Money Transmitter Business Plan and SWOT Analysis

Money Transmitter Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Money Transmitter Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Money Transmitter business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Money transmitters are important businesses within the United States given that they allow people to quickly transfer money to each other. The gross margins generated from a money transmitting service are generally considered to be very high. However, the infrastructure costs relating to developing one of these businesses can be pretty significant. In fact, most money transmission services typically focus on developing a relationship with a third-party merchant account company that can handle a transactions on their behalf while the company itself maintains retail facilities. Typically, most money transmission services charge a fee equal to 1% to 3% of the face value of the transaction. The gross margins generated from money transmission services typically range anywhere from 60% to 90% depending on whether or not a proprietary platform is used to conduct the transaction. It should be noted that most money transmitter services are stored with equity capital as most banks and lenders will not provide capital until the business is at least two years old.

If an entrepreneur is looking to raise money from an investor for a money transmitter service than they are going to need a business plan. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Most importantly, the business plan should also include a discussion pertaining to how the business will be drawn on a day-to-day basis. Money transmitter services have substantial compliance issues that they need to deal with on a day-to-day basis given that these businesses in the past have been used for illegal purposes. As such, the operations manual should be either included within the business plan or should be next to it as a stand-alone document. Beyond this information, a full demographic analysis should also be discussed as it relates to population, population size, population density, median household income, median family income, and the percentage of people that have relatives living abroad were way that are in continued need of money transmission services. These businesses tend to thrive in areas where there are a number of immigrants given that these people will frequently send money home to their families.

As it relates to money transmitter service marketing, this is not as complicated as most people think. Once a money transmitter distributes information relating to their grand opening many people who are need the services will come to the facility. A minimal online campaign should be included so that people that are searching the Internet for money transmitter services can quickly find the basis business.

A money transmitter SWOT analysis should focus heavily on the strengths, weaknesses, opportunities, and threats that are commonly faced by these companies. As it relates the strengths, money transmitter businesses are generally able to remain profitable at all times given that this is a necessary service. For weaknesses, these companies have extremely high compliance issues that they need to deal with regularly. This includes monitoring every transaction conducted at the retail facilities and maintaining all proper records in case of a government inspection. As it relates to opportunities, these businesses will frequently establish additional locations so that they can provide a greater number of services to the general public. Frequently, money transmitter services will also include things such as bill paying capabilities at their facilities. For threats, the financial technology market is continually changing given that there are now a number of ways that people can send money to each other online and off-line. As such, any company that is engaged in the transmission of money from one party to another needs to be continually aware of these issues on a regular basis.

In closing, these businesses can be highly lucrative provided that they are able to maintain a low-cost retail facility that people can find quickly and easily.