Any small business owner, whether they run retail, Food, beverage, or service enterprise, should have access to a strong business management tool like a POS system. You may have heard the term POS or Point-of-Sale somewhere before.
So, what is POS? What are the advantages of a Point Of Sale system? Is it necessary for your small or medium business?
Don’t worry, we’re here to answer these questions for you with our handy list of reasons why your small businesses need a Point of Sale System!
Point-Of-Sale or POS system
A POS or Point of Sale System is a combination of software and hardware used to centralize business management.
A point of sale is where your customer pays for goods or services in your store.
A point-of-sale system allows your business to accept payments and track sales. It depends on whether you sell online and in a physical storefront, or both the system will work differently.
Let’s talk about how a modern point of sale can benefit your business by providing:
- Saves administrative time.
- Better inventory management.
- Provides eCommerce capabilities.
- Provides accurate, real-time data.
- Quick payments.
- Regular updates.
- Ensures secure information.
- Centralizes operations and analytics.
- Provides support when you need it.
With this, you can make smart, data-driven business decisions that help to increase your sales.
Whether you run a retail store, cafe, restaurant, and food truck – you need a good POS system.
And here’s why:
1. Saves time and money
Since you usually don’t have extra cash, time and money management are essential skills for the small to medium business owner.
But the good news is…
You can save time and money with an all-in-one POS system, which are two essentials for any small business owner.
During busy times, a user-friendly POS system speeds up checkout, which increases your company’s sales.
So, your employees have much simpler things to do and they can spend more time on sales and customer service.
With its inventory management system, your POS system can help you prevent waste and loss.
It is crucial if you run an F&B business that sells perishables. Human errors are also dropped by automating many of your tedious manual tasks and data collection.
2. Run your business from anywhere
Are you travel often and don’t have time to visit your store regularly to check inventory?
By using a cloud-based POS system, you can manage your business anytime, anywhere.
A cloud-based POS system stores its data on the Internet and allows access anytime from wherever you want.
It is ideal for busy small business owners.
You don’t have to go to your store or call your busy staff to find out how much is in stock of a particular item.
3. Get real-time data and analytics reports
A successful business cannot be run on intuition and insights alone.
To create successful plans and make smart business decisions, you need accurate data and numbers.
Imagine :
- Without data: You order 1,000 kg of meat because you think you will need more this week. You buy too much and waste your money.
- With data: Your report says that exactly 450 kg of meat is needed this week. You will buy only what you need without wasting money.
You can get real-time data from a POS system like OrderZ, allowing you to act faster and smarter to increase sales and profits.
You don’t need to check manually to find your best-selling item because the computer has all the data you need.
A POS system like OrderZ’s analytics features can give you useful information like
- best selling items
- worst selling items
- peak hours
- off-peak hours
- low stock count
Based on the data your system gives you, you can decide which products need a restock, more marketing efforts, or timing ads to run during off-peak hours to boost sales.
These are the most important factors that determine the success of your small or medium business.
4. Improved inventory management with the POS system
How do you track your inventory?
On paper and pen? Or are you manually counting your stocks every evening and entering them into an Excel document?
Alas! Sounds like a lot of work and a lot of human error.
Well… with a POS system, this is all a thing of the past.
An inventory management system that helps you manage and track your inventory is definitely included with a modern and powerful point-of-sale system.
So it doesn’t matter if you have one SKU (Stock Keeping Unit) or thousands of SKUs, you can easily manage your products anywhere, anytime.
This is especially important if you have more than one store in a different location, as you can track the inventory of all your stores without having to visit each one every time you check your stock.
This helps you maintain price consistency between your different store locations, and it reduces employee theft.
So, getting a point-of-sale system with a detailed inventory management system is more important.
5. Better employee management
It’s hard to manage employees. Particularly if you are running a small business and have a lot of other things that require your attention.
With its employee management feature, a smart POS system can help you with this.
- manage employee information.
- Track how many hours each employee works.
- track how much sales each employee generates.
Employees must clock in and out using a PIN using the shift feature of your POS system’s employee management feature. This allows you to track all their working hours properly so that their salary can be calculated fairly and accurately.
This feature lets you see what and how much your employee is selling during their shift. So you know who’s working and who’s slacking off.
To motivate your entire team to perform better, you can use the employee management feature to recognize and reward top performers.
You can even find out when you’re busy, so you can effectively manage your staff’s schedules.
6. Increased customer loyalty with CRM
Our data analysis revealed that repeat customers typically spend 3 times more than new ones.
So, how do you tell a loyal customer about a new one?
You can do it with your POS system’s CRM (Customer Relationship Management) feature!
You can see who your most loyal – and thus most valuable – customers are.
Using the CRM feature,
- You can hold special promotions and sales.
- As your store has a high probability, you can inform your loyal customers first through email or SMS.
Also, you can use this data to encourage and reward your loyal customers through referrals or loyalty programs to keep them coming back.
So, always remember that loyal customers = more sales, and using the CRM feature will bring you closer to more sales.
7. New sales and payment channels
A modern and powerful POS system will provide you with new sales and payment channels, such as eCommerce and e-wallet options.
This is important because technology is constantly improving, getting faster and cheaper.
The world is moving towards e-commerce and cashless payment and if you are not engaged now, you will be left behind.
Retail e-commerce in Southeast Asia is projected to reach $87.8 billion in sales by 2025. Back in 2015, that number was only $5.5 billion. So in 10 years, there will be a huge increase in sales!
As a business owner, don’t you want to get involved?
So don’t miss out. Set up your own online store or use your POS system to set one up.
For example OrderZ eCommerce. It helps you to easily create your online store. The best part is that you can build your own eCommerce site without any coding knowledge.
This implies that you’ll never order too much stock or oversell it.
It takes the hassle out of running two enterprises and putting up one’s own online store.
Now, know about e-wallets
Carrying cash is not the most preferred mode of payment.
On the contrary, cashless payments are now becoming more popular in this rapidly growing digital economy.
But, of course, not everyone has a credit or debit card.
So the solution? Ewallets – a payment method in which amounts are loaded into a digital wallet in an app and then used to make payments.
In Malaysia alone, over 2 million people use eWallets for this kind of cashless transaction. And many retailers have started to accept e-wallet payments after taking notice.
E-wallet payments are a safe and fraud-proof payment option. Additionally, it eliminates errors and saves time.
So, does your small business need a POS system?
The answer is obviously… YES!
A cloud-based, all-in-one POS system is required for any small business as your business management solution.
Modern POS systems like OrderZ provide you with cheap and smart technology. It’s easy to use and easy to set up, so you can make your company better.
When you’re ready to explore the best POS software for small businesses, we recommend giving ours a try.
We offer a free POS software trial demo so you can not only see how our software works, but how POS software works in general.
As a result, you will have a better understanding of how to use this tool in your small business.
It really is up to you to see for yourself if we are a good fit for your small business.
We are ready to answer any questions you may have about this amazing POS software.
OrderZ is your POS software expert. Get started today!