Couple of months back, I was with Patrick, my very good friend who just started a POS business last year. "The business is quite fruitful," Patrick said. "On the worst day I could make up to N2000." and when this amount is multiplied by a month, let’s say 28 days = N56,000.
In this article, my friend Patrick took us through the step by step approach he took to start his POS business.
POs business has gained a king-size popularity in few years now. And many who know the lucrative nature of it would probably want to venture into it.
These banking agents are now serving as a substitute to financial institutions. Due to the inability of banks, to meet up as soon as possible the demands of their teeming customers who keep standing under the scorching sun just to withdraw and make transactions. Consequently, this business has come to stay.
"I started this business last year, 2018. Well, before I started, I had only small amount of money in my account and a desire to succeed, big time." To me, every business is profitable, but this depends on some numbers of factors. When it comes to POS business, your location is the number one thing to consider." Patrick explained.
Aside the location, for someone who has little capital, you need a good business plan in place on how to raise capital if you are to make it big.
Recommended: Businesses You Can Start With Little Or No Money
In this guide, you will learn the processes you need to go through to start this POS business. And if along the line, there is any question you want to ask, feel free to use the comment box below and I will be glad to respond.
Below are the things my friend Patrick considered necessary to start-up a POS business.
1. Find A Name And Register It:
We Can Assist You To Register Your Business Here In Nigeria With Just A Small Amount: Send a WhatsApp Message to: 09015226474ESY Media
When I wanted to start, I knew I was in for big business. This was because I did my research about the profitability of the business before I ventured into it. So what did I do? I came up with a name, that's a name in which I love my POS business to be known as.
Then the next thing I did was to get the name registered with Corporate Affairs Commission (CAC).
And I would advise you make your chosen business name unique so you won't have problem registering the name. The business name may not necessarily be your personal name.
Take for instance, ESY Media. ESY may be a personal name but media makes it a unique name. “That's right,” I responded.
“So, what next,” I asked. After you have come up with the name, you will have to visit a nearby CAC agent to register your business. There are many reasons why I have to register the business.
If this has been done, the next in line is to find a good location.
2. Find A Good Location For Your POS Business:
POS business isn’t about just transferring money or doing fund transactions anytime of the day; it’s about meeting the required demand of your assumed customers. What does this means? Rent a good shop in a bus stop. The shop should be miles away from commercial banks and ensure you’re cutting any undue competition along the line.
A good business location contributes to 80% of your success in this business. Imagine going to open an office in a scanty area. It means you are not ready to succeed yet in this business.
This should be your guiding principle, “Look out for populated and busy area.”
Further, when you’re done setting up the office, you need to get in touch with fund agents.
3. Connect With Fund Agents In Your Locality:
Fund agents are those standard businesses partnering with smaller businesses for transaction extensions.
In the Nigerian scene, we have financial agents like, First bank, FCMB, PAGA, and Quickteller. These are the front liner fund agents. However, research about them to see whose plans, terms and conditions is favorable to you.
Reach out to them and get your POS machine.
4. Getting Your Tools:
Before you chose a fund agent, this is another factor you should consider as a starter. Free POS Machine. While banks like First bank gives their POS machine free of charge in additions to their requirement you need to meet. You can as well get a POS machine from the tech stores which cost about N85, 000 for a durable and long lasting one.
You should also consider acquiring the following gadgets before launching your POS business; Star MPOP, IPAD bundle, PC bundle, MAC bundle are popular POS machines you can go get.
Apart from your POS machine, office essential like, a good fan, a table and chair, wall socket and a demarcation between you and the customers depending on the size of your shop.
Finally for this section, customers will more likely visit a POS machine outlet with a well aerated environment. So, you need to consider the comfort of your customers.
5. Advertise Your Business:
POS business is one business that advertises itself. You need not to go for TV Broadcast for people to know you. All you need do is to design a good banner, that’s all. Make sure your banner is big enough and in the opening so passersby can easily notice you.
The next form of advertisement you can do is to tell your friends and family what you do. At least, let them do their normal Startimes, GoTV and DSTV subscriptions from you.