Are you looking to start your own POS enterprise? If you respond in the affirmative, don’t worry. That’s because you’re already at the right place, where the solution to your problem is right underneath.
When you read further, you will find out all it takes to start a POS business in Nigeria.
Then let’s figure out a way forward.
Starting A POS Business In Nigeria
POS is one of the trendier enterprises in Nigeria. Many Nigerians go into this business and enjoy it greatly, especially in areas where there are fewer or no ATMs available.
However, you have to be an agent with a bank before you can start any.
The coming POS has saved the stress of going to the bank to take out some banking activities. People no longer go to the bank and join a never-ending queue, they find it is best to condescend to the point of service.
Once they find any POS nearby, they make their withdrawal, money transfers, and deposits, check the account balance, and many more.
POS Start-up Guidelines
Here are a few tips about how you can launch your POS enterprise in Nigeria. Once you follow these guidelines, you can be sure to end up with a profitable enterprise.
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Generate Capital
It is not possible to start an enterprise without capital. This is the first thing you will need before venturing into the POS business since you are going to be dealing with cash transactions.
Plus, you’ll need money to set up your shop and other amenities.
Consequently, you will need at least a start-up fund of ₦50,000-₦100,000.
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Get a Place
You may call it a shop or any name you want to call it.
Having an outlet for your POS enterprise is important. It will initially shelter you, with an atmosphere conducive to carry out your activity.
Customers can contact you easily if you have a shop.
So having a store for your point-of-sale business doesn’t have to be an elegant structure. A small structure will serve you well in this enterprise.
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The Site Matters
When planning for your shop, it will be important to consider the location of your business. This location is what will drive your business’ success.
Therefore, consider these factors when entering a point-of-sale business.
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Fewer Banks
As previously mentioned, POSs thrive in areas where there are little or no banks available. Rural areas appear to be the best place for this type of enterprise.
This is because it is difficult for people to access banking services in the vicinity. Therefore, if you can place a POS at these locations, you will be collecting money.
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Areas with Good Connectivity
This is a key factor to think about when you want to use POS. Finding your enterprise a site where there is a good network will make your dealings with customers very efficient.
If the place has a poor network, you and your customers may get frustrated in the transaction process. Such a situation is not healthy for the POS enterprise as customers can lose confidence in your services.
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Commercial Area
POS business is also viable in areas with many commercial activities like markets, shopping centers, hotels, restaurants, and much more.
Buyers will certainly have to withdraw money to obtain assets or make transfers in some cases.
So if you can locate your business in such locations, you will make a good profit.
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Go to the Bank
It is now time to walk to the bank and sign up to become an agent.
Some of the banks in Nigeria that offer such agent services include First Bank, FCMB, Polaris Bank, Access Bank, Zenith Bank, GT Bank, and so on.
In that regard, you now decide what bank you want to be their agent.
If these banks are not part of your preferences, other financial institutions that offer such opportunities are Paga, Quickteller, Opay, Paycenter, Nexgo POS, Pockemonie, Firstmonie, Branpos, etc.
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Obtain a POS Device
After selecting the bank you want to work with, you will need to obtain a point-of-sale device before you can start your enterprise.
Point-of-sale equipment may be obtained from the bank or other financial institution of your choice. However, before issuing such a device to agents, there are few requirements that these agents must meet.
Those requirements include.
- You need to be registered with the CCC, i.e. you need to have a trading name.
- You will be required to present current passports.
- You must own a business.
- Your addresses will be requested.
- Your account number along with other requirements.
Once these requirements are met, your POS request will be forwarded to the accounting department. The processing of your application typically takes two days.
Therefore, before getting the device, it may take as long as two weeks. Once the VDP is ready, you will still need to sign agreements before it being leased for you.
In case you want to purchase your personal POS device. You can get it from any business that provides, POS or bank. It depends on how much you spend buying a point-of-sale device.
There are POS with 2G networks, while there are some with 3G and 4G.
In that respect, it will cost you on average between ₦45,000 and ₦200,000 to purchase one.
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Start Operating
After completing all the steps we mentioned above, it is now time to get to work and get your coins out.
As I mentioned earlier, some of the services you can offer include money transfers, withdrawals, and deposits, payment of bills, checking account balance, and much more.
In Nigeria, prices for all such services vary.
For instance, for each ten thousand withdrawal you can bill customers’ ₦100. But for other transactions, you can as well charge ₦100, though this price may differ in some areas of the country.
POS’s business provided employment opportunities for many Nigerians. This way, if you follow the established guidelines, you can launch a successful POS enterprise here in Nigeria.
Take advantage of this opportunity now and earn your money.