POS business has been the source of creating wealth in Nigeria in recent time; it is a lucrative way to make money in places where banks services are limited. You can start a profitable POS business in Nigeria when you know the rudiments.
Meeting the financial needs of the people is the major reason why POP businesses are needed and it is a great income earning business.
POS business can be where you earn passive income from or it can be the stream of your full-time earnings, it is a profitable business striving right now in Nigeria and you can join the trains of other smart entrepreneurs who are already cashing out money with POS business.
The sole purpose of a business is to make profits, when you are not making money, it is not making sense, no matter how small, making profit is what you crave for and it is the way to grow in business, to remain in business you need proper sales methods and techniques that works, same things apply in the POS business.
Before you start thinking of how starts a profitable POS business in Nigeria, you must know first what POS business is all about.
What is POS Business?
POS business began in the year 2013 in a bid to relieve the banking sector from the stress of the people seeking to access financial services. This is enables bank agent to start a profitable POS business in Nigeria and earn money while providing financial services to Nigerians.
The bank agent is an individual who has been granted permission to conduct a financial transaction to the people, which mean the bank agent can help customers deposit, withdraw, transfer, recharge, pay merchant bills, and can answer certain account inquiries through its retail outlet.
POS business deals with cash transactions and this business has been around for some times, which is now gaining a lot of popularity in our nation both in the urban and rural areas where banks has not taken over.
The Benefits of Profitable POS Business in Nigeria for entrepreneurs
The POS Business in Nigeria can be very profitable and here are some of the major reasons why entrepreneurs are making it big from this business:
With POS (Point of sale), it relieves your customers of the risks associated with having physical cash at hand. It helps control going around with huge money, and these prevent people from getting robbed which can result in sudden death.
2. Bill payments
Bills can be paid for and fully approved from your POS machine, as a POS business owner, you can run bill payment services for people around you.
With the POS Receipt support, it gives you the privileged to state the date and time of procurement and many more.
3. Nigerians want convenience
Going to the bank or visiting ATMs (Automated Teller Machine) to make a transaction are become overcrowded which normally cause a lot of delays and people don’t want that, they prefer to visit the nearest POS point as it is convenient and make their transaction be faster.
Starting a POS business in a very strategic location would fetch huge profit because Nigerians want convenience.
How to Start a POS Business in Nigeria
The following steps are things you must have to start a profitable POS Business in Nigeria:
1. Have an active bank account
One of the first requirement to start a POS business is to have an active bank account, this is because all transactions would be financial related and the home of finance is the bank.
2. Get a Good Location
Seriously if you want to make a big money, you need to get a good location for your POS business, this is major factors that determine what you are going to be making while running your business.
Strategic locations are perfect for your POS business. Don’t stay close to a functioning bank with a lot of ATM points because it will not help your business.
3. Register Your Business with CAC (Corporate Affairs Commission)
It wise and better to incorporate your business than doing it illegally. The Nigerian business law makes it mandatory to register your business with CAC, it is one of the major requirement for running a business in Nigeria.
To register your business with CAC, it not as difficult as you may think. major requirements to get it done are;
• Full name
• Nature of Business
• 2 passport photographs,
• Valid means of identification
4. Acquire POS Machine
Another most important thing to have in your journey to starting a POS business is to get a POS machine from the commercial banks in Nigeria, when you visit any bank of your choice that you an account with you can obtain a free POS machine and start your business.
The bank visited will give you documents fill and in due time you could be called to get your POS machine.
Some of the things you may be asked to be presented in the bank are;
• Valid means of identification
• 2 passports
• CAC Certificate
• Minimum capital of #50,000.00
• Current account references
• Tax ID (TIN)
• Credit Bureau Report
• Memorandum and article of Association
As much as you can get a free POS machine from the commercial bank, you can also opt-in to pay for it, if you like the idea of purchasing your own POS machine from POS Vending Companies in Nigeria. Some of the well-known vendors/operators are:
5. Have Enough Capital for Transactions
It is recommended to have enough capital on the ground, this will help you to canter solve all your customer’s financial issues once they come around at the same time.
The more you can satisfy your customers, the more money they will keep on coming to do business with you, if you want more profit let your customers be your priority.
6. Advertise/Offer quality Service
You can make your business visible, print banners, flyers; and decorate your shop with the sign to help customers know you are into POS business. Nobody would recognize your business, if you fail to give your business some quality touch it deserved
Also offer quality service to all your customers if you want them coming back to you, remember you may not be the only one in that locality.
Lastly, you need to leverage Social Media Marketing and another medium that allows you to reach more customers.
Type of Business for Your POS
There are 4 types of ways to start a Business in Nigeria, and which have your POS business need to pick one form of business then you can upgrade as time goes on if you like those forms of business are namely:
Sole Proprietorship – A one-man business that gives you total control over your assets and liabilities. You gain all the profits and you bear all the losses when it comes.
Partnership – This involves two or more people coming together by the partnership to form a POS business, we have the general partnership and the limited partnership, any of these can be chosen.
Corporation – A corporation is large companies that act as a single entity and it is normally separated from its owners as it acts as a legal entity. The corporation can be taxed and held legally liable.
Limited Liability Company – This is the most flexible when compare with partnerships and corporations. It has a major advantage as it does retain tax benefits of sole proprietorship and the limited liability of corporations.
The POS (Point of Sale) can operate with any form of business type but the sole proprietorship kind are the most common around us and it is very lucrative in Nigeria, it is a place where you can cash out money easily every day.