INTRODUCTION

As financial technology improves at an ever-increasing rate, there is less and

less need for individuals to carry large amounts of cash to buy things. In fact,
it seems the younger generations have moved to almost entirely electronic
transactions where no physical money is ever used. However, in this world of
credit and debit cards, there will always be a need for good old-fashioned
cash. A smart businessman can make a nice profit supplying cash to those
who underestimate the need for it by simply placing and managing
automated teller machines (or ATMs).
Now, there are reasons why an ATM is considered to be a good business deal.
The reasons are:

no inventory to purchase or stock

no store front or rental space needed
guaranteed, fixed profit on each transaction
scalable, i.e., you can start with one machine and expand slowly (or
quickly) as you earn your profits
low investment needed to start
investment costs are usually returned within 1 year (six months or
OBJECTIVES

To setup a new ATM machine under the small scale industries category
To ascertain the various costs that go into starting such a business
To spend within the limit of Rs. 5 crore to 10 crore.
To prepare a cost sheet of all the costs to be incurred
To analyze the cost sheet and come to a conclusion regarding the
business
ANALYSIS
With the idea of starting a business of ATM at a place like Jagat Farm,
Greater Noida, where the average number of transactions is very high,
the proposal prepared by us shows an estimated cost of
Rs.6,50,54,700 for 4 ATMs. Whereas, the State Bank of India is
providing us with Rs.77054700 on an average to meet our expenses.

Therefore, our approximated profit comes out to be Rs.3000000 per

ATM.

1. Profit as a % of sales = Profit x 100

Sales
= 3000000 x 100

= 11.6 %

25684900

Our expected net profit ratio is 11.6 %. Its above boundary line. Our
company will increase its net profit as we cant operate at just BEP
(Break even point). The ideal percentage for net profit ratio is 10%. We
are currently at safe level of 11.6%. It means that we have demand of
our product in market.
Cost-Volume Profit Analysis

2. Profit volume ratio (P/V Ratio) = Sales variable Cost x100

Sales
= 77054700-(2520000+ 60000) x 100
77054700
= 96.65%

The difference between sales and marginal cost, i.e. contribution,

bears a relation to sales and the ratio of contribution to sales remains
constant at all levels, as, the sales and marginal costs vary directly
with the number of units sold or produced. The higher the P/V Ratio
better is for company prospects. We have a very high P/V Ratio
(96.65%), implying we have better prospects.

3. Breakeven point (in Rs.)= Fixed Cost =

P/Ratio
4000000+300000+160000+4500000+3840000+1527525+9052
0+89425+7300000+500000+1500000+300000+10000000+100
0000+6000000
96.65%
= Rs. 58432177.9

BEP is the point at which cost and revenue are equal: one has "broken
even". Therefore has not made a profit or a loss. After this level (Rs.
5843217.79) our firm will start earning profit.

4. Margin of Safety (MOS) = Actual Sales Sales at BEP

= Rs.77054700 Rs.58432177.9
= Rs.18622522.1

In break-even analysis, margin of safety is how much output or sales

level can fall before a business reaches its break-even point
(BEP).Larger the margin of safety, more sound is the position of the
business in respect of profit earning. Our MOS is Rs.18622522.1 which
is higher from BEP. MOS has a direct relation with profit.

SWOT ANALYSIS OF AN ATM BUSINESS

STRENGTHS

Video on demand

In-built cameras in ATMs

Provides timely access to network resources

Supports message traffic of variable length

Provides higher transmission speeds

Provides self-routing capabilities for multiple traffic types

Supports new data communications and telecommunications

applications

Offers guaranteed network access for voice and video

applications

Enables users to request a desired level and quality of service

Provides protection mechanisms against network congestion

conditions

WEAKNESS

Threat of cross border ATM crimes like debit card fraud

Skimming and ATM scams, perpetrated in many cases by highly

mobile crime syndicates

OPPORTUNITIES
Merchants receive three things when allowing you to place an ATM in
their business. One, they will be offering an added convenience to their
customers. Two, they will save money on credit card fees due to

customers using cash, and three, they will be able to profit from the
ATM by receiving a percentage of the surcharge revenue without any of
the expenses or liabilities.
THREATS
1. Eavesdropping
Eavesdropping refers to the threat that the attacker connects or taps
into the transmission media and gain unauthorized access to the data.
It is one of the most common attacks to the network. Since most ATM
networks are connected with optic cables, some people might get the
wrong impression that is not so easy to tap a ATM network.
2. Spoofing
Spoofing attack means that an attacker tries to impersonate another
users identity and take advantages. However, since a network will be
connected to many untrusted networks via the Internet, it's impossible
to prevent a hacker from getting this access permission or even trace
the people with this particular access permission. ATM is being
implemented in public domain.

Importance of ATM Machines in a Small

Business
For small companies that can feasibly have them installed and maintained, automatic teller
machines (ATMs) placed in well-trafficked locations have been shown to offer several business
benefits. Those include opportunities for the business to obtain revenue through transaction fees;
higher rates of on-premises spending by consumers using the machines; reductions in costs and
service time related to processing credit and debit card transactions; and additional ways to
interact with the consumer through the ATM kiosk itself.

Revenue Source
According to the research firm Global Industry Analysts Inc., the worldwide installed base of
ATMs is expected to reach 3.1 million units by 2015, up from 2.2 million in 2009. Consultants at
Lenpenzo report that ATMs as of 2012 handled on average 900 weekly transactions per machine,
with an average withdrawal of $60. The average ATM surcharge as of 2012 was $2.50 per
transaction, according to Bankrate.com, and the percentage that the business receives depends on
the agreement worked out in advance with the vendor that supplies and services the machine.
With security measures taken to protect the ATM and users, the machines can generate this
income during and outside of regular business hours.

On-Premises Spending Boost

ATMs are a convenience to consumers needing quick access to cash, and businesses that carry
the machines, such as stores and restaurants, are frequently the first place that money is spent.
Researcher Harris International Marketing found in 2011 that convenience store retailers
typically see the average amount spent increase by 65 percent after customers begin using an instore cash machine, while spending in the vicinity of ATMs declines dramatically following their
removal. Lenpenzos data indicates that 75 percent of money dispensed via ATMs at nightclubs,
on average, is spent on the premises.

Reduced Processing Issues

According to the ATM Industry Association, 84 percent of global merchant transactions involved
cash as of 2012, despite the rising use of debit and credit cards used with point-of-sale
technologies. For some small businesses that cannot afford tech upgrades or to pay processing
fees charged by debit and credit card providers, ATMs help keep costs down by encouraging cash
purchases. There is also processing time saved by not having to verify the identity of those using
checks and credit cards. The tradeoff, according to 2012 surveys by Javelin Strategy and
Research, is that retail purchases made with cash are generally of lower amount than those made
with debit and credit cards.

Service and Marketing Tool

Sophisticated programming technologies allow ATMs to function as interactive kiosks that can
help businesses make additional sales, promote service offerings and encourage return visits.
Consulting firm First Data Corp. notes that third-party advertisers are increasingly seeking
access to ATM users, with the technology capable of presenting on-screen video ads, and ATM
receipts can be printed with coupons or barcodes redeemable as part of special offers. ATM
maker Diebold has estimated that response rates of up to 20 percent can be generated on selfservice terminals, better than the average for methods such as direct mail campaigns.
Conclusion

Selection of suitable staff, training, licensing and resource planning are main drivers to overall
ATM system performance in aviation. They are interrelated elements of a balanced process to
ensure the appropriate quality and amount of operational competence of the ATM system. Every
current and future ATM system will mainly depend on human operational competence.
The recruitment, training, licensing and planning of operational aviation staff is subject to a
complex regulatory framework on international, national and organisational level ensuring that
the appropriate personnel is available to allow safe and efficient operations. Due to the
complexity of the system and the specific requirements, a carefully managed recruitment,
training, licensing and manpower planning organisation is the prerequisite for an efficiently
running ATM system.

The degree of regulation and standardisation of operational jobs varies with their immediate
safety relevance and the level of related knowledge, skill and ability requirements.
The main current effort in the recruitment, training, licensing and manpower planning for ATM
staff is harmonisation of an international and national regulation framework. The main objectives
of these harmonisation processes are to enhance safety and security, the ability to flexibly meet
capacity demands, and the overall productivity of the system. These purposes are strongly
interdependent. A variety of comprehensive harmonisation activities concerning operational
competence of ATM staff has been launched and implemented in the last years.

Efficiency and economic issues are increasingly affecting international training, licensing and
manpower planning. The harmonisation of international standards is a catalyst for the
standardisation of the aviation staff training market and has a substantial financial volume. At the
same time harmonised standards aim at ensuring an appropriate balancing of safety requirements
and efficiency considerations. It cannot be predicted today how the training market will develop
in the future. There is a trend towards a growing competition which has progressed further for
airline operating staff compared to the ATM environment.

CONCLUSION
In recent years, the Internet has grown tremendously, with more and more people jumping onto
the Internet and Multimedia highway. This has not only caused bandwidth to be a much sought
after commodity, but has also changed the whole persona of the Internet. Applications such as
video conferencing, virtual meeting rooms and virtual white boards, are revolutionising the use
of the Internet. New techonolgy such as ATM and Gigabit Ethernets has been brought forward to
help mitigate this bandwidth problem. Advantages and disadvantages for both ATM and Gigabit
Ethernets have been discussed, and whether ATM or Gigabit should be adopted depends very
much upon achieving a balance between economical factors, current network configuration,
functional ability, scalability, cost and most importantly application needs. Both ATM and
Gigabit should safe guard the network against future bandwidth requirements. The general
recommendation for which technology to use is this; ATM is better suited for long distant
communications where as Gigabit Ethernet is better for short range connections. Having said
that, work is being done now to incorporate the ATM ideology into PC in place of PCI and IDE
buses. If this succeeds, than having ATM migrate from the desktop to LAN to WAN will bring
about a higher level of integration. There are some ideas of taking "ATM-like" functions and
adding them to other LAN technologies. However these add-ons will occur in the layer 3
(network layer) while ATM does them in hardware. In the end, what is most important is a soild
foundation, one which will support new, and time sensitive multimedia applications.

Responses to the Problem of Robbery at

Automated Teller Machines
The following response strategies provide a foundation of ideas for addressing your particular
problem. These strategies are drawn from a variety of research studies and police reports. Several
of these strategies may apply to your community's problem. It is critical that you tailor responses
to local circumstances, and that you can justify each response based on reliable analysis. In most
cases, an effective strategy will involve implementing several different responses. Law
enforcement responses alone are seldom effective in reducing or solving the problem. Do not
limit yourself to considering what police can do: give careful consideration to who else in your
community shares responsibility for the problem and can help police better respond to it.

General Considerations for an Effective Strategy

1. Imposing mandatory minimum security standards.

2. Using civil liability.

1

Ensuring adequate lighting at and around ATMs.

Ensuring the landscaping around ATMs allows for good visibility.

Installing mirrors on ATMs.

Installing ATMs where there is a lot of natural surveillance.

Installing ATMs in police stations.

6 Relocating, closing or limiting the hours of operation of ATMs at high-risk sites.

Providing ATM users with safety tips.

Installing and monitoring surveillance cameras at and around ATMs.

Installing devices to allow victims to summon police during a robbery.

Deploying private security guards at ATMs.

Controlling street drug markets.

Targeting repeat offenders.

4 Prohibiting loitering and panhandling near ATMs.

1

Requiring that ATMs be located in enclosed vestibules with doors that lock.

Setting daily cash-withdrawal limits.