76,132 104,962 135,519 316,613
Employee Benefits 3,807 5,248 6,776 15,831
Insurance – Business 5,400 5,400 5,400 16,200
Insurance – WCB 3,807 5,248 6,776 15,831
Legal Fees 1,980 1,980 1,980 5,940
Marketing & Advertising 30,000 30,000 30,000 90,000
Phone, Internet, Cable 1,860 1,860 1,860 5,580
POS System Fees 4,796 6,613 8,538 19,947
Office Expenses 1,800 1,800 1,800 5,400
Utilities 7,800 7,800 7,800 23,400
Contingency 6,000 6,000 6,000 18,000
Total Operating Expenses $225,093 $287,452 $353,548 $866,093
EBITDA $111,548 $180,456 $248,423 $540,427 28%
Commercial Mortgage Interest 39,477 39,192 38,887 117,556
Depreciation 9,286 9,286 9,286 27,857
EBT $62,786 $131,978 $200,250 $395,014 21%
Corporate Taxes 7,534 15,837 24,030 47,402
Net Income $55,252 $116,141 $176,220 $347,613 18%




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The Pro Forma Cash Flow Statement is a vital component of the business plan, projecting cash inflows and outflows over the next three years. It anticipates a strong start in Year 1 with an opening cash balance of $10,000, followed by significant growth in Year 2 with an opening balance of $33,388. By Year 3, the business is poised for continued success, starting with an opening cash balance of $69,756. The statement serves as a critical tool for financial planning, providing insights for strategic decision-making and ensuring effective management of cash resources.


Pro Forma Cash Flow Statement Year 1 Year 2 Year 3
Opening Cash Balance $10,000 $33,388 $69,756
Cash flow from operating activities
Net Income 55,252 116,141 176,220
Depreciation 9,286 9,286 9,286
GST Collected 22,840 31,489 40,656
GST Paid 13,265 16,956 21,120
Changes in non-working capital
GST Payable 9,574 14,533 19,536
Income Taxes Payable 7,534 15,837 24,030
Investment Activities
Owners’ Down Payment 60,000
Commercial Mortgage 440,000
Purchase of Commercial Property -500,000
Commercial Mortgage – Principal -3,006 -3,288 -3,596
Cash Flow from Financing Activities
Payment of Dividends -55,252 -116,141 -176,220
Cash Flow $23,388 $36,368 $49,256
Closing Cash Balance $33,388 $69,756 $119,012


Projected Cash flow



The Pro Forma Balance Sheet provides a snapshot of the company’s financial standing over the next three years, showcasing a progressive increase in total assets from $80,100 in the opening year to $760,612 in Year 3. Shareholders’ equity, a combination of invested equity, cumulative retained earnings, and dividends paid, is anticipated to grow from $70,100 in the opening year to $271,492 in Year 3, indicating a positive trajectory for the company’s financial health.


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In the business landscape, a significant number of entrepreneurs are actively seeking information on ‘how to start an ATM business in California,’ ‘how to start an ATM business in Texas,’ and ‘how to start an ATM business in Florida.’ This underscores a notable market demand for resources and guidance specific to establishing a successful ATM ownership in these particular states. Addressing this interest could present valuable opportunities for businesses offering services, solutions, or comprehensive guides tailored to those looking to venture into the ATM business sector in California, Texas, and Florida.


Getting ahead on how to set up an ATM machine can lead to owning ATM machines. If you are interested in how to own an ATM machine for profit or actively searching ways of owning an ATM machine business, utilizing our business plan sample can offer you valuable insights. 


Whether you’re a seasoned investor or a budding entrepreneur, our team is ready to guide you through the intricacies of the ATM business. Contact us, and let’s collaborate on a business plan that not only navigates the challenges but also positions you strategically for success in the lucrative ATM machines business.