Oregon ATM Blog

Oregon’s Diverse Business: A Comprehensive Overview

Sun, 02 Jun 2024 02:31:26 GMT

Oregon’s Key Industries

Oregon is known for its stunning natural beauty, progressive values, and a diverse and vibrant business landscape. From the metropolitan hub or Portland, to the expansive suburbs and scenic small towns scattered across the state, Oregon's business ecosystem is characterized by innovation, sustainability, and a strong sense of community. The following article examines Oregon’s diverse business landscape, key industries, notable entrepreneurs, Oregon-based companies, and the primary factors contributing to the state's economic outlook.

Oregon’s Key Industries

Oregon's primary economy was primarily supported by natural resources until the mid 1980s, including forestry, timber production, agriculture, and fishing. Since that time, a combination of emerging and traditional industries, including professional, scientific, technology, manufacturing, and tourism are a vital part of the economy. Today, each of these industries plays a crucial role in shaping Oregon’s thriving economic profile.

Tourism & Outdoor Recreation

Due to Oregon's natural beauty and diverse landscapes, its vast recreational opportunities attract millions of tourists each year, making tourism a vital industry for the state. In fact, in 2022, Oregon’s tourism industry reached over $13.9 billion dollars in visitor spending (Travel Oregon Report, 2022). From its majestic and rugged coastline to the lush forests, vast high deserts and mountain ranges, Oregon’s landscapes provide endless for outdoor recreation, including hiking, rafting, skiing, fishing, and camping.

Oregon's tourism industry also benefits from a rich cultural heritage, with numerous festivals, museums, and historic sites. Between 2021 - 2022, 46% of all tourists spent time in Portland; 37% traveled to the Oregon Coast and 35% the Willamette Valley (Travel Oregon Report, 2022). Portland and Ashland are popular tourist destinations, offering a mix of urban amenities and access to natural attractions. Central Oregon is also known for tourism with nearby Sunriver resort and Mt Bachelor attracting travelers year-round.

Technology

Oregon’s technology sector is often referred to as the "Silicon Forest," and considered a major driver of economic growth. The Portland metro area is also home to several tech companies, ranging from startups to long-time industry players, such as Intel.

Oregon's tech ecosystem benefits from a skilled, diverse workforce, a collaborative business environment, and proximity to major West Coast tech hubs, such as the Silicon Valley and Seattle. As a regular host of tech-focused events and conferences, the state continues to foster networking and knowledge investment among industry professionals.

Wood Products & Forestry

Oregon's lush and vast forests contribute significantly to the economy by supporting a robust forestry and wood products industry. With centuries of millwork and timber production, the state is one of the largest producers of softwood lumber in the United States. Additionally, timber, plywood, and paper products are key exports, also contributing to domestic and international markets.

Moreover, the forestry sector in Oregon is committed to sustainable practices, balancing the economic interests of the state with environmental stewardship. Due to the value of sustainable practices many companies adhere to rigorous testing and standards for forest management and certification, ensuring longevity and productivity of Oregon's forests.

Food Production & Agriculture

Agriculture is a vital part of Oregon's economy, including the Willamette Valley’s farming community, which produces a diverse array of crops and livestock. In addition, Oregon is a leading producer of hazelnuts, wine grapes, pears, and berries. The Willamette Valley is often referred to as "Oregon's breadbasket," due to its fertile soil, which is particularly renowned for its high-quality agricultural end-use products.

The state's wine industry has also continued to gain international acclaim, with the Willamette Valley recognized as a premier wine-producer of Pinot Noir. Oregon wines have garnered numerous awards and accolades, attracting wine enthusiasts and tourists to visit wineries, and tasting rooms alike.

Manufacturing

Manufacturing is another staple of Oregon's diverse economy, with an array of products ranging from machinery and transportation equipment to semiconductors and electronics. Due to its strategic location, with access to major transportation routes and ports, the state is an ideal hub for manufacturing and distribution.

Intel’s Hillsboro, Oregon location makes microprocessors and brings in more than $1 billion in revenue. Overall, Intel ranks as the state’s largest industrial employer, employing 19,300 individuals.

In addition to semi-conductors, Oregon’s businesses span various industries, reflecting the diversity and innovation that characterize Oregon's business landscape.

Oregon is home to several prominent companies and notable entrepreneurs that have made significant contributions to the local and global economy.

Nike

Headquartered in Beaverton, Nike is synonymous with innovation and excellence in sports.
Founded in 1964 by University of Oregon track coach Bill Bowerman and his former student Phil Knight, Nike has become one of the world's leading athletic footwear and apparel brands. While Nike’s impact on Oregon's economy is substantial, providing thousands of jobs and supporting local suppliers and businesses, the company also promotes a strong commitment to sustainability and community engagement further enhances its global reputation due to responsible manufacturing practices.

Columbia Sportswear

Columbia Sportswear is another iconic Oregon-based company, which specializes in outdoor apparel and equipment. In 1970 Gert Boyle gave up her role as housewife to become an executive and run the family business after her husband passed away. Since that time, she led Columbia to become a global brand known for its high-quality products and designed for outdoor enthusiasts. Headquartered in Portland, Oregon, Columbia Sportswear plays a significant role in the local economy, invests in state universities, philanthropic causes, and supports numerous community initiatives. Columbia Sportswear’s success underscores Oregon's reputation as a hub for outdoor recreation and related industries.

Oregon's Economic Dynamism

Along with dynamic manufacturing companies, several other factors contribute to the economic vitality of Oregon, including a skilled workforce, inclusive business environment, and a commitment to sustainability and innovation.

Oregon's workforce is both skilled and highly educated, with a strong emphasis on STEM (science, technology, engineering, and mathematics) education. The state's universities and colleges, including Oregon State University, the University of Oregon, Eastern Oregon University and Portland State University, along with several private universities and community colleges that continue to provide a steady pipeline of talent for its key industries.

Programs and initiatives that promote workforce development and training throughout the state ensure that Oregon remains competitive in a rapidly growing and changing global economy. Partnerships between educational institutions and businesses also help to align higher education curricula with industry needs to prepare students for high-demand careers.

Supportive Business Climate

In addition to a highly educated and skilled workforce, Oregon's business environment is characterized by collaboration and innovation. The state offers several incentives and resources to support business growth and development of local entrepreneurs, including providing tax credits, grants, and access to capital.

Organizations like Business Oregon, the state's economic development agency, play a crucial role in fostering a supportive ecosystem for businesses. Business Oregon provides assistance with financing, export promotion, and market expansion, helping Oregon-based companies thrive and create jobs.

Sustainability & Innovation

In addition to investing in business development, Oregon is known for its commitment to sustainability and environmental stewardship. The state’s businesses have become leaders in green practices, from renewable energy and sustainable agriculture to eco-friendly manufacturing and waste reduction.

Oregon's focus on sustainability also provides a competitive advantage in a market that increasingly prioritizes environmental responsibility, as companies that embrace innovative solutions and sustainable practices are well-positioned to succeed in the evolving global economy.

Opportunities & Challenges

While Oregon's business landscape is dynamic and diverse, it also faces challenges that need to be addressed to ensure continued growth and prosperity.

Housing Affordability

One of the most pressing issues in Oregon, is housing affordability. Several cities within the state, including the Portland metropolitan area, suburban markets, and Central Oregon, have experienced rapid population growth. With a limited housing supply, the housing prices have been driven up, making it very challenging for local residents to find affordable housing.

To address this issue, many counties in Oregon implementing programs to include intentional increases of the housing supply, implementing specific regulatory policies to control costs, and providing supportive programs for lower-income residents, including ensuring affordable housing options are available to maintain a stable and productive workforce.

Transportation & Infrastructure

As Oregon's economy continues to grow, so does the demand for efficient infrastructure and transportation. Investments in transportation, including roads, bridges, and public transit, are crucial for supporting continued business growth, while addressing congestion.

Oregon has made significant strides in promoting alternative transportation options, such as biking and public transit, but continued investment and innovation are needed to meet the needs of a growing population and economy.

Economic Diversification

As Oregon's economy is diverse, the state does have room for further diversification to reduce dependence on any single industry. Factors that encourage growth, including supporting the emerging sectors, such as renewable energy, biotechnology, and creative industries, can help to provide additional stability and resilience.

In addition, supporting entrepreneurship and innovation by investing in small business incubators, accelerators, and enlisting venture capital can help nurture Oregon’s new businesses and industries, helping to drive economic growth and job creation.

Wrap Up

Overall, Oregon's business landscape is robust and offers a testament to the state's resilience, creativity, and commitment to sustainability. From its technology hubs in the Silicon Forest, to the Willamette Valley’s fertile fields, Oregon's economy is as diverse as its landscapes. Additionally, the state's businesses, supported by a skilled workforce and a collaborative environment, are well-positioned to navigate ongoing challenges and grab hold of opportunities in the global market. Moreover, as Oregon continues to evolve and grow, its commitment to innovation, sustainability, and community will ensure a prosperous future for businesses and residents alike.

8 Ways to Maximize Your Business Goals This Year

Thu, 16 May 2024 04:30:16 GMT

The Importance of Maximizing Small Business Goals

As a small business owner, it’s always top priority to find ways to maximize your business goals each year. When it comes to establishing business goals, it’s also top priority to set a plan to maximize and prioritize strategy.

Goal-setting is an important strategy for all small businesses. The right goals are an important part of your strategic planning and also a tool for achieving small business success. All of the data indicates about half of small businesses fail within the first 5 years , which is why not having set goals, or setting a plan to maximize them, can be a serious issue.

From modest, short-term small business goals, to extraordinary goals, the right goals can move the entire business forward. In fact, to lead your small business to success, business owners need to set goals and a plan to maximize them. This plan requires careful planning, monitoring, and adjustment as you maintain and grow your small business.

When it comes to maximizing small business goals, there are many options and directions to take. The right goals should include all of the important aspects of your businesses operations, from service processes to finances.

Business goals also help to provide direction for your small business, including everything from day-to-day activities and how to build a positive company culture to resource allocation, and tracking accomplishments against your organization’s business plan, along with establishing a vision or mission statement.

Some short-term small business goals are meant to be achieved right away, such as within the few months of establishing them, while long-term goals may not be realized for several years. Overall, a good goal setting strategy to ensure outcomes are maximized, includes multiple checkpoints (or mini goals with unique timelines), along with a long-term plan with checkpoints set up along with way. Not reviewing each specific goal, including whether each goal has been accomplished, essentially defeats the purpose. Keeping track of the goal, the milestones reached, and what goals are yet to be accomplished, keeps the entire process moving forward and on the road to success.

Due to the importance of setting goals and setting a plan to maximize them, we have outlined a few key steps to help you get started, along with helpful tips to accomplish them. Good luck on your progress!

1. Set Goals That Challenge & Accomplish

Effective small business goal setting is both an art and a science. There are aspects of setting goals that involve vision, yet the process to attain them must be rooted in proven methods that can be measured with the outcomes attainable.

Setting business goals that are realistic is essential. The right goals are achievable and encourage business growth, can be used to measure progress, and also keep motivation high during growth seasons. Alternatively, if the goals are too eager, it is more likely that both you and your team become frustrated (or even worse, become tempted to give up).

Overall, goals should encourage progress, motivation, and focus to grow the business and possibly personally as well.

For goals to be helpful, they must be measurable and attainable. A proven method to track and measure goals is by using key performance indicators (KPIs). Key performance indicators (KPIs) are commonly used as they are proven.

Good Goals are SMART

In addition to using KPIs, good small business goals are SMART goals. By setting SMART goals, measurements can be applied to test and verify if the goals working toward accomplishing strategy throughout the year. When setting the initial goals, it’s also important to establish timelines and milestones to periodically review, including what goals have been accomplished, what goals are not on target, and what steps need to be taken to adjust the plan and hit the strategies.

The SMART in SMART goals stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Each of the characteristics outlined align to setting objectives and making them clearer and easier to track. Overall, when goal setting for your business, the best goals are those that follow the SMART format.

Additionally, if the business goals are too broad, or too eager, it will be challenging to accomplish them.

Keep in mind, that each goal should directly correlate with your key strategies and business outcomes; therefore, you want to set the right goals and establish measurements throughout the year so that you accomplish what you targeted.

Each of the points of SMART goals align to a specific characteristic.

"S" for Specific: According to the SMART format, the "S" represents the need for business goals to be clear, concise and well-defined, not too broad or ambiguous.

"M" for Measurable: According to the SMART format, the "M" represents measurable; creating criteria to establish measuring the progress of each goal and parameters to determine when the goal accomplished.

"A" for Achievable: According to the SMART format, the "A" represents the need for business goals to be attainable and realistic. Each goal should stretch your business and personal, or team abilities, but also achievable.

"R" for Relevant: According to the SMART format, the "R" represents the need for business goals to be relevant and align to all other business goals, while also set to overall business strategy.

"T" for Time-bound: According to the SMART format, the "T" represents the need for business goals to have individual deadlines, or time frames, to create a greater sense of urgency and align to overall business strategy.

When goal setting, it is important to apply the SMART acronym to keep in mind the overall strategies of the goals, maintain consistency and establish timelines to determine methods of checking on progress. By creating SMART goals, you will have a better method for measuring your progress and staying on track to maintain maximum results.

Embrace Flexibility

As you invest time in creating short-term and long-term SMART goals, as well as setting up your overall business goal objective, remember that the business world is always changing. Due to this continual change, business goals may also need to adapt or change according to market conditions and other factors. Having started out by establishing clear and defined goals with measurable targets allows easier adjustment to respond with updated goals when needed.

1. Analyze Goal Progress to Assess & Adjust

As a business owner, it's essential to maintain continual awareness of what goals have been set, what goals have yet to be accomplished, and areas that may need attention. Ultimately, as a business owner, not paying attention to goals results in unaccomplished vision, unmet strategies, and potentially unhappy customers. Losing sight of goals can also result in failure to grow the business or possibly even failure of the business. For these reasons, it is important to implement methods of accountability to check key results on a regular basis to ensure goals are on course, on schedule, and what goals may need adjustment.

Performance Review

Goals require vision along with establishing a clear understanding of how the business is performing based upon past months, the overall track record, and current outcomes. Here are a few questions to assist with reviewing performance:

Are customers satisfied? Is there a need to obtain feedback from customers?

Are employees satisfied? Is there a need to obtain feedback from employees?

Are new markets being targeted or developed?

What are existing profit margins?

Are sales on track to accomplish revenue goals?

What is the cost ratios?

What are the profit margins?

What are the profit margins?

Are improvements needed? If so, what areas?

Once you analyze the answers, you have much more concise information is help guide establishing fresh goals.

How to Start a Small Business: 5 Tips for Small Business Success

Thu, 28 Dec 2023 23:16:46 GMT

Starting a small business is challenging, but rewarding and includes many perks if you set yourself up for success. The first step in starting a small business off on the right foot involves establishing plan that works for you. When starting a small business, consider the following tips to set yourself up for success:

TIP #1 - Identify your strengths and weaknesses

Every small business owner comes to the table with a personal set of skills, whether they are recognized or not. The most crucial aspect of identifying strengths and weaknesses has to do with taking the time to recognize both. Understanding where we shine is helpful as you know where you tend to stand out. It is common for business owners to wear more than one hat. That’s why it’s important to keep in mind where you are strongest and also uncover your weak points. In order to cover all of the bases, you will need to learn how to juggle roles based upon capitalizing on strengths and minimizing weaknesses.

If you are exceptionally personable and strike up conversations easily, this will come in handy when establishing rapport with customers. Do you tend to shy away from people? Understanding this tendency will help in hiring staff to fill in for you when the time comes to build relationships. Hiring to fill in gaps is essential to success. Having a team that balances your strengths and weaknesses will ensure you cover all bases and allow the business the right amount of support.

In addition, if you struggle managing accounting or staying on top of scheduling, hiring the right people to fill in these roles will ensure success. Every business owner needs to recognize talents and strong points, while also accounting for weaknesses to prevent unwanted mishaps and to also establish processes that focus attention on building up weak points.

Investment in training or development programs may be helpful for growth as well. Don’t be afraid to learn how to handle new responsibilities and workloads. Running a successful business requires personal growth. In addition to investing in personal growth, taking advantage of networks can be beneficial. It’s important to ask for support and involving business partners, family members, employees, independent contractors and others to address major needs and make sure important concerns are handled successfully.

TIP #2 - Write a Solid Business Plan

Every successful small business starts with a developed business plan. Writing up a business plan is the first step in outlining the big picture, along with detailed steps and processes, including business goals, product and service descriptions, to developing the numbers to outline actual costs and long-term projections. A business plan is a document that outlines the business’s financial goals and explains exactly what steps will be implemented to achieve them. A strong, detailed business plan provides a road map for the business’s first three to five years. The business plan can also be shared with potential investors, lenders or other important partners.

Recognizing potential competition and barriers to entry are also a critical component of setting up a successful business. At the planning stages, resources and support can be identified before taking big risks. In addition, there are many helpful and free resources available for writing a small business plan. Knowing the steps and concepts involved before making any drafts can also save time and resources.

Most resources identify a few common criteria in a successful business plan. The first point is writing an executive summary. The executive summary is the first page of your business plan. Think of the executive summary as your elevator pitch. It should include a mission statement, a brief description of the products or services offered, and a broad summary of your financial growth plans. Although the executive summary is the first thing potential investors will read, it can be easier to write it as the last step. Saving this for the end will help you highlight information that you already identified while writing other sections that go into more detail.

The second point is describing the small business. Your small business description should contain information like: the business’s registered name, the address of your small business, names of key people in the small business, along with highlighting unique skills or technical expertise shared between members of your team. Your company description should also define your small business structure. This structure may include sole proprietorship, partnership or corporation. This section should also include the percent ownership that each owner has and the extent of each owner’s involvement in the company. Finally, this section should cover the history of your small business and the nature of your small business, which prepares the reader to learn about your small business goals in the next section.

The third point is describing the small business includes an objective statement. This section spells out exactly what you’d like the small business to accomplish, both in the short-term and over the long-term. If you’re looking for small business funding, or sourcing outside investment, this section can include explanation of the need for the funds, which also describes how the financing will help the small business grow, and how future growth targets will be achieved. The key to this section is to provide clear explanations of the opportunity presented for investors and how the investment will contribute to growing the small business. For example, if your the small business is launching a new product line or service, you might explain how the funding will help the small business launch the new product and how much sales are projected to increase over the next few years as a result.

The fourth point of the business plan includes describe the products and services offered by the small business. In this section, going into specific detail about the products or services offered, or planned to be offered is critical. The plan should include the following: an explanation of how your product or service works, the applicable pricing model for the product or service, the typical customers you served, the supply chain and order fulfillment strategy, the sales strategy, the distribution strategy, and also discuss current or pending trademarks and patents associated with the product or service.

The fifth point in the business plan should include market research. Lenders and potential investors want to know what sets the service or product offerings apart from the competition. In the market analysis section, it’s important to explain the competition. Discuss what competitors do well, and point out what your small business will do better. If you’re serving a unique or underserved market, explain the details of the market.

The sixth point in the business plan should include the marketing and sales plan. This section addresses how customers will be marketed to buy the products or services, along with how customer loyalty will be developed, which will lead to repeat business.

The seventh point in the business plan should include the financial analysis. If the business is brand new, there may not be concrete information on your business financials. However, if the small business has been an existing business, it is important to include income and profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement, which reflects how cash comes in and goes out of the small business. To complete a comprehensive financial analysis, you may want to include metrics such as: the net profit margin, current ratio, and accounts receivable turnover ratio. The net profit margin includes the percentage of revenue that is maintained as net income. The current ratio includes the measurement of liquidity and the ability to repay debt. The accounts receivable turnover ratio includes a measurement of the frequency of collecting on receivables annually. This is a great section to include pie charts and graphs in order to boost the visual engagement and readability and to really showcase the financial health of the small business.

The eighth point in the business plan should include financial projections. This is the most critical part of the small business plan if you intend to seek bank financing or investors. This section outlines exactly how the small business will generate substantial profits to both repay the loan, and to reinvest into the business for longevity, and also how the small business will earn a return for investors.
This is also the section where the small business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period will be presented, along with the future numbers based upon receipt of investment capital to grow. This section of the small business plan requires accuracy in the numbers. Carefully analyze bank records and past financial statements for accuracy, along with requesting a few others to preview the plan, in order to catch any errors, is essential. The projections should be accurate but also realistic.

The ninth point in the business plan should include an appendix to list any supporting documents or materials needed to substantiate the small business plan, including resumes of owner or employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts and personal and business credit history. If the appendix is lengthy, adding a table of contents at the beginning of this section would be helpful for those reading to quickly and easily access and refer back to the information.

TIP #3 - Select The Right Small Business & Industry

Owning a successful small business is challenging, yet much more rewarding when the type of business is interesting, suited to your personality, and may even inspire passion. Having a passion for the small business doesn’t necessarily mean it’s an all-time favorite activity, or checks a bucket list item, but enjoying enough can make the process much more enjoyable.

When determining what type of small business to start, consider something that exists, interests, and even motivates you to invest time and resources. If the business is not new, consider how investing in new resources or launching a new product or service may inspire more passion. Does serving the public with a trendy new product, or launching a cutting edge technology inspire you? Possibly solving a problem in the market? Either way, uncovering the right services or products, or serving an industry in general, may be exactly what is needed to keep the fires burning long after the initial excitement wears off.

TIP #4 - Identify the Target Customer and Demographic

When staring a small business, the first thing to do is determine who the target customers are. The term “target customer” refers to the specific audience a small business wants to engage with to help plan marketing efforts. Target customers are most likely going to buy the products or services provided by the small business, if they find them through one of your marketing efforts.

When targeting the ideal customer, here’s a hint: the target market does not include “everyone” that may possibly use the product or benefit from the service. To target the right demographic, one of the best methods is to look at the popularity of your products or service. Who uses the product already? Who needs the service?
The task in defining a target customer is to identify and understand who the ideal customer is. It may seem simple to target the ideal customer, yet, sometimes making assumptions focuses on the wrong people.

Many different types of data may be used to determine a target audience, including: demographics such as age and gender identification, or specific values, or behaviors such as “likely to buy online” or likely to “purchase for family members.” Narrowing down these criteria will help identify who the target customer is. Essentially, the success rate of every small business’ marketing and sales efforts will depend on knowing who the target customers are.

Knowing the target market and ideal customer improves a small business’ marketing and advertising efforts since they may utilize resources more wisely and also save time without investing excessive or costly advertising. Investing in advertising which targets the ideal customers helps a small business identify and reach its ideal customers much more cost effectively.

A few steps to identifying the right customers involve having conversations with as many different customers as possible to identify specifics about existing customers and potential customers to find out more. Asking questions about what they appreciate about their favorite products and services also contributes to understanding more about what they value. Analyzing this feedback will help to uncover the popularity and value of the products and services they are most interested in. You may learn more about how to leverage marketing efforts to target the right people.

TIP #5 - Ask for Help & Support

Even when a small business is running well and on the right track, unexpected issues may arise, offering opportunities for growth and improvement. Reaching out to other business owners or mentors for advice, provides opportunities not only for short-term problem solving, but also for long-term strategizing. Listening to how other business owners, or consultants, approach their day-to-day operations, or even their personal lives, can offer simple steps and strategies that are new, or may contribute to re-thinking business activities for a much more beneficial bottom line outcome. One critical step in successful business ownership is being open to growth and change. As a business owner, the journey toward success is continuous. While many aspects contribute to the growth and prosperity of a business, one often overlooked but critical factor is self-improvement. Personal growth a fundamental element that can significantly impact the success of a business owner. Self-development plays a pivotal role in enhancing both management and leadership skills. These skills are essential for creating a positive work environment, building strong teams, and ultimately, achieving business objectives.

ABOUT OREGON ATM

Oregon ATM has been active in the ATM and payment industries for over 15 years. As a local, family owned business, we genuinely care about our clients, and we understand the laws and complexities around banking and payments, which are constantly shifting, changing and updating.

We are not only well-versed in existing regulations, but also stay actively involved in keeping up with regulations. Our experience provides our clients peace of mind with knowledge they can trust, so they can save valuable time and spend resources focused on growing their own businesses.

We understand that in the current market, it’s crucial for all businesses to have access to cash solutions – and that makes reliable ATM services an important part of operating your business. Oregon ATM helps business explore the ATM services to support their business goals. Whether a business is exploring ATM solutions, looking to buy, lease or profit-share, Oregon ATM works alongside business owners to help find the ATM solutions that makes the most sense for a specific business. In addition, Oregon ATM has access to any brand of ATM, which provides businesses added flexibility and resources best suited to the business needs.

The future of ATMS: AI is setting a course for the future

Mon, 02 Oct 2023 00:31:21 GMT

The first ATM was invited by John Sheppard-Baron at a North London Barclays bank branch in 1967. After this invention in Europe, the entire world became interested and the ATM was brought to the US. The first ATM in the US was brought by Donald Wetzel in 1969 in New York. Since that time, the ATM has become a common sight on main streets, public businesses, small businesses, retail locations, gas stations, and rural areas. Modern ATMs process digital banking and contactless payments, allowing customers to withdraw cash, make transfers between accounts, obtain mini statements, make cash advances from credit cards, or deposits. When it comes to a quick and seamless customer experience, ATMs allow customers many added conveniences.

Another benefit to ATMs since the COVID-19 pandemic was the option for contactless banking. ATMs continue to play an important role in allowing customers freedom and flexibility to make banking transactions or get cash. In fact, according to ReportLinker , the ATM industry continues to grow on a global scale, with the number of ATMs globally expected to reach 3.1 million by 2026, up 1.3% from 2.8 million in 2021. Since 2017, the global supply has increased 2.6% each year. In 2021, China had the largest number of ATMs with 1.3 million units, followed by India, Russia and Brazil. China's ATM count grew 6.5% annually since 2017, while Belgium's decreased by 5.9%. In 2022, the global ATM market size reached US$ 22.2 Billion, and is projected to reach US$ 29.6 Billion by 2028, exhibiting a growth rate (CAGR) of 5% during 2023-2028.

What is driving the ATM industry growth? Growing urbanization and digitalization, in both the emerging and developed economies throughout the world, is the primary factor driving the growth of the ATM market. The key features of ATMs, including 24x7 cash availability, along with options for funds transfer, bill payments, options for mini statements and cash advances, have fostered widespread acceptance and use across the globe. Additionally, advances in technology and improved security mechanisms, including biometric authentication and activation of the One Time Password (OTP) to prevent fraudulent transactions, coupled with the introduction of NCR, or talking ATMs, for individuals with special needs, are also facilitating the growth of the market. Furthermore, a continuous and thriving tourism industry is another significant factor driving the market in many areas around the world. In addition, ATMs provide customers the added convenience of easy access, currency exchange options for international tourists, through a feature such as Dynamic Currency Conversion (DCC).

In addition, as the COVID-19 pandemic changed the ways customers engage with financial institutions, ATMs play critical role to providing customers easy access to bank transactions, while also skipping long lines at the bank, and receiving bank employees from becoming overloaded.

Most customers are regularly taking advantage of alternative ATMs, preferring ATM functionality and services, a recent survey found that access to cash remained a top priority in 2022, with one in five millennials and Gen Xers aware of their financial institution’s product offering or services via the ATM.

How artificial intelligence (AI) is contributing to ATM industry growth

Keeping ATMs in service and operating smoothly is now more important than ever. Additionally, as advancements in artificial intelligence (AI) are unlocking new capabilities in ATM maintenance is easier. With AI technology, detailed technical data reporting can be continuously collected from sensors and data points to become analyzed within cloud-computing platforms. This data collection process allows businesses a much more convenient way of maintenance and upkeep.

Additionally, AI can help track and monitor ATM lifecycles. Tracking lifecycles can often provide a precise picture or “personality profile” for every single ATM in operation. The AI-driven approach can also support a transition from reactively managing ATM maintenance, such as contacting service when something goes wrong vs. implementing a more predictive, proactive service model to minimize and even prevent outages and incidents. By analyzing data patterns, trends, indicators and other data points produced by AI, potential ATM breakdown and failure can be identified. With data tracking maintenance, ATM service activities can be scheduled during times of low customer traffic to avoid interruptions in daily business.

Further, AI technology allows business the ability to more accurately determine solutions to potential problems that have caused outages, or threaten ATM operations. By reducing ATM failure rates, business can then better address the pain points to provide more consistent service to their customers. Additionally, ATM operators can provide a more reliable service and become more prepared to adapt and improve as market conditions continue to evolve.

Some of the ways artificial intelligence (AI) improves ATM maintenance

Faster & Robust Repair - By equipping ATMs with AI, customers experience benefits from more proactive maintenance and remote repair capabilities. AI also allows the individualized monitoring and maintenance of ATMs to shift to allow more service options that may not be readily available with traditional services. AI optimizes the entire repair process for ATMs allowing for faster turnaround and decreasing the overall time involved in maintenance services. ATM operators can updated remotely, but can also self-diagnose issues in seconds, and in many cases, fix them without human involvement.
Improved Service by Preparing Cash Flow - ATMs driven with AI software integrates an exclusive database that effectively identifies the key factors closely associated to cash demands of a specific ATM based upon usage trends.
The ATM AI data contain variables that establish the correlation between cash demands in order to manage cash flow efficiently. The collected data can more accurately forecast peak cash withdrawals throughout the day, and groups of days each month, accounting for various scenarios such as holidays, community gatherings, emergencies, and even weather patterns. ATMs driven by AI also analyze cash withdrawal patterns continuously to eliminate and reduce the chances of situations of idle cash or depleted cash. By employing accurate predictive models, AI can more efficiently manage the flow of cash. By implementing this proactive approach to managing cash flow, more effectively prevents the accumulation of surplus cash in ATM drawers and eliminates idle cash situations.

As ATMs are required to be “always on” and accessible for customer use, it is critical that they function properly. A better functioning ATM will keep service interruptions to a minimum. By reducing the rate of ATM failure and remaining in service, ATM operators are better positioned to address the pain points of today’s customers, and to meet consumer demands. Overall, improving service cuts down on expenditures and helping with cash flow by driving down costs for servicing, along with maintaining areas where access to cash is critically lacking. AI technology potentially offers operators the ability to smartly apply AI-driven solutions to meet the needs of their ATM fleets to ensure they are providing the best possible services to their customers and reducing wasted expenditures to save on the bottom line.
AI-Powered ATM Chatbots - In addition to revenue savings, AI is changing ATM utility through improved customer conversations through chatbots. The application of AI-powered chatbots has extended to the realm of ATMs, which help to efficiently streamline and optimize the cash distribution process. AI-empowered ATMs now feature chatbots that can help process transactions, answer questions, or make suggestions.

What is a Chatbot?

A chatbot is a software program presented on the ATM applications, which is used to stimulate a more helpful and natural conversation with a consumer by both written and voice formats. A chatbot is used to automate specific tasks. A chatbot also provides a user interface that is connected to different data sources through APIs to provide services in real-time. It is one of the more interactive, promising, and trending communication mediums between humans and machines (in this case an ATM). AI can help identify the supply plans, thus improving multiple KPIs simultaneously. Identifying the needs of the ATM can help reduce the number of trips for loading and unloading cash without affecting cash availability in the ATM.

ATM Chatbots represent a new shift in the customer service paradigm. Customers that prefer to chat, and no longer want to call businesses or banks for routine and mundane tasks, use automated tools, often getting more done in less time. Chatbots do not require downloading and multiple functionalities can take place in the same chat. Overall, chatbots may create a faster, more convenience experience for consumers.

ABOUT OREGON ATM

Oregon ATM offers ATM options for businesses of all types and sizes.

Cashless ATMs - Cashless ATMs allow customers to use their bank cards instead of cash. Customers still put their card into a card reader, the money gets taken out of their account, but the money goes to the store.
Zero Obligation - The zero obligation ATM allows your business to be completely hands off. We will place an ATM at our own cost and replenish it with cash as needed. All maintenance, repair and upgrading of the terminal will be handled by us. Your business will still capture a portion of each surcharged transaction placed at the ATM.
Lease or Rent an ATM - Leasing an ATM is cheaper in the short-term than purchasing an ATM. Short-term ATM leases are available if you would like to trial the machine for a few months and see how much your customers love it.
Buy An ATM - When you buy an ATM, it’s a one-time purchase where you receive 100% of the fees the ATM generates. Perhaps the biggest benefit of owning the ATM machine is that you will have final say on its location and the fees you charge your customers to use it.
Profit Share ATM - Oregon AT M 's Our Profit Share program is specifically designed for business owners who prefer no startup costs. We provide the ATM Machine and your business provides the cash.

What Is an ATM?

admin@sltcreative.com (Salt Creative) — Fri, 01 Sep 2023 13:30:10 GMT

What does ATM mean?

ATM stands for Automated Teller Machine. An ATM is considered an electronic, self-serve banking terminal, which allows customers to access cash from a bank or credit account, to then complete basic banking transactions without having to travel to a bank or credit union. ATMs allow customers to access cash from a bank or credit union account and to carry out transactions without the need for a banker, branch teller, or bank representative.

Most ATMs provide customers access to bank accounts by using a debit card with a unique PIN, which was set up with the original account. By placing the debit card into the ATM and entering the unique PIN assigned to the card, customers can take out cash from either a checking or savings account. Some bank ATMs also allow the withdrawal of cash from a line of credit, or from a credit card account, which is referred to as a cash advance. Most cash advance transactions are associated with significantly higher fees based upon the original account terms.

In addition, most ATMs provide cash in varying denominations of bills, with some allowing customers to determine how they would like their cash back. For example, if $100 in cash is withdrawn, customers can choose five $20 bills. Some ATMs allow one-touch access by withdrawing a preset amount, such as $20, $60, or $100.

If withdrawing cash from an ATM that is owned, or in partnership with the customer’s banking institution, referred to as “in network,” the service fees may be waived. In addition, a greater variety of banking services may be available. For example, an ATM in the banks network may allow deposit of cash or paper checks, along with transferring funds from one bank account to another.

Types of Automated Teller Machines (ATM) Transactions

There are primarily two types of ATMs. The first is a simple, basic machine that allows customers to withdraw cash from checking or savings accounts, or to check account balances. Additionally, some ATMs allow customers to change their unique PIN, to get mini bank statements, check balances, or to get basic banking account updates. The second and more complex ATMs provide options for cash withdrawal from savings, checking, lines of credit, or to make cash or paper check deposits, and some allow bill payment. Additionally, cashless ATMs exist.

Automated Teller Machines (ATM) for Businesses

For businesses wanting to offer ATMs to their customers, a variety of options exist. An ATM is a great way for small and medium sized businesses, and a variety of merchants, to earn more revenue for their business, and to provide customers an added convenient service. Rather than paying extra fees, or a percent of transactions, or sales, businesses can charge fees for providing the convenience of having an on-site ATM for customers to access cash.

There are a variety of ATM options for businesses, including leasing ATM Machines, buying ATMs, or zero obligation alternatives. Additionally, cashless ATMs, allow customers to use their bank cards instead of cash. Customers still put their card into a card reader, the money gets taken out of their account, but the money goes to the store. As this is an ATM transaction, the amount withdrawn will be in even denominations. For example, if a customer makes a $75 purchase, they will withdraw $80 from their account and then receive $5 change with their product.

The zero obligation ATM allows a business to be completely hands off. The ATM company will place the machine at their own cost, and replenish it with cash as needed. All maintenance, repair and upgrading of the terminal will be handled by the company. In that case, businesses will still capture a portion of each surcharged transaction placed at the ATM at their business location. Leasing an ATM is cheaper in the short-term than purchasing.

Short-term ATM leases, or rentals, are available for businesses that would like to try out the machine for a few months to see how much their customers enjoy the service. This is a great way to test out the service prior to making a long-term commitment. Customers an share their feedback providing direct market testing for how much the ATM may benefit the bottom line.

For business that select the option to buy an ATM versus leasing, will incur a one-time purchase charge and then receive 100% of the fees the ATM generates from that point forward. Perhaps the biggest benefit of owning the ATM machine is that the business has complete control and flexibility for where the ATM is placed and the fees charged to customers that use the machine.

Benefits of ATMs to Retailers

According to market studies, including ATMIA , ATM provides multiple benefits to businesses, including retailers. Some of these benefits include:

ATMs are known to increase the annual sales revenue of retailers offering on-site ATMs by up to 25%, through increasing the spending power of their customers.
ATMs have helped retailers extend their revenue generation by collecting transaction fees and generating additional revenue after hours, particularly when ATMs are offered after hours.
Customers often seek out businesses that offer ATMs on-location, which ultimately increases the revenue earning potential when merchant’s benefit from in-store traffic.
ATMs offer retail merchant’s a source of additional revenue through transaction fee income.

ATM Fees & Limits

Processing banking transactions at an ATM that is not part of a customer’s banking institution, or considered in-network with their bank, may result in fees imposed by both the customer’s bank and the bank that owns the ATM. According to Bankrate’s 2023 checking account and ATM fee study, the combined average fee is currently at a record high of $4.73.

Some ATM transactions may be free or bear a low transaction charge depending upon a customer’s bank. Banks usually do not charge for the first 3-5 ATM transactions per month. After hitting the minimum limit of free transactions allowed, customers may have to pay the ATM service charge. Additionally, a customer’s bank may levy charges when withdrawing money from the ATM of another bank outside of the network area.

Some benefits of ATMs include:

Convenience - ATMs offer customers convenient banking by allowing them to perform quick self-service transactions such as deposits, cash withdrawals from checking or savings accounts, bill payments, and bank transfers between checking or savings accounts 24 / 7. ATMs may also offer cash withdraws form credit cards. In some locations, ATMs are available 24 / 7, 7 days per week offering maximum convenience.
Ease of use - Easy access to ATMs offers customers the ability to not wait in long lines, or allows the options for very short lines, which provides the added convenience of saving customers time.
Process multiple transactions - With the touch of just a few buttons, customers can withdraw cash from checking, savings, or credit accounts, make cash or paper check deposits, pay bills (and even fines), check on account balances, buy tickets, send remittances and transfer funds.

History of ATMs

The world’s first Automated Teller Machine (ATM) was unveiled at a branch of Barclays Bank in 1967 , in London, England. The inventor was a Scottish man, John Shepherd-Barron. In 2007, during an interview with the BBC and in celebration of the cashpoint's 40th birthday, Shepherd-Barron, claimed the idea for his invention for the cash machine was inspired while having a bath. According to this BBC interview, ”It struck me there must be a way I could get my own money, anywhere in the world or the UK. I hit upon the idea of a chocolate bar dispenser, but replacing chocolate with cash." Shepherd-Barron quickly signed a contract with Barclays and machines, beginning with the De La Rue Automatic Cash System, (DACS). At the time, plastic bank cards hadn’t yet been invented, so the machine took checks and only dispensed £10 at a time. Reg Varney, a star of the British TV comedy series, On the Buses, was the first person to withdraw cash from the original Barclays ATM.

Prior to 1967 in London, accessing cash required a trip to the local bank branch during regular business hours, which was 3:30 PM . The first ATM was followed by five more cash dispensers commissioned by Barclays Bank.

Within just a few short years, the presence of ATMs spread throughout the world, securing a presence in every major country. Today, ATMs can be found even the tiniest third-world countries, island nations, and small countries.

In the US, on September 2, 1969 , the first ATM was introduced to dispense cash to customers at Chemical Bank in Rockville Center, NY. The ATM first established in New York was only able to give out cash, but by 1971, an ATM set to handle multiple transactions was introduced, allowing customers to check on account balances.

From that point forward, ATMs went on to revolutionize the banking industry in the US, by eliminating the need to visit a banking institution to conduct basic financial transactions. By the mid-1980s , ATMs had become widely accepted for those wanting to handle many of the functions previously performed by human tellers, such as check deposits and money transfers between bank accounts.

ATM Facts:

ATMs charge service fees - ATM fees are charged for most transactions, including cash withdrawals from savings or checking accounts. The fees are typically set by the customers bank, by the operator of the ATM, or a combination of both.

Cash or Transfers - Some ATMs only dispense cash withdrawals from savings, checking, or credit cards, while other ATMs allow transactions between accounts, such as deposits into checking or savings accounts, or balance transfers between accounts.

ATMs in London - According to the House of Commons Library, early June 2023 there were 49,421 cash machines in the UK, with 78% free to use without fees. The total number of ATMs in the UK peaked in 2015 and has fallen each year since then.

Global ATMs - As of 2021, the number of ATMs in the world surpassed 5 million and are as indispensable to most people as cell phones and e-mail. According to ATMIA, and estimated size of global ATM industry in the U.S. ranges between $14-15 billion.

According to ATMIA , every 215 seconds, or every 3.5 minutes, a new ATM is installed.

ABOUT OREGON ATM

4 Ways an ATM Can Benefit Your Small Business

Mon, 14 Aug 2023 19:06:09 GMT

Automatic teller machines (ATMs) have been shown to offer small businesses multiple benefits. As small businesses continue to face increasing pressure due to challenging market conditions and the ongoing need to provide valuable products and services to their customers, while maximizing revenues, having an onsite ATM has proven to be an advantage with notable benefits.

Although people typically associate ATMs with banks, many small businesses have an ATM onsite, providing customers an added shopping convenience, and also capitalizing on additional revenue streams by joining in the growing ATM market. Just how big is the ATM market?

In a study conducted regarding the ATM global market, by ReportLinker , the global ATM market grew from $19.94 billion to $22.08 billion between the years of 2021 and 2022, despite disruptions due to the Russia-Ukraine war and continued global economic recovery from the COVID-19 pandemic. The same study by ReportLinker , identifies the global ATM market is growing at an average compound annual growth rate (CAGR) of 10.7%.

According to a recent study , the ATM market is expected to continue growing to reach $42.3 billion by 2026, with 3.1 million ATM machines globally, and ongoing growth rate CAGR of 6.9%.

With this increasing growth rate of ATMs globally, how can your small business take advantage of the benefits of ATMs and meet the competition? As a small business owner, you know first-hand the importance of continually growing the bottom line and intentionally working to keep a steady stream of customers coming back for products and services. For businesses that rely on foot traffic, not having an ATM onsite can negatively impact daily and monthly sales, ultimately impacting the bottom line. Alternatively, having an ATM onsite can greatly improve bottom line outcomes by preventing lost sales due to customers having access to cash. Customers with cash in hand are much more likely to purchase items even if they didn’t plan to spend, often due to the added convenience. In addition to all of the benefits passed on to customers, renting, leasing, or owning an ATM, and placing it onsite at your small business, also passes several benefits to your small business, which include:

Revenue Generation - Increases in revenue generation through ATM surcharge and transaction fees.

Boosted Sales - the possibilities of retail sales and other transactions by consumers spending while onsite increase by having an onsite ATM.

Reduced Transaction Fees - small businesses with an onsite ATM benefit from reduced credit and debit card processing fees for transactions, along with related issues.

Building Customer Loyalty - benefits of interacting with customers and earning future business is also possibly by offering an onsite ATM with added convenience.

#1) Revenue Generation

Many recent studies identify ATM machines as a catalyst for increased revenue generation for small businesses of many types and sizes. In fact, many business leaders often refer to ATMs as a mini business due to their capability of increasing sales and contributing positively to the bottom line without constant managing. Once an ATM is placed in the small business, limited amounts of time are required outside of maintenance, which many ATM service companies take care of. This frees up business owners to focus on interactions with customers and backend managing of day-today-operations, rather than paying attention to the processing of ATM cash transactions. Additionally, ATMs potentially increase sales, contributing to the bottom line each day, due to the added convenience for customers. For example, when customers visit your small business and use the onsite ATM, your business receives the surcharge and convenience fees associated with the transaction. These fees add up over time making revenue generation greater.

By having an onsite ATM, the small business is providing customers an added convenience, while also adding to the small business’ bottom line each month. In addition to adding surcharge and convenience fees, According to recent studies, 65% of ATM users go onto spend money in-store as they have access to cash. In addition, customers noticing the onsite ATM machine available for use may stop to shop. This accounts to increased revenue earnings from ATM surcharge and convenience fees and increases in retail sales. Here are some helpful insights relating to the ATM industry relating to your small business:

According to Global Industry Analysts Inc., the number of installed ATMs throughout the world, is expected to increase by over 1 million units over the next few years (Global Industry Analysts Inc).

In a report conducted by Lenpenzo, an estimated one-third of US consumers use an ATM at least once per week. The average onsite ATM located in a retail business averages 6-10 transactions per day.

Small businesses may net $2.50 per transaction (after ISO fees). With an average of 6-10 transactions per day, the transactions result in a daily gross profit of $15-$25 per day. This number of transactions result in about $450-$750 per month if the business is open and accessible 7 days per week.

In recent studies by Bankrate, in 2023, the average ATM surcharge is estimated at $4.73 per transaction. This is a record high for ATMs. Typically, the surcharges include two components, which are split into the average surcharge of $3.15 with the average fee of $1.58 charged by the bank for using out-of-network ATMs. In addition, the percentage that the business receives depends on the agreement worked out in advance with the vendor that supplies and services the machine.

#2) Earning Future Business

Other recent studies identify ATM machines as having the potential to contribute to earning the future business of customers visiting the small business, as they recognize the added convenience of having an onsite ATM. Offering ATMs for dispensing cash adds a reference point of convenience for every customer that walks through the door. Loyalty is built between the business and customer as ATMs give unrivaled accessibility, sustaining dedication through reliable accessibility. This consistency remains top of the customer's mind, creating a strong connection between convenience and dedication.

Additionally, by permitting clients to get to assets beyond customary banking hours, ATMs establish the groundwork for encouraging unflinching customer steadfastness. Their convenience says a lot to modern buyers familiar with on-request services.

Tips for building loyalty:

Offering ATMs in remote areas, or where bank ATMs may not be available, offers a fundamental services to those customers that value accessing cash, even in the most remote locations.
Offering ATMs to customers that do not have bank accounts but have credit cards or other types of cards, creates opportunities to build a long-term customer base.
Placing ATMs in businesses, or retail locations, where cash payment is the preferred choice reinforces convenience and reliability.
Accessing ATMs where customers prefer the ability to access cash and cash payment is preferred choice is a win-win.
Earning future business from customers can grow from accessibility and continue due to strategic location and ongoing convenience. Customers experience the ATM brand is located in places of preferences and associate the service as an added benefit.

#3) Reduced Processing Fees & Associated Issues

According to the ATM Industry Association, approximately 84% of global merchant transactions involved cash, and despite the increase of debit and credit card transactions with point-of-sale technologies globally, cash transactions are rising. For small businesses that are limited, or not capable of investing in technology to offer point of sale payment processing, or may benefit from cash only transactions, offering an ATM maintains tangible benefits for fee revenue, while also keeping costs of card transactions to a minimum. Additionally, for businesses that prefer not to accept check payment, offering customers the ability to access cash for payment ensures collection with the benefits of no fees. An additional benefit is reduced charge backs. When customers pay with cash, processing a return is less likely. Cash payment ensures payment and long-term profit.

#4) Service and Marketing Tool

Onsite ATM machines also provide opportunities for on-screen promotion and advertising. Some machines allow ad campaigns to run, delivering increased profitability. Sophisticated programming technologies allow ATMs to function as interactive kiosks, promoting products and service offerings and also encourage return visits.
Consulting firm First Data Corporation 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 advertising is an effective new advertising medium that lets businesses target consumers on a one-to-one basis.

ATM screens are strategically placed to capturing the attention of customers as they make purchases or withdraw cash from the ATM. One of the key advantages of advertising with ATM includes the diverse range of advertisers and customers. ATM screens provide a platform for brands to showcase their products and services, while also entertaining and engaging customers during their store visit.

According to ATM Ad, in 2023, an estimated 20% can be generated on self-service terminals, better than the average for methods such as direct mail campaigns (ATM Ad 2023). Some ATM ads incorporate trivia and fun facts into ad content. This not only captures the attention of viewers but also adds an element of entertainment and education to their experience.

With all of the benefits available to small businesses by offering onsite ATMs, even during challenging times, business can experience increased revenues. Due to income improvement potential due to collecting surcharge fees, increased foot traffic, and brand loyalty, many businesses are taking advantage of adding an ATM to their inventory.

ABOUT OREGON ATM