Are you about starting a bitcoin ATM company? If YES, here is a detailed sample bitcoin ATM business plan template & FREE feasibility report.

Bitcoin is a type of digital currency that is created and held electronically; it is a cryptocurrency and a digital payment system that is invented by an unknown programmer, or perhaps a group of programmers. No one controls it. Unlike Dollars, Euros, Pounds and other currencies, bitcoins are not printed, they’re produced by people running computers all around the world, using software that solves mathematical problems.

The fact that people will always look for easy means to buy and sell bitcoin facilitates the introduction of bitcoin ATMs, and anyone can start a bitcoin automated teller machine business as long as they have the financial capacity, license, network and business exposure. Below is a sample bitcoin ATM business plan template that will help you write yours in record time.

A Sample Bitcoin ATM Business Plan Template

  • Industry Overview

A Bitcoin ATM (Automated Teller Machine) is a kiosk that allows a person to purchase Bitcoin by using cash or debit card. Some Bitcoin ATMs offer dual functionality enabling both the purchase and the sale of Bitcoin for cash. Usually, Bitcoin ATM operators require users to have an existing account in order for them to transact on the machine.

There are two main types of Bitcoin machines. We have the cash kiosks and the bitcoin ATMs. Both types are connected to the Internet, allowing for cash or debit card payment, respectively, in exchange for bitcoins given as a paper receipt or by moving money to a public key on the blockchain.

Bitcoin cash kiosks look like traditional ATMs, but do not connect to a bank account and instead connect the user directly to a Bitcoin exchange. Bitcoin-enabled ATMs are traditional ATMs and connect to a bank account to allow for a cashless purchase of bitcoin

A recent report published by Coin ATM Radar, shows that there are more than 2,342 Bitcoin ATMs in the united states as of January, 2018, with small shop owners earning a reported $300 a month for rental space. Transaction fees for ATM use are approximately 16 percent, while online transaction fees run about 7.5 percent.

Part of the bitcoin ATMs operating in the US are imported from all over the world, for example from Prague. Czech company General Bytes has placed its machines in Las Vegas among other cities spread across the United States of America. Recently, the total number of bitcoin cash machines worldwide exceeded 3000 in May, averaging six daily installations.

Indeed, bitcoin ATM business is booming and here are the countries that have highest number of ATMs; United States (1009 locations), Canada (256 locations), united kingdom  (85 locations), Austria (66 locations), Spain (37 locations), Switzerland (23 locations), Finland (22 locations), and Czech Republic (20 locations)

Of course, there are market leaders in this industry. General Bytes, a Czech based company, is the world’s largest Bitcoin, Blockchain and Cryptocurrency ATM manufacturer and Genesis Coin Inc., based in San Diego US, is the second most popular Bitcoin ATM manufacturer.

Bitcoin ATM business is a subset of the Independent ATM business operators industry, players in this industry are not banks but they install their ATM machines, fill them with cash and earn money every time a customer withdrawals money from the machine.

Once the money is taken out of your ATM, it is re-deposited into a bank account of your choice on a daily basis along with the surcharge fees. A portion of the surcharge fee is typically paid to the merchant in the form of a commission or split.

Additional revenue can be made on each ATM transaction in the form of interchange. All your machines can be monitored online through a portal where you can see real time information about how much cash is in each machine and how many transactions and fees have occurred.

Please note that the total cost of ownership of ATM services is high. Buyers can expect to pay more than 100 percent of the benchmark purchase price per year in additional fees. Besides annual membership fees, buyers must pay transaction fees every time their cardholders use ATMs in the network. These fees include per-transaction switch fees paid to the ATM network provider, usually about two to ten.

Currently, the price of a machine ranges from $775 for a Bitteller BTM to $14,500 for a two-way Genesis Coin Genesis1 model. Vlad estimates that bitcoin ATM hardware costs, including price per machine, delivery, taxes, and installation, are usually in the range of $10,000 to $15,000.

Generally, bitcoin ATMs are safe to use even though they have higher fees than traditional exchanges. Many Bitcoin ATMs don’t allow you to withdraw fiat currency. Bitcoin ATM Network Increases Daily Withdrawal Limit to $5000. Coinsource, a company that claims the title of the world’s largest Bitcoin ATM network, has increased the withdrawal amount to $5,000 USD. Bitcoin ATMs charge an average transaction fee of 8.93 percent

Lastly, bitcoin ATM operators need to adjust the limits on deposits and withdrawals according to AML/KYC standards applicable in the jurisdiction where their ATMs are placed. In some countries and in some states in the United States of America this requires a money transmitter license.

Bitcoin ATM Business Plan – Executive Summary

Rick Greene® Bitcoin ATM Services, Inc. is a US licensed and incorporated business that will operate independent bitcoin automated teller machine services all across the United States. Although our business will be based in Santa Fe – New Mexico where we intend positioning out bitcoin automated teller machines, but we have the plans to spread across major cities in the United States within record time.

We are in the business to operate a kiosk that allows a person to purchase Bitcoin by using cash or debit card and also to offer dual functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash.

We are aware that there are several bitcoin exchange and trading companies and bitcoin ATM outlets and businesses all around Santa Fe – New Mexico, which is why we spent time and resources to conduct our feasibility studies and market survey so as to position our bitcoin automated teller machines in strategic places in and around New Mexico.

Our customer care is going to be second to none in the whole of Santa Fe – New Mexico. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they make use of any of our bitcoin ATM.

Rick Greene® Bitcoin ATM Services, Inc. is a family business that is owned by Rick Greene and his immediate family members. Rick Greene has is an established figure in the bitcoin exchange and trading industry in the United States of America and he is a Certified Bitcoin Market Trader.

  • Our Services Offering

Rick Greene® Bitcoin ATM Services, Inc. is in the independent automated teller machine industry for the purpose of making profits and we will make available a wide range of services as it related to the industry in the United States of America. Here are some of the services that will be available in our Bitcoin ATM machines;

  • Purchasing bitcoins
  • Selling bitcoins
  • Cash withdrawals, deposits, transfer funds, or obtaining account information
  • Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, income taxes, etc.)
  • Printing or ordering statements
  • Transferring money between linked accounts (such as transferring between accounts)

Our Vision Statement

Our vision is to build a bitcoin ATM machine business that will have active presence all over Santa Fe – New Mexico and other key cities in the United States of America.

  • Our Mission Statement

Our mission is to establish a bitcoin ATM machine business that will make available a wide range of bitcoin automated teller machines at affordable services charges to the residents of Santa Fe – New Mexico and other key cities in the United States of America where we intend installing our machines.

  • Our Business Structure

Our intention of starting a bitcoin automated teller machine business is to build a standard business. We will install bitcoin ATM machines in strategic positions in key cities all around Santa Fe – New Mexico and the United States. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Bitcoin ATM Custodian/Manager
  • Admin and Human Resources Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountant
  • Client Services Executive

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Accountable for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • In charge of signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversees the smooth running of the daily office activities.

Bitcoin ATM Custodian/Manager:

  • Responsible for managing the daily activities in the organization especially as it relates to bitcoin automated teller machine services
  • Ensures that proper records of transactions are kept and our bitcoin ATM machines does not run out of cash
  • Ensures that all our bitcoin automated teller machines are in tip top state and function efficiently at all time
  • Interfaces with third – party suppliers (vendors) and our banks

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Information Technologist

  • Manages and monitors the organization’s bitcoin ATM machine network and website
  • Responsible for installing and maintenance of bitcoin ATM machines, computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties.

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner

Bitcoin ATM Business Plan – SWOT Analysis

Our intention of starting our bitcoin automated teller machine (ATM) business with a dozen bitcoin ATMs installed in strategic locations is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install 25 bitcoin ATM machines first all – around Santa Fe – New Mexico before spreading to key cities in the United States.

We are quite aware that there are several bitcoin ATM machines in Santa Fe – New Mexico and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Rick Greene® Bitcoin ATM Services, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Rick Greene® Bitcoin ATM Services, Inc.;

  • Strength:

The strategic locations we intend installing our bitcoin ATM machines, the business model we will be operating on, wide range of functions in our bitcoin ATM machines, competent team members and our excellent customer service culture will definitely count as a strong strength for Rick Greene® Bitcoin ATM Services, Inc.

  • Weakness:

A major weakness that may count against us is the fact that we are a new bitcoin automated teller machine and we don’t have the financial capacity to compete with multi – million dollar bitcoin exchange and trading companies who also run bitcoin automated teller machine (ATM) business.

  • Opportunities:

The fact that we are going to install our bitcoin ATM machines in some of the busiest streets in Santa Fe – New Mexico in an ideal climatic condition, provides us with unlimited opportunities to reach out to a large number of people who are likely going to make use of our bitcoin machines.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our bitcoin ATM machine locations; we are well positioned to take on the opportunities that will come our way.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power which will ultimately affect bitcoin ATM transactions. Some other threats that may likely confront us is the arrival of a new bitcoin ATM machines in same location where ours is located and also down time or out of services due to technical problems.

Bitcoin ATM Business Plan – MARKET ANALYSIS

  • Market Trends

The recent trend in this business shows that the price of bitcoin ATM network services has been increasing at an estimated annualized rate of 1.0 percent in the three years to 2017. Greater demand for services and a lack of competition have facilitated this upturn in service prices. Still, a decline in some of vendors’ input costs has tempered the magnitude of growth in rates for services. Meanwhile, price volatility has been low in recent time.

Another trend shows that new standards aided demand for compliant bitcoin ATMs, but imports will impede growth, uncertainty regarding new regulations tempered investment in new bitcoin ATMs and new microchip-enabled cards will continue to shape the bitcoin ATM market. External factors such as demand from bitcoin exchange and trading companies and consumer spending will impact industry performance.

It is now a common phenomenon for bitcoin ATM companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their bitcoin ATM machines to meet their needs; in essence, the use of technology helps bitcoin ATM machines businesses to maximize supply chain efficiencies.

  • Our Target Market

Perhaps the ATM machines business has a wide range of customers; everybody who owns cryptocurrency and digital payment system accounts has one or more things that they would need in a bitcoin ATM machine.

In view of that, we have positioned our machines in strategic locations to service the residents of Santa Fe – New Mexico and every other location our machines will be located all over New Mexico and the United States of America. We have conducted our market research and we have ideas of what our target market would be expecting from us.

The competitions that exist in the automated teller machine business is fast growing because anyone can start the business despite the fact that it can be financial demanding. The bitcoin automated teller machine business requires expertise and any serious-minded entrepreneur is likely to make good profit out of this business.

One thing is certain, we will ensure is that we have a wide range of services available in our bitcoin ATM machines at all times. It will be difficult for customers to visit our bitcoin ATM machines and not accomplish the purpose of vising. One of our business goals is to make Rick Greene® Bitcoin ATM Services, Inc. a one stop shop for all our customers.

We can boast of our ability to quickly adopt new technology, effective cost controls and proximity to key markets. So also, our excellent customer service culture, highly competitive services, reliable and easy to use automated teller machines, the visibility of our bitcoin ATM machines and competent team members will serve as a competitive advantage for us.

Bitcoin ATM Business Plan – SALES AND MARKETING STRATEGY

  • Sources of Income

Rick Greene® Bitcoin ATM Services, Inc. will generate income by offering the following services via our bitcoin automated teller machine (ATM);

  • Purchasing bitcoins
  • Selling bitcoins
  • Cash withdrawals, deposits, transfer funds, or obtaining account information
  • Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, income taxes, etc.)
  • Printing or ordering statements
  • Transferring money between linked accounts (such as transferring between accounts)

Sales Forecast

Internal Lamassu surveys show that standard cash-to-bitcoin locations are averaging $20,000 in transactions per month, while prime locations are averaging $40,000 to $60,000 per month. With an average commission of 5.5 percent, operators are looking at $1,000 to $3,000 in gross profit monthly for each of their machines.

One thing is certain when it comes to bitcoin automated teller machine (ATM) business, if your machines can perform a variety of services are centrally positioned, you will always attract customers.

We are well positioned to take on the available market in Santa Fe – New Mexico and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the independent automated teller machine services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Rick Greene® Bitcoin ATM Services, Inc., it is based on the location of our business and other factors as it relates to bitcoin automated teller machine (ATM) services;

  • First Fiscal Year (FY1): $240,000
  • Second Fiscal Year (FY2): $550,000
  • Third Fiscal Year (FY3): $950,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and or major competitors positioning their bitcoin ATM machines in same locations as ours. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing locations to install our bitcoin ATM machines, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Santa Fe – New Mexico. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Santa Fe – New Mexico and every other city we intend installing our bitcoin ATM machines.

In summary, Rick Greene® Bitcoin ATM Services, Inc. will adopt the following sales and marketing approach to win customers over;

  • Prints handbills about our bitcoin automated teller machine and its location, and also give our bitcoin ATM kiosks and machines a unique look, by painting them with bright colors or putting a large neon sign on it, so that it is easily recognizable to customers.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across
  • Creates a basic website for our business, so as to give our business an online presence (list the locations of our bitcoin ATM kiosks / machines)
  • Directly market our bitcoin automated teller machine (ATM) business.
  • Joins local independent automated teller machine associations for industry trends and tips
  • Advertises our business in community based newspapers, local TV and radio stations
  • Lists our business on yellow pages’ ads
  • Encourage the use of Word of mouth marketing (referrals)

Bitcoin ATM Business Plan – Publicity and Advertising Strategy

Despite the fact that our bitcoin ATM kiosks and machines will be well located, we will still go ahead to intensify publicity for the business.

Rick Greene® Bitcoin ATM Services, Inc. has a long term plan of installing our machines in various locations in major cities in the United States of America which is why we will deliberately build our brand to be accepted in Santa Fe – New Mexico before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Rick Greene® Bitcoin ATM Services, Inc.;

  • Place adverts on both print (community based newspapers and financial magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
  • Install our Bill Boards in strategic locations all around Santa Fe – New Mexico
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our ATM machines are located.

Our Pricing Strategy

Pricing is one of the key factors that gives leverage to bitcoin automated teller machine (ATM) businesses, it is normal for consumers to go to bitcoin ATM machines where they can get services at cheaper prices even though the service charge of bitcoin ATMs are controlled in the United States of America.

We will ensure that we conform to the price model as established by the regulatory body in the United States of America.

  • Payment Options

Due to the nature of bitcoin ATM machines, there are no options when it comes to payment for services other than to insert your card in the machine and then the machine will dispense cash or provide the information or services you requested for. We will make money from the service charge.

  • Startup Expenditure (Budget)

When it comes to starting a bitcoin automated teller machine business, the major areas that you will spend the bulk of your cash is in the purchase of bitcoin ATM machines, loading the machines with cash and of course renting or leasing warehouse facility.

Currently, the price of a machine ranges from $775 for a Bitteller BTM to $14,500 for a two-way Genesis Coin Genesis1 model. Vlad estimates that bitcoin ATM hardware costs, including price per machine, delivery, taxes, and installation, are usually in the range of $10,000 to $15,000.

These are the key areas where we will spend our startup capital;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of Rick Greene® Bitcoin ATM Services, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for an operational office for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for the office remodeling – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory – $100,000
  • The cost for the purchase of the first set of bitcoin ATM machines – $125,000
  • The cost of purchase and installation of CCTVs: $10,000
  • The cost for the purchase of furniture and gadgets for the office (Computers, Printers, Telephone, TVs, internet server, tables and chairs et al): $50,000.
  • The cost of launching a website: $600
  • Miscellaneous: $10,000

We would need an estimate of five hundred thousand dollars ($500,000) excluding the working capital to successfully set up our bitcoin automated teller machine (ATM) business in Santa Fe – New Mexico. Our target working capital is five hundred thousand dollars (500,000) and that is what we intend loading our various bitcoin ATM machines.

Generating Funds/Startup Capital for Rick Greene® Bitcoin ATM Services, Inc.

Rick Greene® Bitcoin ATM Services, Inc. is a family registered business that is solely owned and financed by Rick Greene. He has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

Bitcoin ATM Business Plan – Sustainability and Expansion Strategy

It is an established fact that the future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our most important goals of starting Rick Greene® Bitcoin ATM Services, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer or services (services charges) a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Rick Greene® Bitcoin ATM Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing ATM machines: In Progress
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility for operational office and remodeling the office: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed bitcoin ATM machines and kiosks, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Establishing business relationship with banks, cryptocurrency and a digital payment merchants and vendors: In Progress