How to Start a Money Transfer Business – Build versus Lease Tip! (If you are starting out, go with lease, versus buy versus build. My video explains more).
Hello. My name is Faisal Khan. I’m a banking and a payments consultant and today we are discussing the points that you need to consider before you dive into and become a money transfer operator.
So, how do you start a money transfer business? Well, there are many ways of going about it but these initial points are very important for you to understand so that you don’t make mistakes. And the most important one that I want you to stick around is the second last point that we’re going to discuss today is build versus buy.
A lot of vendors will tell you, you know, you need to buy my software and everything will be good and so forth. Do not be pressured into that. There are many, many genuine software out there etc. But, you should not be a solution in search of a problem. You need to understand your problem which you will do as I told in a previous video of what is a problem that you’re trying to solve. And then see if that problem has a solution and if the solution exists, then go find a vendor that can actually provide a solution to you and will match to your needs.
Build versus buy. Because you’re going in the initial stages. I would never recommend build. I would not recommend, unless you absolutely have a stellar team and you have amazing, amazing amount of money in your pocket – do not go for a build. Go buy it, lease it, rent it. See that you can get something for a contract for one year. And if things don’t work out you walk away.
You’re holding on to legacy code and you know have 20 people coding for you and making software that will just take too long to come to, to be live. You rather just go or rent the software, lease the software, you know, buy the software if you have to, and go on it from day one or at least month one. So build vs. buy is absolutely important.
It’s like going into the, i don’t know, let’s say the taxi car business, right? Do you want to build your own car? You certainly don’t want to. You want to lease one. And when you have a big enough fleet, maybe you will buy one or have you etc. And maybe if you get too big maybe you’ll start doing custom modifications to it on a very large scale and so forth, but you really don’t want to build your own car unless and until you are really, really good at that. And there are very few companies that can actually do it from ground up and the literally tens of millions of dollars to do that.
So, think about build versus buy. I always say in very simple way buy vs. lease. Always lease first and then go for the buy option. Do not tangle yourself, and ground yourself or anchor yourself into a situation that you cannot get out after one year. And you want to go to market ASAP, so your minimum viable product MVP needs to be ready ASAP and leasing is the best option to do that.
I hope you will consider that point when you are making a business plan. Till next video, see you.