A business so easy a kid can do it?

My oldest son, Hudson, might seem like any other young boy with dreams. However, I want to share a vision he has been nurturing for some time. It all began when we delved into the book "Rich Dad Poor Dad" for kids. As we discussed the allure of earning money for immediate pleasures, like toys, we also explored the idea of investing money. Such an investment would allow future earnings to purchase even more toys. This led us to brainstorm business ideas, from which emerged a clear vision: building a successful vending machine business.

Interestingly, this is one of the business models I often recommend for passive income. However, I wasn't about to fund his venture without him taking some initiative. Therefore, I challenged him to figure it out independently. Today, I'm excited to share the steps he's taking and the insights mentors have provided for succeeding in this industry.

Instead of merely purchasing a vending machine for him, I stressed the importance of starting from the ground up. Taking initiative, he set up a lemonade stand, like many kids do. Profits from the stand were then reinvested into supplies for a curb painting business. Together with his younger brother, they offer this service door-to-door. Impressively, he manages to sell his service for $25 per curb with a commendable success rate. Currently, with nearly $1000 saved, the time is nearing when I might step in to help him transition into the vending machine realm.

ROADMAP TO A VENDING EMPIRE

1. Building Capital from Scratch

Every venture begins with a foundation. Hudson's lemonade stand and curb painting aren’t mere pastimes; they're the bedrock of his entrepreneurial ambition. They've enabled him to accrue the startup funds essential for his larger vision. For others, capital might come from garage sales or selling items acquired for free. Hudson is in his third year of this journey, which he balances with just being a kid. This goes to show that it can be a gradual process.

2. Location as the Key to Success

Vending machines can be lucrative when positioned correctly. Contrary to common belief, machines in locations like the DMV or hospitals may not belong to those institutions. Many property owners view them as value-added services and don't charge rent. Hudson's strategy involves placing his machines in such high-footfall zones for consistent passive income.

3. Maximizing Efficiency for Passive Operations

One of the strongest draws of a vending machine venture is its potential for passive operation. Once Hudson has his machines in place and has figured out an effective restocking rhythm, they'll mostly run on their own. This means minimal hands-on time, making it an attractive business model for anyone looking for additional income streams with low time commitment. He will be able to plan his restocking on his free time. In fact we were looking at some smart vending machines that are connected and allow you to monitor the sales activity remotely. So you can see what product is selling and also offer dynamic pricing to add more profit or sell out less desirable product. This will allow him to manage restocking in an efficient manner.

4. The Power of Bulk Buying

Profits lie in the purchase, not just the sale. Hudson's plan involves bulk buying from wholesalers like Costco. By purchasing snacks, sodas, and other goods in large quantities, he can drastically cut product costs. Selling these items at a marked-up price in his vending machines will ensure healthy profit margins. This principle, simple yet effective, can be replicated by anyone looking to venture into this business. He also can test out new products by soliciting sample packs or try and secure viral products. For instance, he is a big fan of Prime drinks and Mr Beast Feastible Chocolate bars. Since these are very popular amongst young kids he can source those and sell them quickly for healthy profits.

5. Navigating the Initial Investment

While enticing, a vending machine enterprise does demand upfront investment. Beyond the machine itself, inventory and potential add-ons like card readers entail costs. Hudson's ongoing ventures demonstrate his commitment to meeting these challenges, exemplifying dedication and strategic planning.

The Young Advantage

Hudson's age isn't a drawback; it's an asset. His innovative mindset, adaptability, and the unwavering support from our community equip him with distinct advantages. His journey, resonating with all ages, illuminates the path to crafting a sustainable passive income model.

In summary, Hudson's journey isn't just about a boy pursuing a dream. It's a powerful testament: if he can achieve this, so can you. Witnessing his progress firsthand inspires me to persevere in my endeavors, proving that determination can morph even the humblest ventures into profitable entities.

Jake