There are many places that have a strong demand for a money changing business. The growth of tourism and our large OFW population has guaranteed a huge market to be tapped by money changers. This is one opportunity you may not want to miss. It is a simple business if you know how to start and operate it. Below is a shortened and simplified step by step procedure to give you a basic idea on this business:
1. Find an ideal location. The key to success in this business is to secure a location in a place where there are many potential customers who feel safe when changing money. Previously this was limited to areas where there are many foreigners like the tourist belt.
Now, some of the best locations are public markets, commercial areas, malls, and other places where a lot of people find it convenient and secure to change money. A location where you see money changers overflowing with customers are prime spots for putting up this business.
2. Registering a money changing business. A money changer business can be a sole proprietor, corporation, or partnership. Sole proprietors need to go to the department of trade and industry, while corporations and partnerships must go the Securities and Exchange Commission. You then must get a barangay clearance before proceeding to get a mayor’s permit and then registering with the Bureau of Internal Revenue and having your receipts printed.
3. Requirements of the Central Bank. You also need to register with the Central Bank. One of the key requirements of the Central Bank is attendance at the Anti-Money Laundering Law Seminar.
4. Capital needed. While there is no legally mandated minimum amount, it is recommended that you have around five hundred thousand pesos to start this business excluding a minimal amount for renovation, furnishings, and equipment. A bigger capitalization will enable you to have more transactions.
5. Learn buying and selling prices of different currencies. You make your profit from the difference in value between your buying and selling of currencies and so you must know the way of rapidly updating buying and selling prices.
6. Learn counterfeit money detection. The most critical operational skill you and your staff must acquire is to learn how to detect fake currencies. To do this, you must have the tools of the trade: the lens, ultra violet money detector, and white light.
7. Attracting and retaining customers. On the surface it seems that your product or service is hard to differentiate. However, there are many aspects that could be made more appealing to increase the chances of customers preferring your shop. Physically, make external facade look neat with your signage prominent and clean. But the most important is to have well trained staff that can deliver excellent customer service.
The money changing business offers the prospective entrepreneur a solid business opportunity. The demand for this service will most probably continue to grow. If you want to gain more information on money changing, Businesscoach Inc., a leading business seminar provider, offers a two-day seminar on the topic.
Business Coach Column by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) from the Manila Bulletin. Re-posted with permission. Photo from balita.com