HOW TO START A POS BUSINESS IN NIGERIA

This is a highly demanding business today in Nigeria. POS (Point of Sale) has become a great, highly demanding substitute for the ATM machine. Because of the disappointments; such as long queues, empty ATM machines, etc. associated with visiting the ATM machine, members of the public are comfortable getting cash from POS vendors. 

Starting a Point of Sale outlet in Nigeria can be a very profitable endeavor especially because electronic payment method is growing daily. The demand for POS systems becomes more popular every day as much as the public is becoming comfortable with cashless transactions. 

This article will educate you on how to start a successful POS business in Nigeria. post.

THINGS TO DO BEFORE YOU START

There are certain things you need to do before you start. Let's quickly take a look at them;

1. Conduct market research

Conducting market research is crucial before launching any business. This will help you ascertain the viability of the business concept. You must understand certain things in the industry before you can be successful in it. In this case, understanding the competition, the price strategy, the demand in your chosen location, and the method of operation. This survey will help you personalize your business and think of a strategy to attract clients.

Step 2: Register your business

This should certainly not be an issue. You must register your business before you start. This step alone has a lot of legal benefits and you will need them since you will be dealing with money. 

Step 3: Choose a location

The success of your POS business will highly depend on your chosen location. Chose a place where you will get a lot of clients. A busy commercial road or environment, and maybe a place close to a market, high institutions like the University or Polytechnic.

Also, forming a small partnership with some small groceries shops, restaurants, and pharmacies, to offer them POS services will be of great help.

Step 4: Obtain POS terminal and accessories

Get the equipment. You will need a POS machine at least. Apart from the known commercial banks like Access Bank, Zenith Banks and their likes, online platforms like Moniepoint, Kuda, Opay, etc. can register a POS machine for you. But if you are not comfortable with those platforms, you can always get a machine from your bank. 

Step 5: Hire staff

This part is actually optional because the majority of people that are in this business will rather run it themselves. But if you are thinking to expand, you will definitely need to hire additional staff. The more staff you have, the more outlets you get. 

It is important to note, however, that you cannot just hire anyone. You need to hire a person that has knowledge of the business. Take into consideration that mistakes are easily made during POS transactions. S, you will need a person that can operate this machine conveniently. 

Step 6: Advertise your services

Advertise anyhow you can. Always advertise your business.

Step 7: Provide excellent customer service

How you treat your customers is very important. The success of your business depends on how you treat your customers. Make sure all your staff is polite and friendly to your clients, they must be well-informed and ready to offer assistance to clients whenever necessary. This is a good step in cultivating a good business environment. 

 

IS POS BUSINESS IN NIGERIA PROFITABLE?

The answer is YES! The demand for it is very high and it is increasing every day. But you must understand that profit depends on certain factors. Below is a detailed outline of the factors that yield profit in the POS business.

Location

Your location is very important. Make sure you chose a site that is a busy commercial place. Locate it in a place where people will need fast cash. Places like; near a hospital, a market environment, public bus parks, garages, taxi stands, higher institutions like the university, college of education or polytechnic, etc.

Marketing

A POS company with effective marketing will probably draw in more clients. You must market your services to potential clients in your target market if you want your POS firm to be profitable. Flyers, banners, social media, and word-of-mouth are all effective ways to do this.

Number of transactions

Your POS firm grows more profitable the more transactions it conducts. Nigerians' acceptance of cashless transactions will increase demand for POS services, which will rise. This offers POS firm owners a chance to boost sales by offering dependable and effective services.

WHAT YOU NEED TO KNOW BEFORE YOU BEGIN YOUR POS BUSINESS

Before investing in a POS business in Nigeria, there are a few things you need to know:

1. Regulations: POS business owners are required to register with the Central Bank of Nigeria (CBN) and obtain a license before commencing operations. Failure to comply with these regulations can lead to hefty fines and legal actions.
2. Competition: The POS business in Nigeria is becoming increasingly competitive, with more players entering the market. To succeed in the business, you need to differentiate your services and offer competitive pricing.
3. Technology: The POS business requires a reliable and up-to-date electronic payment terminal. You need to invest in a high-quality terminal that can process transactions quickly and efficiently.

If done properly, the POS industry in Nigeria can be profitable. Nigeria's growing preference for cashless transactions makes the POS industry a promising investment prospect. To make your firm lucrative, you must invest in the appropriate location, marketing, and technology. To avoid legal problems, make sure you adhere to the laws that regulate the sector. 

HOW TO START A POS BUSINESS IN NIGERIA WITH 100,000 NAIRA

Especially in Nigeria, where cashless transactions are growing in popularity, starting a point-of-sale (POS) firm can be a rewarding endeavor. The topic of whether it is possible to launch a POS business with 100,000 Naira is one of the most often asked queries. Yes, it is conceivable, to put it succinctly, but it relies on several variables.

Let's start by delving into the startup costs for a POS company. A computer or laptop, a point-of-sale device, internet access, and a physical location are all required. You might pay anywhere between 60,000 and 80,000 Naira for a laptop and POS machine, depending on their quality and features. You would require a strong and dependable connection for internet connection, which might run you between 5,000 and 15,000 Naira each month. Last but not least, you'll need a real space, which could be a tiny shop or market booth. Rent prices vary depending on the area and size of the space, but you should plan to set aside about 20,000 Naira each month for rent.

Given these expenditures, it is obvious that 100,000 Naira may not be sufficient to pay all of the costs associated with launching a POS firm. There are, nevertheless, several strategies for cutting expenses while boosting revenue. For instance, you may begin small by working from home, saving money on rent. If you choose to acquire a used POS machine rather than a new one, the cost will be much lower. To obtain a discount on internet connectivity, you might also bargain with internet service providers.

Another strategy to boost revenue is to offer additional services like bill payment and airtime recharging. This would increase foot traffic to your restaurant while producing an additional source of cash. To offer your services to their customers, you may also consider partnering with local businesses like pharmacies and grocery stores.

Additionally, it's critical to remember that launching a POS business necessitates a certain amount of education and experience. You must be knowledgeable about how to set up a POS device, handle typical issues, and deal with client complaints. So before starting a POS firm, it is advised to spend some time learning the fundamentals of running one.

 

HOW TO CALCULATE YOUR PROFIT IN POS BUSINESS

Step 1: Determine Gross Sales

Determine your gross sales as the first stage in the profit calculation process. Gross sales, which include all transactions completed through your POS system, are a measure of the overall income your company generated in a certain time frame. You must create a sales report from your POS system to ascertain your gross sales. This report must detail every transaction made during the period in question, together with any discounts, taxes, and other charges.

Step 2: Calculate the Cost of Goods Sold (COGS)

The cost of your products sold (COGS) must be determined next. The COGS stands for the direct expenses incurred in manufacturing the products or services that your company sells. You must total all of the expenses related to manufacturing and selling your goods or services to determine COGS. This covers the price of the supplies, labor, and administrative costs. If you are selling tangible goods, you must also account for the cost of shipping and storage.

Step 3: Calculate Gross Profit

You can figure out your gross profit once you know your COGS and gross sales. Gross profit is the sum of your company's revenues less the direct expenses incurred in creating and offering your products or services for sale. Subtract COGS from gross sales to determine your gross profit.

Gross Profit = Gross Sales - Cost of Goods Sold

Step 4: Calculate Net Profit

Net profit is the sum of your company's revenues less all costs, including indirect costs like rent, utilities, and marketing expenditures. Subtract all of your business expenses from your gross earnings to determine your net profit.

Net Profit = Gross Profit - Total Business Expenses

Step 5: Analyze Your Results

It's time to review your findings after determining your net profit. Examine your sales and spending data for trends and patterns to spot areas of opportunity or worry. You might need to reconsider your pricing approach or seek ways to cut costs, for instance, if your net profit has dropped from the prior period.

 

HOW TO SET UP A POS SYSTEM

In today's business landscape, it's crucial to have a reliable point of sale (POS) system. A good POS system helps you streamline your sales process, manage your inventory, and track customer behavior. However, setting up a POS system can be daunting, especially if you're not tech-savvy. In this post, we'll guide you through the process of setting up a POS system.

Determine Your Business Needs

It's crucial to ascertain your business requirements before setting up your POS system. This will assist you in selecting the ideal system for your company. For instance, a straightforward POS system that can handle sales and inventory management may be required if you run a small retail store. However, if you own a restaurant, you could require a POS system that can manage orders for food, customize the menu, and manage tables.

Choose the Right Hardware

After identifying your company's requirements, you must select the appropriate hardware for your POS system. A cash drawer, a receipt printer, a barcode scanner, and a credit card reader are the four hardware elements of a POS system that are used the most frequently. You can also require a touchscreen monitor, a kitchen printer, and a consumer display, depending on the demands of your business.

Choose the Right Software

Your POS system's success depends on the software you choose. You must pick software that is adaptable, dependable, and user-friendly. Square, Shopify, Lightspeed, and Vend are a few examples of well-liked POS software choices. Consider the functions you require, like inventory management, workforce administration, and sales reporting, when selecting a piece of software.

Install and Configure Your POS System

The time has come to install and configure your POS system after selecting the appropriate hardware and software. This includes installing the POS software and configuring your hardware components. The program may require configuration to meet your specific business needs, including setting up your product catalog, your tax settings, and your payment options.

Train Your Staff

It's crucial to instruct your team on how to utilize your POS system after it has been set up. This entails instructing them in the processing of sales, inventory control, and report generation. Additionally, you should train your personnel on how to troubleshoot frequent difficulties like hardware or communication issues.

In conclusion, setting up a POS system might seem difficult, but with the appropriate hardware, software, and training, it might completely transform your company. You may set up a POS system that is dependable and easy to use and will assist you in managing your sales process, inventory, and consumer behavior by following these steps.