This article provides guidelines on how to start a POS business in Kenya. In full, the abbreviation POS can be termed as Point of Sale or Point of Service. It is a means of bringing financial services closer to the bankless segments of society. It allows you to pay for goods and services and conduct transactions without having to visit a bank.
With the pandemic requiring as many cashless transactions as possible, the POS business became a great small business idea for many people. This article discusses how to start a profitable POS business.
How to Start a POS Business
Develop a Business Plan
A business plan, which serves as a road map for the company, will bring the company to life on paper before it is translated into real life.
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A detailed business plan includes segments that will ensure financial management and operational success. Consulting with business professionals is an excellent first step in developing a viable business plan.
Source for Capital or Funding
A successful business venture necessitates finances and capital. This will be used to purchase tools for the trade. It will also be used to obtain internet services that will ensure the smooth operation of the business.
Get a POS Terminal or Application
This is the foundation of the business and will be a necessary requirement when starting a POS business. One can either buy a POS terminal to process customer credit cards or install a POS application that uses a One Time Password to process customer credit cards.
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One should also consider establishing the business in a secure location that is easily accessible to clients. The business owner must ensure that he or she establishes a location where there is a high demand for the service.
Learn to Keep Records Tools
A POS business, like any other, requires meticulous record-keeping. To keep business finances in order, debit and credit details must be closely monitored.
The business’s inputs and outputs should also be closely monitored to determine the investment and its return per period. With proper record keeping, you will also be able to determine whether the business is profitable or losing money.
Set Business Goals
This should be done on a regular basis to help guide the business’s direction. These could be financial, scale, or any other goals that the business owner has for their company. Some of these include increased efficiency, profitability, and growth.
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POS businesses are important because they provide employment and a means of earning a living. This translates to better lifestyles, the promotion of cashless economies, and the ability to provide financial services in bank locations, making them more accessible to more people.
Inadequate funds to start and run the business, poor management skills that cost the business, inefficient or outdated accounting systems, and a lack of continuity that befalls the business when the owner quits or is unavailable are all problems that the business faces.
