For small businesses, a complete point of sale (POS) system can provide many of the same benefits large corporations receive from their enterprise software. Typically, enterprise software combines the functions of many departments into one software package. This allows corporations to manage all aspects of their business through one system, therefore, increasing productivity and communication across all aspects of the business.
Making the Switch
Cloud based POS solutions centralize and automate several areas of your business. All of the information about your inventory, sales, customers, and vendors are kept in one, easily accessible location.
A good example is the marriage of data for sales and inventory. You can easily pull reports on what is selling, who is selling it, and the areas or items that need more attention. The key here is that you do it and you don’t have to pay someone to do it for you. Making the switch can equate to only a few dollars a day.
Managing Multiple Departments
Small businesses, especially retailers, have all of the same departments, just on a smaller scale, and one person is typically in charge of all of them—the owner. If you are the owner, then you know how much every minute of the day matters. Hiring an employee to manage all of these areas of your business may be an option, but not always a cost-effective one.
Decreased Costs
Increased productivity reduces labor costs. On average, labor costs account for more than half of total business expenses. According to some experts, these costs should be managed within a range between 15% and 30% of total revenue (service industry is the only exception at or above 50%). If your company’s numbers are beyond these, then you’re losing operating capital and profits and changes need to be made to cut down on these expenses.
Still using paper based transactions? Digital transactions are more secure and reliable than paper. And, you save time and money through less storage, retrieval, and handling of paper records.
Inventory, Sales, and Customer Experience
A point of sale system can automate the management of your inventory, pulling pre-scheduled reports, and providing alerts on individual items. You can check product availability without physically walking into the stockroom to answer a customer’s request. Vendor product information is also easily found.
Sales reports allow you to evaluate your team, so you can provide feedback on their performance. This is where you can offer suggestions on improving individual or team success. It also aligns your company goals with your team.
The customer experience is enhanced through speed of service and attention to details. Customer information is held in the system for future marketing efforts and rewards programs. Your point of sale system becomes a marketing tool.
Maximize Your Efforts
When you maximize your efforts, time is freed up for you to work on other aspects of your business. These improved business functions provide faster access to vital information, which makes you better informed when making daily or strategic business decisions. You are able to plan your activities and tasks to accomplish sales and profit goals. Just think of it, you will have more time to make goals, then achieve them when the right software is in place.