Now that you are interested in starting a POS business, but asking yourself; “How much can I use to start a POS Business that will be sufficient enough?”.
You need to understand that starting a POS business in Nigeria as an agent comes with varying costs, depending on the preferred setup.
Let’s explore the different options and break down their respective expenses.
Table of Contents
POS Office Setup:
If you opt for an office setup, be prepared for significant costs such as:
- Office Building Rent: N150,000 per annum
- Furniture and Fittings: N150,000
- Office Maintenance: N40,000
- Miscellaneous Expenses: N20,000
Total Expenditure on POS Shop in Office setting: N360,000
POS Wooden Shop:
Starting a POS business in a wooden shop involves more modest expenses:
- Wooden Shop: N35,000
- Land Rent: N36,000 per annum
- Furniture and Fittings: N15,000
- Miscellaneous Expenses: N5,000
Total Expenditure for setting up a POS wooden shop: N91,000
POS Caravan Setup:
For those considering a caravan setup, the costs of using a caravan for a POS shop is as follows:
- Caravan: N70,000
- Land Rent: N36,000 per annum
- Furniture and Fittings: N30,000
- Miscellaneous Expenses: N10,000
Total Expenditure of setting up a POS caravan shop: N146,000
POS Umbrella Setup:
Setting up under an umbrella requires fewer expenses such as:
- Cost of Umbrella: N6,000
- Table and Chairs: N3,000
- Space Rent: N20,000 per annum
Total Expenditure of using an Umbrella for POS business: N29,000
Partnering with a Shop Owner:
If you decide to pair with a shop owner for your POS business, you won’t need to spend much just a few things such as;
- Chair and Table: N3,000
- Rent: Dependent on your agreement with the person
Total Expenditure of pairing your POS business in another person’s shop: N3,000
These figures represent the costs of starting a POS business in various setups.
Additionally, you will need to consider the expense of acquiring the POS machine. Commercial banks offer the machine for free, whereas Fintech banks such as; Moniepoint, OPay, and Palmpay require a purchase.
The cost of a POS machine with a Fintech bank ranges from N20,000 to N50,000, depending on the chosen financial service provider platform.
It is advisable to partner with multiple financial services providers (Fintech) due to the network instability on all POS platforms.
The capital that will be sufficient to run a POS business aside from shop and POS expenses, which will yield not only good returns but also give you a fair ground to compete with other established competitors is N500,000
So, by adding the chosen total shop expenditure to the cost of acquiring the POS machine, and the capital for running the POS business, you can estimate the amount required to start a POS business in Nigeria.
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I hope you benefited from this article; “How much can I use to start a POS Business”
If you have any questions or contributions, please leave them in the comment section below 👇
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