I remember a throwback teaser I stumbled on on a social media platform. The poster mentioned how in the early 2000s the big umbrella stand was known to be for call centers where you are charged between #20-#50 per minute depending on your location. Today, the same umbrella stand is a common marketplace for POS businesses in Nigeria. How quickly life evolves.
POS business is a thriving financial or say money business in Nigeria today with good profit-making prospects. It is definite that you are going to make a chunky profit. Let’s see a rundown of why and how the POS business makes its own profit for business owners in this financial space.
Nigeria is still very well a cash-driven society so every person in a day needs a certain amount of cash to run their life. That alone created a demand for another money dispensing facility apart from commercial banks. So POS suffices and has been able to cater to the demands of very remote places where commercial banks can’t take their services to. From here you can see that there is no community no matter how interior it is where the POS exchange business can’t be profitable.
POS, POS, POS what does this abbreviation mean?
What Is POS?
Point of sale popularly known as POS in Nigeria is a banking technological device used to carry out deposit and withdrawal transactions on a retail scale.
Although this is what POS is known for in Nigeria which is to do cash deposits, withdrawals, and transfers. There are more functions a point-of-sale terminal can do. A POS device is primarily to facilitate payment for customers after purchasing from a physical or brick-and-mortar store.
It is also used to keep track of daily transactions in terms of sales (payment made into the account) and expenses (money sent out). This is another digital bookkeeping channel for business owners. Rather than using old, traditional cash registers, payments made with the POS are easy to trace as money made or money spent.
Simple Sales And Expenses Recording Tips
Can I start a POS business with 50k?
Starting a POS business in Nigeria does not require a large capital to start. Unlike a conventional business that needs to set up a proper space (shop or office) to do business, a POS business needs less. Depending on your location, you can either do your POS business on the go or liaise with an already existing business for a small space for your chair and table.
So yes, #50,000 can start your POS business in Nigeria. It is sure a small start but you can grow and expand your capacity over the years. Once again, depending on your situation, this #50k might include the cost of acquiring a terminal or not. But that amount is not too small to begin the money business.
The cost of acquiring a point-of-sale terminal should also be put into consideration. At Kashbuk, we offer small business owners POS devices at a minimal cost which gives room for repayment and growth.
How much do POS agents charge in Nigeria?
This varies and depends on the location of the POS agent. For some cities and metropolis in Nigeria, the cost might range from #20-#50 per thousand. And when the amount is huge, the charges become relatively low. Remember economies of large scale, yeah? It works under these business circumstances.
Profit Check: How To Assess Your Daily Business Performance
How to grow a successful POS business
Growing a POS business is like growing every other business. Some of the key business attitudes you need to grow a successful and financially healthy business include but not limited to the following;
- Monitoring
- Auditing
- Sales Marketing
- Quality customer service
- Good business positioning or location
These are the soul of any business. The growth and downfall of a business start with how well income and expenses are managed and monitored. Good accounting skill is part of what you as a business owner should arm yourself with. Once you have these tips on track, it becomes a walk in the park to grow your POS business.
What you need to do is get lessons on how tips to maintain and grow your business. Since you deal with cash, it is advisable that you stay extra careful with how you carry out your transaction to block out fraudulent acts.
How can I make profit from my POS business?
This mini-banking business is deemed profitable with at least a 2.5-3% profit per thousand naira. At the lowest, a POS agent in Nigeria has the chance to make a profit of #5000 daily. This sometimes may or may not include the charges of the POS service provider. And why do we have a high return rate for this cash business?
Unlike conventional businesses where you have to incur administrative costs which might eat deep into profits. POS business in Nigeria requires very minimal costs to run hence the high-profit rate.
Charges from cash deposits and withdrawals are one of the many ways a POS agent can make a profit. Every POS device has other features that can be monetized such as airtime/data procurement and payment of bills. All these are ways the POS business generates profit.
Final Words
If you are looking into starting a business that does not require heavy capital, then a POS business is your best shot. You need the bare minimum to start and own a successful business. Even when you have an already existing business, you can pick up a POS terminal today at Kashbuk to expand the coast of businesses that you do. On the brighter side, you will be making extra money.
