This write up is gathered on how to start a POS business in Nigeria with very low capital, with at least N100, 000 only. Also, how you can get Point-of-Sale machines to start your POS Business in the country.
What is a Point-of-Sale (POS) machine?
POS is an automated system that is designed to process payments. The system can be used in any type of industry or business, no matter how small it is. POS machines are also known for their fast processing speed, which can make transactions at a faster rate than traditional cashiers can.
It stands for “Point-of-Sale” which is basically a small touchpanel device attached to a registered account where transactions take place.
Starting a POS business in Nigeria is like modelling a new digital banking era where mobile money operators carry out some functions that the Nigerian banks, micro banking sectors are known for.
POS business is becoming one of the best avenues of doubling your capital within the shortest possible time as the business owner
For the purpose of this article, we are going to show you how to start your own business as a pos agent, teach you more about pos and how profitable it has been becoming over time, and why there are various benefits associated with this profession. What are they? Why should you care? Read on!
How To Make Money Doing POS business / Benefits of POS Business in Nigeria
Interestingly, there are no limits on the amount you can make while being a POS operator or business owner, you’re amazed, right? Well, let us proceed.
(1) Offering Services
One of the many benefits of the business is that it’s seamless. Be in the know that Nigerians are fond of easy ways; therefore, generating more money becomes easier as you become a macro bank plug for your customers. Simply by, you deposit and withdraw money for customers at ease by just paying you a certain amount.
(2) You Can Become An Aggregator
Starting a POS business doesn’t play down that you must physically own any location for any transaction. You can start earning income by selling POS machines and offering consultancy services (i.e, advising on location, best machines etc). This doesn’t involve you running a POS business directly. You can also earn passive income through sales: by being a mobile money company’s aggregator. You can easily earn a sales commission or extra income whenever your customers hit targets by using your machine.
(3) Easy To Set Up.
You can become a POS agent once you make due diligence of a better or best location and a good machine. You are good to go.
(4) School Certificate Is Not Required
You can earn a considerable amount of money without needing a good education or owning a BSc or HND certificate.
(5) Good Location
This business is highly scalable and its return on Investment is mouth-watering if you get a good and better location to shoot on.
(6) Less Spending Is Required
You will double your location as your sales increase and your business expands and becomes well established.
Steps On How To Start A POS Business
Brand News Day Nigeria has compiled some leading tips for you on how to start a POS business with very low capital. Also, if you are willing to start something new, we have for you some basics steps on how you can get Point-of-Sale machines to start this business.
Below are 5 steps guides to start:
(1) Get some Fund (Get Your Capital)
Importantly, before going on, a POS business is a capital intensive business, however, you can still begin if you have low capital. How huge your capital is will be determined by the location of your business. Some locations require you to deposit money into customers’ accounts, as a result, you will be needing some substantial amount of money to sit in your bank account- yet, it’s part of starting your capital.
With having an N100k capital, you can get a POS machine (for as low as 10, 000 -Mpos), gets a POS stand (an Umbrella, plastic chair and table), pay for the location and use the rest as capital in running the business which will multiply over time.
(2) Choose a Location (Most importantly)
Getting a good location for your business is a very essential factor if you want your business to thrive. Notably, you should avoid locations where there are lots of POS operators and few businesses or a small market in order to have more customers and patronizers.
(3) Acquire A Host Or Fund Agent
A host agent is someone who can offer protection to your business. It ensures that all the legal formalities are present and that your business will be registered as a company. When starting a POS business, it is better to make the bank in which you have an account with. This way it would be easier and less stressful to get loans and financial support. Examples of host agents in Nigeria are FirstMonie, Paga, QuickTeller Opay and many more.
(4) Get Your POS Machine
Obviously, there is no point in starting a pos business if you don’t have a pos machine. You can choose to buy a POS device from a private seller who will be selling it for a lesser price than what the manufacturer is asking for. Also, there are banks that give POS devices for free, all you have to do is to have an account with them and meet the necessary requirements.
POS Machine Price in Nigeria
The price of a pos device ranges from 10, 000 to N120,000 depending on the one you want to use for your business.
After successfully completing the above steps, you must make your POS business known to everyone by creating awareness. If you are in a large area, you must print out banners with an affordable budget not less than N5000.
In conclusion, there is no certain capital needed to start a pos business in Nigeria, but to avoid issues and stories that touch the heart, you must target at least an N100,000.
Similarly, as lucrative as a POS business might be, it attracts a high rate of risk which can easily send you back to your village if you’re not cautiously operating.
To get started or get any POS machine of your choice, drop a message in the comment section.