In this post, I will show you How to Start a Bureau De Change Business in Nigeria. Bureau De Change business deal on foreign exchange. There are ways you can start this business here in Nigeria.
A bureau de change makes a profit through exchange rates they use to measure transactions done. Also in most scenario, they receive fixed and instant commissions for their service(s).
The exchange rates charged at interbank forex dealings and bureau are the same. The central bank designates this. This is to ensure both the bureau de change users and the banks make a profit(s). Therefore, bureau de change operators to purchase and sell foreign currency at different rates. By this, they make a significant gain in the process.
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Do you have an interest in running a Forex ( foreign exchange ) or currency exchange business? Or you need a sample bureau de change business plan template. Then below is an in-depth guide to starting a bureau de change company.
The bureau de change is a very profitable business venture that you can engage in, as long as you are good with numbers, you can run this business. Now, why should you start a bureau de change? People exchange currencies every day.
Those entering into a country from another country would need to change their currency into that of their destination country.
And since virtually all countries welcome visitors every day, there is a constant demand for currency exchange. There is also a steady demand for currency exchange services by business owners and entrepreneurs, especially those into importation and exportation of goods.
So if you have been looking to start a business of your own, a currency exchange ( bureau de change ) business might be the best option for you.
Setting up this business requires thorough planning, research, investment, and professional advice. This article is a brief guide on how to start a bureau de change enterprise. The following are the steps you should take if you are interested in starting the business:
Starting a Bureau de Change Company – Sample Business Plan Template
1. Research to confirm that the business is for you
It is vital that you conduct an extensive survey to learn more about the business. In Nigeria, the bureau de change business is overshadowed by the Hausas and Fulani’s, but that doesn’t mean you cannot break in if you want to.
Nevertheless, I must emphasize the fact that this business is not fit for everyone, as it requires 24 hours of operation. In that case, running the business will take hard work and devotion.
You will also need management experience, stellar numeracy, and customer service skills. If you are nursing disbelief over your ability to deliver in these areas, then the bureau de change might not be for you.
2. Learn everything you can pertaining to the business
Before attempting to start a bureau de change business, it is expedient you invest time to examine the mode of operation of this business. Where do you source your capital from? How do you know the fitting price to buy and sell? How do you keep tab with the continually changing currency exchange rate of the market? Who are the major competitors?
This is why I suggest you understudy under an established bureau de change operator; to learn firsthand everything you need to know.
3. Draft a business plan
Writing a business strategy for your bureau de change business is essential. It helps you analyze your possibilities of succeeding in the midst of competition. It helps you know your operating cost and expected revenue, and enables you to make other financial prognostications.
It helps you know what to concentrate on at every stage of growth of the business. It enables you to understand your clients, their preferences and expectations, and how you can soon attract them. And it leads your path to come across as an orderly and focused entrepreneur.
You will most probably require funds from additional sources to start your business. Preparing a compelling and comprehensive business plan will help you get finance from banks or investors. If you cannot develop it yourself, hire an expert business-link adviser.
4. Find a suitable location
You need to find your business in one of those places where your clients usually are. Since most of your businesses will come from migrants, you should consider a place in or around international train stations, prominent hotels, tourist attractions, airport terminals, and seaports. You can establish your business in major markets where importers and exporters are settled.
No cause for alarm if you cannot get space as ample as you need. You can always keep on with what you get so far the location is a “ hotspot .” You don’t need vast space to run a bureau de change. Most bureaus de change operators run their businesses from stalls and small offices, and still turn over millions of dollars yearly.
5. Apply for a loan or grant
Using your business plan, you can work towards getting a business loan from a bank, micro-lending house, building societies, the authority, or any other lending organization.
Remember to consider each of the costs required for the setup and running of your business – such as equipment, premises, mortgage or rent costs, professional fees, insurance, signage, and so on.
6. Get the required equipment and premises
To run a bureau de change business, you need bureau de change license in Nigeria. Bureau de change licence in nigeria is gotten from the Central bank of Nigeria.
You also will need equipment such as money safes, computers, office furniture, computers, and cash tills. You will also need to choose premises that attract passing trade such as a kiosk or small office.
It is also essential you open a domiciliary account with any considerate business-friendly banks around your office location.
You must also make sure that your business surroundings meet all health, safety, and fire rules. You will need to discover more about the rules that apply in your own country or state.
7. Set up your legal structure
You will also need to set up your business formally for tax and accountancy purposes. Get it registered as a sole proprietorship, partnership, or limited liability company. Before taking this crucial step, you may need to get professional advice from an accountant or a solicitor.
Also, you must ensure to register with all government agencies that bureau de change operators must register with, and get all the required licenses. This will enable you to transact your business legally and buy/sell currencies to banks.
8. Get started
After taking all the steps as mentioned earlier, you can proceed to commence your business. You may need to adopt various approaches to attract customers such as subtle discounts.
Running a bureau de change business in Nigeria can be an advantageous business choice to venture into. Nevertheless, to avoid falling into severe errors and mistakes, ensure to first consult with a professional solicitor.Click here to see the latest Jobs opportunities in Nigeria.
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