Blog

How to Choose a Point of Sale System for Your Small Business

Starting a small business is a stressful endeavor that demands much of entrepreneurs, which is why investing in tools that simplify your day-to-day responsibilities can be a great help. One of the top software solutions your business should consider is a point of sale (POS) system. This tool will streamline the payment process at your business and generate more revenue in the long run.

Whether you run a thrift store, massage business, dance studio, or any other type of business, choosing a POS system is a big decision that requires a lot of research and consideration. In this guide, we’ll review how your small business can choose a solution that meets its needs and goals.

Identify business needs

Before you start researching potential POS systems for your business, consider what features and functionalities you’re looking for. Ask the following questions to help you determine what your business needs from its POS software to succeed:

What types of sales transactions does your business process?
What does inventory management look like at your business?
What tasks are essential to running your business, and how could software help with them?
Does your business plan to use online sales channels?
What is your budget for your POS system?
What other software does your business use?
What types of data would be most beneficial for your business to track?
Does your team have experience working with similar software solutions?

Every business will have unique needs, so your answers to these questions may vary based on your management and sales models. Let’s take thrift stores, for example. These businesses are often run by nonprofits and accept donations of goods to stock their stores, as well as monetary gifts to help further their mission. So, thrift stores often look for POS systems that allow them to accept donations and include inventory management features.

Evaluate system features

After determining what your business needs from its POS software, you can start your research. As you look at top POS providers, ensure their offerings align with your needs. According to ThriftCart, the best POS systems include the following features:

Payment processing
Online sales support
Customer management
Employee management
Store inventory management
Discounts and sales
Loyalty programs
Integrated marketing
Reporting and analytics

In addition to software features, assess hardware requirements and customer support options for each solution. These factors can greatly affect how easy it is for your business to implement the new system.

Consider initial and ongoing costs

When it comes to pricing, your business will typically incur costs associated with your POS system when you set it up and over time. Initial costs usually include:

The cost of the software itself
The cost of any hardware associated with or necessary for using the software
The cost of installing the POS system’s software and hardware

Using your POS system may also result in ongoing costs, which usually follow one of these models:

Subscription. Many software providers operate on a subscription basis, where your business pays monthly to continue using their system.
Transaction processing. Your business may incur costs associated with processing transactions. For example, Stripe charges 2.9% + $0.30 per transaction made with a domestic card.
Support and maintenance. While many POS providers offer free support, some charge additional fees to address any issues that arise while you use their software.

While leveraging powerful tools is vital for your small business’ growth, it’s just as essential to ensure your new software doesn’t break the bank. Keep all these costs in mind as you begin narrowing down your list of potential POS systems.

Review testimonials

At this point, you’ve decided on a few POS providers that best fit your business’ needs and budget. Now, you’re ready to dive deeper into each one to make your final decision. The best way to do this is by reviewing key testimonials, such as:

Reviews, which are compiled on sites like G2 and Capterra
Case studies, which you can usually find on the provider’s site
Demos, which Bloomerang advises booking as a crucial step for choosing software for all types of organizations

As you do this, evaluate the provider on their reputability, the success of their partnerships with similar businesses, the user-friendliness of their software, and other key factors specific to your business. These testimonials will help you avoid the pitfall of purchasing a solution that does not work well for your specific needs.

By the end of this process, you should be able to decide on a single provider to work with. Give yourself ample time to research and connect with top providers to set your business up for success.

With a robust POS system, you’ll find that your daily work becomes much more manageable and efficient, giving you more time to navigate other aspects of small business entrepreneurship.