How to start a profitable POS business in Nigeria- POS business is a lucrative business in Nigeria, and being a profitable business you can start now, and it can also be a vital passive income.
Consequently, the business has to do with continuous productivity in line of interest. A business is usually formed by one or two people who entertain a common idea that should be productive enough to raise profit.
Nigeria has a lot of businessmen who are popular for the lucrativeness of the POS business currently. Hence, it is important to note that the sole purpose of a business is to make a profit.
No matter how little, profit is subject to growth if proper sales methods and techniques are practiced.
- 1 How Does POS Business Work?
- 2 Benefits Of POS (Point of Sale) In Nigeria
- 3 How To Start a POS Business In Nigeria
- 4 How To Calculate Profit In Pos Business
- 5 Best Bank To Get POS Machine In Nigeria
- 6 How To Get a POS Machine From a Bank In Nigeria
- 7 If You Want Latest Updates Like This?
How Does POS Business Work?
A POS system empowers businesses to receive payments from customers, keep track of sales and make a profit. Depending on your business model online store, brick and mortar store, or both, the setup can be different ways.
It sounds simple enough, but the setup can work in different ways, depending on whether you sell online, have a physical storefront, or both.
In the past, a point of sale system referred to the cash record at a store. Today, contemporary POS systems are solely digital, which implies that businesses can be done without having to manually record sales.
Benefits Of POS (Point of Sale) In Nigeria
- Nigerians want it easy
- Bill payments
Types Of Your Business With POS
- Sole proprietorship
How To Start a POS Business In Nigeria
The lucrative business began in the year 2013. Also known as, Agent banking. This implies that one of the first requirements would be to have an active bank account.
It involves a bank agent who runs a retail outlet. Such a person is permitted to conduct transactions relating to finance, allowing customers to deposit, withdraw, transfer, recharge, pay merchant bills, make certain account inquiries, etc.
The following steps are the best recommendations if you wish to start a lucrative POS business today in Nigeria:
1. Have an Active Bank Account
Of course, an active bank account is needed before one would consider running a POS Business in Nigeria. This is because all transactions would be financial related and the home of finance is the bank.
2. Source a Good Location/Start a Mini Business
Location is one of the major factors that determine the volume of profit you will make while running your business. The location also determines the amount of money you are likely to spend while establishing your business. Acquiring a shop in a rural area will not be as expensive as it would be if you decide to acquire a shop in an urban area. It won’t cost you so much to get the location sorted out.
3. Get Registered With CAC (Corporate Affairs Commission)
It would be illegal to operate a business without registration with CAC. One of the major requirements for running a business stipulates that you must register the business with CAC (any kind of business, as mentioned above). Also, registering with CAC is not as difficult as a lot of people term it to be.
Major Requirements Include:
- Business name
- 2 passport photographers
- Valid means of identification
- Full name/Biodata
- Nature of business
4. Acquire POS Machine
Legitimately, free POS machines can only be gotten from commercial banks in Nigeria. It is one of the fundamental requirements to start your POS business in Nigeria. In addition, all you’d have to do is visit the bank and fill in the documents as directed by the bank. Some documents are fundamental for proper filing and you will have to provide them.
Visit your bank to know the specifics, but popular review suggests you will need to provide the below:
- Valid means of identification
- 2 passports
- Current account references
- CAC certificate
- Tax ID (TIN)
- Credit Bureau Report
- Memorandum and Article of Association
5. Have Sufficient Capital For Transactions
It would not be a good start to inform your customers that come to withdraw in mass that you do not have it available. Also, always make sure you have enough to satisfy your customers at all times or most of the time as the case may be.
6. Advertise/Offer Quality Service
The POS is a small piece of equipment. Nobody will recognize your business if it’s all you have. Print banners, flyers, decorate your shop with the sign. You can approach a printing agency that has the best print finishing machines such as those made by Duplo to make the flyers and marketing booklets. Then, as customers troop in, be sure to offer quality service. This is to ensure repeat purchases. Lastly, you utilize social media marketing to create brand awareness and set up Google My Business Account for local visibility.
How To Calculate Profit In Pos Business
To calculate the profit of your POS business, subtract your expenditure from the total sales. What you have left is your profit from the POS business.
Cost Of Starting a POS Business In Nigeria
The cost of a new Pos machine in Nigeria ranges from N80,000 and N120,000 only. However, certain banks like First Bank Nigeria grant free POS machines to anyone that meets their requirements.
After getting the POS machine, it is very important to get the POS document from the nearest branch of the bank or your bank account officer.
Best Bank To Get POS Machine In Nigeria
The best is the First Moni POS. Others include Access Bank POS and Zenith Bank. Every bank has its disadvantages but those listed have a good track record.
You must know that you are to meet up the requirements from the banks to get the POS machine. However, if you can’t then go and get a POS from MMOs like Kudi, Moniepoint, Opay, BaxieBox, and others.
How To Get a POS Machine From a Bank In Nigeria
Kindly visit the customer representative of the bank you wish to get a POS machine from. Perhaps, having an account with the intended bank makes it a lot easier.
Below are the steps you will be required to follow:
- Open a current account if you don’t have one at the moment.
- Fill POS agent registration form
- Download and activate the mobile POS app to transact with.
- Complete 25 transactions to get your POS machine.
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