Providing currency exchange services is a profitable business under any economic conditions. Every month it will provide 2-5 thousand dollars of income. If you spend about 30 thousand dollars on opening, the investment will be returned within a year.
The main profit that such a business brings is the difference in exchange rates and the commission fee that the owner can set. At the same time, the course is also determined by him personally. To organize a currency exchange, the owner must have his own untouchable fund of 15 thousand dollars. This amount lies in the cash register and is not subject to collection.
Getting into business
The peculiarity of the project is that if there is a place where you can open an item with minimal investment, the income from it will be small. A profitable location is usually occupied and can only be purchased, because it is extremely difficult to open a new location nearby. You also need to take into account the presence of competitors - not only other exchangers, but also bank operating desks.
When deciding how to open an exchanger, consider the possibility of quickly converting it into a cash desk. Then the additional investments will be no more than 5 thousand dollars, and the profit will increase to 3 thousand per month.
Also, the optimal solution would be to open not just one exchange office, but a whole network of such points. Such a network will help you quickly respond to changes in the market and make your business safer.
Calculating profits
The most important type of earnings for this type of business is “spread”, that is, the difference between the sale and purchase of currency). In addition, exchangers sometimes impose additional commission fees. The exchanger fixes the rates itself, based on current supply and demand. And of course, for smooth operation, the exchanger must have free cash for buying and selling various currencies. The supervising bank has the right to exercise control over the point and make amendments during its operation. If the point of operation violates the established requirements, the bank may suspend or completely close the operation of the point. If an entrepreneur organizes everything correctly, then in one year he can earn from 3 to 3.6 million rubles. And we are talking about the owner’s net income. Located, they will be at the point and are not subject to collection.
Inspection bodies
Three authorities can check the currency exchange office. Who should the owner expect:
- Central Bank of the Russian Federation;
- Department for Combating Economic Crimes (OBEP);
- Tax Inspectorate.
Judging from practice, the check takes place on the first working day of the point. During this inspection, compliance with established rules and regulations, the presence of an alarm button, security and fire systems, and others are checked. The risk of inspection by the Central Bank of the Russian Federation and the Economic Crime Department can be reduced only by honest work, without breaking the law. With this kind of work, you definitely won’t have any problems. The disadvantage of such honest work is additional expenses, which are equal to 5 percent and tax on the fixed amount of income according to documents.
Let's calculate the opening costs
Our article should also help those people who are looking for an answer to the question of how to open a currency exchange office in Moscow. And in conclusion, it’s worth talking about the costs that cannot be avoided in such a business. So, let's calculate the costs of organizing a currency exchange office. All costs incurred can be combined into two groups:
One-time (one-time) costs - purchase of equipment (safe, PC, telephone, etc.) - about 200,000.00 rubles;
- bringing the cabin into working condition - from 250,000.00 rubles;
- installation of video surveillance, alarm system, access control system - from 150,000.00 rubles;
- available funds in circulation – from 1,000,000.00 rubles. TOTAL - from 1800000.00 rubles.
Monthly costs:
- bank commissions – from 50,000.00 rubles;
- rental payments – from 30,000.00 rubles;
- salary + taxes – from 30,000.00 rubles;
- security services - from 50,000.00 rubles. TOTAL - from 160,000.00 rubles
If your monthly income is 250,000.00 – 300,000.00 rubles, the exchange office will pay for itself in about one year.
Project design
The law establishes the rule that only a credit institution can open such a point. This means that if you want to start such a business, you will need to sign an agreement with the bank to provide such services under its auspices. Most often, medium and small banks are ready to sign such agreements. They issue licenses to individuals to carry out cash foreign exchange transactions on their behalf.
Therefore, the question of how to open a currency exchange office is solved, first of all, by employing an entrepreneur in a credit institution as a manager or manager of an exchange office. Then he himself decides all the issues regarding the organization of this project: he looks for a place for an exchanger, rents it, purchases the necessary equipment, hires staff, and concludes all the necessary contracts. During work, in addition to paying commissions to the bank, the entrepreneur must comply with the regulatory instructions of the Central Bank of the Russian Federation and established reporting.
Room
Business requires the choice of premises in a passable, crowded place. But it is also necessary to take into account some features of the exchange and the goals pursued by the entrepreneur. For example, if your goal is to buy the maximum possible amount of currency, you should open a business near hotels, shopping and entertainment centers. If you want, on the contrary, to buy more national currency, to do this you need to open an exchange office in residential areas.
You can navigate the course setting by assessing the work of competitors in the area. If it is overpriced, it means that this service is in high demand here.
To work you will need an area of at least 6 square meters. m. The exchanger can be equipped either in a permanent room or in a special armored cabin. It can be installed on a turn-key basis with all the necessary finishing for 3-6 thousand dollars. The room in which currency exchange will take place must be equipped with a security and fire alarm, an exhaust hood, an armored door and a window.
Stage 2. Premises and equipment
The best location for an exchange office will be a place with high traffic.
Before opening, you need to assess the peculiarities of demand for currency exchange in a particular place. Exchange offices located in shopping centers, places of entertainment, hotels, train stations, and airports are more popular; exchange offices are in less demand in residential areas.
In addition to assessing demand, you can also characterize currency prices; if the price of a currency is above average, this indicates good demand.
All documentation of the exchange office is registered in the name of the credit institution, including the rental agreement. The room for the exchange office should be about 6-7 square meters. It can be either a built-in room or an armored cabin located separately.
The cost of the cabin, with finishing work, both outside and inside, ranges from 3,000 to 6,000 thousand conventional units. The premises of the exchange office must be arranged in accordance with the rules and regulations:
- Armored window, doors;
- Availability of hood;
- Availability of fire and security alarm systems;
The exchange office will need the following equipment:
- Software that controls the movement of money (this software is provided by a credit institution, which simplifies interaction);
- Currency detectors (check originality);
- Safes;
- Cash counters;
Read more: Bank account - what it is and how to open it for individual entrepreneurs and LLCs
As for the exterior design, it is necessary to place a stand outside, on which all the necessary information for the client would be located.
The room can be either a built-in type room or an armored cabin located separately.
Equipment for the exchanger
In terms of purchasing equipment, the business will not require the purchase of complex equipment. You will need to buy the following equipment:
- a computer with appropriate software that allows you to monitor currency transactions and its progress;
- machine for counting banknotes;
- machine for checking the authenticity of banknotes;
- safe;
- Surveillance Camera.
Please note that the camera must be installed not only outside, to monitor what is happening around the currency exchange office, but also inside, to monitor the work of the cashier.
Staff
Of the staff, you will need two cashiers for shift work who have the appropriate education. At the initial stage of the business, the duties of one cashier can be performed by the business owner, but most often he performs the duties of the store manager. All cashiers are registered with the bank as its employees.
It is recommended that the owner work as a cashier for the reasons that the most common problem with exchange offices is theft, which cashiers are guilty of. After working on his own for some time, the owner can get a rough idea of how much profit the business in this place brings. Then it will be easier for him to control the work of cashiers. But it is still recommended to hire trusted and reliable people.
They can be verified using traditional test purchases in addition to video surveillance. But often this is not a guarantee that the employee will not abuse in the workplace. Therefore, payment for their labor is often set according to this scheme: he gives the daily amount of revenue set by the owner, and keeps everything that remains beyond this for himself. It is in order to determine the size of this amount that the business owner must sit at the cash register for some time.
Activity control
The business will necessarily be monitored by various supervisory authorities. These include the following three authorities:
- State Tax and Duty Service;
- Department for Combating Economic Crimes;
- Central Bank of the Russian Federation;
The first check takes place literally in the first days after the start of work. The subject of the inspection is security and fire alarms, panic buttons, and compliance of the item with reliability requirements. The owner will have to communicate with representatives of all regulatory authorities, as well as solve possible problems personally. Banks try not to interfere in these issues. They can only help with questions that concern the Central Bank of the Russian Federation.
Arrangement of the premises
In order to receive enough profit by performing exchange transactions, you need to choose a good location for the location of the point. As a rule, these should be streets and areas with maximum traffic:
- Markets.
- Stations.
- Shopping centers.
- Office areas.
- A street with many boutiques and shops.
Although no one is stopping you from making money on exchange in a residential area. True, foreign currency will be purchased here more often, and daily revenue will be lower. But due to the low rent and lack of competitors, you can win significantly. The presence of other exchangers is not always considered a bad indicator. This suggests that foreign exchange transactions are in demand in the area.
In addition, by assessing the exchange rate of competitors, it is easy to navigate the popularity and demand for a particular currency unit. For example, if prices for one of the currencies are too high, it means that almost no one is buying it.
The area dimensions most often do not exceed 10 square meters. m. or may even be less. The most convenient and safest option is to purchase a ready-made kiosk for an exchange office, which provides an organized workplace for the operator, a safe and security structures.
Pay special attention to the security of the exchange office, because a large amount of money is always tempting for any robber. Therefore, a significant portion of capital investment will be spent on providing protection. To do this, they install a safe, an alarm system, a panic button, and enclose the workplace with bulletproof walls and glass.
Here, to ensure convenience, you need to install a computer or laptop with a permanent Internet connection, as well as a telephone connection. The operator must regularly check rates, monitor the movement of money, coordinate his actions with the bank, etc. In addition, additional equipment must be purchased:
- Banknote Counter;
- device for recognizing the authenticity of signs;
- Special software is installed on the computer.
According to the rules, at each exchange office there is a stand on which the following documents are placed:
- Details, name, address and contact numbers of the partner bank.
- Information about what operations are allowed to be carried out.
- Current exchange rates.
- Book of complaints and suggestions.
- Schedule.
- As well as any rules that affect foreign exchange transactions.
Expenses and income of the exchanger
According to the most conservative estimates, the business will require approximately 28.5 thousand dollars in start-up capital. They will go to:
- Security per month (except for exchange booths) – 1-2 thousand dollars.
- Installation of alarm system – 1-2 thousand dollars.
- Personal working capital lying in the cash register - 15-20 thousand dollars.
- Cashier's salary: $500.
- Purchase and installation of an armored cabin - 3-6 thousand dollars.
- Bank commissions – from $700 per month for one point.
- Equipment – 2-4 thousand dollars.
- Rent of a place – $300 per month.
As practice shows, the income from such a point per month is about 30 thousand dollars. But, despite significant investments, the business will return the invested funds literally in a year.
Legal nuances
The main business risk is the instability of legislation, which can change suddenly and quickly. It is also necessary to take into account that officially in the Russian Federation such points as independent business do not exist. As already mentioned, all employees of the exchanger are officially registered to work in a specific bank with which the business owner has signed an agreement.
When registering an outlet for this type of item, as a rule, an entrepreneur leases it and subleases it to the bank. Only then can the bank register the exchanger with the Central Bank and receive a certificate for it.
As already mentioned, the entrepreneur who opened the point pays the bank a commission every month for servicing the cash register, which includes the following services:
- collection;
- recalculation;
- cash packaging;
- software maintenance.
Typically, the price for these services is set at $650 for an exchange office or $750 for a cash desk. If violations occur, the bank revokes its license, which is reported to the Central Bank of the Russian Federation, and the owner has the right to apply to another bank.
Business risks also lie in regulatory organizations that can identify violations and close the point. They can be reduced only by working honestly and openly. But this will lead to additional costs of at least 5% of the profit.
How to open a currency exchange office
Most people who want to organize a simple and inexpensive business often think about how to open a currency exchange office. Indeed, today the popularity of such points is very high. They always have a stable influx of clients and bring benefits regardless of the exchange rate.
Almost anyone can register such an enterprise. This material will tell you how to do this competently and quickly.
The exchange business is one of the most popular areas of commercial activity in our time. He generates his income from exchange rate differences. The most favorable currency for the operation of such an institution in our country is the euro.
The most popular is the dollar. It accounts for the vast majority of transactions; all other currencies, as a rule, provide no more than 1% of profit.
• foreign exchange offices;
• exchange ATMs.
In this case, it is best for the investor himself to register as a manager. Also, when opening such a business, you need to conclude a deal with the bank and pay it a certain share for services, as a rule, it is fixed. It is when concluding an agreement with the bank that those most important documents are drawn up, without which further work is impossible.
• employment agreement with the selected financial institution;
• a list of requirements officially compiled and confirmed by the bank you have chosen;
• an agreement that will confirm the fact of opening a foreign exchange office.
All these documents must be processed with a notary and certified by the bank with which you are going to cooperate in the future.
Remember: the better you complete them at the registration stage, the easier it will be in the future to pass all the necessary checks by government authorities and cooperate with the bank of your choice. After all, it is the incorrect execution of papers that most often leads to the termination of the contract.
1. Choose the most profitable location from a commercial point of view. Typically, really high income in this direction comes from points located near the train station, metro stations, bazaars, as well as in shopping centers.
2. Purchase the necessary equipment: safes, a detector to determine the authenticity of currency, counters, as well as computers with programs appropriate for your work profile. As a rule, you can order and purchase them through the bank with which you decide to cooperate, because in the future it will monitor the correct operation of your point.
3. In general, opening a currency exchange office is no more difficult than any other enterprise. You just need to be more attentive to studying the legislative framework, preparing documentation and, of course, financial calculations for your future business. And then you will certainly succeed.
4. Arrange the stand properly. On it you should always have information about exchange rates, a book for consumers, operating hours and other important information. It is always worth checking its exact list with the bank with which the cooperation is concluded.
Read more: 10 common mistakes of a new franchisee
5. Select personnel. Remember that only qualified people are suitable for such work, and you will have to apply for them through the same bank. Their number will directly depend on the operating mode of the cash register.
If it is open only 8 hours a day, one employee will be enough. However, if your goal is to provide clients with currency exchange around the clock, there should be at least two such employees, ideally 4, so that they can replace each other at their post.
6. Provide funds for turnover. The amount here may vary, but remember, to open your exchanger you need to have at least 10 thousand dollars. Otherwise, you simply will not be able to guarantee a good conversion for your item and will soon be forced to close it.
Once you have sorted out all these issues, the business can be launched. In general, figuring out how to open a currency exchange office is quite easy.
As already mentioned, the entrepreneur who opened the point pays the bank a commission every month for servicing the cash register, which includes the following services:
- collection;
- recalculation;
- cash packaging;
- software maintenance.
Typically, the price for these services is set at $650 for an exchange office or $750 for a cash desk.
If violations occur, the bank revokes its license, which is reported to the Central Bank of the Russian Federation, and the owner has the right to apply to another bank.
Business risks also lie in regulatory organizations that can identify violations and close the point. They can be reduced only by working honestly and openly.
Expenses and income of the exchanger According to the most conservative estimates, the business will require approximately 28.5 thousand dollars in start-up capital. They will go to:
- Security per month (except for exchange booths) – 1-2 thousand dollars.
- Personal working capital lying in the cash register - 15-20 thousand dollars.
- Cashier's salary: $500.
- Purchase and installation of an armored cabin - 3-6 thousand dollars.
- Bank commissions – from $700 per month for one point.
- Equipment – 2-4 thousand dollars.
- Rent of a place – $300 per month.
As practice shows, the income from such a point per month is about 30 thousand dollars. But, despite significant investments, the business will return the invested funds literally in a year.
For the smooth functioning of the kiosk, it is enough to have two cashier operators who work in shifts. Their work schedule is drawn up in any way convenient for you or for them - 2:2, 3:3, 1:1, etc. The most common problem is cash theft by staff. This issue can be resolved in several ways:
- The business owner independently performs all or part of the work and thereby controls how much revenue can be received per day.
- A video surveillance system is being installed.
- The following cooperation scheme is chosen - the operator undertakes to hand over a certain amount of money to the owner every day, and the rest remains to him as wages.
Security functions are performed by a specially hired person, or, what is more common, an agreement is concluded with a company or bank to provide this type of service.
Such activities are usually carried out by small banks. Thus, an individual needs to get a job in a bank as an exchange office manager or exchange office manager. In response to a corresponding request to the bank, the entrepreneur will be provided with all the necessary documents and forms to fill out:
- agreement on opening a currency exchange office;
- employment contract with an authorized bank;
- requirements of the authorized bank to its partners.
The latter, as a rule, require compliance with the terms of established regulatory documents (instructions of the Central Bank of the Russian Federation), provision of the necessary reports and mandatory monthly payment of commissions to the bank.
Attention
For example, they oblige the entrepreneur to pay a commission to the credit institution and provide timely reports. This is where the cooperation between the bank and the future owner of the exchange ends.
What's next? And then, in order to open a currency exchange office, you need to rent or purchase the premises in which it will be located, buy and install the necessary equipment, and also hire workers. How to choose a place to do business In order for the exchanger to bring in as much profit as possible, it must be located where there is a crowd of people.
Read more: How to become a rich and successful person: 7 stages, how to get rich from scratch, methods and tips
Every month it will provide 2-5 thousand dollars of income. If you spend about 30 thousand dollars on opening, the investment will be returned within a year. The main profit that such a business brings is the difference in exchange rates and the commission fee that the owner can set.
At the same time, the course is also determined by him personally. To organize a currency exchange, the owner must have his own untouchable fund of 15 thousand dollars. This amount lies in the cash register and is not subject to collection.
- Getting into business
- Project design
- Room
- Equipment for the exchanger
- Staff
- Activity control
- Expenses and income of the exchanger
- Legal nuances
Entering the business The peculiarity of the project is that if there is a place where you can open an item with minimal investment, the income from it will be small.
Providing currency exchange services is a profitable business under any economic conditions. Every month it will provide 2-5 thousand dollars of income. If you spend about 30 thousand dollars on opening, the investment will be returned within a year.
The main profit that such a business brings is the difference in exchange rates and the commission fee that the owner can set. At the same time, the course is also determined by him personally. To organize a currency exchange, the owner must have his own untouchable fund of 15 thousand dollars. This amount lies in the cash register and is not subject to collection.
Getting into business
The peculiarity of the project is that if there is a place where you can open an item with minimal investment, the income from it will be small. A profitable location is usually occupied and can only be purchased, because it is extremely difficult to open a new location nearby. You also need to take into account the presence of competitors - not only other exchangers, but also bank operating desks.
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