POS (Point Of Sale) business is currently one of the most lucrative businesses in the country right now with a high-profit margin. It is a real legitimate business with good returns. POS businesses strive in places with limited banks available for the people, most especially the rural areas with little or no banks at all.
The POS business can also be referred to as an agent banking business. These agents carry out some important functions performed by financial institutions in Nigeria.
Many transactions can be done with the POS including Transfer of funds, Depositing funds, Withdrawal of funds, payment of bills like GOTV, Startimes, PHCN, and other bills.
In this post, we will be showing how to start a POS business in Nigeria.
1. Get The Required Capital
Just with every other business, to start your pos business will require a certain amount of capital. How to start a pos business in Nigeria, is a very delicate type of business where you would be indirectly acting as a bank.
Therefore before the bank approves you to be an agent, you must have passed the requirements needed and the capital. The capital could involve the cost of getting a shop and employing a representative along with other expenses.
Basic requirements you must pass on how to start a pos business in Nigeria include Your business being registered with the Corporate Affairs Commission as either any of the following; Limited Liability Company, Sole Proprietorship, Partnership, Cooperative Societies, Public Entities.
Once you have the required capital and passed other requirements then you are right on course on how to start a pos business in Nigeria.
2. Choose The Bank You Want To Work With
Literally, all banks in Nigeria accept pos agents to carry out financial transactions on their behalf. All that you need to do is to choose which bank you will like to work with.
Once you have identified which bank you want to be an agent for, next you need to approach them and get their list of requirements. How to start a pos business in Nigeria is quite once you've gotten to this stage.
Most requirements needed by banks include
• Having a Valid means of identification e.g Driver’s license, National ID card, International passport, or voter’s card
• Bank Verification Number
• 2 recent 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 capital of N60,000
The bank will go into contract with you immediately you provide all the above requirements and you will subsequently sign some documents.
With your capital available and all requirements passed, you need to move to the next step on how to start a pos business in Nigeria.
3. Get The Required Equipment For Business
Once your application has been reviewed and approached by the bank, they will then provide you with the required equipment needed on how to start a pos business in Nigeria.
With the necessary equipment in place, you are almost ready for business.
The equipment that will be provided by the bank includes,
• Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards
• Card reader
• Barcode scanner to scan bills for bill payment transactions
• Personal identification number.
Without this equipment, you won't be able to carry out your business operations. Therefore, once you gotten approved by the bank, you should proceed to get the above-required equipment for full operation.
4. Get A Good Location
This is very important when it comes to opening a pos business in Nigeria. The feature will largely determine how profitable your business be. You need to strategically choose a location with limited banks and ATM. Also consider places with relatively high human interaction, places such as
• Event Centers
• Schools (University campuses) etc
Once you've gotten your preferred location, next you need to either rent a shop or simply create a small shed with a porch for security reasons. You need to make it a little wide to accommodate large numbers of customers at a time.
Next, you need to invest a little in advertising, you can either pay a designer to create a banner for your business. Place the banner at the front of your shop and nearly furnish and organize your shop.
5. Render Your Pos Services
After going through all the above steps on how to start a pos business in Nigeria, the last step would simply be to start rendering your services for profit. The process of operating the terminal is very easy, as you have been already shown by the bank. Many transactions can be carried out including
• Deposition of funds
• Redrawals of funds
• Transfer of funds
• Payment of PHCN
• Payment of GOTv and other bills.
The bank will subsequently give you a commission based on the number of transactions you perform. You can also charge customers a certain fee for every service you render. On how to start a pos business in Nigeria, you literally can make money through different ways which will be communicated to you by the bank.
How to start a pos business in Nigeria is currently gaining the attention of a lot of people in the country due to the high-profit returns from the business.
It serves as a major source of income for a lot of people who operate the business. For you to make a lot of money through this business, the location of your shop is very important.
You need to set up your business in a place with little to no banks at all. Also, look out for ATM. Make sure it is also a very busy environment with enough securities as you will be dealing with a lot of cash.
That's why though it highly profitable, it is also risky.
How to start a pos business in Nigeria is very easy and straight forward once you can follow through with the needed requirements. It is a very lucrative business that I will advise you to start today.
Read this post again, get the required capital, get the required documents, follow required steps by the bank, get the required equipment, set up your shop, render your services, and make money.