Starting a currency exchange is a great business venture. It has the potential to be a very successful and profitable business. The idea is to locate yourself where there are travelers and provide the much-needed service of exchanging one country's currency for the other, charging the traveler or consumer a moderate fee for the transaction. Getting into the currency exchange business is just like starting any other business. It involves having a good business plan and source of financing. There are some essential factors to consider when planning to start a currency exchange business.
Check out the legalities of this business. Visit the websites of the Chamber of Commerce, IRS, U.S. Department of Labor, and U.S. Small Business Administration to get the information you need. Also, contact your local city clerk, county clerk or revenue agency and get information on how to get tax IDs and business permits. Register your business name and determine what kind of company you are founding. Choose a legal or fictitious name for your company and complete the necessary registration for your business.
Learn how to open up a credit line. You will need funding for your business. Contact several major and local banks to get the best credit line deal. Find out their requirements - what deposits or money they require to start up the business. Also, these banks can offer you sound advice on how to start a business. However you'll need to come up with a detailed business plan, too.
Find a vacant office or shop space in a good location for you currency exchange. Look for available spaces around other shops, where there are travel agencies and travel equipment shops. Also locations that are close to modes of transport are good choices. These include airports, train stations and bus stations.
Get good computers and software to calculate and keep track of the always-changing exchange rates. Also get a board to display the major currencies. You can use an electronic board or a simple wipe board.
Keep up with industry trends, especially with the latest tactics to fight credit card fraud. Join helpful trade organizations, like the Community Currency Exchange Association, that will help you keep on top of the latest news.
Always monitor exchange rates. Keep a closer look at the exchange rate between any two currencies you plan to trade.