A pos business is one of the smallest types of businesses in Nigeria and is usually situated on a corner. They carry some common items such as cigarettes, newspapers, snacks, and soft drinks.
Touts are often found loitering around these businesses and will try to steal from the customers. Due to this risk, many POE businesses are often abandoned or burned down. They also have a reputation for being very dirty due to their proximity to other small traders in the area and the lack of means for proper maintenance.
Despite all these setbacks, pos businesses can be profitable if managed well because customers can get some of their daily needs without going into a store where they might be disappointed by a lack of supplies when they come across an under-stocked store. The profit from the business can be used to purchase supplies and maintain the shop.
How To Start A POS Business In Nigeria
Here are the steps to starting a POS business in Nigeria:
- Secure a capital
- Select your merchant terminal.
- Get a POS (point of sale) Software for your business
- Issue POS system training to staff and equip them with the necessary equipment.
- Equip the store location with a viable power source for the merchant terminal and POS (point of sale) software.
- Integrate the point-of-sale system into the existing database; if one already exists, it should be easy to do this step; if not, you can register an account with one of many database providers.
- Maintain a POS Software User Guide and Training Manual
- Ensure the merchant’s point-of-sale terminal is always working for at least 6 hours per day.
- displays the right data with the correct graphics, layout, and so on, readers will feel comfortable when they are there trying to make money.
- Create a website for your company and post on popular merchant forum sites; you can even pay for online advertising.
- Take note that an efficient point of sale system is vital to your success as a business, and you also need to give your staff training as well as well-trained sales personnel who can help you sell goods faster and at higher profits.
Tools Needed to Start a POS Business
The tools needed to start a POS business are:
- A point of sale (POS) system
- Cash register to track expenses
- POS printer for receipts, VAT cards, and labels
- Customer service software for customer orders, accounts, and refunds
- Marketing software that maximizes engagement and visibility
- Payment processing tools such as credit card terminals or online payment services
It is also recommended to have a mobile device application so customers can order directly from their phones. This gives the customer access to check their order status while they are in line at the store, which increases sales and saves redundant trips back home. The reason this matters is because it decreases overall carryover by allowing customers to use digital receipts versus paper ones.
How to Obtain a Reliable Pos Machine in Nigeria
Getting a POS may not be difficult in Nigeria. However, there are ways to get around them.
Here are the steps to getting a POS machine in Nigeria:
- Get an ICT business license.
- Get a POS terminal.
- Install and configure the POS terminal.
- Register for a merchant account with a bank or financial institution.
- Get your EMV chip card reader from the bank or financial institution.
- Set up your online store to get payments online.
- Get registered with the Nigerian Shippers’ Council (NSC) if you ship to customers.
- Get registered with Nigeria Custom Service (NCS) if you ship goods internationally.
- Get your local agent to help you get listed on Digital Teller.
- Get your business’s social media accounts setup and start marketing your business.
- Purchase Google Pay services to process digital payment transactions at a low cost.
- Setup a payment gateway so that your customers can do bank transfers, ATM withdrawals, and credit card payments instead of going online for their payments.
- Setup a way for customers to reach out to you via text or email in case they have issues paying online.
Benefits of a POS Business in Nigeria
The benefits of owning a POS business in Nigeria include:
- Possibly Africa’s most profitable investment opportunity
- There is no need for exorbitant capital to start
- More than half of Nigerian companies and retailers use POS solutions.
- POS solutions minimize the workload of managers, clerks, and staff members.
- Experience has shown that POS systems can increase transaction times by 70%, resulting in customers spending more than they would without one.
- POS solutions provide real-time information to managers and staff members.
- POS systems can minimize employee theft by recording every transaction, thus providing a more efficient way to audit.
- POS systems can also be implemented to track inventory, thereby keeping all stores on the same level with regards to merchandise.
- The ability to accept credit cards will increase sales significantly.
- The financial services industry is growing in Nigeria, and there is a need for an integrated solution like this one.
To conclude, there are a number of benefits that come with owning a POS business in Nigeria for both merchants and customers alike.
Businesses That Need POS
Here is a list of businesses in Nigeria that may likely need a POS:
- Retail outlets
- Museums
- Pharmacies
- grocery stores and supermarkets
- Supermarkets
- Car dealerships
- Hotels, motels, and inns
- Theaters, cinemas, galleries, and museums
- Government offices, including the president’s office, as well as ministries such as the Ministry of Finance or the Ministry of Justice
- Corporations
- Behind the counter service providers like taxi drivers, delivery services, or even hairdressers The list goes on. Of course, this is not an exclusive list, but these are just some of the examples. The point here is to demonstrate that having a POS in Nigeria can be useful to a variety of businesses. These are just a few examples, though, so make sure you do your research before investing in any equipment.
The Best Locations for a POS Business
The perfect locations to set up a POS business are:
- High-traffic areas
- Shops or stores nearby
- There is plenty of parking.
- convenient to public transport
- Away from busy roadways
- near a grocery store
- in a town or city with less than 100,000 inhabitants
- close enough to major highways
- within walking distance of other retail outlets
- easy access to the general public
- ample space for expansion
Conclusion
If you’re thinking about starting a brick-and-mortar business in the future, these are some important considerations to make sure your business succeeds and grows into a thriving venture that will provide you with a stable income while also supporting your family’s needs!
The POS business is an important business in Nigeria. It contributes significantly to Nigeria’s GDP.With a POS system, it will be easy to control and monitor cash flow, track debts, improve customer service, and make informed decisions about future investments.
POS (Point of Sale) systems are transformative information technology tools that can be used to make our business processes more efficient and effective. Choosing the right POS system is a significant decision. POS systems provide a valuable service to businesses of all sizes by ensuring they are operating effectively and efficiently while maximizing profits.
The primary benefit that a POS system provides is accurate inventory tracking, which reduces the likelihood of loss due to employee theft or errors. A POS system also helps businesses track sales data closely so they can spot trends in customer preferences and make necessary changes to products or marketing materials.
Frequently Asked Questions
How much does it cost to own a POS in Nigeria?
There is no fixed price for POS terminals in Nigeria. The prices for POS machines in Nigeria can range from N45,000 to N65,000 to N75,000 and can get as high as N200,000 depending on the specifications of the POS machine.
How do I set up a POS for a small business?
- Before anything else, find the right retail solution provider.
- Determine the store set up you’d like to have.
- Decide on who will set up your POS.
- Launch the software and log in.
References
- https://www.vendhq.com/blog/how-to-set-up-a-pos-system/
- https://www.entrepreneurs.ng/how-to-start-a-pos-business/
- https://www.gabrieldomale.com/blog/the-pos-business-in-nigeria-how-profitable-is-it
Recommendations
