The success of your first business not only demonstrates your capabilities and business prowess, but paves the way for your potential future businesses as well. Small businesses play an important role in economic growth, but they aren’t always so fortunate. Within five years, half of all small businesses will fail.
To mitigate those risks, business owners should take every decision into thoughtful consideration — no matter how big or small. Choosing the right POS system is important because your chosen system behaves as the building block that helps your business operate. Before you decide on any system, speak to the company’s sales team about how their software can help your business specifically. How you interact with representatives is often the first indicator of a product’s support team and their dedication to effective technology.
POS System Features
There are many features of POS systems you’ll want to take advantage of as you lead your first business. Certain features are better for some businesses than others. For example, there are pros and cons of touchscreen technology to consider before jumping headfirst into the latest trends. Business owners in the restaurant or hospitality industry might benefit from the quick, fluid movements of touchscreen, while businesses that are office-based or require multiple monitors might find a touchscreen POS to be more of a nuisance.
Make a list of your ideal POS features and compare solutions to your list. Your desired features will likely depend on the industry you’re in. As a retail business, you might consider a loyalty program, which has been proven to increase customer retention and sales. There are several POS options on the market that make it easy to manage a rewards program and take advantage of its benefits.
If you run a restaurant, perhaps the ability to wirelessly notify a customer that their table or order is ready would be important to you. This kind of technology would also enable better communication between the kitchen and staff, decreasing wait time for your customers.
Better Cash Flow Management
A whooping 82% of businesses will fail because of cash flow problems. An integrated POS system can aid your efforts to increase cash flow. Keep in mind that cash flow doesn’t just take into consideration Accounts Receivable and Accounts Payable. Cash flow is also about timing. Point-of-sale systems automate and streamline a myriad of finance processes, improve control and efficiency, and reduce operating costs.
With the a great POS system, you’re able to better examine the flow of incoming funds and outgoing funds to help maximize that cash flow. By automating the financial supply chain, which includes everything from invoicing to settling payments, you can better align your supply and demand, and keep cash flow in a timely rotation.
Build Better Customer Profiles
New businesses rely heavily on customer retention. You can attract better customers with by utilizing the data from your point-of-sale system. Data makes this more possible than ever. One way you can identify valuable customers is by viewing their spend history. This buyer data allows you to build out customer profiles, and use them in various marketing campaigns.
Some POS options even allow you to integrate with marketing technologies and come equipped with several customer management capabilities. Shoppers react better to personalized messaging, and this type of outreach helps you build better customer relationships with them.
Regardless of your industry, proper inventory management is critical to success. Inventory management features give you an overview of what’s happening with your stock. This enables you to foresee shortages, eliminate manual counting and looking for items in stock, and learn more about what’s working for your business and what should be reevaluated. According to a study conducted by Radial, 81% of consumers will move on to your competitor if an item you have is out of stock. As a business owner, you should be able to manage your inventory and predict buying patterns to prevent customers from going elsewhere.