Many of us dream of living in a cashless society. First of all, we wouldn’t have to look for ATMs when we needed to withdraw some money. Second, we would feel safer when we walk around town. And, third, you won’t lose your money when your clothes go in the washing machine!
Of course, a cashless society is just a dream at the moment. It’s unlikely we’ll stop using cash anytime soon. Particularly in parts of the world where cash dominates local economies. And when you go on vacation, you’ll need to exchange some currency before you travel.
Are you thinking of starting a new business soon? If so, have you considered opening a currency exchange store? In some parts of the world, it’s known as a bureau de change. In a nutshell, it’s the place to go if you want to sell one currency and buy another.
Believe it or not, there is a growing demand for currency exchanges. Sure, people can buy and sell money on the Internet. But, how will that help you if you need physical cash in another currency? This is where currency exchanges can help. In today’s blog post, I’ll give you a brief overview of what you need to know to get started.
The first thing to consider is where you wish to open your currency exchange store. Places like airports, seaports, and international rail stations are good examples. But, you may also want to consider areas frequented by tourists like city centers.
One of the attractions of such a business is you don’t need a lot of retail space. Some currency exchanges consist of just a booth inside a store! You might wish to think about opening yours in a travel agency, for example. Their customers can become your customers and vice-versa.
The next thing to look into is how you will keep records of your transactions. By law, currency exchanges must keep detailed records of money bought and sold each day. This is a requirement for money-laundering laws.
I recommend using a computer-based system that is safe and secure to use. That way, you won’t need to store boxes of paper documents.
Next, you’ll need to apply for the various local and state licenses required. That way, your business won’t be illegal, and you will inspire consumer confidence.
Each area has different regulations. Be sure to do plenty of research so you know what to apply for.
When you’re dealing with cash, you need to use technology to give you a helping hand. For example, a currency counter machine will mean you can serve your customers quicker. A computer can get used for auditing and record-keeping. And an Internet connection is useful for uploading daily records to your accounting systems.
You need to be careful what kinds of fees or commissions you charge your customers. Each state regulates what currency exchanges can levy on their clients. One option is not to charge any fees at all. Instead, you could absorb the fee by offering exchange rates that are more favorable to you.
It goes without saying that your retail outlet will need to be as secure as possible. There are various security measures you could invest in. Examples include an electronic safe, CCTV and an alarm system.