Hello all. This is a very good thread thank you for taking the initiative.
I have been working as Ops Manager for a large Bitcoin ATM Network for 2 years. My background is in Business Development for Brokers & Exchanges and have recently started a small start up (the profile of which I am writing from).
I have summed up some pros and cons for the users of this chat that I hope you can find useful.
If anyone is looking to seriously start a Bitcoin ATM business, by all means, go for it. If done preperly, chances are you will expand and someone will buy you out. Have heard quite a few such stories. BATM networks are not that many.
PROS:
1: It is a business that can run 24h (if you find 24h shops).
2: You can automate it with cash collection agencies while you handle only the finance part of it and other hardware bugs that might occur.
3: You can earn a good commission out of each transaction.
4: There is not so much competition compared to online brokers.
5: There is always going to be demand for cash and especially some remote locations with no competition such as large villages (not big cities) can be very successful as usually there is no competitor around.
6: You do not need to develop anything in terms of software.
7: Broken parts can be replaced quite easily and cheapily.
CONS:
1: Money laundering -> you need to have a solid KYC system otherwise your risk your business and quite high fines potentially jail.
2: Small Bitcoin ATM's are cheap BUT are small in size and can not hold much cash (you need to empty them quite often) AND can "easily" be broken into. Unless we are talking about a 20k Bitcoin ATM or a very secure location (cameras central location etc).
3: Expensive fees. You need to buy from an online broker, transfer to your hot wallet, and sell with a commission usually quite high as you need to cover:
a: cash collectors / gas if you collect yourself.
b: partner merchant that is renting you the space for the atm (idea -> pay them commission not fixed price unless the location is super central with no competitor, then monthly fee)
c: other operational costs get SUPER expensive -> compliance and cash collection mainly NOT customer support.
d: if someone damages the whole ATM when trying to brake in.
4: Installation process, you need to find solid workers that do nice job + you need to be careful as they might do some dodgy things (install it badly and then brake in it).
5: Small ATM's such as General Bytes do not hold many banknodes. If a location is busy you want a large ATM that holds quite a few nodes.
6: There is always going to be a big portion of cash spreaded in the ATM's, meaning that in high volatility periods you need to manage your reserves quite well or you risk losing from the price swing.
There might be more PROS and CONS that I can not think of, but pretty much this is all I can say....
RECOMMENDATION:
I would suggest that you get in touch with a few established BATM networks, OR small ones that are shutting down in order to either buy used equipment or even better offer your funds as an investement in order to save costs and expand the network as a partner. The Money Lisence and compliance is VERY expensive and time consuming. If 2 businesses are going to pay 2 times, it is best to merge and pay one fee (ofc you will need to be careful who you are partnering with).
The regulations for BATM's at the moment are very tight. A few years ago you wouldn't need a money lisence... today its jail time if you do not have it. I know many small operators that invested quite enough funds and are now out of business. You can perhaps buy used equipement from them.
Another idea, is to get in touch with established operators and offer to install an ATM in your location and handle the cash collection part of it for them. Then keep a commission as a partner. They will put their brand and everything that comes with it (lisence, customer service, marketing etc. while you will handle the cash collection part).
That being said, good luck to everyone. Feel free to DM me if you have questions.