Start-Ups Requirement for a Strong Business Foundation

So, you have taken a giant leap and completed the most difficult part of a start-ups business plan, and that is, starting up the business! New owners have so many plans for their rise to success, their new source of revenue and the thought of living out their dream, that rarely do they pay attention to the requirements of a strong foundation to rest their business upon. Sometimes, these owners jump ahead to planning what kind of targets they are pursuing, which vendors they need to gain relationships with and even what kind of employees they want working in their company. However, missing one important piece of equipment can bring all these plans and dreams to a quick halt if it is not implemented into the foundation of the business, and yet, including this tool, can also be the only hope of salvation for the success of start-ups. What is this all-mighty tool? What one piece of equipment can be so important to a new business that it can make or break it? That magic tool, my friends, is a point of sale system.

A POS system implemented into a new business at an early stage, will give the company a great head start towards success and give an immediate advantage over competition not using a system. The amount of organization, accuracy and efficiency of an installed point of sale system will automate many features that humans would take days to complete. So, moving on to the marketing phase of your business can happen quicker and more accurately. Let’s stop here for a minute, however, and assume some reading this post, don’t know what a POS system is. Let’s take a little time to summarize, what is a point of sale system?

That definition is more than a little vague and doesn’t highlight even a portion of a POS’s features, however, when new businesses are looking for a point of sale system to implement into their business, this definition is typically what they are looking for. What the definition here leaves out is that, POS systems can be available on different platforms nowadays, not just the usual computer tower and monitor, but also iPads, smartphones and even tv screens. Also, newer point of sale systems not only scan and charge for merchandise, they also help maintain inventory, create discounts, learn customer trends and accept payments in ways never available before! And that’s not all! They can even keep track of employee hours, theft and bonus information. A POS machine is normally used as the “central hub” for most successful businesses and it is nearly impossible to find any well-run organization functioning without one. Which leads to another topic…who benefits from implementing a POS system in their business?

It would seem easier to try to list businesses that “would not” benefit from using a point of sale system as displaying a list of industries currently using POS systems or those that would gain success by using one, would take up more white-space than this post has available. However, here is a short list of example industries that probably could not function without a POS system.

• Amusement Park
• Antique Store
• Appliance Store
• Auto Parts
• Bakery
• Bar
• Bike Shop
• Bookstore
• Boutique Store
• Bowling Alley
• Bridal Store
• Buffet
• Cafeteria
• Candy Store
• Car Wash
  Casino
• Catering

• Chinese Restaurant
• Church & Nonprofit
• Clothing and Apparel
• Coffee Shop
• College
• Computer Store
• Consignment
• Concession Stand
• Convenience Store
• Deli
• Delivery & Take Out
• Dollar Store
• Donut Shop
• Drive Thru
• Fabric Store
• Fast Food
• Fine Dining
• Fireworks
• Flower Shop
• Furniture Store
• Gift Shop
• Golf Course
• Grocery
• Gun Store
• Gym
• Hookah Bar
• Hotel
• Hospital
• Ice Cream
• Indian Restaurant
• Japanese Restaurant
• Jewelry Store
• Korean Restaurant
• Liquor Store and Winery
• Medical Spa
• Mexican Restaurant
• Movie Theater
• Museum
• Nightclub
• Paint Store
• Pet Store
• Pizza
• Pub
• Quick Service
• Recycling/Redemption Center
• Retirement Community
• RV Park and Campground
• Sporting Goods
• Stadium and Arena
• Sushi Restaurant
• Thrift Store
• Tobacco Store
• University
• Toy Store
• Wholesale Store
• Zoo

It is actually an easy task to add to this list as almost any business imaginable will benefit from a point of sale system and most business will never reach success without a POS system. The need for the system is obvious, however, the means to obtain one may not be so easy.

Business who sell to other businesses know the importance of a POS system in a new company and they will market to a prospect with the attitude that only they can provide what the business needs to progress in this hostile market. What is usually not taken into consideration is that a new business is trying to keep start-up costs extremely low. Most new businesses fail within 2 years because of bad planning and spending capital early on is definitely a part of a bad business outline. Yet, when new owners hear of all the benefits of POS systems, they will first, realize that they cannot compete with other businesses without having a system in place and second, they will usually jump at the first offer and then suffer later when they realize that what they purchased is only part of a complete POS system. New owners definitely have to educate themselves first with not only POS knowledge, but what type of system is specific to their business and financial outline.

A POS system is not just a monitor connected to a cash register. While it can be sold that way, buyers will quickly become restricted when they realize they are missing a key component of the entire system that makes the point of sale set-up 100% effective. A typical POS bundle will include:

• Monitor
• Cash Drawer
• Barcode Scanner
• Receipt Printer
• POS software

These are the requirements of a fully functional system. A lot of dealers will sell these parts individually then include the rest as “add-ons” or “gifts”. While there are many other peripherals that go hand0in-hand with a POS system, such as CCTV security cameras, customized gift cards and digital menu boards, the 5 items included in the list should always be included in your bundle as the whole system will become ineffective without any individual piece.

Another thing to be aware of when shopping for a POS system is their availability of Merchant Services. Some POS dealers will offer great discounts, yet keep buyers unaware of their requirement to use a specific merchant service. Some buyers purchase POS software only to find out that the system is not compatible with their current merchant service. While hard to find, it is good to find a dealer who has the ability to make merchant services “optional”. This gives the buyer the ability to determine what service is right for their budget. Be careful, as most dealers will choose not to disclose this information until purchase is complete, at which point the buyer can be stuck in an unproductive contract.

In conclusion, when starting up a new business, or better yet, living out an inspired dream, take time to make sure that tools used to strengthen the foundation of your success are researched and implemented, because once your are open for business, usually it’s hard to turn back. A POS system can become the hub of your business, keeping success organized and within reach. When looking to purchase a system, make sure to take such issues into account, such as: should you buy or lease-to-own a system? What kind of warranty is offered? How long is the install? Is their on-site training? What is included in the POS Bundle? Are merchant services available and optional? Asking these questions will usually cut right through salesman chatter and get you to a POS system specific to your business. Just remember, customers wont take your business seriously, when you are still ringing them up on a cash register.