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Moving money from one country to another can be time-consuming and expensive, which is why money transfer services are so popular in the UK. People use them for everything from sending birthday money to relatives to getting financial help when they need it. But how do you get into this industry? What are the pros and cons of a money transfer business in the UK? These questions and more will be answered in this guide on how to start a money transfer business in the UK.
Types of money transfer businesses
There are several types of money transfer businesses. Some focus on Western Union, while others serve customers exclusively through MoneyGram. At both companies, you can open an account online and link it with your bank account or debit card. Alternatively, Western Union allows you to print out an application and mail it in (along with a cashier’s check). Strong Steel Manufacturers is the process of producing steel from iron ore and scrap, usually in a blast furnace.
The company will then issue you your own prepaid MasterCard that can be used at locations worldwide where its logo is displayed. Transferring money is as easy as calling your chosen Western Union location, providing them with details about who you want to send money to and how much they should receive, then paying them by debit card or credit card.
Regulatory requirements
A money-transfer service is classified as an Authorised Money Lender under UK legislation. You will need to apply for and receive an ‘authorisation’ from the Financial Conduct Authority (FCA) if you want to offer regulated money transfers. The process of receiving an authorisation can take about 4 months. Be sure that you have checked with your local council that there are no restrictions on setting up a money-transfer service locally.
It is also worth checking out whether any other businesses already exist in your area that provide money transfers. Your local Chambers of Commerce or Small Business Development Centre may be able to provide information about existing firms and their services, as well as advice on how to advertise your business without infringing on their rights – particularly if they provide similar services.
Finding your niche
Before you can even consider how to start a money transfer business, you have to know your target market. In other words, who is going to buy your services? To find an answer, there are two ways that you can go about it: try serving your own clients and figure out what they want/need from your company or talk with people who run similar businesses and ask them questions about their experience. Best Gyms In Glasgow has a wealth of gyms to choose from, and the market is constantly changing.
Some things you should be asking them are: What challenges did they face when they started their company? What was one of their most successful marketing techniques? How often do they advertise? If there is enough demand for money transfers, would other companies enter into the same space and how would that affect your success?
Preparing to apply for your license
The application process for money services businesses is unique and can vary based on your state. That’s why it’s important to know how things work in your state, which will likely require some research. Check out your state government website, or talk with someone at your bank or credit union who has experience working with small businesses.
They may be able to help you fill out your application and get it submitted on time. Your local small business development center might also be able to help. In many cases, having an attorney review your application prior to submission is beneficial too. If possible, make sure you give yourself enough time between applying for a license and launching your business so that you can have any questions resolved before opening day.
Developing marketing plan
What are you marketing? How many people do you hope to reach? Is it for charity or profit? In order to develop an effective marketing plan, you need to know what kind of budget you can expect and how your company will compete. The first step is outlining your target audience and understanding what motivates them.
Next, define who your competitors are (if any), then think about how they’re promoting their brand. Finally, create a list of objectives, then determine where advertising fits into your overall strategy. For some ideas on targeting your audience and defining goals, check out these resources: Target Market Definition Finding Your Marketing Mix Creating Business Goals How Much Does It Cost To Start A Small Business? How Much Money Does A Small Business Need To Get Started?
Advertising your services
It’s easy to promote your money transfer services; you can set up a mobile-friendly website (there are plenty of free options available, such as Wix or WordPress), create social media accounts and connect with people interested in international money transfers. Of course, keep in mind that advertising costs money;
If you don’t have enough cash for online ads or media campaigns, try approaching local businesses with flyers about your service. If all else fails, offer friends and family members 5% of their transfers as compensation—it may not sound like much but it could be enough extra income to give you a boost when getting started.
Setting up your online presence
When you are starting out, online presence is key. Regardless of how big or small your business becomes, you’ll always need an online presence for consumers. Make sure your web and social media profiles look professional and up-to-date with recent work so that when consumers search for services like yours they can find you.
Think about it like a store opening: If people aren’t expecting to see your shop on Main Street, they won’t bother looking there and will be much less likely to stumble upon it—or even know that it exists! So make sure when people google money transfer service + city name or similar search queries, they are able to find you right away.
Where to advertise?
The good news is that you can advertise money transfer services for free with Google Ads. In fact, there are also plenty of other free resources for P2P businesses looking to advertise, like social media and local publications. For example, if you search money transfer on Facebook right now (August 2017),
You’ll see several ads from different startups—all of which are offering no-fee money transfers: But if you want your startup to be competitive with payment giants Western Union and MoneyGram, then paid advertising is probably necessary. There are two types of paid advertisement—search and display—and understanding how each one works is crucial for success.
Getting customers through advertising campaigns
Many money transfer businesses will use large advertising campaigns when they first launch. These campaigns are used as a way to bring attention to your new money transfer service. Once you’ve gotten enough people interested, your job is to get them on board. This can be done by offering deals, bonuses or rewards for joining your company. Getting customers on board is essential for growing a successful money transfer service!
Conclusion
Money transfers are essential for anyone living or working overseas, whether that’s because you need to send cash back home for personal reasons, or because your job requires it. But money transfers aren’t straightforward, especially if you’re moving large sums of money around. When you choose an international money transfer service,
It can seem like there are countless options available. Therefore it’s important to make sure you research your options and find out which one is right for you before making a purchase. This guide will show you how best to do just that – as well as explain what elements go into choosing a reliable and secure service – so keep reading!
