If you’re a small business owner, you might be thinking about getting a digital, smart point-of-sale terminal, if you haven’t already. A modern POS system is essential for all kinds of businesses big or small. Whether you own a gift shop, medical store, resto-bar, restaurant, salon, spa, or flower shop, a point-of-sale system is your best bet. Modern POS terminals are designed to not only offer a centralized payment system through multiple channels but also to help you track sales, manage stocks, and offer a better check-out experience to customers.
What is a POS System?
A point of sale (POS) system is a combination of hardware and software that facilitates payments for all orders in a retail store, restaurant, pharmacy, or other MSME business. POS solutions are designed to not just provide easy payment acceptance but also ensure quick reports on available stock counts, daily sales, and a great customer retail experience.
Typically, a POS system consists of-
1.POS terminal / POS billing machine
2. POS software
3. Receipt printer
4. Barcode/RFID scanner
Best POS Systems for Small Businesses
Now coming to the best POS systems for small businesses, there are several brands that offer POS software as well as hardware. By best POS solution, we mean a POS terminal that can offer sufficient POS features including payments through multiple channels, inventory tracking, etc. at a cost-effective price. Various brands such as Square, Shopify, Lightspeed, Clover, etc. offer POS solutions and some of these are free to use while some require monthly subscriptions.
POS solution providers offer many distinct features and many small businesses may not need all the features offered by a POS system provider. Therefore it is important to assess your business needs before selecting the POS system for your business. Look for essential features and some features that you might need in the future.
1. Square POS system- Free to use, great user interface and features, suitable for retail, café, gift shops and a great POS system for restaurants.
2. Lightspeed POS system- Subscriptions only, great inventory management, membership and rewards.
3. Aloha Cloud POS- Free version, great for restaurants and small businesses, cloud-based.
4. Shopify POS- Paid, costly, great UI and sales and payment features.
5. Clover POS- Fits your budget, great apps and features, and customer management.
6. GetPOS- Cost-effective, suitable for small retail and restaurants.
7. PayPal POS system- Free versions available, great features in inventory management, sales reports, etc.
Features of the Best POS System
While a POS system best for one business might not necessarily be the best option for you. Therefore, it is important to list down all the features you want in your POS system.
Some common features that small business owner require in their POS system include:
1.Inventory Management
2. Order Management
3. Customer profile/membership
4. Payment processing
5. Check-out
6. Multichannel Selling/Omnichannel Order processing
7. Employee profile and time tracking
8. Payroll
9. Reporting
10. Portability
1. Inventory Management
Inventory management is crucial for small businesses to track stock levels, manage reorders, and reduce waste. A robust POS system allows real-time inventory tracking, automated stock alerts, and integration with suppliers for seamless restocking. The inventory feature in POS helps businesses maintain optimal inventory levels and avoid stockouts or overstock situations.
2. Order Management
Effective order management ensures that businesses can efficiently process customer orders from various channels. A good POS system streamlines order processing, tracks order status, and manages returns, which enhances customer satisfaction and operational efficiency.
3. Customer Profile/Membership
Creating detailed customer profiles helps businesses understand their customers better. Therefore, choose a POS system that can not only store customer information, their purchase history but also their preferences, enabling personalized marketing and loyalty programs and better customer experience.
Membership features can also incentivize repeat business through rewards and discounts.
4. Payment Processing
Payment processing capabilities are essential for any POS system and your POS should support multiple payment methods, including credit/debit cards, mobile payments, and digital wallets. Security features like encryption and compliance with PCI standards are also critical to protect customer data. Nearly all POS systems available in the market have good payment processing with varying processing fees. Square and GetPOS have significantly lower processing fees per transaction.
5. Seamless Check-out
An intuitive check-out process is vital for enhancing the customer experience. A best-in-class POS system should offer a fast and user-friendly interface, allowing staff to complete transactions quickly. Your POS terminal should also offer features like split payments and discounts should also be easily accessible during the check-out process.
6. Multichannel Selling/Omnichannel Order Processing
Multichannel selling allows businesses to sell across various platforms, including online and in-store. This feature is crucial for retail stores that have multiple stores- offline and online. An omnichannel order processing feature ensures that inventory and sales data are synchronized across all channels, providing a seamless shopping experience for customers. It also helps to maintain accurate stock levels.
7. Employee Profile and Time Tracking
Managing employee profiles and tracking time is essential for workforce management. A POS system can help businesses monitor employee hours, manage schedules, and track performance, which aids in payroll processing and productivity analysis. Many POS systems have this feature as an add-on and you can opt for it as per your requirements.
8. Payroll Integration
Integrating payroll features within a POS system simplifies the payment process for employees. It can automate calculations for wages, taxes, and deductions, ensuring compliance with labor laws and reducing administrative burdens. In 2024, the payroll feature in the POS system is quite popular and many restaurant and retail businesses benefit from it greatly.
9. Reporting
Reporting capabilities provide valuable insights into business performance. A good POS system should generate reports on sales trends, inventory turnover, customer behavior, and employee performance, helping business owners make informed decisions.
10. Portability
Portability is increasingly important, especially for small businesses that may operate in various locations or events. A cloud-based POS system allows access from any device with internet connectivity, enabling businesses to manage operations on the go.
Moreover, having support for portable payment terminals like mPOS, handheld POS machines, etc. is really important for businesses like restaurants and gift shops.
A Step by step guide to implement a POS System
Implementing a POS system involves several steps:
1.Assess Needs
Identify the specific features required based on your business model.
2. Choose a System
Research and select a POS system that fits your needs and budget.
3. Setup
Install the software and hardware, ensuring proper configuration for your business processes.
4. Training
Train staff on how to use the system effectively.
5. Testing
Conduct thorough testing to ensure all features work as expected before going live.
6. Launch
Start using the system in a live environment, monitoring for any issues that may arise.
Cost of a POS System
The cost of a POS system can vary widely based on features, hardware, and subscription models. Generally, small businesses can expect to pay:
a. Software Costs
Monthly subscriptions can range from $30 to $300, depending on the features. Some brands like Square offer a free version of their POS system as well.
b. Hardware Costs
Initial setup costs for hardware (like terminals, printers, and scanners) can range from $500 to $2,000.
c. Transaction Fees
Payment processing fees typically range from 1.5% to 3% per transaction.
To summarize, investing in a quality POS system can significantly enhance operational efficiency and customer satisfaction for small businesses in 2024 and you can choose from multiple options like Square POS, Shopify POS, Clover POS, Lightspeed POS, GetPOS, etc. Many of these POS systems have free and paid versions and varying processing fees on transactions, and additional hardware costs. Therefore, while choosing the best POS Solution in 2024, assess your needs carefully and choose the one that fits your budget.