In coming posts, I am going to brainstorm the pros and cons, as I see them, of starting various businesses-- sideline or full time.  This is by no means a compete evaluation of the pros and cons, but rather a starting point for further consideration by Defensive Entrepreneurs.

I am starting with an evaluation of a vending machine business.  Many people vending machine businesses as passive income opportunities.  I don't think vending machine businesses are true passive income businesses, but here is my brainstorm evaluation:

Pros-- vending machine businesses are:

• Your own business-- you are the boss
• Flexible-- you can make your own schedule
• Cash businesses
• Low capital investments
• Semi-passive income opportunities
• Capable of generating high margins from high markups
• Based upon a very simple business model
• Not labor intensive-- need no or few employees
• Replicatible

Cons-- vending machine businesses are:

• Your own business-- the problems are yours
• Schedule based-- you have to be sure the machines are full
• Competitive-- locations are not easy to come by
• Subject to damage, theft, and vandelism
• Not fully passive businesses
• Subject to rents, royalties, and profit sharing

If you are thinking about a vending business, you need to think about and secure location committments, or more expensively, buy an established business with locations already in place.

Again, this is a start-- what are your thoughts?

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Related posts:
How to Brainstorm-- Seven Steps to Success
Side Business Ideas Recap
Starting Your Business Fast and on a Shoestring