How to start a shared power bank company

In this article, you will learn how to establish a shared power bank company with 3 important steps. We have also

included some lessons learned from other companies in the industry. We hope these guidelines will be helpful as the market

for shared power banks continues to grow.

Step 1: Build a team of 4 people

Power bank companies need a team to launch. This is because finding good locations for your power bank stations requires

effort that is best managed by a small team of founders. Thankfully, the initial start-up costs are low ($10,000) and this

can be split between four founders investing $2,500 each. This is enough to purchase 40 machines. The revenue generated

from 40 machines can be used to fund future expansion.

Step 2: Choose your supplier

There are many factors involved in choosing a power bank supplier. Price, quality, design and support are all important.

You can read our summary of each supplier here. It is worth noting that the only supplier who provides exclusivity in a

market for its clients is Chargers Direct. Exclusivity makes it easier to build brand recognition which is another success

factor for power bank companies.

Price: Prices vary from $160 to $320 per machine. STW is one supplier and charges

$160 per unit but also has a $5000 setup fee. Another affordable option is

Chargers Direct is priced at $180 USD per unit and has a minimum order of

40 units

Quality: All of the suppliers listed in our review article have passed the required

safety standards and all offer a warranty of at least 6 months.

Design: Two power bank suppliers, HeyCharge and Chargers Direct, have impressive

singular designs with the payment device seamlessly integrated into the power bank station.

Support: All suppliers provide clients with web accessed software to track the performance and status of the machines.

Ultimately, you should choose a supplier that will assist you in identifying good locations, a crucial function and skill

that can be learned (see below).

Step 3: Find good locations

Many startup power bank companies get this wrong. The average bar or restaurant is not a good location for a power bank

station. instead, busy convenience stores, nightclubs that open after 2am, and sports stadiums should be the priority

targets. A second problem is the actual placement of the station inside the venue. The correct location is at the entrance of

the bar, nightclub, convenience store, or public event to generate enough awareness amongst visitors.

The above locations are ineffective placements because the power bank station is located deep inside the premises not

visible to every customer. In contrast, the below locations are successful because they are highly visible and placed at

locations with passing people traffic and long dwell times for consumers.

In addition to venues such as nightclubs, late bars, and busy public events such as sports events and concerts, we have

filmed an excellent example of power bank rental placement at a public event in Australia (see below). The success of

this placement is the result of smart location scouting plus effective placement inside the venue. If you would like more

information about location selection and how to negotiate with event organizers, feel free to join our community here.

Although large outdoor power bank stations can cost up to $2000 USD each, they are also very effective and can generate

significant revenue if placed correctly.

Finally, in terms of acquiring new locations, it’s important to remember that revenue sharing with a busy venue

such as popular bar is unlikely to convince the owner of that bar to install your power bank station. For example, let’s assume

one of your power bank stations generates $500 per month from a very busy venue. The owner of that venue has agreed to

take 33% of the revenue in return for placing the power bank at the venue. Even 50% of that revenue is just $3000

annually for the venue owner before tax. However, as brand reinforcement is very important for popular venues, and the

ability to brand the power bank station (as seen below) is an effective way to convince popular venues.

The above examples demonstrate the value of branding for venues that would otherwise not be interested in placing a power

bank station in their venue. However, for these popular locations, venue branding is very important. If you would like to see

other examples of where to place your power bank stations, and what strategies to use, feel free to reach out to us using the

contact form below.

Lessons from other power bank rental companies:

In addition to following the steps above, you should also note the mistakes and lessons learned by others in this industry.

Lesson 1: 80% of locations do not work.

This is a surprising realization for many entering the industry. Considering the success of power bank sharing in Asia,

the fact that 80% of power bank locations, internationally, do not generate sufficient revenue is a surprise. Nevertheless,

once you understand the traits of a good location for a power bank, you will be able to build a profitable network of stations.

Lesson 2: Initial investment can be small.

Many rental power bank companies believe a large investment is needed to purchase power bank machines and build a brand.

This is not true. Just $10,000 can be more effective than investing $100,000. This is because during the first year, your team

will be gaining experience in identifying correct locations. In fact, purchasing just 40 power bank machines with a supplier

that can assist you in identifying correct locations is better than purchasing 400 power bank and placing them anywhere.

If you would like to understand more about which locations you should be targeting, and how to approach the

owners of locations, you can join our community below.

Lesson 3: ‘Tap and Go’ user experience is better than app download.

Many new entrants believe that consumers will benefit from downloading an app in order to find power bank stations and

then scanning the power bank station in order to unlock a battery. The origin of this belief is in Asia where QR code scanning

is very popular. Many international power bank companies tried to copy the model that has succeeded in Asia

where consumers are already aware of QR code scanning. However, outside of Asia, many consumers will only consider renting

a power bank when their battery is already dead. Additionally card readers and phone tapping is more popular and has

become a must have for power bank companies. Although most power bank suppliers offer ‘pay and go’ enabled models, few

have seamlessly integrated the card payment reader into the power bank station. Here is an example of ‘tap & go’ user

experience which is the most successful approach for international markets.

‘Tap & Go’ user experience

By following the above guidelines and lessons, you can succeed in the power bank industry. Remember that the market

outside Asia is early stage and you will need to persevere. If you have any questions about how to start a shared power

bank company, which supplier to use, and how to find the best locations for your stations, you can reach out to our

community through the contact form below. Membership is free.

Good luck!