Start a Money Transfer Company
Nowadays, the facilities offered by the Internet processes have been overshadowing the shipping companies, and we include the money transfers, since many banks offer this type of process. Nevertheless, starting from the necessity and adapting to the needs of the market and the conditions, we have a space in the market to mount a company of money sending.
Know here all the businesses related to services
How to start and how to progress with this type of shipping business, is what we will see in this section, where we can see how our business is materializing step by step.
Get to know the business activity
This business consists of making it easier for people to send and receive money, especially if the two points are located far apart. This type of business is essentially useful for people who do not have a link to a bank or this is very far from the place where they are, also for people who do not want to pay a high cost of commission from their banks or use that complicated service. This is how the money transfer company appears in such a way that the person registers some data necessary to carry out the process and that’s it.
Identifies the target audience
In addition to the public sector that we pointed out, there are also immigrants who receive money from their country of origin, so they will require the service if we take into account that bank branches are not in all countries. When you identify your target audience, it is easier to focus on your business and attract your customers.
Research the necessary permits
Like any type of business, you need to have licenses and permits to operate, especially if you are sending money to other countries. Initially you can apply for the license according to the country you are interested in to start.
Open a business account
Once you have identified the area in which you want to be located, start opening commercial accounts in the banks most used by the public according to the place. This is because every time a transfer is made, we will need to enter the bank accounts for the process of sending money from customers. With a commercial account we will be able to enter and make bank deposits to other accounts, since we are allowed to do so according to the permissions made by the clients.
Consider a franchise
If you are interested in setting up this type of business, franchises are one of the best alternatives, since they are the ones that bring in the most income. The advantages of acquiring a franchise are many, including the recognition and prestige of the brand, which saves time and money in advertising.
Promote your business
Setting up a franchise is not free of advertising, because even if they know the brand, not all your potential customers will know where you are, so it will not be a process that should disappear. Regardless of this, it is advisable to advertise your business in both traditional and digital media, this even if you want to start establishing a business with physical premises or operating on the Internet.
Requirements for starting a Money Transfer Company
With this business you must be clear about the type of service you are going to provide which ranges from carrying small and valuable packages, such as keys, a cell phone or a charger that someone forgot and could not pick up due to lack of time, distance or forgetfulness, to large packages and documents, as well as sending money in addition to other additional services.
Some requirements related to the identification of the packages must be followed, such as the individual identification with a number, in addition to the request that the client may have to make the collection at home.
At the same time, it is a requirement to acquire a physical platform with a central location so that the clients have access to the service of sending or receiving foreign currency, in addition to having the space and specific planning to provide the service, that is to say, the space must have security, for example the counter where the client is served and the security between these two as armored glass or security bars, since the client is working with money and this fact is constantly dangerous.
Advantages of having a Money Transfer Company
This type of business can represent great advantages, from its operational form that does not require much expenditure on equipment and technology since its source of real income lies in the administrative activity of foreign exchange and sending money.
Another advantage is always to have access to money, this type of business can give opening to great deals, besides that it is providing a service that represents an almost vital need in this era for many, which makes the service highly susceptible to bonanza.
Problems that can arise in a Money Transfer Company
Basically the remittance company is a delicate business because it works with money, the problems that could arise are from security, since this is a business that must always have foreign currency to send and exchange in addition to covering the other services that could contain for the public.
Another important possible problem is corruption, you must have security mechanisms to monitor and audit the money handled by the staff of the company to avoid corrupt acts of embezzlement or money laundering.
Success stories
A particular case of great success with this type of business is Moneygram. This company was founded under the altruism of meeting the financial needs for 1940, with the founding of the company Travelers Express Co.INC, this company quickly became one of the first to send money via mail and work with electronic currencies to achieve money orders around the world.
With over 200 countries attached to the service, Moneygram has surpassed its own service mark several times, establishing itself as one of the world’s leading money transfer platforms.
The adjunct company that appears among the potential competitors and has also contributed to its history is Western Union, a company dedicated to sending currency for many years as well as this company.
Tips for Starting a Money Transfer Company
An advice par excellence that has more to do with any business you are going to set up, primarily to surround yourself with competent, sincere and proactive people, so that with the help of these personalities your business can rise like the foam without any problems from the point of view of staff behaviour.
To establish this type of business you must have a taste for money and an ease to count and manage it so if you have a natural ease to keep accounting and foreign exchange service this business may be the right one.