In Nigeria, the POS industry is a great way to make money. It's much more profitable in locations where there are no banks or inadequate ATMs to meet people's financial demands. It can be a lucrative business to establish as well as a reliable source of passive income.
A business is an organization or enterprising entity that engages in commercial, industrial, or professional activities, according to its definition. Nigerians, on the other hand, consider a business as any legitimate activity that involves the generation of revenue. Money earned as a result of the provision of services or the sale of commodities.
How Does a Point-of-Sale System Work?
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| A POS system |
A point-of-sale system enables businesses to accept payments from customers, track sales, and profit. The setup can vary depending on your business model - internet store, brick and mortar store, or both.
Previously, a point-of-sale system referred to a store's cash register. Today's POS systems are entirely digital, which means that firms can operate without manually recording sales. All you need is an app and internet-connected devices like tablets or smartphones to get started.
POS (POINT OF SALE) Business Benefits in Nigeria
In Nigeria, the POS business can be incredibly profitable, and here's why:
Safety and security: Despite the fact that the president and politicians in charge of the country continue to guarantee citizens of their safety, Nigerians are well aware of the dangers of carrying large sums of money. This could be owing to the high prevalence of theft, robbery, and murder. Having a POS (Point of Sale) on hand spares your consumers of the perilous task of always carrying physical currency. In addition, the vendor can now credit your account at the time of purchase.
Nigerians like things to be simple: We have a population of 201 million Nigerians in 2019, and more than 80% of them should have bank accounts. This group would also need to go to the ATM (Automated Teller Machine) from time to time to conduct withdrawals, transfers, and other transactions. These ATM locations are usually packed. As a result, having a POS would bring your firm a lot of money because Nigerians prefer things to be simple. That is to say, people would rather run to your location and pay for your service than wait for a machine to finish.
Payment of bills: Most merchants accept payments through bank transfers or at their service centers.
In Nigeria, the POS Business is a Sure-Fire Way to Make Money Online. Typically, these service facilities are packed and far away from a large number of customers. Customers won't have to worry about finding these offices and driving there if you have a POS system in place.
Furthermore, all of these bills can be paid and fully approved using your POS system and the POS Receipt. POS Receipt is a record that provides the date and time of purchase, the point of interest of the items purchased, as well as the price tag and other information. Perhaps the first step in learning how to start a profitable POS business in Nigeria is to understand what type of business it is. If you've been seeking for a way to make money through POS or want to start a MOBILE ATM CASH BANKING business in Nigeria, an opportunity has presented itself, and this guide was help you. First, you will learn what are the requirements of starting a PoS business in Nigeria, and many other things in relation to it.
What Are The Requirements To Starting A POS Business In Nigeria?
For individuals who desire to make a living out of the Pos business in Nigeria. The following are the requirements:
Obtain A Store
You'll need to open a store. This is critical since a firm must have a location in which to operate. One advantage of the Pos business is that it does not necessitate a vast space; a modest room will suffice. You can either rent it or use your own home to complete the transaction. The business location is highly important in any business since it offers your company precision and makes it easy to recognize. It's advisable to locate your POS shop in a business and commercial location, since this will improve patronage and earnings. So, as soon as you've secured the funds you'll need to start your pos business, go secure that shop. You can get a container and mount it there if there are no merchants nearby. Containers are pretty expensive these days, so if you're on a restricted budget, you might want to meet with a welder to see what you can come up with. That you should earn no more than N70,000. Furthermore, if you can't afford ceilings right now, you can sell refrigerators in exchange for boxes. It's only a short-term solution for decreasing heat. Remember to have your shop professionally painted.
Business Location For Your Positioning System
Capital Or Start-Up Fund
The cost or quantity required to establish a pos business is determined by three factors. The size of the company (small, medium, or large), the services it provides, and the type of POS equipment it uses. I’ll explain: You'll agree that the capital required to establish a micro or small business differs from that required to start a medium-sized business. For example, if you need roughly N150k to start a pos firm on a small size, you'll need at least N250k for a medium scale. The more services you aim to provide, the more money you'll need to invest. For instance, if you exclusively focus on withdrawal services, you may establish a pos business with just N50,000 to N100,000. However, you don’t even have to acquire an office. All you have to do is find a small place near or in front of a well-trafficked complex and set up your umbrella. You're ready to go with simply your pos machine and cash on hand. The main distinction in pos machine types is the desired network type. In terms of speed and price, a pos machine with 2G and 3G differs from one with 4G. However, starting a point-of-sale firm in Nigeria should cost at least N50,000. If you only plan to provide one service (for example, withdrawals), N150,000 will suffice. It's worth noting that you'll need some cash on hand to make the withdrawals. It is dependent on the services you wish to provide and the type of position you wish to obtain. If you get it from a bank, you'll need at least N100,000 to complete the deal. That's the view from outside the store. If you're buying via an agency, however, you'll need N300,000. So, 100,000 will be used to maintain the POS machine, while N200,000 will be used to pay for withdrawals. Remember that transfers require enough funds in your bank account.
Getting The POS Machine
They’re two ways you can get a pos machine. They are:
Banks
Agency Organisations.
Factors To Consider While Getting A POS Machine:
Good internet connection
Transaction Charges
For transactions under N10,000, some pos charge 0.65 percent plus ten dollars. They also charge a fee of N50 for any transaction exceeding N10,000. Others, on the other hand, charge merely ten dollars for any transaction. The service price remains the same whether you're sending or receiving.
If you don't want to get a POS machine from your bank, ensure to buy from an authorised company.
They are licensed PTSP (issuers of pos terminals in Nigeria) aggregators with the CBN. Having your own POS machine will give you abundant benefits.
PRO TIP: Because these fees are subject to change, take the time to learn more about their current fees and services.
Do this when you're ready to start a pos business.
The Price Of A POS Machine
What is the cost of a POS machine? Or for how much can you buy a POS machine?
The price of a POS machine depends on the authorised agency firm from which you buy and it also depends on the type of POS machine acquired.
POS Machine prices are decreasing from their initially stages. We now have computers that cost $45,000, $65,000, and $75,000, to name a few. The difference is similar based on the network coverage. In other words, the difference between 2G, 3G, and 4G in that the more money you pay, the better the network coverage and service.
Some Of The Banks That Offers POS Machines are:
Zenith Bank
First Bank
Access Bank
Ecobank
Skye Bank
Fidelity
Diamond bank etc.
Each bank has its own way of doing things, so you'll have to talk to them one-on-one to find out what's needed.
Where Should A POS Business Be Established?
Rural Communities
You'll agree with me that there are less banks and financial institutions in rural areas, thus starting a POS firm will be a huge success. Many parents eagerly accept this business in order to transfer fund to their wards in school for either school fees or other purposes. Travelers also uses this business to carry out financial transactions, thereby making it easier for them.
Large and Small Businesses Area
People will always find one shop or the other to buy things or make purchases. Locations where there lots of stores and people working around is the best place and location to do a POS business. Definitely you'll enjoy doing POS business in such an area, especially if there's no bank close by or just one to three banks available in the area. Plaxes like that are usually along a busy road leading to a rural area.
Conclusion
Firstly, reading everything from the beginning to the end is essential for easy comprehension and grasp of the concept.
Second, attempt to establish positive relationships with not only your consumers, but also with other business owners in your area, which is where customer relations management comes into play. Keep in mind that the POS industry is a thriving one, and keeping a positive client relationship will help you grow your firm. Because they can gladly send their consumers to you if they are short on cash. And if you're short on cash, you can easily transfer funds to their account while they hand over the cash.
Finally, well-managed businesses are successful. As a result, embrace effective management practices.
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