In this article, we will discuss how to start a POS business in Nigeria and make better profit. The point of sale system is one of the most vital parts of any retail business.
It’s what your customers are interacting with at all times so it needs to be perfect! There are many things that go into making a POS system work for you.
If you’re looking to start your own POS company or if you already have one but want to learn more about improving its effectiveness, then this article is for you!
Nigeria has a population of more than 160 million people and the country is one of the biggest in Africa.
Nigeria has been growing rapidly and its economy also expanding at a rapid pace, which means that there are some opportunities for entrepreneurs to start up their own business here. One such opportunity is with Pos businesses.
The first step
You need to do when starting your POS company in Nigeria is to make sure that it’s registered with the Nigerian National Bureau of Statistics.
You’ll need to fill out an NR submit it along with the fee which is around 900 Naira ($0.50). This will allow you access to a number of services that are offered by the bureau, as well as make sure your business complies with Nigerian law.
The second step
You should do when starting a Pos company in Nigeria is to plan for your start-up costs. You’ll need money for things like buying the POS system, software licences, hardware such as terminals and printers and then there are other expenses that will come up once you’re running such as marketing materials and utilities.
The third step
In starting a Pos business in Nigeria is to think about how you’ll get your product into the hands of customers. There are two main ways you can do this – through physical stores or online marketplaces such as Jumia and OLX.
Nigeria has an excellent telecommunications network which means that it’s possible for people who live outside the country to sell their products here.
This is why many new entrepreneurs are starting up e-commerce stores from abroad and shipping their product into the country.
If you’re looking for a way to start your own Pos business in Nigeria, then this article has everything you need!
Why You Should Invest In POS Business
You should invest in POS systems for your business, because if you don’t then I’m sure someone else will. This is a growing trend that’s only going to continue as more and more retailers switch over from physical registers to automated ones.
To be competitive you need an edge on the competition: having access of data at any time through hand-held devices can provide real benefits like improved customer service and increased sales opportunities by learning about buyer habits earlier than ever before! By not investing now, you’re giving up all these advantages.
You could even find yourself outpaced or overtaken with competitors who invested early into this technology – standing still may put your company behind it’s rivals ahead of their curve when they are already working towards becoming digital first.
What POS Offer
POS businesses offer services like funds transfer, airtime sales, and bill payments. These establishments are found in places where goods or service is sold/rendered such as retail shops, offices with computers that have POS systems installed on them to accommodate modern payment methods for transactions.
The POS terminal is a must-have in any business or retail establishment, as it provides assistance with banking services like depositing money and withdrawing funds.
It also makes the process of paying for goods easy by making cashless transactions possible with credit cards, debit cards, bank transfers etc; meaning there will be no need to carry around much green paper!
Unsure on how your essay should start? Find some inspiration from these opening lines: “Modern technology has changed our lives drastically,” said John Smith at his most recent TED talk. “We are living through one of humanity’s great turning points.”
Important Of POS
Answer: Pos is Nigeria’s variant of Point-of-Sales. In contrast to enterprise installations, Pos terminals in Nigeria are generally configured with less software and hardware than their more expensive enterprise counterparts found in banks or supermarkets.
Benefits of POS technology for our business include significant improvements in your customer service efficiency (~60% reduction), reduced risk of theft (1/5 the risk), reduction on operating costs due to low maintenance requirements (~78% less) and minimal dependence on constant power supply.
As an example, let’s imagine a large supermarket chain that purchases 3,000 new POS devices per year with a depreciation life cycle of five years which already has 2,500 retail outlets nationwide.
That amounts to 12 million working hours per year just to maintain their retail operations. Imagine the cost in staff and time just for device maintenance.
How do they work?
The four devices needed for a streamlined POS systems are:
1. Touchscreen display
2. Cash drawer with printer (bills and receipts)
3. Barcode scanner (optional – EMV chip card reader)
4. Pin pad or other input device to accept PIN entry from card holders.
Once the above items are installed at your location, you can begin accepting payments in local currency.
The two different payment systems are card-based system and cash/bank based system.
Card Based System
This is where a customer presents his/her bank or credit cards for payment (debit card, ATM card, MasterCard®, Visa®). These cards are swiped through a card reader which reads the magnetic strip and sends the information from the card to your computer.
Cash/Bank based system
This is where you use cash, cheques or bank transfer to make payment for goods or services rendered. The customer will be asked by staff to fill in a form at their table with their name and amount, which will then be collected and deposited at the bank.
Alternatively, a customer may use any of the POS machines to make transfer from their account, or deposit cash into your bank account via Swift, NEFT/RTGS (Real Time Gross Settlement Systems).
The PIN based system is generally used for debit cards and credit cards
Wherever the card holder enters his PIN to authorize payment. A PIN pad is used to capture this data, which then authorizes your computer system to process their request and make payment for them.
As a merchant, you will now be able to accept payments from your customers in whichever form they choose; in combination with the other methods of payment above you will be able to provide your customers with a choice of payment methods.
Finally, the data generated by each transaction is then sent to our secure global server network where it is stored in accordance with international security standards.
This processing center them a detailed report showing daily sales and revenue statistics for analysis and future decision making needs (e.g. labor scheduling).
This is particularly useful for businesses which utilize a large number of employees in terms of manpower planning, and also allows you to track the performance of each employee on your staff.
As part of our ISO27001 compliance, we ensure that all data transferred between systems is encrypted using 128bit or higher encryption algorithms, this ensures that your information is always secure even while it is being sent over the internet and received by us.
This data can then be exported into a variety of popular accounting software packages, such as QuickBooks®, Quicken® or MYOB® for your ease in reporting and analysis needs.
Once you have completed checkout, your transaction is processed by our fully automated clearing house network (AUSCH), which then prepares the funds for debits to your account and credits your customer’s account.
In addition to these two methods of using cards, there is also a method known as card present: this is when the customer presents his/her bank or credit cards for payment at their table in your restaurant or retail store. This method is only used for certain kinds of transactions such as payment for bills, personal items etc.
The cost of card services provided by TELECARD are based on the amount you have processed at your POS locations monthly. The rates are as follows:
1. Local currency rates are based on the transaction size in your local currency and not on the amount processed by TELECARD. These rates depend on what country you operate from..
2. Currency conversion: The cost of converting transactions into Australian dollars is charged as a percentage of the total transaction amount (exchange rate dependent).
3. Fees and charges: These fees are based on the total volume of transactions processed by your POS not by any other criteria. The monthly administration fee is a flat rate regardless of transaction size or Volumes.
Reasons Why POS Business Fail In Nigeria
• Wrong Location
This is a topic that many people talk about, even though very few of them have actually experienced it themselves.
There are plenty of reasons to be excited for starting up your own Point-of-Sale business in Nigeria – the high population and low cost being among them!
But before you start dreaming big, don’t forget how important location can be – not just because there’s an opportunity with every corner (though this certainly helps).
It may sound like common sense but consider where customers might want or expect to find what they’re looking for when deciding on which area would best suit your needs.
Some of the main reasons why businesses fail in Nigeria are due to insecurity. This makes it hard for people with no savings, and those without a stable income or job security to start their own business because they feel unsafe investing in themselves when there is so much risk outside forces can influence them at any given moment
Some believe that one reason for this high failure rate may be how easy it is for other parties such as criminals infiltrating these organizations through corruption; many Nigerians live every day under the constant threat of being attacked by bandits while commuting from work on public transportation or their different working place.
• Lack Of Enough Capital
POS business fail because of lack of enough capital. POS businesses have to invest a lot money and make payments quickly, which they can’t do if their cash flow is too low
POS Business suffer when there’s not enough profit or income for operations
Some POS business owners suffer from lack of knowledge & experience
• Lack Of Advert
• POS business fail because they can’t market their products or services effectively. Most of the time, they don’t know how to advertise or they tend to spend less on marketing and promotions
• POS business owner fail to lead their team properly because they lack management skills and effective leadership qualities
• If customers or clients sometimes complain about the quality of products or services they received, and that is enough for a customer to leave and never come back. When this happens, it affects the business badly since their reputation would be damaged
• If both parties are not clear on what they want (especially in buying), a negotiation can get out of hand and effect the business
POS business fail because of lack of teamwork
There’s an assumption that everyone in a POS business would be friends, but this isn’t always true. People who work together often tend to disagree with each other too much so it could lead them to taking personal issues with work especially when they feel unappreciated orlack of support from their managers when they want to do certain things
Bad products or services are sold all the time and most of them don’t get any complaints. Unfortunately, a small percentage have major issues that affect business in a bad way, especially when it gets too much attention and news about it spreads over social media quickly (usually happens with smaller businesses)
Money is lost all the time due to costs of products or services that are not sold. When this happens, it affects business badly because make up for that loss with revenue from other sources
Bad sales or profits are sometimes caused by price wars which lead to many suppliers being left behind (especially in industries with low competition)
• Legal Issues
POS business fail because there are legal issues or government regulations that keep coming up. When they do, it affects the business pretty bad and a good example of this is when some businesses have to close their to lack of licenses or permits from local authorities
Competition sometimes steal clients by offering better products and services or by being more aggressive in getting customers which can lead to bad sales or profit and loss of clients. When this happens, it affects the business pretty badly because they are losing money
• Bad Economy
Bad economy sometimes force businesses (which requires them to do a lot of advertising) cut down their ad spending which could result in lower quality products or services and eventually lose customers or clients
There’s no guarantee that all the businesses in a small town or community would survive. Some may get bankrupt so it leads to decreased demand for products and services local consumers) which affects other businesses too
• Poor Payment
Poor management can be one of the leading causes of business failure, but there are other things that keep the business from succeeding too.
POS business fail because of lack of good capital. POS businesses have to invest a lot money and make payments quickly, which they can their cash flow is too low
POS Business suffer when there’s not enough profit or income for operations
Some POS business owners suffer from lack of knowledge & experience, including knowledge & experience in marketing
How to get rid of the above problems?
Here are some solutions that will help you deal with these problems if you’re a POS business owner:
How to get leads and sales for your listing on an app like Yelp or Zomato?
(1) Social Media Marketing
(2) Paid Advertising
(3) SEO – Search Engine Optimization
(4) Referral Marketing
Different ways to get more leads and sales for your POS business from various apps like Yelp, Zomato or other review sites:
1. through social media marketing , simply post regular updates about your products & services on Facebook, Twitter, LinkedIn etc. including your contact details so that people would see this and if they are interested, you can use call tracking to track who called in or texted you.
2. using paid advertising on social mediaon social media
3. If your budget allows it, employ someone to do SEO for you. This is the best way to get more leads and’t do if (especially from doors permanently due you have t have some to start with. You’ll have to spend money on marketing and(especially from SEO ) if you want clients
4. Use referral marketing . Tell current customers that they can refer their friends, family or co-workers get a reward for it such as a free gift or 10% discount on their next purchase. This will increase your lead generation and sales
This is a straightforward approach. Just ensure that you tell people in your listing on social media sites, blogs or review sites what the best time to contact you is so they could get answers to their questions. If possible include your phone number too so they can call directly instead of messaging the site for you.
This is probably the easiest way to get more leads if you’re willing to pay for it. You just need to find a social media marketing service provider and ask them how much they charge per click, then go ahead with it. It may be costly at first but once you have gained some exposure in your local area or start getting new clients, it will be more worth it in the long run.
If you have a limited budget, focus on social media marketing first since it’s free. Once your sales start increasing and your profits increase too, try to hire an SEO provider to do some work for you (if funding permits).
Most customers prefer businesses with good reviews over those with none. If there are no reviews, new customers may be reluctant to visit you and prefer another business that has more reviews.
So if you want more leads and sales for your listing , especially from online review sites like Yelp or Zomato, the best thing you can do is to make sure all your efforts are geared towards getting as many positive reviews from your customers as possible.
Having a good place for people to leave reviews is also important. Most restaurants have a lot of reviewers because they provide free wifi access and sometimes food too.
So make sure you ask the owner first, then send them an email or give them a call to see if they allow write-ups online about their business. You can even show them how easy it is to post reviews on Yelp or Zomato so they could see that you are an honest person who has nothing to hide. You can ask some customers to leave reviews in exchange for a free gift, too.
Find out what your clients like and don’t like about your services or products and work on that. It’s better to provide them with what they love than to get a review from a disgruntled client who wished you offered something more.
If your business isn’t well-established yet, try to get reviews as soon as possible. Reviews posted earlier have significantly higher chances of being read by potential customers since newer ones are usually less given attention by Google.
With the help of this article, you should now have a better understanding on how to get more leads for your business at home or in your small business . As long as you have the means and determination, you can use these tips to generate more profits without even having to go out! It’s time for you to experiment and find out what works best for your business!
The best way to start a POS business in Nigeria is by first understanding the market and then finding someone who can help you get started. There are plenty of people who have done this and succeeded, so don’t be afraid!
You’ll find that if you want to make good profit with your store, it’s important for you to understand how Nigerians spend their money on goods and services.
If you’re thinking about starting up a POS business or looking into expanding an existing one, we’ve got some great resources for getting started above.
Let us know what questions come up as well we’d love to answer them! Good luck with your new venture!