POS business is a legitimate way to make money in Nigeria. It’s even more lucrative in areas where banks do not exist or insufficient ATMs to meet the financial needs of the people.
Besides being a profitable business you can start, it can also be a vital passive income stream.
What Is a Point of Sale (POS)?
Point of sale (POS), a critical piece of a point of purchase, refers to the place where a customer executes the payment for goods or services and where sales taxes may become payable. It can be in a physical store, where POS terminals and systems are used to process card payments or a virtual sales point such as a computer or mobile electronic device.
The POS business, also known as agent banking, began in 2013 after the Central Bank of Nigeria released its guideline on the operations and management of the business. Since then, it has remained one of the retail channels of several commercial banks to make their banking services reach a large number of people.
A banking agent owns and operates a retail outlet. They conduct the financial transaction and allows clients to deposit, withdraw, transfer funds, pay bills, recharge airtime, inquire about customers’ account balances, and other related services.
What is POS Business in Nigeria?
In 2013, the central bank of Nigeria launched the agent banking scheme, when it released new regulations on the means and manner agent banking business should be carried out.
There is the beginning of the POS business in Nigeria.
So the bank agent or POS business owner will have a business center or outlet where he will comfortably carry out monetary transactions and allow his customers to withdraw and pay utility bills, recharge their phones, check their account balance, etc.
The business is highly successful in villages or rural towns or areas where there are no banks around.
The POS business owner or Agent can work for as many financial institutions as he wants.
What do you need to start your own POS business?
You only need 3 basic things
- A POS machine
- A good location
- Capital of up to N100,000
I know you have probably seen some online guru tell you you can start a POS business with just N10,000. Maybe you laughed but I am laughing here as well because on average a single customer withdraws between N2000 to N5000 and if you are running this business with just N10,000 that means you can only serve 3 customers a day. But you might be lucky and one single customer comes to withdraw the whole N10,000, lol.
I understand you might not have a lot of money to start this business, as a matter of fact, I started with N30,000 myself which was the money I saved during my NYSC days and I was able to raise more than N10 million to run this business in subsequent years.
How To Start A Successful Pos Business In Nigeria
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
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2. Source a Good Location/Start a Mini Business
Acquiring a shop in rural areas will not be as expensive as it would be if you decide to acquire a shop in urban areas. It won’t cost you so much to get the location sorted out.
Furthermore, it is possible to partner with someone who already has an existing shop/business and pay a certain commission as agreed. Importantly, to make a profit, such as location must be favorable to your business as well.
Strategic locations like bus stops, markets, etc. are a perfect spot for any POS business. It would be very unwise to sit close to a bank that is fully functional with a lot of ATM points.
Also, note that you would usually have a lot of money, strategically choose a location that is not receptive to thieves and robbers.
3. Get Registered with CAC (Corporate Affairs Commission)
Also, registering with CAC is not as difficult as a lot of people term it to be.
Major requirements include;- How To Start A Successful Pos Business In Nigeria
4. Purchase POS Machine – How To Start A Successful Pos Business In Nigeria
Visit your bank to know the specifics, but popular review suggests you will need to provide the below:
You can also opt to purchase a POS machine from POS Vending Companies in Nigeria. Some of these vendors/operators are:
These private companies are called MMOs and they only charge a little fee, cautionary fee, to give you POS. So, my first few POS were from these companies and up till this moment, I still use POS from companies like these and I have helped hundreds of my students to get 1,2,3 or 4 of these POS (depending on the number of outlets the students have).
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Examples of these companies are
- Global Accelerex
- And lots more (in fact at this point there are more than 50 companies giving POS but not all are reliable)
5. Have Sufficient Capital for Transactions
6. Advertise/Offer quality Service
How do you run a successful POS business
If there’s anything you and I know about Nigerians, it is that they,we, love Free and cheap things. Which is why most successful companies in these parts of the world are companies that offer goods at high volume and low prices.
This is true for the POS business. So setting a good price is the key to running a successful POS business.
Location, location, location
One other factor that can determine your success in this business is your location. If you are strategically located than your competitor, you make more sales and that means more money. When you are looking for a location, make sure you find a place where there are thriving businesses.
I was speaking with one of my friends the other day who told me that majority of his sales comes from business around him and that is coool business. And sometimes, it doesn’t cost much to get a good location, you only need to look very well.
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The best locations from my experience
Here are some of the places i have found very very good for the business
- Market place
- Motor park
- Bus stops
- Student environment (though sales here might be seasonal but it usually make a lot of profit)
The other thing you need to do is to
Always resume early and close not too late
You should always make sure you open early as a lot of customers want to know you are reliable. Most people doing POS business are not reliable as some cultivate the habit of coming late to work. I believe you won’t join them.
Conclusion – On How To Start A Successful Pos Business In Nigeria
Certainly, POS Business in Nigeria is very lucrative and can draw in daily profits. Consider it today to make more money than you do now.