POS business is one of the best ways to make money in Nigeria, It’s easy and stress-free to run this business. Several people run this business and they make a lot of money at the end of the day.
It is not expensive to start up a POS business in Nigeria, there are different steps you need to follow when setting up your POS business.
If you develop an interest in starting up a POS business then you’re in the right place, In today’s post, I will give you the tips to start a profitable POS business in Nigeria.
POS is known as a point on sale, It’s a banking device that allows ATM cardholders to make a transaction such as payment of goods and services, payment of virtual bills like Electricity bills, Recharge cards, DSTV, GOTV e.t.c.
This device makes it easy for people to make a payment without having to make use of cash, gone are those days when you carry cash about just to purchase something.
POS machines really help in terms of the risk of holding cash, today you can make a payment without any form of risk.
Steps to start up a POS business in Nigeria
These are the steps to start a POS business in Nigeria, you need to follow these steps carefully for you not to get swindled by scammers of risk losing your money to illegal people.
The location of your POS business is very important, you need to put this into consideration when starting up your POS business. If you start your POS business in the wrong place you likely make no profit.
There are three things you need to consider when looking for a suitable location for your POS business.
Highly populated area
A highly populated area will expose your business to many people that is the passerby, when an area is highly populated it gives you more advantage that your business will thrive well.
An area with few ATM outlets
POS business will thrive well in an area where ATMs are not much, you need to put this into consideration when looking for a better location.
When ATMs are not much in an area the people will always go for POS because they find it easy without having to queue or stress themselves.
An area with maximum security
This is a very important thing to consider cause you will be dealing with a lot of money, you need to find a location with maximum security for you not to get robbed.
2. Get a shop or a kiosk
When you find a suitable location the next thing is to get a shop or build a kiosk to your own satisfaction. You can rent a shop if you’re on a high budget but if it seems like you’re on a low budget, you can easily hire a carpenter to build a small kiosk.
You can also partner with a shop owner within that area by only getting an umbrella that can cover you from the sun and also a chair to sit down.
3. Startup capital
Capital is very important in starting up a POS business cause you would be dealing with people that need cash and the withdrawal per day can exceed ₦100,000.
When starting up you need to budget like ₦100,000 for you to meet the demand of your customers. If you’re on a higher budget you can consider starting up with 200,000 that would cover the renting of your shop.
4. Get a POS machine
Running a POS business, you need to get a POS(point on sale) machine for you to run it effectively, there are ways to get a POS machine, you can get it from the bank or some commercial companies that give POS machines.
You can also purchase your POS machine and that is preferable cause having your own will reduce your cost of running the business.
If you’re given a POS machine by the bank there is a certain commission that would be taken by the bank that issues the POS machine.
5. Render services
One important aspect of a business is to render services, when you get your POS machine the next thing you need to consider is to list the services you would like to render.
You can render these services:
- Funds transfer
- Cash deposit
- Cash withdrawal
- Bill payment(Gotv, Dstv, Phcn e.t.c)
- Agent mobile payments or banking services e.t.c.
6. Advertise to get customers
Advertisement is the sole driver of attracting customers, you need to create awareness for your business to get more customers.
You can easily display a wide banner that shows what you render, the more passer-by sees your banner the more they patronize you.
How profitable is POS business in Nigeria?
POS business is very profitable since people make use of cash day by day and people also pay bills regularly. There are a lot of people that run POS businesses in Nigeria and they make a living through the business.
If you’re looking for ways to make money easily and you have a startup fund then POS business is what you need to consider.
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