With the rise in the numbers of POS business in Nigeria, we can say that this business must be profitable enough to attract both new graduates and business personels.
POS business is one small scale business that has become one of the most lucratious easy to start business in Nigeria today.
Adding to the fact that people are not interested in going to bank again because of the cost of transportation to bank and the stress involved.
Today, almost every residential street in Nigeria today have atleast 2 to 3 POS locations where people withdraw, transfer and pay bills in Nigeria.
Therefore, let us find out the cost of starting and running a successful POS business in Nigeria.
What does it cost to start a POS business in Nigeria:
1. A good business location:
Location largely determine the success of every business today.
Though this isn’t a yieldstick but a good and accessible location will help a business grow faster.
It will make people know where to find you whenever they need your services.
2. A kiost or office to serve as business point to attend to customers:
If you have a good location, you’ll still need a shelter like an office where you can keep your POS devices, stay comfortably to attend to customers.
Your office must be well position to make customers recognise what your business is all about in one view.
3. Your POS Business Requires Startup Capital:
Every business requires some startup capital with which the business owner can kick off from.
To start a POS business, you must be ready to start with a capital of atleast 100 thousand naire in Nigeria.
You will likely hold about 60 thousand naire for cash withdrawal payments and 40 thousand naire for funds transfers.
I recommend at least 100 thousand naire but if you can get more capital to start up your business, I will gladly encourage you do so.
4. Conducive and business secured environment:
I advise that your business should be located in a well secured environment.
Always put security first before income.
Running a POS business in an enclosed corner of a street with less people passing by can be a concern and an advantage for robbers.
Always ensure your environment is secured enough to hold cash in hand and conveniently do your POS business.
If possible a market, a bus stop or few distance away from a visible major road with a good number of passing customers is okay.
5. Branding like banners, signboards, posters to create awareness:
Create brand awareness as much as you can.
Branding will enable people know what your business talks about without them asking you a single question.
Make sure you brand your POS shop or kiost to inform new potential customers on what you’re doing there.
Use signboards, place flyers on your walls and decorate your office with your POS business banners.
6. A good internet enabled 4G Lite access for smooth transactions:
Setting up your business in a 4G Lite network area will be a plus to your business success.
Also ensure you make use of the best network coverage in that environment your POS business is located.
Doing your POS business in a poor internet covered environment might affect the flow of cash withdrawers and fund transfers.
Hence, I don’t think you need this struggle.
Also Read: How do poor internet connection affect the success of small business owners.
7. Stable Electricity Is Required To Run A successful POS Business In Nigeria:
There will be need to always charge your POS terminals and your phone as you work and attend to customers.
As long as you keep working, your battery will get low and you’ll need to charge.
Hence, an environment with stable electricity is important so you don’t spend too much running cost fueling a generator.
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8. Build Good Customer Relationships:
It is one thing to start a business and it’s another thing to get customers coming to you.
As you start off, you’ll surely get some customers who will come to patronize your business.
The question now is how do you attend to customers to make them keep coming back?
You must be transparent, sincere, polite and be a trust worthy POS agent.
Similarly, avoid the companies of bad friends else people might start suspecting you in no time.
Also read: How to apply customer to customer marketing in growing a business.
9. Consistency:
You can’t be on today and off tomorrow as an habit and expect customers to put their trust in you.
You must be consistent enough to make sure your customers are served at any time needed.
If you must travel of go on off days, ensure you inform them earlier on.
Also, if possible you should have a trust worthy assistant to cover up for your inavailability.
What are the dangers to avoid when running a POS business in Nigeria:
1. You must be careful with figures when doing funds transfers:
This simply means you must be vigilant enough to watch the figures in your mobile app or POS machine when making transfers.
An extra added zero to ten thousand naira will automatically become hundred thousand naire.
That is a huge difference and loss of ninety thousand naire so be careful.
Therefore apply some sense of caution at every transaction.
2. Every POS Business In Nigeria Needs A Well Secured Environment:
How secured is your choice environment?
You must be security conscious enough to know when to open your business and when to close at work.
Always cover your transaction PIN when doing transactions before customers.
3. Don’t keep late nights:
Late night are dangerous for the type of business you run here.
Make sure you dont walk through lonely paths at night to avoid robbers.
Also, ensure you always carry a bright light when approaching dark corners if you eventually walk late at nights.
Furthermore, don’t allow everyone know where you live.
4. Watchout for fake money / fake notes:
Fake notes are seriously in circulation.
I advise you take good look at fake currencies so you don’t fall victim of scammers.
If possible, count your money twice everytime you are handed cash and pay attention to each notes as you count.
5. You Might Need A Counting Machine As Your POS Business Grows:
A counting machine is not really important if you’re handling less cash in your business.
However, as your business grows you will need a counting machine to count bulk cash in order to save time.
6. Activate Your Mobile Apps To Enable You Check Incoming Transfers:
If you must receive fund transfer from customers who will want to withdraw without ATM cards then activate your mobile App.
This will help you check funds transfers quickly which saves you the time delayed in getting sms alerts.
Fake alerts are also used by scammers today hence sms alerts are not fully trusted like mobile Apps.
7. Watch your relationship with customers:
Every business grows on the bed rock of a good relationships.
How you treat your customers will matter if they will keep coming back to your office.
This will largely affect the numbers of transactions you’ll do daily.
Small business owners who do not understand the importance of a good customers lifetime value might not fully utilise this advantage.
8. Your POS Business will grow fast with moderate charge:
Everybody wants to pay less and get more.
I know you’re in the business to make profits and earn a decent living however you must not overcharge if you must keep bringing in your customers.
Lower your charges but also ensure you’re not running at loss.
For instance in some locations N5,000 to N10,000 is charged at N200 but you might decide to do so for N150 or N100 depending on their patronage.
Okay, we now know the dangers involved in running a POS business, let us find out how to get a POS in Nigeria.
In this article, we”ll find out how to get an Opay POS in Nigeria.
How to get an Opay POS machine:
Getting an Opay POS Machine is as easy as getting other Banks POS, Therefore here are the conditions to be met:
- You must open an active Opay account.
- Add a valid government issued I.D card, an utility bill and a recent passport to upgrade your account.
- Walk in to any Opay Offices to request for a POS machine of your choice.
- You”ll get enrolled as a merchant after which you can make payment depending on your choice of POS you want whether traditional or andriod.
- Your POS device will be activated and issued to you.
Congratulations, you can now get to your office and start your business… Happy transactions.
Do you find this article educative and informing, if so, kindly share this article and also drop your comments with me at the comment bos below.
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Thanks for your time.
