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.
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