You opened your doors with a sense of purpose. It was time to finally do things your way and to project your business vision into the world. The money you made would finally be yours, and not belong to shareholders or a company president. That is, the money you have left after purchasing inventory and paying for staff, taxes, insurance premiums, etc. Wow—time to work on improving cash flow.
Improving cash flow is more complex than simply proclaiming that you will attract more customers. Improving sales conversions and reducing waste are great ways to begin increasing revenue and profits. But these are low hanging fruit—taking your business to the next level will require you to go deeper and to fully examine every area of your business, including inventory management, POS technology, and product leakage.
Streamlining Inventory to Better Align with Customer Demands
Are you in the business of selling goods and services, or does your backroom tell the tale of a would-be dust vendor? Do you notice that some products on your shelves have been sitting there for multiple seasons? Are there aisles that customers never seem to walk down? If any of these are true, you are a victim of an ineffective inventory management system. In order to reverse this trend and to keep products moving, you will need to have the technical ability to analyze sales data.
This starts with having a POS solution in place that can store transaction data in an easy to view format. Building reports that can use this data will provide the insights you need to make tough inventory decisions. Trends can be evaluated and pinpointed down to seasonal occurrences, holidays, or customer demographics. The information will allow you to reduce inventory by providing you with the ability to make accurate ordering predictions.
Implementing Mobile POS gives you Customer Enticing Options
Predicting inventory and consumer product demands will only take you part of the way towards maximizing your cash flow. In some business models, such as restaurants and salons, the ability to manage inventory will likely not be as important as is creating a comfortable environment for your clients. Small business owners can balance their abilities to attract and retain customers by presenting a customer-pleasing environment using mobile POS (mPOS) technology.
The use of mPOS in your business gives you a number of options to attract customers into your business. Staff can look up inventory items, take food orders, or show styling examples to clients using a tablet that is connected to your POS system. Providing your staff with the ability to access everything in your business with a few taps of a finger will demonstrate to your customers that you value their time.
Improving the cash flow of your business can be accelerated by taking advantage of a key capability of mPOS–creating an omni-channel strategy. This allows customers to interact with you at their convenience, browsing your products after store hours, placing mobile food and drink orders, or booking a table or stylist. This gives them more control over their experience, improves your retention rates, and boosts your business’s reputation.
Blend Sales and Inventory Data to Reduce Product Leakage Costs
A neglected area of many businesses, either from a lack of awareness, time, or ability to identify is product leakage. Limiting the impact that product leakage can have on your bottom line can go a long way towards improving cash flow. Achieving controls that can accurately monitor product inventory, food ingredients, or general operating supplies requires a technical solution to track items from delivery acceptance to sales.
The combination of inventory and transaction data will provide you the information required to rapidly identify points of product leakage. Incorrect item returns, exchanges, or voids, or incorrectly prepared meals are all common areas where having product leakage prevention in place will provide a boost to the bottom line.
Using near real-time reports that are available via an app, you can monitor everything that enters and exits your business with a minimum of effort and time. Instances of product leakage can be traced to the employee that made the error, allowing you to provide additional training as a preventative measure. This information can also be used to gain accurate staff productivity metrics so that you can have measurable statistics in hand when performing staff evaluations.
Turn your Payroll Processes into a Finely Tuned Task
Processing payroll is one of the most time consuming and difficult tasks to get right. Scheduling challenges, figuring out commissions, tips, tip sharing, or client fees all make this a tedious, inaccurate task when performed manually. Reducing errors when processing payroll gives you a better grip on your labor costs, which has a positive impact on your overall cash flow. And, the improved accuracy in your timekeeping makes balancing your books much more efficient.
Staff retention may also improve thanks to the increased transparency and improved scheduling technology. The ability to allow staff to clock in and out via an app, or to use the same app to view or request scheduling changes improves their ability to communicate with you. Your employees can easily switch shifts, request extra hours, or view their paychecks. Performance can be stimulated upwards as well, thanks to the ability to easily view their production numbers.
Invite an Expert to Help Improve your Small Business Cash Flow
Taking the reins of the cash flow in your business requires that you leverage next-gen technology. This allows you to see all of the moving pieces of your business and to rapidly respond to developing problem areas. However, using cutting-edge technology to accomplish this requires an established skillset in small business practices and emerging POS technology. Instead of investing your valuable in making these decisions, turning to a POS expert will help you in maximizing this crucial area.
We at talech want to assist customers that have been financially impacted by COVID-19, in light of restricted movements in cities and towns across the country. We have launched a number of initiatives to help customers during this time. Click here to find out more or reach out to our Support Team at firstname.lastname@example.org
Want to learn more about how talech can help?
Get your free Demo