The Cypriot delegation's visit
Yesterday we hosted a delegation from Cyprus. They took an interest in our fast-payback business project to install automated lockers for beaches across Cyprus in 2015. The regional municipality and local entrepreneurs are working on this exact issue right now. Do you know why? Because matters like this need to be handled well in advance, especially in Europe, where the approval process takes considerably longer than in CIS countries.
The specifics of working in Europe are that the decision to install this kind of equipment rests with the local municipality. A short proposal is prepared outlining the installation plan. It states what equipment is planned for the site (in our case, at minimum the lockers themselves, plus phone charging stations and internet access points), what services will be offered (item storage, phone charging, paid internet access), and the exact locations on the beach.
How the decision gets made at the municipal level
The proposal is then put up for discussion, and a decision is made on whether the beach actually needs the service. More often than not, the answer is yes, since for a beach this mainly means better upkeep of the area, less theft (a problem just as real in Europe as anywhere else), extra services, and more comfort for visitors.
Once the need for the service is approved, holding a tender becomes mandatory. Bids are submitted and a competition takes place. The proposal that turns out to be the most appealing to local authorities wins the tender. And it's worth noting that with our equipment, given its price and compact size, this isn't particularly difficult to achieve.
That's the general process for installing automated lockers on European beaches. As you can see, it takes a fair amount of time and quite a few approvals along the way. If you start working on this back in November, you'll have the full set of documents ready right by the start of the season, and you can confidently begin growing your business.
A simpler route through local beach operators
Of course, there's always a simpler route, especially when there's no time to go through the municipality. Every beach has its regular players in the beach business: cafes and restaurants, retail stands, sunbed operators, umbrella and water sports rentals. They already hold all the necessary paperwork and operate legally on the beach. You can strike a deal with them and install your equipment on their patch.
Most likely, that kind of agreement will be verbal, with their interest expressed as a share of the takings. From experience, the site owner is usually given 25%, which is a perfectly normal figure for this kind of arrangement. So the choice of how to operate is up to you.
The one thing worth pointing out: going through the municipality takes longer but is more reliable, and in the end works out cheaper. Striking deals with local beach business operators always carries the risk that you could be asked to leave, or that your business could be squeezed for everything it's worth.
The main thing is not to wait too long
Either way, the question of securing a spot needs to be settled a couple of months before the season starts. Don't forget that you're not the only one who's had this business idea; a few other people are holding onto it too. So whoever secures the beach first is the one who gets to work there. Don't miss a good opportunity to start a business with parcel terminals and other vending equipment, one that won't require major investment and can pay for itself in the very first season.
