How to start a POS Business in Nigeria: All you need to know.
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You may want to start up a new business or make the next move to add a new company to your already established business to make it more lucrative and popular in Nigeria. POS is one of those businesses.
Point-of-sale business (POS), referred to as Point-of-service, has made its way to the top list of the most lucrative and popular businesses in Nigeria, which you can successfully open and operate using a small capital.
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It has been easier to perform most financial transactions without contacting your bank. The fact that it is easier for customers to use or access has also been an advantage to its popularity.
To start this business, you need capital, a physical location, etc. Still, before we let you know how to start this lucrative business, you should know the requirements for starting a POS business in Nigeria. Please keep reading to find all we prepared for you!
What are the Requirements for Starting and Running a POS Business?
You may be wondering how I can start this business and profit from it without hindrance from any financial agency. What am I required to do before I can start this business?
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If this question is in your mind, you don’t have a problem because the answer is below. They include:
- A means of Identification (Your Voters card, NIN, BVN, Drivers Licence, or International Passport)
- A business account
- Your passport or photograph
- Proof of your physical business address
- A Tax Identification Number
- An Evidence of Business Registration (CAC certificate)
- Credit Bureau Report
- A minimum working capital of N50,000 or more
- Current account references
- A POS machine (which you can purchase from your bank or POS provider)
How to Start a POS Business in Nigeria
To start a POS business in Nigeria, these are the steps to follow:
1. Make Researches
Before venturing into any business, the first thing to do is do enough research concerning the company, local laws concerning the business, the strengths, weaknesses, available opportunities and threats.
Get information about the business from the internet, experienced individuals, and experts alike for their opinion.
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2. Find a Good Business Location
The success of every business depends on where it is located; you have to find out who mostly needs the service. Markets, campuses, busy streets, and events centres are the ones that are in greater need of a POS service than others, and in that case, your choice of shelter should be around this area for the success of your business.
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3. Get a Shop, Kiosk or any other method of providing shelter for the business
After finding the area that will best accommodate your business, the next step is to look for a shop, kiosk, or shade where you can set it up in that location.
Having an existing business in that location is an added advantage.
4. Have enough capital
This is one of the main determinants of the success of your business; without enough capital, your business will have financial crises in the future, which can lead to collapse.
Enough capital will help you easily set up your POS business and function effectively.
5. Select a POS service provider and register as an Agent
Before starting a POS business in Nigeria, you must have a POS service provider under which you registered and choose a financial company to help you set up the business. It may be a traditional bank or a Fintech company.
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6. Get a POS machine
This is one of the main equipment for starting the business. You cannot effectively start and run a POS business without a POS machine.
And you can only get this machine from your bank or POS service provider.
7. Advertise your Business
This may not be an important aspect to you, but it is also important for the growth of the business; creating an advert about your business, the services you offer and what your customers may gain from patronizing, you are also an added advantage you may have over your competitors in that same area.
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POS service providers in Nigeria
here is a list of the POS service providers which operate and are available in Nigeria. They include:
- Banks: these banks include Zenith Bank, Access Bank, GTB, UBA, Wema Bank, Union Bank, etc.
- CLOSA agent
- Ecobank Xpress Point
Starting a POS business is one of the best ways to make money. You can set it up as a single business or merge it with another company in that same location and still make money.
Have enough capital, look for a good location to meet your targeted audience, be consistent, and offer quality service to your customers; you will be surprised at the speed at which the business is growing.