SIMPLE GUIDES TO START A POS BUSINESS

 

POS means point of sales or point of service it is a channel to bring financial services closer to the bankless segment of the society by authorizing existing business within the community to deliver efficient and effective service. POS serve as alternative means of payment for goods and services it is also give people opportunity to carry out transaction without visiting a bank

 

POS business became one of the most lucrative small business in Nigeria in 2020 due to covid 19 lockdown where all activities are totally shut down including banks but still people need money to buy foods, clothes and paying rent these are the need of man that people can't avoid. The 2020 Covid19 lock down also make POS business the most common small business people do

 

Simple guides to start POS business in any country

 

The reason why most people fail in business is due to lack of proper understanding about the business, most of the simple guide to start POS business is not new to most people doing this POS business but the business collapse because they fail to take total cognizance of this simple guides

 

6 Simple guides to start POS business
 

1 Business plan

2 Capital or funds

3 POS terminal or POS application

4 Location or space

5 Record books

6 Set an accurate goal

 

Now let’s expatiates the simple guides to start POS business

Business plan

The business plan is the road map of any business, mental image of what the business appealing to become and principal book of operating daily activities. All the other simple guides to start POS business make up a business plan, having a business plan for your POS business is not much importance as making it a reality, that is strategically implement and periodically evaluate what is writing therein

Capital or Funds

Finance capital is the bedrock and ingredients of any business. A smoothly running business will definitely have a smoothly flow capital, without adequate capital the daily business activities will be hamper. To start a POS business you need at least two hundred thousand naira

 

POS terminal or Application

 

POS Terminal or Application is the main asset of POS business, you can either bought a pos terminal to process your customer credit card or bought an Android phone to install a pos application that process customer cards with the use of OTP

 

 

Location / Space

A small scale business is mostly found in a limited area, along busy streets or major roads of transport. Also, the business is often located closer to material and supply sources and to markets, easing the burdens of transportation and time. In other words environmental scanning should be carrying out. This will give you an insight about the number of people doing that business in that environment, the rate at which people are in need of POS service, the level of safety to avoid being robbed, and how easy would it be for you to get cash (raw materials).

 

Your POS Business need a Book keeping

Record taking should be the first priority in daily routing of your POS business, if you want the business to go far and withstand the test of time, then you must take total cognizance of record taking.

 

 

                        Below are the important of record taking in POS BUSINESS

 

1. To know what the business own and what other people owe the business 

2. To ascertain the amount of money, material or efforts invested in the business at a particular time or period

3. Records enable new employees to study organizational polices and be able to follow the processes of implementing them.

4. To ascertain if the business is making a profit or a loss

5. To follow the track of raw materials (cash and paper for receipt) and when to replenishing them;

6. To know the level of the inventory and the minimum cash level

7. To draw a realistic plan of meeting financial and other obligations such as payment of salaries and wages, rent (if you have more than one shop), creditors remunerations, insurance;

8. To abide by requirements of the corporate affairs commission (the body responsible for regulating companies);

9. To know the debtors and creditors of the business and the time each debt or credit fall due;

 

Set goals for your POS Business

Setting of goals is of great importance to a business, as it helps the growth of the business. The goal that you set for your POS business is your vision while your daily operation of the business comprise your mission which must be directed towards the achievements of your vision

 

Common goals POS business owners

 

Profitability 

A common business goal is to run a profitable operation which typically means increasing revenue while limiting expenses. To reach this goal, objectives could consist of increasing annual sales by 10%.

 

Efficiency

Efficiency in a business operation is a way to increase productivity. To improve efficiency, you might decide to get materials earlier than you normally do to satisfy your consumers.

 

Growth 

Most small business does not aim at growth at all thereby offering existing product, process and service. To grow your POS business, you need to check what your competitor do that attract more customers to them, then copy it and rebrand it to your own customers. Also make research about what your customer need even before they know its possible. Lastly ask customers question about your service and follow their recommendation.

 

General Importance of POS Business

The importance of POS business cannot be overlooked in the society because advent of it has contributed greatly to Gross Domestic Product (GDP) of this nation. They include:

 

1. POS business provides employment opportunities thereby reduce the rate of jobless people

2. POS business enhances the quality of life in urban and rural areas

3. POS business promote indigenous entrepreneurial skills

4. POS business reduces rural/urban migration

5 POS business responds promptly to the dynamic business environment than big businesses

6. POS business promote cashless policy

7. POS business helps in facilitating both online and offline transaction

8. POS business stands in place of bank most especially during the weekend when bank are not available for operations

 

4 Major problem, POS business owners do face

Inadequacy finance capital or cash to the POS Business

Majority have limited access to diverse sources of capital, Pos business needs enough fund for the efficient and effective running of business

 

Poor Managerial Skills

Most owners do not have the require skills to successfully run the POS business. More importantly there are no avenues for training to improve their skills.

 

Poor Accounting System

Most POS business does not keep proper records and in some cases none is kept. It is therefore difficult to assess and evaluate their viability and package them for external credit facilities

 

Lack of continuity

POS business is sole proprietorship and ceased to exist as soon as the owner loses interest or he is dead. If you can implement these Simple guide to start your pos business, success is sure.

I wish you the best.