Month: December 2021

Small Business Owner’s Guide to a POS System for Small Business

December 8, 2021

Did you know that about one in five small businesses fails within its first year, and about half close within five years? If you want your business to beat the odds, you need to do everything you can to maximize your chances at success. One of the best steps you can take towards this is to get a POS system for small business.

A POS system for small business can revolutionize the way you run your business. Read on to learn more about how these systems work and why you need one.

What Is a POS System for Small Business?

Before we dive into the specifics of how a POS system for small business works, let’s talk about what they are first. A point-of-sale system is a tool that helps make your checkout process as smooth as possible. This system can be as simple as a chip reader plugged into a smartphone or as complex as a multi-store specialized system.

A POS system for small business has several primary components: a list of stock, a checkout interface, and a sales reporting system. It may also include a customer loyalty interface and different employee portals. In essence, it’s everything you need to make a sale quickly while still gathering all the information you need during a transaction.

Why Do You Need One?

There are several good reasons to get a POS system, starting with your customer experience. Being able to avoid writing out receipts or punching complicated product codes into a cash register will cut your check out time in half. Customers who are in a hurry will have a smoother experience if you’re working with a POS system.

A POS system for small business can also give you crucial insights into your sales patterns. There’s no reliable way to get a real sense of what merchandise is moving fastest. Or which marketing materials are working without sales reports. A good POS system can make generating those sales reports as easy as pressing a button.

Getting a POS System for Small Business Set Up

There is a fair amount of front-end work that will go into getting your point-of-sale system set up. The biggest task will be importing your inventory into the system. You will need to have an accurate accounting of every piece of merchandise you offer in your system.

If you already have a digital inventory of your merchandise, you may be able to import that into your new POS system. If not, you might have to set aside enough time to add this inventory by hand. Is your business is closed due to the coronavirus lockdown right now? Then this may be an excellent opportunity to undertake this tedious task.

You should also import any customer records you have into your point-of-sale system. Set up a login portal for all employees and set up an account with information like your local tax rate and any discounts you offer.

Managing Inventory with a POS System for Small Business

Once your inventory is input into your POS system, this can be an amazing tool for keeping up with what you have and what you need. You can check your stock of any given item with just a few clicks. Not only will this save you time digging through back stock rooms, but it can also help you keep up with product loss.

The key to having a solid inventory management through your POS system for small business is to keep it up to date. Your system will take care of removing items as they’re sold through the platform. But each time you get a shipment in, be sure to add that new inventory to your system logs.

Customer Management

A POS system for small business can also be a great tool for managing customer profiles. Growing and rewarding customer loyalty can make a big difference in the success of your business. But keeping up with one specific customer on paper can be difficult.

Your POS system will be able to add new customers every time one comes in. This process can easily and automatically track your regulars. You can see who your top customers are and set up rewards. Some POS systems will even allow you to automatically generate customer reward emails. This will help to keep your regulars coming back for more.

Sales Reporting

As we mentioned, keeping up with your sales records is the key to running a successful business. Without this data, you’re flying blind, hoping that what you’re doing is the best thing for your business. But the best companies are built on data, not lucky guesses.

A POS system for small business can let you run dozens of sales reports in just a few minutes. You can see what days you sell the most, what your peak sales hours are, and what products are selling best. You can also track how your sales change in response to promotion campaigns and discount sales, so you know how to effectively leverage your marketing.

Handling Credit Cards

These days, carrying cash has become relatively uncommon. Most people find they don’t need it as often, and personal checks can be unreliable, especially for small businesses. The currency of the day is plastic, and if you want to keep up with your competitors, you need to be able to accept credit cards.

Although it’s true you don’t need a POS system for small business to accept credit cards. It does however make the process easier. The debut of credit card readers like Square, PayPal, and Clover have put credit card processing into the hands of the people. You can just plug a reader into your smartphone and be off to the races accepting any payment form your customers have on hand.

Taxes

Taxes are a subject none of us enjoy thinking about, but they are a crucial part of running a business. Without a point-of-sale system, calculating taxes can become a grueling manual process. You’re also much more likely to make mistakes that can cost your business in the long run.

A POS system for small business can make calculating taxes as easy as running sales reports. You’ll have a record of all your sales in one place, and your system will have a place for you to input your local sales tax rate. You can run your tax amount every month effortlessly and send in the check, confident that your taxes are being handled properly.

Training Employees on How to Use a POS System for Small Business

When you’re getting started with a POS system for small business, you will need to train your employees how to use it. The difficulty of this task will depend largely on which system you pick. Luckily, many point-of-sale systems these days are designed to be fairly intuitive to use, and most of them offer training resources.

Be sure you train your employees on how to run a basic sale, including how to find specific items. You need to walk them through how to add items if something isn’t there, as well as how to change quantities and remove certain items. They need to know how to cancel a sale and how to issue a refund. They will also need to know how receipts are handled and how to add specific discounts.

On-Premises vs. Cloud

There are two main options for where a POS system is located: on-premises vs. on the cloud. For an on-premises system, you purchase the POS system, and its required hardware up front and then maintain updates yourself. This requires a higher up-front investment, but it can be a good way to maintain control over your system.

A cloud POS system for small business allows you to access your POS software from any device. Any software updates are pushed to your devices. You’ll have access to a corporate team of IT experts in case things go wrong. These systems can be cheaper on the front end, but they do leave you in less direct control of your system.

Hardware Components

There are a few primary pieces of hardware you’ll need to run a POS system for small business. The first of these is some sort of a monitor or display system. This can be a tablet, a smartphone, or even a computer.

You’ll also need a credit card reader with both chip reader and magnetic strip reading capabilities. Depending on your setup, you may want a barcode scanner and a receipt printer. And you’ll need a cash drawer to handle the cash transactions that run through your system.

Choosing Among Types of POS System for Small Business

When you’re deciding among POS systems, there are a few things you’ll want to look for. First of all, you should consider the scale of your operation. If you’re running a business with four employees, you don’t want to get a system designed for a major corporation, or vice versa.

You should also consider what your priorities are with the system. If you want something that will make inventory handling a breeze, focus on the POS systems. They will provide the most features and support for inventory management. If you’re looking to build your customer loyalty, consider a system that can integrate with your email campaign tool.

Find the Right POS System for Small Business

When you’re starting up a company, having the right POS system for small business can make the difference between success and failure. Access to simple sales reports and easy tax and inventory management can help you make sure you’re following the best practices for your business. Make sure you find the system that has the right capabilities for you. Also make sure you train all your employees on how to use it.

If you would like help with getting your business off the ground, then check out the rest of our site at Your FundingTree LLC. We can help you get the right small business loan and give you advice on how to prime your business for success. Apply now and start making your business dreams a reality.

A Guide to Help You Find the Best Business Insurance Policy

December 3, 2021

When you’re opening a business, you spend a lot of time making plans for how to manage problems when they arise. You make plans for when an employee has to call in sick, a piece of your manufacturing line breaks down, or an unhappy customer calls you. But what do you do when the unexpected strikes? A business insurance policy can help protect you from the scenarios you can’t foresee during your business planning.

From employee injuries and libel lawsuits to an office fire or theft, a business insurance policy can keep you running smoothly through any disaster. Read on to learn more about business insurance policies and which ones you might need.

What is a Business Insurance Policy?

A business insurance policy is designed to protect you from the risk that comes with normal operation of a business. One of your employees may get injured on the job, a product may break or fail in unexpected ways, or one of your delivery drivers may get in a crash. In any of these cases or a dozen others, your company needs to have insurance backing you up.

There are a number of different types of business insurance policies designed to protect you in different scenarios. Which policies you get will depend a lot on your industry and your business’s particular operating conditions. In some cases, you may be required by law to keep certain business insurance policies.

How it Works

In many ways, a business insurance policy operates the same way as your personal insurance policies do. Your business will have a deductible it will have to pay before your insurance coverage kicks in. But once you’ve paid that relatively small amount, your business will be protected from further losses, at least up to the limit set on your policy.

There are several ways you can get the specific business insurance policies you need. If you feel comfortable navigating the insurance system yourself, you can buy policies directly from an insurance company. If you’d like a little more guidance, an insurance broker can help you find the policy that will work best for your company.

Why You Should Have a Business Insurance Policy

About half of small businesses will fail within their first five years. If you want to be one of the ones that beats the odds, you need to set yourself up on as firm a financial footing as you can. One car crash, workplace accident, office fire, or global pandemic could shut down your business for good.

Business insurance policies are designed to give your business the best chance at survival in the event of an accident or disaster. It can help you limit your losses and keep your business in the black. It may also help you attract customers, as some types of business insurance policies help to protect your customers as well as your company.

Professional Liability Insurance

One of the most common types of a business insurance policy is professional liability insurance. In essence, these policies protect you from lawsuits over any mistakes or failures to perform up to standards. If a customer slips and falls in your store, these policies will shield you from having to pay the medical fees for their broken arm.

Liability insurance is not a one-size-fits-all deal. There are different policy styles within this category, and each of them covers different things. When you’re shopping for this policy type, be sure to consider your specific business needs and read the policies carefully to make sure they cover your needs

Property Insurance

Just as with your home insurance, business property insurance is designed to protect the physical components of your business. The building you operate out of, signage, furniture, and inventory can all fall under these policies. The type of business insurance policy you need to get will depend on whether you rent or own your building. It will also depend on whether or not you’ll be keeping your inventory on-site.

The only catch with business property insurance is that it generally doesn’t cover mass destruction events. It will cover you from fire damage, theft, and storm damage, but not from things like earthquakes, hurricanes, or flooding. If your area is at risk of these disasters, you may want to look into getting an additional policy.

Product Liability Insurance

No matter how carefully you design and review your products, from time to time, a dud is going to slip through. A customer may also accidentally injure themselves while using your product. In these cases, your business will be vulnerable to lawsuits that can cost you thousands.

Product liability insurance protects you from these lawsuits. This is different than professional liability insurance in that it covers only your products, not your actual business itself. If your business offers any sort of product for sale, you’ll want to have one of these business insurance policies.

Professional Indemnity Insurance

Professional indemnity insurance is the equivalent of product liability insurance for businesses that offer services rather than products. Even if you don’t offer a physical product, your customers could still hold you liable for service failures. You could find yourself facing a lawsuit for negligence, giving poor advice, libel, slander, malicious falsehood, and unintentional breach of confidence.

A professional indemnity policy will protect you from these lawsuits. It may also help you attract customers, since it gives them a measure of assurance that you’ll provide the best possible level of service. Make sure you research which business insurance policy will cover situations that apply to your particular business model.

Vehicle Insurance

Vehicle insurance for businesses serves much the same purpose as personal vehicle insurance does. Whether you run a delivery service or provide company cars for your employees to use, you’re at risk of a car accident. You would have to pay for repairs to your vehicle and any medical expenses of your employee. You might also have to cover the other driver’s expenses depending on whose fault the accident was.

When you’re buying business vehicle insurance, you should get comprehensive insurance. Basic insurance is fine for teenagers driving second-hand cars that will break down in two years. But comprehensive insurance will give your business the protection it needs in case of an accident.

Business Interruption Insurance

You can have the finest business plan in the world, but it won’t do you much good if something like, say, a global pandemic hit. Many business owners have found themselves stuck in a holding pattern the last few months. Unable to keep their businesses open due to COVID-related restrictions but still having to cover employee salaries and pay rent. This has already caused a lot of small businesses to close their doors, and we’re likely to see more losses in the coming months.

Business interruption insurance is there to protect you from the unexpected. There can be a number of reasons you might suddenly have to shut your business down for a while. This type of a business insurance policy can help you cover your costs while you’re closed so that when the time comes to reopen, you can do so on as strong a financial footing as you left on.

Business Insurance Policy for Home Businesses

If you run a business out of your home, you may find yourself in a unique insurance situation. You have personal home insurance, and you may have professional indemnity liability. But there are some business situations that may not fall under the umbrella of your personal home insurance.

A home office policy can help you cover any gaps in your homeowner’s and business insurance. It may cover general business liability, lost income, and expenses like payroll if your home is damaged in such a way that you can’t run your business. It can also protect your business from fire, theft, and other such damage.

Learn More About a Business Insurance Policy

Running a business can be a risky proposition, and you need to make sure you have protection in case of a disaster. The right business insurance policy can help you get the coverage you need. This will keep your business operating even through a catastrophe. Take a look at your business practices and decide which business insurance policies will serve you best.

If you’d like help getting a business insurance policy set up, check out the rest of our site at Your FundingTree LLC. We provide top-notch business insurance solutions and specialty insurance coverage. Check out our business insurance options and start running your business confident that you’re protected from any disaster.

10 Key Tips For Great Business Management

December 1, 2021

It is imperative that business managers prioritize efficiency during these tumultuous times. There are so many uncertainties and challenges weighing down on business management and the economy.

The world is currently dealing with a global pandemic and extraordinary unemployment levels. Efficiency is crucial to optimizing your business. When revenues are slumping, your business has no choice but to do more with less.

An effective business model begins and ends with good management skills. Read on for ten key tips for great business management. Learn how to handle your staff and manage key resources.

1. Business Management and Remote Working

Implementing working remotely solutions for your employees is an important piece of the puzzle. Validation of large-scale remote operations is one positive to come out of the coronavirus pandemic. Due to government restrictions, companies had no choice but to allow their workforce to perform their duties from home.

Many old school business managers had misunderstandings about working remotely. They falsely assumed that workers would be sitting on their couch in pajamas drinking a cocktail.

Instead, it turns out that remote workers are more productive than those in the office. In fact, studies show that remote workers are 13% more productive than their office counterparts.

There are other benefits to remote working beyond productivity. Your company can reduce operating expenses with fewer people in the office. You can utilize a smaller office space and decrease utility bills.

In addition, employees are more likely to report high levels of job satisfaction. They are saving time by eliminating their daily work preparation routine and their commute to the office. Also, employees’ expenses are reduced as they save money on fuel and meals.

Satisfied workers are naturally more loyal and productive. The evidence is clear that promoting remote working leads to efficiency gains. This is good business management when employees are more productive.

2. Promote Diversity and Inclusion

Creating a diverse and inclusive workforce is another effective way to improve performance. After a long, hard look in the mirror, many companies realized they built their organization around groupthink.

In these cases, a majority of workers fit into the same profile. They think alike and try to resolve problems in a similar fashion. While it sounds great to have everyone on the same page, there are negative outcomes that occur as a result.

Homogeneous organizations have a difficult time improving performance. Certain challenges and issues stymie the company as they repeatedly try the same failed solution. The end result is stalled revenues and a company that cannot grow any further.

Promoting diversity and inclusion in your organization can take it to the next level. Studies show that companies with a diverse leadership team average 19% more revenue.

People who come from different backgrounds tend to think differently. They draw on life experiences that prove beneficial to problem-solving which helps improve business management.

It is also important that you create an inclusive work environment. This means that employees are treated equally regardless of their race, religion, or sexual orientation.

Employees that feel safe and respected are more likely to produce positive results. They are also more likely to be satisfied in the job and demonstrate loyalty to the company. Ultimately, this all leads to productivity gains for your organization.

3. Invest in Training or Use a Business Management Consultant

It is crucial that you invest time and resources in training your employees. This includes new employees as well as refresher training for your existing employees. Without training, your employees are unprepared to perform their duties.

The vast majority of people do not want to feel ineffective in their position. This leaves them unsatisfied in the job and they become more likely to resign.

Instead, a well-trained employee is going to be more productive. They will share or pass down the skills they have acquired to other employees within your organization. As a manager, you will have to determine how to deliver the best training program.

For some businesses, on-the-job training is sufficient. However, others bring in business management consultant to develop a more formal program. A third-party will assess training needs, develop a curriculum, and host a training course for all employees.

4. Assess the Climate

From time to time, you want to check in on your employees. How is the overall mood of the workforce? Are they satisfied or dissatisfied working for your company?

Many organizations perform a routine climate survey where they ask these questions. This is just the first step in the process. The next step is to turn the survey into action items.

Do you notice any recurring themes in the survey? Are employees frequently pointing out the same problem? You should relay this information to your employees via a company-wide briefing.

Let them know the survey results and what your plans are to correct issues. Your efforts are certain to have a positive impact on employee retention. Employees value managers that listen to their feedback and take action to correct it.

5. Performance Incentives Improve Business Management

The old adage “money talks” still rings true today. While remote working and training are effective ways to improve productivity, money remains one of the best motivators.

Many smart organizations are turning to performance pay which is different than a typical business management salary. This is a break from traditional salary and bonus structures.

Instead, managers are tying financial incentives to well-defined performance parameters. At the start of the year, the manager meets with their employees to set tangible objectives for the year.

For instance, consider a sales manager meeting with one of his or her associates. They review last year’s sales data and determine the employee was responsible for $500,000 in revenue.

To incentivize the employee, the manager sets a higher commission rate for sales above and beyond $500,000. The manager and sales associate agree to a tiered structure for each additional $50,000 in sales. The commission rate increases by 10% for each $50,000 increment above $500,000.

This is just one example of performance pay. As the manager, you can tailor performance pay in a variety of different ways. The point is straightforward in that your employees can earn more money by exceeding their normal productivity.

6. Wellness Initiatives

Promoting employee wellness is another way to make your organization more efficient. Wellness places a focus on your employees’ physical and mental health. The concept behind wellness is that healthy employees are more productive and efficient.

It is difficult for your employees to be productive if they are taking too many sick days off. Studies show that employees who are physically fit are more motivated as well.

Your organization can promote wellness by providing gym memberships to your employees. Another proven business management strategy is to provide access to mental health services.

7. Business Management Software

Industry leaders are turning to business management software and automation for efficiency gains. Automating recurring tasks is an effective way to accomplish things faster.

Some companies are using machine learning while others are more focused on artificial intelligence (AI). Machine learning and AI do not take days off.

This can even help your business process management tasks. Certain actions like setting up meetings or marketing emails can be automated to save time. You can divert human resources to more important tasks by relying on automation.

8. Eliminate Distractions

There are so many distractions in today’s digital age to curtail productivity. Some employees are checking social media during work hours on their smartphone or watch. Others are caught texting or taking personal calls during the day.

With business management, you have to find a fair balance. You do not want to create an overbearing environment where employees cannot check their phones. At the same time, you do not want people browsing Facebook all day.

Many organizations address distractions by publishing policies. Here, you can lay out the expectations for the workday. For example, some companies prohibit cell phone usage during meetings or while customers are present.

It is up to business management to identify distractions that are holding back the workforce. Then, you can address them on a case-by-case basis.

9. Broadcast Weekly Business Management Goals

Communication is key to reaching your company’s productivity goals. How will your employees know what to strive to without a clearly defined goal? Each Monday, start off the week by announcing the desired goal for the week.

This will help motivate employees to get the job done. Prior to setting a weekly goal, make sure to check the payroll calendar to see who is or is not working that week. If you set unrealistic goals, then your business management salary may take a hit.

10. Bring in Reinforcements

Sometimes you need reinforcements to reach your business management productivity goals. You may need additional equipment or human resources to help get the job done.

This may mean taking out a business loan to buy the necessary production equipment. If so, you may need to pursue equipment financing in order to improve efficiency and increase production.

Key Tips for Great Business Management

Running a business is hard work. Far too many small businesses fail in the first couple of years after opening.

You can buck that trend with strong communication and surveying your workforce. Taking steps like eliminating distractions and encouraging performance with incentives goes a long way.

If you are looking for funding options to improve business management, contact us today to speak with a specialist.