The rising trend of unemployment amongst young Nigerian graduates had lead to an increased rate of poverty in the Nigerian economy. This has led to many Nigerians branching out to open their own businesses, from online business to provision of services, many Nigerians are willing to do it all legally, anything it takes to survive.
If you ever worried that most of the small scale Business ideas like affiliate marketing and mini importation are being done by lots of people or maybe you feel like they are too complex for you, well, worry not, we have just the right thing for you.
Consider POS business; it is not a strange term, as it has been around for quite a while now. It is a safe and almost unbelievable way of making money.
What is POS Business?
The initials in POS stand for Point of Service. The POS business is an agent banking business in which basic banking transactions like funds transfer, withdrawal and deposits, can be made. Other services like payment of electrical and TV bills can be made. As the definition implies, you will serve as an agent to whatever bank your POS machine is registered to. Banks are very much in support of this business and it is a good way to decongest banking halls, while still making a profit. It’s a win-win for everyone.
How To Start A POS Business In Nigeria
Before you go into the business, there are a few things that you as the business owner should consider.
First Step: Getting a Host
The first and arguably the most important step in kick-starting your POS business lies in finding yourself a good host. Examples of good hosts include; Quickteller, Paga, Firstmonie, FCMB, and lots more.
How To Get A Paga Host
- Use their official web address, https://www.mypaga.com/ to log in to their page, you can also use the opportunity to get some useful information and learn more about them by going through the reviews of other users.
- By clicking on the FAQ link situated at the bottom of the web page, you will be guided to two sections for customers and agents respectively. The agent section contains detailed information on steps to take.
- Submit your request to their email address at [email protected], then you can proceed to the next step. You should do well to include your name and contact information in the email you send, so they can easily reach out to you. After that, you would get a reply from a Paga agent who will give u further instructions on what you need to do to become a fully certified Paga agent.
Being a Paga agent comes with a Host of benefits such as the commission for each and every transaction done through you. You could also get added traffic to your business, courtesy of being a Paga agent.
Firstmonie and Quickteller are other commonly used hosts that offer similar benefits to Paga. These payment systems, just like Paga, can be used to transfer funds through your phones. The services that these payment systems offer range from local business and money transactions ( withdrawals, deposits, transfers from one local bank to the other) to foreign cash transactions with foreign financial institutions such as Western Union, money globe, Payoneer, and other well-known systems of payment. The agents for all these payment systems are spread all over the country and come in the form of small to mid-sized businesses, and in some cases, even large businesses make use of these payment systems.
Second step: Location Location Location!!
Location matters. Where your business is situated is key to having a successful business. It must be found within reach of residential areas. Most people would rather stroll to your location to carry out bank transactions than to go all the way to the bank. The two major things to consider when thinking of a good place to set up your business are;
- It must be located in places that are lacking in banks or ATM outlets. This will help in meeting a need of the residents of that area, reducing the transportation cost used in the withdrawal and depositing of cash and a few other bank-related transactions.
- Your office or business location must be easily accessible to people. It should also have enough space so your customers can be comfortable even as they make transactions.
Third step: Get a POS machine
It is important you get a POS machine with card readers as most if not almost all of your customers will make withdrawal transactions. Generally speaking, it costs a little of N90,000 to get one, prices typically range from N85,000 to N100,000 to get a brand new POS machine. Some banks offer free POS machines as long as certain requirements of theirs are met, one of which includes you having a current account with them.
You would also be needed to have your POS documents, which can be easily obtained from the bank or downloaded from the internet under the guise of your bank. An account officer of your bank will go a long way to helping you and ensuring that all these requirements are met.
Fourth Step Advertising and Marketing
Just like every other business, advertising and marketing would have to come into the equation at some point. Printing and displaying banners and posters would help passers-by learn of your business. Also, this is an internet-oriented age, where more people spend more time on their internet-connected devices. Take advantage of this opportunity by creating a social media account for your business and post ads regularly to get the word out. There are many more things that can be done to ensure that words spread out about your business.
Finally: All things being said and done, you can not begin a profitable business without good capital or start-up money. If you lack the money, you can always find investors that could help bring your vision to reality. If you feel like this business is for you, what are you waiting for? Go and make your dreams come true.
What other things would you like to know about starting a POS business in Nigeria? Leave your questions in the comment section below.