POS business which means Point Of Sale business is a very lucrative and legitimate business that you can not afford to miss out on. Easy to start and require less capital, unlike other businesses that require a huge amount for the start.
In this post, we will be discussing the opportunities in POS business, the pros, and cons and the potential profit you can make from this business. Without further ado, let’s get started.
Do you know if you put everything in place you can be making up to 15.000 naira profit on a daily basis? What you need to do if to follow the guidelines in this post.
1. What is involved in POS business?
POS business involved doing the following for people by charging a small fee:
- Withdrawal
- Deposit
- Transfer
- sale of airtime
- bill payment like GoTV,DSTV etc …
2. Opportunities in POS business
Have you ever been to a bank and have to wait for a long period of time before making a deposit? Or have you ever been in a long queue to withdraw money and at the end of the day the ATM shows “out of service” or “temporary not dispensing”? How frustrating could that be?
Human by nature is impatient and wants things to be done fast so some if not most would prefer to skip those long queue for deposit and withdrawal and that is where there your opportunity comes in. Would you be there to fill the gap?
3. The requirement you have to meet
Anything that has to do with financial transactions needs to be taken seriously. What that means is that not everybody can jump into the business. There are some requirements you have to meet first. Let’s talk about them.
A. Have an established business
The whole point of this section is to establish trust because, in reality, you will be working with financial institutions. Owning a POS and having access to someone’s debit card should be something financial institutions should take seriously because if those tools get in the wrong hand, great damage can be done.
That being said, you need to have an established business well registered with the Corporate Affairs Commission.
Keep in mind, if your business is still, your demand would probably be declined.
B. Get in contact with financial institutions
Obviously, you don’t have a POS machine so you need to get one. To get a POS machine, you need to approach the bank you have been operating with. Although almost all banks can provide you with a POS machine, it is likely they will require you to be their client. As a matter of fact, if you don’t have an account with the bank, no transaction could be possible.
Aside from banks, other financial institutions you can approach include:
- Quickteller,
- Paga
- Branpos
- Pocketmonie
- Firstmonie
- Opay
- Paycentre
- Nexgo Pos
- citiserve
C. Required documents
Keep in mind the required documents may differ depending on the financial institution you approach, but generally, they may require the following:
- Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
- BVN
- 2 passport photographs
- 2 current account references
- Evidence of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- Memorandum and Article of Association.
- Credit Bureau Report
- A minimum working capital of N50,000
4. How to get started with POS Business
Getting started is an easy process. We will be here to put you through.
A. Get the needed tools
You might need the following tools but the number one tool you need is the POS machine.
- POS machine itself.
- Card reader
- Barcode scanner to scan bills for bill payment transactions
B. Get a shop
You don’t need a big shop. In fact, you can add your POS business as an extra source of income to your existing business. But if it something you are doing in another area, just get a small container.
if you are to use a container, keep in mind, you are not going to be paying any yearly shop rent, instead, you buy the container once for all, and pay a token for space you will be using which is far cheaper than getting a shop.
c. The location
Any business in a strategic place by default moves. Get a place that is well-positioned in a strategic place. A place that is well patronized. These are the factors you need to put into consideration while looking for the right place to position your business.
- Accessibility: How easy would it be for people to access your shop? Can car owners get access to your shop?
- The rent: Is the shop too expensive? In case you are using a container, you don’t have to bother about the rent rather the place, how much would you be paying yearly? Can your business cover all these expenses?
- The competition: How many phone repairers are already there? Can you stand out from the crowd easily? How good are you to compete with the already established phone repairer?
5. How to start POS business on a low budget?
In case you don’t have an existing business but you wish to get into the POS business, this what you can do. A POS machine cost around #45,000, #65,000, #75,000 etc. The difference here is just like having 2G, 3G and 4G so the higher the money, the better the service. If you want to enjoy the service, go for the 75k own and that requires more money plus you have to get a shop and may hire someone.
Do you know if you don’t a POS machine people can transfer money into your account and you can give them the cash they require? You can get started that way. For people that want to do a deposit, you collect the cash from them and transfer into the provided account they give you.
6. Pros and cons of POS business
Let us talk about the pros and cons of POS business in Nigeria.
The pros:
- Little IT knowledge required
- Mobility
- No software installation
- As all information is backed up automatically in the cloud, you don’t have to worry about losing your data in a computer crash
- The potential profits
The cons
- Connectivity: At times, you may experience network failure. It does happen.
- The risk of handling money. We are in Nigeria after all and you need to be security conscious.
7. How much can you make from a POS business?
The amount you can make daily depends on your the number of clients you are getting every day. To withdraw 10.000 naira, some people charge 150 naira while other charge 200 naira. The same thing goes with the deposit. The higher the amount requested the higher the charges. So you charge up to 2000 naira. If you get like 50 people a day that deposit or withdraw a significant amount of money, you are not far from making up to 15000 naira daily.
8. How to succeed in POS business.
- Your charges should be fair. Remember Rome is not built in one day. Patience is required. What you should focus on rather is building a big customer base and this will through good service and fair charges.
- Be in a safe area.
- Avoid handling large amounts of money.
9. Why you should start a POS business
- Think of the small capital that is required to start the business
- The potential profit
- Keep in mind you have created a job for yourself.
- Pos business does not require any IT knowledge. It is easy to handle.
conclusion
As you can see the numerous advantages and profitability of this business. This is a very nice business you should not ignore. It can be as a side hustle or a main business.
A POS business is an additional way of getting income. Even with your existing business, it is a way to expand services and one of the best methods to cross-sell your products/services to customers.
