Bureau de change

London

BUSINESS PLAN 2014/2015

Contents Page

Introduction 3

Executive Summary 4

Core Values 5

Bureau de Change & Money Transfer 6

Requirements & Licenses 7

Company Summary 8

locations 9-10

financial plan Appendix 1

INTRODUCTION

This plan provides detailed investor informaon and includes the basic strate-gic business plan informaon necessary for inial establishment and opera-on of, A bureau de change in the East & West district of London. The busi-ness allows the customers who need to exchange one currency for another, and transfer remiances abroad. Our focus is to set realisc business expecta-ons, and eliminate any quesons about the profitability of this business ven-ture.

The plan is intended for proprietors, directors, managers, employees and Nominated Ocers of Money Service Businesses who are the subject of the Money Laundering Regulaons 2007 and for whom HM Revenue & Customs (HMRC) is the supervisory authority.

Entrepreneurs have a tendency to paint the Money Service business plan with a very opmisc brush, highlighng strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the suc-cess of this business. Our intent is to have a definive business, financial, and markeng plan that not only serves our need for capital financing, but is u-lized as our daily business roadmap. We have taken all precauons to validate our business and financial models, focusing on realisc projecons. We have accomplished this as follows:

Toprovideoutstandingfinancial services to our customersat compeve prices and tofulfil their unique needs andwants

To be a first class bureau dechange, that provides foreignexchange services tomeet theneeds of customers throughexcellentcustomerserviceandprofessionalism.

MissionStatement

VisionStatement

OurbusinessconceptwasderivedfromdetailedMarketAnalyses. Instead of building a business around a pre-conceived concept, we analysed the market findings and built a concept around our consumers. In other words, our business is built to service an unmet consumer 'want'.

Abueredfinancialplan thatensuresadequatecapitalizaon. A conngency buer is included in the start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for restaurants over oth-er retail/service businesses. A common mistake for new entrepreneurs , but fully addressed in this business plan.

DescriponCompany X is a Bureau de change, as well as a global payment services company. The company's major products and services include foreign currency exchange, global money transfers, money orders and payment processing soluons for financial instuons and retail customers. A bureau de change is a business whose customers ex-change one currency for another.

TargetedMarketandCustomersBureau de change form a key part in the retail strategy of any city and contribute significantly to revenue. They contribute towards bringing in the romance associated with travel and making it a fun-filled and excing experi-ence. Service through face to face human contact is what is consistently shown as being desired by shoppers. Thinking of the traveller as a shopper is key to this process.

The buying and selling of foreign currencies is the primary funcon provided by Company X. This service increases the travellers spending power by providing them with the local currency to spend at their desired desnaons. Contrary to popular belief, though the concept of the cashless society has been around for some me, stascs show that globally the use of cash is rising. Though the usage of credit cards is increasing, cash cannot be easily replaced due to its convenience and universal acceptance. Carrying cash also helps tourists keep track of their spending during a trip, with no danger of returning home to a huge credit card bill.

Our internaonal money transfer service provides a simple, secure and fast method to transfer funds to and from the UK for both personal and business needs. Our Money Transfers can clear the same day depending on the re-ceiving banks or branches. In comparison, bank transfers can take much longer for internaonal money transfers Rates of exchange for money transfers are obtained by direct market request. In many cases they will dier and be more advantageous than the rates displayed for Travel Money.

The majority of our customers will be foreigners i.e. Asians, Europeans and Africans. Straord City is an area re-nowned for people from dierent backgrounds. As we have seen in the last few years; the growth of European people has increased intensively. Asians such as Pakistani, Indians, Sir Lankans and Bangladeshis have a large populaon in east London. People travelling aboard will find our services very helpful. The second part of our business will be small internaonal remiances. We are working with the largest Banks & money transfer company in India, UAE and Pakistan with over 200 branches. For counes other than stated, we will be using Western Union.

Anyone who needs to send or receive money quickly from people who are supporng friends or relaves living in a foreign country, travellers, or business people who need to make fast internaonal remiances. It is already a vital resource for migrant workers sending money home to their friends and families and has been recently developed to cater for expatriates and overseas property owners, amongst others, who regularly send money overseas from the UK.

Executive Summary

Core Values Whatstrulyimportanttousasanorganizaon:The following list of core values reflects what is truly important to us as an organizaon. These are not values that change from me to me, situaon to situaon or person to person, but rather they are the underpinning of our company culture.

ClientCentric At Our Bureau De Change, the client comes first. Our primary focus is to provide personal-

ized and creave soluons for individual needs. Trust and Integrity As we expect our client relaonships to be long-term, it is paramount that they be

based on trust and integrity. In turn, these ideals influence all the decisions of the firm and our employees.

Excellence We strive for excellence in all aspects of our business. Our clients have come to expect and ap-preciate the quality, aenveness and professionalism of our services.

Accountability Open and honest communicaon is a hallmark of our firm. We work to keep our clients updated and informed.

CommunityLeaders We invest our me and resources to support the communies in which we live and work, improving the quality of life for everyone.

EmployeeValue We value our colleagues as we do our clients. We are commied to providing our em-ployees with opportunies for professional and personal development.

BureaudeChangeA bureau de change is a business whose customers exchange one currency for another. We do not charge a commission on currency exchange!

A bureau de change makes profit and competes by manipu-lang the exchange rate they use to calculate transacons. The exchange rates charged at bureaux are generally related to the spot prices available for large interbank transacons, and are adjusted to guarantee a profit. The rate at which a bureau will buy currency diers from that at which it will sell it; for every currency it trades both will be on display, generally in the shop window.

So the bureau sells at a lower rate from that at which it buys. For example a UK bureau may sell 1.40 for 1 but buy 1.60 for 1. So if the spot price on a parcular day is 1.50 to 1, in theory 2 will buy 3, but in pracce this would be hard if not impossible for average consumers to get. If the bureau de change buys 1 from a consumer for 1.40 and then sells 1 for 1.60, the 20 dierence makes a profit. This business model can be upset by a currency run when there are far more buyers than sellers (or vice versa) be-cause they feel a parcular currency is overvalued or undervalued and becomes not worth a Connental.

MoneyTransfer(Remiance)A remiance is a transfer of money by a foreign worker to an individual in his or her home country. Money sent home by migrants competes with internaonal aid as some of the largest financial inflows to developing countries.

In 2012, according to the World Bank Report, $401 billion went to developing countries (a new record) with overall global remiances at $514 billion. The economic impact remains contested among researchers, however, re-miance transfers do draw people towards the financial services that are available to them.

Remiances are playing an increasingly large role in the economies of many countries, contribung to economic growth and to the livelihoods of less prosperous people (though generally not the poorest of the poor). According to World Bank esmates, remiances totalled US$414 billion in 2009, of which US$316 billion went to developing countries that involved 192 million migrant workers. For some individual recipient countries, remiances can be as high as a third of their GDP. As remiance receivers oen have a higher propensity to own a bank account, re-miances promote access to financial services for the sender and recipient, an essenal aspect of leveraging re-miances to promote economic development. According to some social sciensts remiances have social signifi-cance that extends well beyond the mere financial dimensions.

Bureau de Change & Money Transfer

Requirements & Licenses CompaniesHouseAll limited companies in the UK, and overseas companies with a branch or place of business in the UK need to be registered with Companies House.

HMRevenue&CustomsMoney Service Businesses and Money Laundering Regulaons Businesses that exchange currency, transmit money or cash cheques for their customers are known as 'Money Service Businesses'. Money Laundering Regulaons require most Money Service Businesses to register with HM Revenue & Customs (HMRC).

FinancialConductAuthorityThe Financial Conduct Authority (FCA) regulate firms to ensure high standards of conduct and that the financial services industry remains stable.

Money remiance is a payment service under the Payment Services Regulaons (PSRs). Authorisaon and registraon The PSRs require that anyone providing payment services by way of business in the UK is required to either be authorised or registered by the FCA as a 'payment instuon' (PI). Money remiers qualify for registraon as a small PI if: Their turnover does not exceed 3m of payment transacons per month (averaged over 12 months). Money remiers not meeng this size threshold must apply for authorisaon to become an authorised PI.

The FCA will require more informaon about a business applying to be an authorised PI than one registering as a small PI.

Authorised PIs must meet inial and on-going requirements for maintaining certain levels of capital within their business and must comply with arrangements to safeguard their customer funds if they hold those funds overnight or longer.

Small PIs can choose to voluntarily comply with the safeguarding requirements. There is no capital require-ment for small PIs.

Only authorised PIs can passport their services into other EEA countries. For this reason, some money re-miers that qualify for registraon as small PIs may choose to apply for authorisaon instead. Small PIs will not be able to provide payment services in other EEA countries (but will be able to make remiances to - and receive them from - people outside the UK).

Both authorised and small PIs will have to complete annual reports for submission to the FCA.

Company Summary The exchange of money plays an important role in today's global marketplace. Without those who serve in the ca-pacity of money exchangers, buying and selling goods in foreign markets would be much more dicult. CompanyOwnership Details to be discussed at a later stage.

StartupSummaryCompany X will be registered as a Limited liability company. Legal counsel was consulted for a variety of issues in-cluding business organizaon formaon, Licenses, and etc. Company X will also ulized a business consultant to gain insight into business issues that were not intuive to in this business plan. Company X will incur a total of ap-prox. ($500,000) 300,000 start up costs. The following table highlights the expenditures:

The start-up cost of Company X will consist primarily of securing a Locaon, designing the store, and the cost for fixtures and fings.

GrowthTrendsInThisBusinessDue to the increasing value in the sterling and euro against the US dollar. The bureau de change business as been very successful over the past decade. With bureau de change now oering services such as travellers cheques, for-eign currency exchange and internaonal money remiances. With UK opening its boards for European naonals. Many Eastern Europeans have entered the UK for work. They oen send money back to there families and friends. As the Holiday Money Report 2008 shows, there has been a large increase in tourism, with many tourist using bureau de change as a form of changing foreign currencies.

StartupFundingStraordBranch Requirements StartupExpenses Buying a Lease 150,000 Design 16,100 Fixtures & Fings 17,860 Licences & Legal Costs 4,500 Consultant Fee 1,540 Markeng & Adversing 10,000 Cash Amount Needed 100,000

TotalStartupExpenses 300,000

Straord is a town and district in East London, England, in the London Borough of Newham. Straord in East Lon-don is home to the Olympic Park, a great selecon of arts venues and the largest urban shopping centre in Europe, Wesield Straord City. Straord in East London has changed rapidly during the past few years. Not only does it have a bright sporng fu-ture thanks to the stunning Queen Elizabeth Olympic Park, but it is also home toWesield Straord City, a shopping centre so large that it has its own postcode! StraordCity

Straord City is the name given to the urban community that sits at the heart of the Olympic Park. Centred on Straord Regional and Internaonal railway staons, it includes "The Internaonal Quarter", a Joint Venture be-tween Lend Lease and London & Connental Railways (LCR) to create a 2bn commercial and residenal develop-ment, the Wesield shopping centre, Chobham Academy, and the East Village, previously the athletes village con-structed by Lend Lease for the London 2012 Olympic and Paralympic Games. Within Straord City there is provision for 2,900,000-square-foot (270,000 m2) of retail and leisure space, 1,300,000-square-foot (120,000 m2) of hotel space, 6,600,000-square-foot (610,000 m2) of commercial district space, 16,400 new homes, 180,000-square-foot (17,000 m2) of community facilies, and two energy centres capa-ble of providing 75% of the sites' energy needs. Royal Mail has allocated the postcode E20 to Straord City and the Olympic Park.

Location

Eortlesslycoolandalwaysfashionable,Londonishometothepremiershoppingdesna

onWesieldStraordCity. Wesield Straord City is a shopping centre in Straord, London, owned by the Wesield Group. The centre opened on 13 September 2011. With a total retail floor area of 1,883,700 square feet (175,000 m2), it is one of the largest urban shopping centres in Europe. Taking the surrounding shopping area into account, it is the largest ur-ban shopping centre in the European Union in terms of size.

Wesield Straord City is a striking, three-storey curved shopping centre. It is Europes largest urban shopping des-naon and houses more than 300 shops. Shopping in London doesn't get much bigger than this. AUniqueLeisureDesnaon

Wesield Straord City is the largest urban shopping and leisure desnaon in Europe, oering plenty of high street favourites as well as the latest catwalk fashions and celebrated home and lifestyle brands. There are over 250 shops including Jaeger, Mulberry and Hugo Boss, and over 65 restaurants. Youll be tempted to indulge in cui-sine from all over the world, from Japanese to celebrity chef Jamie Olivers Italian. Shop, shop, shop, then be wined, dined and entertained.

In addion to its huge variety of shops and restaurants, youll find a dazzling array of leisure facilies. The 17-screen, all-digital Vue Cinema is one of the largest and most innovave in Europe. You can embrace the luxury bowling experience at All Star Lanes, or try your luck at the 24-hour Aspers Casino, which is the biggest in the UK.

Wesield Straord City is more than just a shopping venue its a lifestyle desnaon.

Contents PageINTRODUCTIONMission StatementVision StatementExecutive SummaryCore ValuesBureau de Change & Money TransferRequirements & LicensesCompanies HouseAll limited companies in the UK, and overseas companies with a branch or place of business in the UK need to be registered with Companies House. HM Revenue & Customs Money Service Businesses and Money Laundering RegulationsAuthorisation and registrationCompany SummaryDetails to be discussed at a later stage.Start-up SummaryStratfordis a town and district inEast London, England, in theLondon Borough of Newham. Stratford in East London is home to the Olympic Park, a great selection of arts venues and the largest urban shopping centre in Europe, Westfield Stratford City. Stratfordin East London has changed rapidly during the past few years. Not only does it have a bright sporting future thanks to the stunningQueen Elizabeth Olympic Park, but it is also home toWestfield Stratford City, ashoppingcentre so large that it has its own postcode! Stratford CityStratford City is the name given to the urban community that sits at the heart of the Olympic Park. Centred on Stratford Regional and International railway stations, it includes "The International Quarter", a Joint Venture between Lend Lease and London & Continental Railways (LCR) to create a 2bn commercial and residential development, the Westfield shopping centre, Chobham Academy, and the East Village, previously the athletes village constructed by Lend Lease for the London 2012 Olympic and Paralympic Games. Within Stratford City there is provision for 2,900,000-square-foot (270,000m2) of retail and leisure space, 1,300,000-square-foot (120,000m2) of hotel space, 6,600,000-square-foot (610,000m2) of commercial district space, 16,400 new homes, 180,000-square-foot (17,000m2) of community facilities, and two energy centres capable of providing 75% of the sites' energy needs.Royal Mailhas allocated the postcode E20 to Stratford City and theOlympic Park. LocationWestfield Stratford Cityis a shopping centre inStratford, London, owned by theWestfield Group.The centre opened on 13 September 2011. With a total retail floor area of 1,883,700 square feet (175,000m2),it is one of the largest urban shopping centres in Europe. Taking the surrounding shopping area into account, it is the largest urban shopping centre in theEuropean Unionin terms of size. Westfield Stratford Cityis a striking, three-storey curved shopping centre. It is Europes largest urban shopping destination and houses more than 300 shops.Shopping in Londondoesn't get much bigger than this. A Unique Leisure Destination

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