There are numerous businesses in Nigeria but the problem lies in choosing a suitable and convenient one for yourself.
New business opportunities are been created everyday and many Nigerians are trooping in so that they can get the best from those opportunities. One of the problem is that most of this business loose its worth after some months.
That’s why i have written this guide on how to start a pos business, the POS business is one of the most lucrative business you can get into, this business will fetch you a lot of profit especially if you are planning on a long-term business goal.
Without wasting time, let me explain how to POS business works; POS is an acronym for ‘Point Of Sale’, it is a business whereby an agent (who is the owner of the POS business) stands as mediator to withdraw your money, what i mean is; the point of service agents aid people to make withdrawal from the comfort of their environment without going to the bank.
This transaction is carried out by a device called a Pos Machine, the agents puts a particular amount of money for transactions carried out through his machine.
The Need For A POS Business In Nigeria
- Easy withdrawal
- Pay bills
- Subscribing TV cables
- Buying of airtime
With a point of service you get to make transactions with ease, you don’t have to queue up at the bank before making withdrawals and you don’t need to go to the TV cable outlets for you to subscribe your cable. The POS business has made things easier!
With the service of a POS, people who are not knowledgeable on how to use the ATM or the withdrawal slip will be able to make withdrawal without going through the hurdles of making withdrawals.
With a POS you can pay numerous amount of bills ranging from the electricity bill to the water bill. With the point of service you’d pay your bills without going through the stress of going to the offices.
Subscribing Of TV Cables:
As i earlier said, you can subscribe your TV cables from the comfort of your environment by just entering into a POS shop.
Buying Of Airtime:
I have been in a situation whereby i needed airtime and there wasn’t any means of purchasing an airtime in the place I live, the only option i had was to go to a POS shop and buy the airtime. The POS shop has made buying of airtime easy especially if you live in a remote area.
How To Start A Lucrative POS Business In Nigeria
For you to start a POS business you need the following:
- Business name
- A shop
- A host
- A POS machine
The above listed things are the basic necessities for starting a POS business, you can add more functionality to your business by allowing the recharging of TV cables like startimes, GOTV, DSTV, selling of recharge card and also recharging of electricity bill.
The POS business is approved by the Central Bank Of Nigeria hence it is legal.
Register A Business Name
Having a business is a necessity in running a business in Nigeria, the name represents your brand.
The ‘Corporate Affairs Commission (CAC)’ are responsible for the registration of business names in Nigeria, the registration shows that your business is approved and recognized by the government. While registering a business name, make sure you choose a name which haven’t been used by another business. To start your registration, go to any CAC agent or office, note that you’d pay a certain amount of money before you can be registered.
Get A Location
You have to be smart in choosing a location where you’d want your shop to be situated, opening a POS shop close to a bank won’t be a nice idea because people in the environment have an easy access to the bank hence they wouldn’t see any reason to patronize you. I’d advise you to choose a location where there isn’t a bank, this will bring in many customers because the would rather make the transaction with you than to go to the bank which might cost them a lot.
Capital is one of the basic things you need to start a POS business, the capital is the first money you put into a business. The capital you need to start a POS business isn’t specific hence i can’t give you a specific amount of money you need to make the business up and running.
The more capital you use in running your business the more chances you get of making more profit, there are many businesses you can start with ₦50,000 and POS business is one of the option which makes it one of the business that doesn’t require too much capital for a start.
How To Get A POS Machine
You can’t start a point of service business without a POS machine.
There are mainly two ways of acquiring a POS which is by buying a machine from a distributor or by getting a machine from a host, getting a machine from a host is free but comes with conditions.
The best one is you owning your POS machine but if you are on a low budget, you can choose to get the POS machine from a host, the downside of getting a machine from a host is that your host would get a special percentage of every transaction you make with the POS machine.
There are numerous host and the are outlined below.
A host is a is a financial institution that stands as a third party to the services you provide. There are numerous number of POS hosts but only a few are reliable. The popular and widely used hosts are:
Paga is a widely used POS host in Nigeria. Paga has created a platform whereby you can send and receive money (both within and outside Nigeria) and also buy airtime. To make Paga your host, you’d have to register to be a Paga agent. As an agent, you’d receive a commission and a bonus for every transaction carried out through you.
How To Become A Paga Agent
Before creating an account with Paga, I’d advise you to go through the paga FAQs page so that you’d understand how it works. After going through the frequently asked questions page and you feel you are comfortable with their terms then you can go ahead with the registration, the steps are highlighted below:
- Go to the official paga website and click on the “Get Started Now” button.
- A form will pop up telling you to insert your details, make sure you put in your correct details; make sure you use an active email address and phone number.
- After you’ve successfully created your account, you’d see a pop up notification telling you to “verify your details” click on it, a One Time Password (OTP) would be sent to the number your registered with insert it in the provided form for verification.
Firstmonie is another reliable host for your POS business, firstmonie is a subsidiary of First Bank Nigeria PLC. which makes it a reliable platform.
As a firstmonie agent, you can make transfer, pay bills, buy airtime, enroll for BVN an also create a first bank account for your customers.
How To Become A FirstMonie Agent
- Have a physical location (shop) that can be easily located.
- You must have a minimum capital of ₦50,000.
- You must have a valid means of identification which can be your national ID card, drivers license or international passport.
- You business must be registered with the corporate affairs commission.
If you meet all of their requirements, then go to any First Bank branch close to you and make request for a Firstmonie agent form.
FCMB agent banking has created a platform whereby agents can help people make transactions at the comfort of their environment, becoming an Agent at FCMB will give you the privilege of getting a POS machine. As an agent you’d be able to create bank accounts, make cash withdrawal/deposit, bill payment and BVN enrollment.
How To Become A FCMB Banking Agent
- Have an active account with FCMB
- Have a physical location of your shop.
- You must be literate and have a good sense of communication.
If you have all the requirements, go to a FCMB branch and make request for a POS machine.
Quickteller is another reliable host for a POS agent in Nigeria. Quickteller is not in affiliation with any bank but have stand the test of time. As a Quickteller agent, you’d be able to make bill payment, withdrawals, buy airtime and make deposit for customers and get a commission for any transaction carried out by you.
How To Become A Quickteller Agent
- You must be able to read and write.
- You must have a physical location (shop).
- You must have a functional android phone
- A means of identification (national ID, drivers license or international passport).
- A passport photograph
- A recent statement of account from your ban
After meeting their requirements, go to any Quickteller branch and make request for an application form. You’d receive your POS machine once your application is approved.
Conclusion On How To Start A POS Business
The POS business is one of the lucrative trade you can go into, i hope you’ve known how to start a POS article, please drop a comment below if you need any clarification.