If you’re just starting a small business or are considering expanding your current company, you might be wondering how a POS system works and if your business actually needs one.
What is a POS System?
A point-of-sale system is a combination of hardware and software that is used to centralize business management. The point of sale refers to the point at which the sale happens, which for most businesses is usually the checkout area. A modern POS system does much more than simply processing sales transactions. It will also automate a range of manual tasks, help you manage inventory, customers and employees, provide real-time reports and data and much more. The POS system allows business owners and managers to make data-driven decisions regarding their business to help increase sales and revenue. No matter what type of business you run, a good point of sale system is definitely one of the best investments that you can make – here’s why.
Save Time and Money
Most business owners don’t have much money or time to spare, so saving both of these is usually a top priority.
An all-in-one POS system is one of the best ways to save both time and money. They are typically easy to use and very self-explanatory, so you don’t have to spend a lot of time making sure that your employees are trained to use it. An easy-to-use POS system will also help to keep the checkout process as fast as possible during the peak hours of your business, which in turn can drive more sales and keep your customers happy. It makes the entire process easier for your employees – allowing them to focus more of their time on offering great customer service and upselling instead. And, the real-time reporting feature of a good POS system will allow you to save money by better tracking of finances.
If you’re looking for POS systems that are easy to use for your employees, check out NadaPayments for this guide to POS systems. NadaPayments offer electronic payment processing, card reading equipment, and POS systems with affordable processing fees that make them ideal for small businesses on a budget.
Collect More Data
Any small business owner today has probably heard about the importance of gathering and analyzing data that they can use to make more informed future decisions for their company. Today, data is absolutely necessary for running a successful business, and intuition and insight can only get you so far. A POS system will provide you with the accurate data and numbers that you need to develop successful strategies in a wide range of business areas such as sales, marketing and customer service. It will help you make smarter business decisions by providing you with clear and accurate information that you can keep in mind whatever you need to decide.
For example, your data can inform you just how much stock of a certain product you will need to order for the week ahead based on sales patterns. Some POS systems also provide you with further information on your business that you can use to make better decisions, such as information on the best- and worst-selling items, peak and off-peak hours and low stock count.
Run Your Business from Anywhere
A cloud-based POS system gives you the option to run your business from anywhere with little hassle. If you are often on the go and don’t always have the option to go into the store to check everything, you can easily find out whatever you need to know by checking the POS system on your smartphone, tablet, or computer. Since a cloud-based POS system stores data online, it can be accessed at any time and from anywhere that you have an internet connection. This makes it an ideal choice for busy business owners since you don’t have to take the time out to visit the store or call employees to find out information such as how much stock is left of a certain item.
Better Inventory Management
How are you keeping track of inventory in your small business? If you’re using a pen and paper, or manually counting your stock at the end of the day and entering the numbers into a spreadsheet, you are probably wasting a lot of unnecessary time and creating a much larger margin for error than is needed. With a POS system, you won’t have to worry about staying behind late at your business to count the stock and determine what you need to order more of.
A modern POS system will come with an inventory management system that will keep track of and manage your inventory, allowing you to find out how much stock you have left of certain items at just one glance. This can be especially useful if you are running a business with more than one store in different locations, since it will allow you to keep track of all the inventory across each of your stores without having to visit them in person.
Data has shown time and time again that loyal customers are better for your business, since they are likely to spend about three times as much as a new customer. But, it’s often difficult to distinguish a loyal customer from a new customer unless you’re running a very small business where you can easily see who’s coming in and shopping more than everyone else. A POS with a customer relationship management (CRM) feature makes it easy for you to determine who your most loyal customers are and ensure that no loyal customers are getting missed. You can easily find out who your most valuable customers are, making it easier for you to determine who you are going to send rewards, deals and offers to. Since loyal customers are more likely than others to shop at your business, this information also makes it easier for you to notify them first of deals, offers, new products and more that they may be interested in.
Improve Employee Management
Employee management can be a huge task to take on if you are already running a small business and have a lot of other things to focus on at the same time. The good news is that many smart POS systems have an employee management feature that makes this much easier for you. Using this feature, you can do things such as keep track of important employee information, track the number of hours that each employee is working, which can help with payroll, and find out who your best performers are by tracking the number of sales that each employee makes, along with many more features. Your employees can clock in and out of work using a PIN with the POS system, making it easier for you to accurately calculate their salaries. Most POS systems will also allow you to provide certain employees with more access to certain parts of the system, so that you can allocate certain workers for ordering new stock and other tasks.
From improving customer relationships, to helping you make better decisions, a POS is an important feature for any small business today.