POS business is arguably the most popular financial business in Nigeria. It has found its way into every nigerian street and district; from the streets of Ikeja — home to the biggest technology hub in West Africa (porpularly called Computer Village) to the most remote rural areas of Northern Nigeria.
In fact, the widespread adoption of the POS business model in Nigeria has significantly contributed to Opay’s 2bn US Dollar milestone (~ 1 trillion Naira), comfortably superseding Flutterwave’s $1bn+ valuation to make it the most valuable unicorn startup in Nigeria.
As we all know, a single stream of income is no longer considered sustainable in today’s economy. The economy has suffered a series of inflation up to this point, but you know what? The tough and smart ones would still continue to thrive financially.
In a bid to live a quality life devoid of compulsive borrowing from loan sharks, a lot of enterprenuers, salary earners, government workers, etc have resorted to one or more side hustle, with POS business being one of the top options on the list.
In today’s article, we would be sharing some useful tips on how to maximize your POS shop by adding some more business to your existing POS business.
Sincerely speaking, anytime I come accross people operating POS as their only business. I just murmur to myself “what a waste!”.
There are several other business ventures you can add to your POS Business but let’s talk about at 8 of them.
Here are 8 other businesses you can add to your POS Business
- Face masks & handkerchief
- Recharge card business
- Bottled water, Pure Water, soft drinks
- Zobo, Kunu & Other Home made Beverages
- Snacks & Confectioneries
- Peppered Ponmo & fried meat Business
- Printing and photocopying business
1. Face masks & handkerchief
If you wore face masks on the streets 3 years ago, people would think you are nuts. However, the COVID-19 has paved the way for a multi-billion naira face mask industry, after its discovery in a city called Wuhan in China in December 2019. The face mask and hand sanitizer have therefore become a popular household item.
The disposable nature of face masks have made them a recurring expense, which puts you in a favourable position as a seller.
Although Nigeria and other African countries aren’t as hit as their European and American counterparts, a face mask still remains an important requirement for entering any commercial, residential or governmental building today, hence making it an on-demand commodity.
Have you ever wondered why some able-bodied guys would rather prefer to hawk handkerchiefs and face masks in traffic? The reason is not far-fetched; it’s the profits associated with it.
Why would someone choose not to leverage such a fantastic opportunity to support the income from their POS business?
Handkerchief is another multipurpose commodity that has enjoyed an all-time fame. Unlike the face mask, it has been a popular commodity since God knows when 😁, which is an indication that it is going nowhere soon.
TIP: The face mask business is especially great if your shop is located at a close proximity to a commercial building such as an office or supermarket. I can assure you that you’ll often run out of stock if you don’t have a reliable supply chain.
2. Recharge Card Business
Recharge card business will certainly not make you rich over night but will be enough to offset some bills.
People still recharge their phones every day due to the need to make calls and send messages, so you’ll surely have a market waiting for you if your shop is situated in a busy spot with constant traffic. However, it is worth mentioning that the purchase of printed recharge pins is now on the decline due to the increasing popularity of USSD and mobile app top-up channels.
Nothwithstanding, you can still make between ₦400 – ₦600 in profit for each ₦10,000 worth of recharge card sold.
While POS machines can print recharge PINs, I would advise that you should only use it to print higher denominations. Printing too many lower denominations (i.e., anything below ₦500) may not compensate for the paper used.
3. Bottled Water / Pure Water / Soft Drink business
Some people arrive at your shop really tasty and wouldn’t mind buying some water to quench their thirst.
Pure water business is very lucrative; You can get at least 100% ROI from as little as a bag of pure water.
A bag of pure water costs between ₦80 – ₦90 per bag, and each bag contains 20pcs of 50cl satchets. Now let’s do the maths;
1 Bag of Pure Water is sold for N90, and it contains 20pcs of 50cl satchets.
You sell each 50cl satchet of water for ₦10
You sold 20 sachets of water = ₦200
Your Profit: ₦110
Your ROI: 122%
The best part of this business is that the distributors deliver your Pure Water stocks right in front of your shop/doorstep, effectively saving you the costs of logistics if you were be moving it from their factory to your shop yourself.
With the rate at which soft drinks are being consumed in Nigeria, you could easily increase your net revenue by considering bringing soft drinks into the equation.
4. Zobo, Kunu and other home made drinks
Zobo, kunu, tigernut drink, lolly, condensed milk, are common home made drinks that you can also venture into. There is a very high profit margin involved in doing this business if you can successfully pull it off.
A ₦250 worth of dried hibiscus leaves (used for making Zobo) can bring returns as high as ₦1,200, but considering the costs of other ingredients such as sugar and ginger, you can still make up to ₦1000 in pure profits for every ₦250 invested. That is a lot of money.
We also have others like kunu aya (tigernut), kunun zaki, fura da nunu, lolly, condensed milk (locally known as condense), lolly e.t.c, which are all beverages that can be made at home and sold in your shop.
💡 TIP: If you need to add some branding and professional packaging to your home made drinks to make them more appealing to the upper-class, click HERE and select Product Packaging Design.
5. Snacks & Confectioneries
If you have some baking skills, you can either purchase a small transparent food storage box, or a bigger show glass to showcase your snacks to passers-by — It all depends on your prefered scale and starting capital (or budget).
You can make snacks like puff-puff, chin chin, minced pie, eggroll, sausages, sandwiches, buns, doughnuts e.t.c. at home and sell in your shop.
TIP: If you can't have afford the time to prepare snacks, you can make an arrangement with a skilled professional to be supplying you snacks on a daily basis.
Unfortunately, not everyone has the ability or skill to make some tasty bakes. If you belong in this group, you can either outsource it to someone else as mentioned above, or just sell ready-to-eat snacks like Sausage rolls, biscuits, cheese balls, e.t.c. Popular choices are Gala, Munch It, Nkatie Burger. These snacks are very popular among school children and even busy office workers.
Popcorn production is also something that might interest you. Good pop corn machines can be found and purchsed on online marketplaces like Jiji.ng and Jumia.
6. Peppered Ponmo & Fried Meat Business
Perhaps, I should have added this as an item in the Snacks category above, but I think it deserves its own space.
I promise you, peppered Ponmo (popularly called Ponmo alata in Yoruba) alone is a legend on the streets on Lagos.
If not because of Ponmo, I would have built a house in Ikoyi!!! I can spend my last card on ponmo and fried meat, and there are thousands of other people like me as well. The best part? You don’t need a huge storage space.
Ponmo and fried meat can last for up to a week under normal storage conditions.
Ponmo to muta 🙌🏽
7. Photocopying Business
Who says you need a computer to start a photocopying business? Not at all!
If you are in a business or school district, you can quickly grab a fairly-used Konica Minolta Photocopier on Jiji and start your photocopying business ASAP.
Konica Minolta printers are the perfect cost-effective choice for small and growing businesses because they make it easy to do more while spending less. Konica Minolta’s Bizhub Multi-Function Printers (bizhub MFP) offer fast printing, high-quality copying, scanning to PDF, color laser printing, and the latest tech features for network and cloud printing.
However, do ensure that you only purchase from a reputable dealer that also offers aftersale maintenance services.
You’ll also need to take into consideration the costs of buying papers (usually A4) and printer inks.
Exercise books, pencil and pens, markers, sharpeners e.t.c are petty stationery items that won’t take an extra space in your shop. If you are in a close proximity to an educational facility, such as a school, then it would be worth giving a try.
Let me have your opinion on this discussion in the comment section below.
Thanks for reading. 🤗