business plan for point of sale

Start Your Point Of Sale Business in 9 Simple Steps

By alex ryzhkov, resources on point of sale.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

The Point of Sale Industry: A Booming Market for Business Owners

As the business landscape continues to evolve and adapt to modern technology, the demand for efficient and streamlined Point of Sale (POS) systems is skyrocketing. In fact, the global Point of Sale terminal market is projected to reach a staggering $108.46 billion by 2025, with a compound annual growth rate of 7.8%. This growth stems from the unrelenting need for businesses to optimize their operations, enhance customer experiences, and stay ahead of the competition.

Whether you're an aspiring entrepreneur or an established business owner looking to venture into the world of Point of Sale, opening a POS business can be a lucrative opportunity. By leveraging this remarkable demand, you can not only provide essential solutions for other businesses but also carve out a profitable niche for yourself.

However, before embarking on this exciting journey, it's vital to understand the fundamental steps involved in launching a successful Point of Sale business. In this comprehensive checklist, we'll explore nine essential steps that will steer you in the right direction, ensuring that you have a solid foundation for your venture.

So, let's dive in and discover how you can successfully establish your own POS business!

9-Steps To Start a Business

Prior to launching a Point of Sale (POS) business, there are several important steps that need to be taken to ensure a successful start. These steps include identifying the target market and competition, creating a comprehensive business plan, securing funding, obtaining necessary permits and licenses, and selecting a reliable POS provider, among others. Each step has its own average time and cost requirements, as outlined in the table below:

Identify Target Market And Competition.

When starting a point of sale business, it is crucial to identify your target market and understand your competition. This step lays the foundation for a successful venture by helping you focus your marketing efforts and differentiate yourself from competitors.

Identifying your target market:

• Analyze the industry: Research the point of sale industry to identify the specific sectors or niches that have a high demand for POS solutions. For example, restaurants, retail stores, and healthcare facilities often rely on POS systems.
• Segment your market: Within your chosen industry, segment your target market based on criteria such as location, size, and customer demographics. This helps tailor your marketing strategies to different customer groups.
• Identify pain points: Understand the challenges and pain points your target market faces with their existing POS systems. This can help you highlight the unique benefits your business offers.

Evaluating your competition:

• Research competitors: Thoroughly research and analyze your direct and indirect competitors. Look at their offerings, pricing strategies, marketing tactics, and customer feedback.
• Identify unique selling points: Determine what sets your business apart from the competition. Highlight your unique selling points, whether they are more affordable pricing, superior customer service, or advanced features.
• Assess market saturation: Evaluate the level of competition in your target market. Determine if there is saturation or room for new entrants. This will help you understand the challenges and opportunities you may face.
• Conduct surveys or interviews with potential customers to gather insights into their specific pain points and needs.
• Monitor industry trends and stay updated with technological advancements in the point of sale market to better understand your target market's evolving needs.
• Consider partnering with complementary businesses or targeting specific verticals to establish a niche market for your POS solutions.

By identifying your target market and competition, you can develop effective marketing strategies, tailor your offerings, and position your point of sale business for success.

Create A Comprehensive Business Plan

Creating a comprehensive business plan is crucial for the success of your point of sale (POS) business. This plan will serve as a roadmap, outlining your goals, strategies, and financial projections. It will also help you attract potential investors and secure funding.

Here are the key components to include in your business plan:

• Executive Summary: Provide an overview of your business, including its mission, vision, and key objectives.
• Company Description: Describe your POS business, including its legal structure, location, and any unique selling points.
• Market Analysis: Research your target market, identify your competition, and analyze their strengths and weaknesses.
• Product/Service Offering: Clearly define the hardware and software solutions you will offer, highlighting their features and benefits.
• Marketing and Sales Strategy: Outline your marketing and sales tactics, including your pricing strategy, distribution channels, and promotional plans.
• Organizational Structure: Describe the structure of your company, including the roles and responsibilities of key team members.
• Financial Projections: Project your revenue, expenses, and profitability over the next few years. Include a detailed breakdown of your costs, pricing strategy, and sales forecasts.
• Risk Analysis: Identify potential risks and challenges that could impact your business and outline your strategies for mitigating them.
• Implementation Plan: Break down the steps required to launch and operate your POS business, including timelines and milestones.
• Research the market thoroughly to gain insights into customer needs and preferences.
• Include a SWOT analysis to assess your business's strengths, weaknesses, opportunities, and threats.
• Seek input from industry experts or mentors when creating your financial projections.
• Regularly review and update your business plan as your POS business evolves.

By creating a comprehensive business plan, you will have a clear roadmap for success and be well-prepared to tackle the challenges and opportunities that come your way.

Develop A Financial Model And Project Revenue And Expenses

Developing a financial model and projecting revenue and expenses is a crucial step in opening a point of sale business. It allows you to gain a clear understanding of the financial implications of your business venture and make informed decisions about pricing, sales targets, and budget allocation. Here are the key steps to follow:

• Research the Market: Analyze the demand for point of sale systems within your target market and assess how much customers are willing to pay for your products or services. This research will help you estimate your potential revenue.
• Estimate Expenses: Identify and calculate the costs associated with starting and operating your business. This includes hardware and software costs, employee salaries, marketing expenses, rent, utilities, and any other overhead costs.
• Create Financial Projections: Use the gathered data to create financial projections for your point of sale business. Forecast your future revenue, expenses, and profit margins for at least the first year. This will serve as a roadmap for your business and help you set realistic goals and expectations.
• Consider Different Scenarios: It's essential to create projections for multiple scenarios, such as a best-case, worst-case, and most-likely case. This will enable you to evaluate the potential risks and rewards of your business and plan accordingly.
• Monitor and Adjust: Continuously review and update your financial projections as your business progresses. Monitor your actual revenue and expenses against your projections, and make adjustments when necessary to ensure your business stays on track.
• Use reliable financial software or consult with a financial expert to assist you in creating accurate and detailed financial projections.
• Consider incorporating contingency plans into your financial model to account for unexpected expenses or changes in market conditions.
• Remember to review and update your financial projections regularly to reflect any changes in your business environment or strategy.

Secure Funding And Explore Financing Options.

Once you have identified your target market, created a business plan, and projected your revenue and expenses, the next step in opening a point of sale business is to secure funding and explore financing options. Adequate funding is essential to cover the costs associated with purchasing hardware and software, obtaining permits and licenses, and setting up and configuring your POS system.

Here are some important steps to consider when securing funding and exploring financing options for your point of sale business:

• Evaluate your financial needs: Determine the amount of funding you require to start your business and cover initial expenses. Consider factors such as equipment costs, inventory, marketing expenses, and working capital.
• Explore traditional financing options: Research and approach traditional lenders, such as banks or credit unions, to inquire about business loans or lines of credit. Prepare a detailed business plan and financial projections to support your loan application.
• Consider alternative financing sources: Explore non-traditional financing options, such as angel investors, venture capitalists, or crowdfunding platforms. These sources can provide capital in exchange for equity or future repayment.
• Utilize personal assets: If possible, consider using personal assets or savings to fund your point of sale business. This can reduce reliance on external financing and potentially increase your chances of securing additional funding.
• Seek out grants and incentives: Research grants and incentives available for small businesses in your industry or region. These financial resources can help cover startup costs or fund specific projects within your business.
• Prepare a well-structured business plan and financial model to present to potential lenders or investors.
• Establish a strong credit history and improve your personal and business credit scores, as this can enhance your financing options.
• Consider seeking guidance from a financial advisor or consultant who specializes in small business financing.
• Be prepared to negotiate terms and conditions of financing agreements, such as interest rates and repayment schedules.
• Keep track of any grants or incentives requiring specific documentation or reporting to ensure compliance.

By securing adequate funding and exploring different financing options, you can ensure a solid financial foundation for your point of sale business and position yourself for success.

Obtain Necessary Permits and Licenses

Before launching your Point of Sale (POS) business, it is crucial to ensure you have obtained all the necessary permits and licenses. This step is essential to comply with local, state, and federal regulations and avoid any legal issues or penalties in the future.

Here are a few key permits and licenses you may need to acquire:

• Business License: Obtain a general business license to legally operate your POS business in the desired location. Contact your local government or licensing agency to understand the specific requirements and application process.
• Sales Tax Permit: If your business sells tangible goods, you might need to apply for a sales tax permit. This permit allows you to collect sales tax from customers and remit it to the appropriate tax authority. Research the requirements of your state's taxing agency and apply accordingly.
• Employer Identification Number (EIN): If you plan to hire employees, you will need to obtain an EIN from the Internal Revenue Service (IRS). An EIN serves as a unique identifier for your business for tax purposes.
• Specialized Permits: Depending on your local regulations and the nature of your POS business, you may require specialized permits. For example, if you plan to serve alcoholic beverages, you'll need a liquor license.
• Research the specific permits and licenses required for your location and industry. Local government websites, industry associations, and small business development centers can provide valuable information.
• Start the application process as early as possible, as obtaining permits and licenses can take time. Be prepared to provide necessary documentation and pay any associated fees.
• Ensure ongoing compliance with all permit and license requirements. Many permits require annual renewal or reporting, so stay organized to avoid any legal complications.

By obtaining all the necessary permits and licenses, you demonstrate your commitment to operating legally and professionally. This step sets a strong foundation for your POS business, helping you avoid potential legal hurdles in the long run.

Select A Reliable And Reputable POS Provider

Choosing the right Point of Sale (POS) provider is crucial for the success of your business. With numerous options available in the market, it is essential to select a reliable and reputable POS provider that meets your specific requirements. Here are some important factors to consider when making your decision:

• Research and Compare: Begin by researching different POS providers and comparing their features, pricing, and customer reviews. Look for providers that have a good reputation and a track record of serving businesses similar to yours.
• Consider Scalability: As your business grows, your POS needs may evolve. Ensure that the provider you choose offers scalable solutions that can accommodate your future needs.
• Integration Capabilities: Check if the POS provider integrates well with other software and systems you currently use, such as accounting or inventory management tools. This will streamline your operations and avoid any compatibility issues.
• Reach out to other business owners in your industry and ask for recommendations on reliable POS providers.
• Request demos or trials from shortlisted providers to experience their system firsthand.
• Consider the level of customer support and training offered by the provider, as ongoing assistance will be important for a smooth operation.

Once you have thoroughly evaluated and compared different POS providers, make an informed decision based on their reliability, reputation, features, and customer support. Remember, selecting a reliable and reputable POS provider sets the foundation for a successful and efficient point of sale business.

Purchase Hardware and Software Required for the POS System

Once you have determined your target market, created a business plan, and projected your financials, it's time to purchase the necessary hardware and software for your Point of Sale (POS) system. This step is crucial, as it will determine the efficiency and effectiveness of your business operations.

When selecting the hardware and software for your POS system, consider the following:

• Compatibility: Ensure that the hardware and software you choose are compatible with each other and meet the specific needs of your business.
• Reliability: Opt for reliable and reputable brands that offer quality products. This will minimize the risk of hardware malfunctions or software glitches.
• Scalability: Think about the future growth of your business. Choose a POS system that allows for easy scalability, enabling you to add more hardware or software modules as your business expands.
• Functionality: Identify the key features and capabilities you require for your business. Ensure that the POS system you purchase has the necessary functionalities to meet these requirements.

Tips for purchasing hardware and software:

• Research different POS providers and read customer reviews to gather information on the quality and reliability of their products.
• Consider consulting with industry experts or seeking recommendations from other business owners who have successfully implemented a POS system.
• Compare prices and explore different financing options to ensure you are getting the best value for your investment.
• Keep in mind that investing in high-quality hardware and software upfront can save you money in the long run by reducing maintenance and replacement costs.

Once you have made your purchase, ensure that the hardware is properly installed and the software is configured according to your business needs. This may involve working closely with the POS provider or hiring professionals with expertise in POS system setups.

Remember, the hardware and software you choose will play a critical role in the efficiency of your business operations. Take the time to carefully select and purchase the best options available to ensure a smooth functioning Point of Sale system.

Set Up And Configure The Pos System.

Once you have purchased the necessary hardware and software for your POS system, it's time to set up and configure it to meet the specific needs of your business. Follow these steps to ensure a seamless installation process:

• 1. Unpack and inspect the equipment: Carefully unpack all the hardware components, including the cash register, barcode scanner, receipt printer, and any other peripherals you have purchased. Check for any damage or missing parts and report it to your POS provider immediately.
• 2. Connect the hardware: Follow the manufacturer's instructions to connect each piece of hardware to the appropriate ports on your computer or terminal. Ensure that the connections are secure and properly aligned.
• 3. Install the software: Insert the software installation disc or download the necessary files from the POS provider's website. Follow the step-by-step instructions to install the software on your computer or terminal.
• 4. Configure software settings: Once the software is installed, you will need to configure various settings to tailor it to your business requirements. Customize tax rates, discounts, payment methods, and any other features specific to your operations.
• 5. Integrate with other systems (if necessary): If you use other business systems like accounting software or inventory management tools, ensure compatibility and integrate them with your POS system. This will streamline your operations and allow for better data synchronization.
• 6. Test the system: Before going live, perform thorough testing to ensure the system functions correctly. Test different transaction scenarios, employee logins, and generate sample reports to verify accuracy.
• Refer to the user manuals and online resources provided by your POS provider for detailed instructions and troubleshooting.
• Back up your data regularly to prevent loss or corruption.
• Consider hiring professional IT support to assist with the installation and configuration process, especially if you're implementing a complex system.

By meticulously setting up and configuring your POS system, you will ensure that it operates smoothly and meets the unique needs of your business. Once this step is completed, you are one step closer to effectively managing your point of sale operations.

Train Employees On How To Use The POS System.

Once you have set up and configured your POS system, it is crucial to train your employees on how to use it effectively. This step is essential to ensure smooth operations and maximize the benefits of your investment. Here are some key considerations for training employees on the POS system:

• Begin with the basics: Start by familiarizing your employees with the basic functions of the POS system, such as processing transactions, adding products or services, and generating reports. Ensure they have a clear understanding of the system's layout and navigation.
• Provide hands-on training: Encourage your employees to practice using the POS system through role-playing scenarios or mock transactions. This hands-on experience will help them gain confidence and become proficient in using the system.
• Highlight key features and benefits: Emphasize the specific features and benefits of your chosen POS system that will make your employees' tasks easier and more efficient. This could include inventory management, customer relationship management, or reporting capabilities. Ensure your employees understand how these features can enhance their daily operations.
• Address common issues and challenges: Anticipate the challenges that your employees may encounter while using the POS system and provide solutions or workarounds in advance. This will empower them to troubleshoot common issues and minimize disruptions to customer service.
• Offer ongoing support: Even after the initial training, make sure to provide ongoing support and access to resources that employees can refer to if they have questions or encounter difficulties. This can include user manuals, video tutorials, or a dedicated point of contact for technical assistance.
• Encourage feedback from your employees regarding the POS system's usability and functionality. Their insights can help you optimize the system and address any concerns.
• Consider assigning a 'POS champion' among your employees who can serve as a go-to person for training assistance and troubleshooting.
• Regularly assess your employees' proficiency with the POS system and provide refresher training sessions if necessary.

By properly training your employees on how to use the POS system, you can streamline operations, improve customer service, and maximize the return on your investment. Remember, an empowered and knowledgeable workforce is crucial for the success of your point of sale business.

In conclusion, starting a Point of Sale (POS) business requires careful planning and consideration of various factors. By following the nine steps outlined in this checklist, entrepreneurs can successfully launch their own POS business and cater to the needs of small and medium-sized businesses.

Identifying the target market and competition is crucial for understanding customer needs and establishing a competitive advantage. Creating a comprehensive business plan and developing a financial model helps entrepreneurs strategize and project revenue and expenses effectively.

Securing funding and exploring financing options ensures the necessary capital is available to invest in the business. Obtaining necessary permits and licenses ensures compliance with legal requirements.

Selecting a reliable and reputable POS provider is essential to provide customers with quality hardware and software. Purchasing the required POS system components and setting them up correctly helps businesses operate smoothly.

Lastly, training employees on how to use the POS system ensures efficient and effective operations. Overall, this business model allows small and medium-sized businesses to acquire a POS system through a one-time payment, making it a straightforward and appealing option for entrepreneurs in the industry.

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How to Choose the Right Point of Sale (POS) System

Ellen Cunningham

6 min. read

Updated April 11, 2024

A point of sale (POS) system can be a great addition to your business. Capable of far more than simply taking credit cards, POS systems offer features like inventory management, reporting, and even time clock options.

In my work for CardFellow, a leading resource for small businesses looking for credit card processing and terminals, I regularly test, research, and write overviews of equipment. As a result, I field a lot of questions about POS systems.

But one question  always  comes up: “There are so many options. How do I choose?”

The good news is that picking the right POS system doesn’t have to be a chore. Follow these three steps to find the right POS system for your business.

See Also:  How to Do Market Research

1. Know what’s most important to you

There are two approaches to deciding on a POS system: choosing based on features, or choosing based on costs.

Choosing by features

If particular features are the most important thing, you should choose a POS system first. But if low costs are a priority, you’ll actually want to find a credit card processor, then choose from the POS systems that processor can support.

Know which features you need

When I say that you should find your POS system first if specific features are most important, I’m talking about less common features. POS systems offer basic capabilities standard, including credit and debit card acceptance, reporting, and inventory management. For restaurants, the ability to split checks and add tips is also common.

So, what sort of features do you need to look for specifically? Here are the main ones:

• Online ordering for in-person pickup (restaurants)
• Delivery tracking for food or non-food businesses (pizza shops, florists)
• Age verification/ID prompt (liquor stores, tobacco sales)
• Integrated appointment or class calendars (healthcare, beauty salons, yoga studios)

If those features sound like must-haves for your business, it’s worth finding your preferred system first. Be sure to explicitly ask the POS company or processor if the feature you need is included, or check the POS company’s website.

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Use a product directory

The easiest way to research POS systems and find specific features is to use an online POS system product directory, like the one we have. These directories provide overviews of POS systems, so you can view important information quickly. You’ll be able to narrow down choices by the manufacturer, features, processor, and more.

Note that choosing your POS system first may limit your choice of processors, which can result in higher costs overall. We’ll get into that more in a minute.

Choosing by cost

If you scanned the list above and decided that standard POS system features will suit your needs, finding a processor first is likely to save you time and money. While POS systems (and costs to take credit cards) aren’t cheap, you may be able to reduce expenses by finding a competitive credit card processor and then choosing your system from the available options.

Picking a processor before a system gives you a much larger pool of options. Credit card processors usually offer multiple different brands and models of equipment, so you’ll still get to choose a system that fits both your needs and your budget.

When choosing a processor, start by getting quotes from multiple companies. A quick search online for credit card processing comparison sites can help you find services that will allow you to compare quotes privately, without sales calls. After you get quotes, you can ask about available POS systems. You’ll have a smaller range of choices, but the systems will be some of the most popular and user-friendly.

Many of the businesses I work with take this route when choosing a POS system, and find that it’s helpful to choose from tried-and-true popular systems even if it’s a smaller selection of the total systems on the market.

2. Decide if you’ll accept proprietary POS systems

Some POS systems are proprietary, meaning that you have to work with a specific processor in order to use that system. This isn’t inherently good or bad, but you should be aware of possible pros and cons.

A pro is that it may require you to do less research, as you won’t need to review pricing from multiple processors. You’ll get pricing from the processor that supports the equipment and that’s that.

A con is that you don’t have as much ability to negotiate your costs. Since the processor knows that you have to work with them to use the system, your competitive advantage disappears. You can’t simply go to another processor. Moreover, if you decide to switch processors in the future, you’ll have to purchase a different system, since your current one won’t be compatible with another company.

When making your decision, think about the worst case: If you switch processors for some reason, can you afford to buy new point of sale equipment even if your current system isn’t outdated? If not, a POS system that only works with specific processors might not be the best choice for your business.

You can identify systems that require specific processors by disclosures on the manufacturer’s website. It will often state the name of the credit card processing company that can support the system. By contrast, if it works with multiple processors, the site may mention that the system is “processor agnostic” or list multiple processing partners. If in doubt, you can also ask the POS manufacturer directly. They’ll advise on processors that support their system.

See Also:  What You Absolutely Cannot Afford to Forget When Pricing Your Products

3. Decide if you’ll lease or buy

Another consideration when deciding on a POS system is how you’ll pay for it. Since POS systems are more expensive than basic countertop credit card machines, you’ll want to think about what makes sense for you.

Some companies will offer the option to lease equipment instead of purchasing it outright. The benefit is that there’s little or no upfront cost, but remember that leasing equipment can cost you a lot over time. The monthly fee you’ll pay could add up to many times the retail cost of the system. Be sure to check the math yourself, and scope out what it would cost to buy the machine outright.

It’s also worth noting that leasing often comes with a contract that can’t be cancelled for four years or more. The contract is often with a separate leasing company, not your processor, so even if you stop using your POS system, you’ll still be on the hook for the equipment lease.

Purchasing a POS system outright is a bigger upfront commitment financially, but you’ll have the benefit of owning the equipment. Many POS companies offer free software updates, which will help keep your system current. If you choose to buy, you may want to consider purchasing a system with the newest technologies, like contactless (NFC) capabilities, so that you’ll be able to take a wider range of payment types.

See Also:  The Complete Guide to Choosing Your Business Structure

The tips outlined above will help you find the right system for your business in no time. Just remember:

Decide if you’ll shop by features or by processor

• Choosing by features:  Use a product directory to research POS systems and choose the one you want, then set up a merchant account with a processor who can support that system.
• Choosing by processor:  Choose a processor with competitive rates and fees. Then choose a POS system from the processor’s supported systems.

Clarify your ideas and understand how to start your business with LivePlan

Ellen is the Marketing Manager for CardFellow, leading provider of free credit card processing comparison tools. She has a degree in English and spends her days researching and writing about everything related to credit card processing.

Table of Contents

• 1. Know what’s most important to you
• 2. Decide if you’ll accept proprietary POS systems
• 3. Decide if you’ll lease or buy

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The Ultimate Guide to Create a Point-of-Sale System for Your Business

13 min read

Running a store, cafe, restaurant, gas station, beauty salon, and other establishments of the sort requires you to constantly resolve administrative and management issues. That's where POS systems come to the rescue. They help business owners effectively organize the work of employees and simplify their daily tasks and professional duties. 

If you don't have your own POS system yet, it's high time to amend the situation and buy, rent, or build the best point-of-sale solution. Not sure where to start? Then carefully read our article, as we're going to explain to you how to approach POS software development and choose hardware compatible with it. 

What is a POS system ?

Let's start our conversation by deciphering the POS abbreviation. What does it mean?

So, POS stands for ‘Point of Sale’ or ‘Point of Service’. More specifically, we're talking about a complete set of hardware and software, which task is to automate processes in the sales and service provision areas. 

POS solutions aim at simplifying the work of service personnel (and, accordingly, speeding it up). In short, employees in a store, restaurant, or another similar institution use these systems to always have everything at hand, which means they can fulfill their duties quickly, efficiently, and competently. 

The main equipment components of POS systems

Any Point-of-Sale system consists of POS software installed on a computer, a special terminal, and various peripheral devices connected to it. 

We think we have to list and describe these devices, right? Just keep in mind, they may vary depending on the needs of your particular establishment.

Fiscal registrar , that is, a cheque printer with a fiscal memory function. The task is clear from the name itself: printing cheques and various sorts of reporting documents, storing sales data, and so on;

POS monitor of service personnel , which displays significant information to the operator (cashier in a supermarket, waiter in a cafe or administrator of a beauty salon);

POS keyboard : it’s about data entry and transmission of control commands (sometimes POS keyboard is also equipped with built-in card readers);

Buyer's screen , displaying data of interest to the consumer (say, the amount of money to pay);

Barcode scanner , which makes it possible to quickly read the product code and get basic data about it;

Cash box needed to store money safely;

A device to read bank cards , whose key function is to organize the payment process with maximum comfort.

These are the main hardware components. But if you want to build a point-of-sale system working at a high level of efficiency, you may need other devices too (but again, be guided by the specifics of your business and its particular requirements): electronic scales, label printers, currency detectors, etc.

Where to use business POS solutions?

So, when should you make a POS system for your business? Let's take a closer look at a few basic examples:

Grocery stores and hypermarkets . Naturally, the efficient operation of a major supermarket is impossible without the introduction of point-of-sale technologies. However, even a small grocery store would benefit from these systems.

Any other point of sale : hardware stores, appliance shops, and the like.

Catering places . A restaurant point-of-sale system will speed up the process of receiving and transferring customer orders to the kitchen. 

Places where services are provided , be it a hotel, cinema, casino, beauty salon, etc.

Key functions of POS systems

What is a POS system for, and what is it able to do? What functions does it perform?

Identification of goods by barcode . The operator or cashier doesn’t need to memorize the entire range of goods the company sells. It's enough to scan the barcode of the product, and all the necessary information on it will be received and displayed automatically.

Management of discounts and organization of loyalty programs . Such an opportunity would also come in handy, do you agree?

Automatic payments . It's a very important function of POS solutions, without which it's impossible to imagine the work of a modern store, gas station, and other institutions of the sort.

Controlling staff work . To start working with the system, an employee must be authorized, which means you can keep an eye on him.

Formation of reports . Modern technologies help to collect statistics about your institution and analyze the information received with the aim of creating detailed reports on its basis. Usually, there're in-built, ready-made report templates, but you may customize your POS system according to your personal requirements.

Simplified database management : the possibility to change information about the price of goods, the composition of the dish, and so on.

Control of inventory balances . POS software stores the latest product data (we mean the automated recalculation of goods remaining in the warehouse or in the store itself). Thanks to this, sellers know if there is a need to order a particular product. 

And that's not all by any means! Point-of-Sale systems focus on maximally facilitating the work of your employees by automating his or her routine activities.

The emergence of POS solutions

POS solutions have come a long way from the simplest mechanical cash registers (first half of the twentieth century) to complex multifunctional systems.

Let's break the history of development into stages and briefly examine each of them.

It all started with two types of registrars: NCR registrars and Burroughs registrars. These were leverage-based cash registers, which recorded data in a special journal. They were less than perfect and not very convenient to use. 

A little later, more advanced recorders appeared (such as the NCR Class 5). They were no longer mechanical and powered by electricity. 

1973 had been marked by the introduction of the first computer systems (IBM 3653 Store System, NCR 2150, as well as TRW, Regitel, Darachecker) and the development of UPS / EAN barcode readers.

Less than 10 years later, in 1986, IBM released a POS-based PC called the IBM 4683. It was a significant achievement at the time.

In the late 1980s, POS vendors learned to introduce magnetic stripe readers, which allowed consumers to make contactless payments.

Modern Point-of-Sale systems include a lot of useful add-on modules targeted at customer interaction, inventory management, payroll, and more. Software and hardware work closely together to help manage the business properly.

We'll discuss different ways to create POS software later, but right now, we'd like to explore another issue, namely...

Early POS software formats

First electronic cash registers had integrated patent software, the functionality of which left much to be desired.

In the summer of 1973, IBM launched two special systems (the IBM 3650 and 3660 Store System) commercially using client-server, backup, local area network (LAN), and remote provisioning technologies. About a year later, these systems had been installed in Dillards and Pathmark stores in New Jersey.

A few more years passed, and in 1979 the owners of Gene Mosher's Old Canal Cafe (New York) implemented a POS system with software developed by the famous Mosher. The system was based on the Apple II and had useful features such as processing a customer order, transferring data to the kitchen, etc.

Since then, a lot of water has passed under the bridge, and Point-of-Sale solutions have turned into multifunctional complex programs, thereby becoming true salvation for many businesses. 

But if you do want to develop a POS system of your own, you must understand how it works. We'll do our best to help you figure it out.

How do POS systems work?

Previously, sellers used to spend a lot of time issuing purchases, calculating balances, and completing other routine operations; luckily, now the situation has greatly improved. The cashier in the supermarket reads the product barcode using a special scanner, and the customer resorts to a bank terminal to pay for the purchase made (naturally, there is also an option to pay in cash): that's all, the process has started. The rest happens automatically, just a few clicks are required. 

But what happens behind the scenes, so to speak?

The above diagram clearly illustrates how business POS solutions work. Let's explain it in words (in general terms):

Scanning the product barcode . The scanner reads the barcode of the product, and the data about it is being automatically transferred to the cash register program: its price, markdown, possible discounts, etc. The program determines which product should be issued, generates a sales check, and so on. The employee just needs to accept money from the client and give him the product. And speaking of money and payment… 

Payment. First, the customer swipes the card over the terminal's reader. The card data is being sent to the POS system, which contacts the PSP (Payment Service Provider). PSP reaches the bank to initiate the transaction authorization procedure (which bank depends on the type of credit card). The buyer is now prompted to enter a PIN to confirm the transaction. If everything goes well, the authorization code is being sent to the POS system, and the buyer is informed that the payment has been successful.

The POS program automates and integrates front-office (supermarket checkout, waiter's terminal, etc.) and back-office (accounting, warehouse, HR and marketing department, establishment administration, and the like). Data exchange between these blocks goes on continuously, usually via a cloud server.

By the by, a cloud server isn’t the only way to solve the problem... There are other options besides cloud-based POS solutions too.

On-Premise vs. Cloud-based POS solutions

You have two basic options to choose from. Each of them has its pros and cons, and it's up to you what to select in your particular case.

On-premise solutions

On-premise means using your own resources to host software, namely:

you can purchase a physical server and locate it within your organization;

if you don't like the above option, you may rent a dedicated server in a data center. 

On-premise POS systems are considered more secure and protected because third parties don't have access to your corporate data. In addition, such a method to host software provides you with greater independence. You are your own master.

Locating servers on the premises of your own company is a laborious and expensive task. You'll have to allocate a significant budget for equipment maintenance and hire specialists able to ensure its reliability and trouble-free operation.

And even if you decide to rent a dedicated server to host your software, you'll still face certain difficulties. Among other things, you'll have to fork out pretty much (rental fee, as you see).

Cloud-based systems

Forward-thinking entrepreneurs choose this particular model when all internal data is stored and processed in the so-called ‘cloud” (virtual server). Such a virtual server operates in a distributed computing environment and provides its services over the Internet.

Cloud-based POS solutions have many benefits, such as:

Good scalability;

Payment on demand and after delivery;

Stability in work;

Access from any device anywhere in the world. 

The cloud server is provided by a third party and the client interacts only with its virtual part, which reduces the data security, as some believe. However, with the right approach to information protection, the problem can be easily solved.

According to forecasts, cloud-based systems will have led the global market for POS by 2024.

POS Software Features

Below, we provide a detailed infographic to show you what features your Point-of-Sale system cannot do without. In words, we'll just briefly describe its key functional blocks:

Inventory management . The 1st block will allow you to be always aware of the presence or absence of products in stock;

Payments. Comments are unnecessary, aren't they?

Analytics & Reporting . You'll be able to monitor the efficiency of your establishment.

Loyalty policy so that your customers are always happy with your store or restaurant.

Personnel Management , another mandatory functional block of POS systems.

Additional blocks (see infographic below).

Main benefits of POS systems

Let's talk about the benefits of POS systems for your business... just in case we haven't convinced you of the expediency of POS software development yet.

Improving the speed of customer service . Automation of processes allows you to serve customers in stores (and visitors to cafes) much faster, which means the queues will be reduced.

Permanent remote business control. Business POS solutions provide real-time remote access to view any transactions and receive reports. It implies complete control over all processes taking place in the sales area. The actions of cashiers (and other employees) are also under control.

Customer loyalty management . Consumers love all kinds of discount programs, coupons, and other promotions, and a modern point-of-sale system gives you the possibility to manage these marketing initiatives in a much easier way.

Access to useful features . We’re referring to such features as a simplified inventory process, less paperwork; automatic reporting, control of inventory balances, and others.

High work efficiency. Benefits of the POS solutions described above lead to greater efficiency of your employees and result in an increase in income.

So, we figured out WHY you should build a point-of-sale system... and now it remains to see HOW to do it. 

H ow to make your own POS system

Before you consider purchasing or creating a point-of-sale system, you have to answer a key question: what exactly does your business need? What tasks should your Point-of-Sale platform solve? There are many options, as you could have already understood if you’re reading our article carefully: writing-off of items in the warehouse, provision of discounts, reporting, and much, much more. And only after answering the above question, you can move on to the next one, namely… 

Where should you get your Point-of-Sale system ?

Any POS system consists of software and hardware. And if you think you can buy hardware first and then choose the right software, we must warn you: this is a completely wrong approach to the issue. 

But don't you worry! We're here to explain to you what to do. Let's start in order.

#1. Buying a Point-of-Sale system

The first course of action is to buy ready-made and well-tested POS kit with the installed software. You just have to customize your POS system and plug the equipment into the outlet. That's all!

fast start . As we’ve already explained, it doesn't take a lot of effort on your part to connect the equipment and start using it.

ease of use . Usually, such ready-made POS systems are user-friendly and intuitive.

Approved budget . You must allocate money just one time to buy the system, after which you’re welcome to take full advantage of it. 

An inflexible solution . Ready-made Point-of-Sale systems aren’t always flexible enough and require individual customization.

Technology obsolescence . Any technologies become obsolete over time, and POS solutions are no exception. Unfortunately, you'll have to update your program yourself (and, of course, it requires additional financial investments) since there is no support... which is another disadvantage of these off-the-shelf systems.

#2. POS software subscription

You have no desire or opportunity to invest a lot of money in purchasing a Point-of-Sale system? Then you may turn to experienced POS software providers and subscribe to their services. As a result, you'll be able to use their solution on a regular basis (with their full support, by the way!).

As to hardware, providers usually tell you which brands their software is compatible with.

Constant company support (24/7).

Fast start. You'll be provided with assistance with configuring and starting the program.

Access to system updates (which means you'd run no risk of the problem of obsolete technologies).

Security issue. You have no choice but rely entirely on the protective measures of the providers you've chosen.

Monthly fee . You'll have to pay a monthly fee to the providers to use their services and support.

There’re a huge number of ready-made Point-of-Sale solutions on the market, as well as their providers. However even the most popular POS software is sometimes unable to meet the needs of your particular establishment, be it a shopping mall or a restaurant (or something else). And if it is the case, you’re left with the one and only way to act, namely...

Full POS software development

So you've decided to develop a POS system from scratch. What steps should you take?

form detailed requirements for the future system (based on the specifics of your company);

find and hire experienced developers skilled enough to make a POS system that meets these requirements;

create POS software (and select compatible Point-of-Sale hardware).

A unique solution, which fully meets your requirements;

Continuous software advancements and release of useful updates;

System flexibility and project scaling with business growth;

The most convenient UI and, accordingly, the best UX;

System security due to the fact your data won’t be received by third parties.

The complexity of the project (you cannot cope with it yourself, without the help of POS software developers);

Long start. If the time factor is critical, choose a different solution for your store, beauty salon, or restaurant;

Lack of support (you’ll have to deal with the problems arising yourself);

Significant financial development costs.

Although in the long run, the idea to develop a POS system from square one is good and profitable.

Tips on creating a point-of-sale system 

What should be considered to make a POS system you've created successful and long-lasting? Let’s see!

User-friendly interface . The task of the UI is to help your company's employees quickly learn to work with the Point-of-Sale system. The Initial familiarization with the program should take no more than half an hour.

The type of your establishment . When choosing a POS system, your type of business is also important. Let's say, a restaurant should pay special attention to software, which must have certain features: a waiting list for payment, linking order to a table, the possibility to add a client's address to a check (if delivery is planned), etc. On the other hand, catering establishments don't need electronic scales, as opposed to retail stores.

Good scalability . Keep in mind that your business may develop in the future, which should be taken into account when creating a point-of-sale system (and you had better think over each detail at the design and planning stages). 

Different access levels . Your system is going to be used by different employees: yourself, cashiers, salespeople, and so on. And it is unwise to provide everyone with full access to confidential information. The best way to approach the issue is to ensure reliable data storage with delimited access rights.

Offline mode . Make sure your program is active even when there is no internet connection. Alas, it's not uncommon to have problems with Wi-Fi, but they shouldn't affect your business's workflow.

Third-party integrations. It's also helpful to provide the possibility to integrate your system with other third-party programs (mobile loyalty apps, payment solutions, etc.).

Reliable performance in all conditions . And of course, it makes no sense to create POS software, if it’s unreliable and ineffective.

10 min read

Home > Software > Point Of Sale

The Ultimate Guide to POS Systems

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The point of sale (POS) is a crucial moment in the success of your business. A good point-of-sale system makes for a smooth and easy sales process. But above and beyond that, a good system can add tons of value to the point of sale .

This guide will help you understand how to get more value out of the point of sale so you can boost productivity, improve business operations, and make more sales.

The ultimate guide to payroll table of contents

Point-of-sale basics.

• Payment processing

POS hardware

Pos software features, pos glossary.

Square readers are everywhere for a reason. It's easy to get started, reasonably priced, and scalable as your business grows.

What is the point of sale? It’s the moment when the customer makes a purchase.

In the past, the point of sale was pretty simple because most sales were made in cash. All business owners needed was a simple cash register to tally up the day’s sales.

Today, POS systems are designed to do so much more. A truly modern POS system can do a few key tasks :

• Accept all modern payment methods from credit cards to digital wallets
• Manage and track the inflow and outflow of inventory
• Automate all processes that rely on the moment of sale, like accounting and customer loyalty
• Bring the sale to the customer through mobile payment options

These essential functions are what set apart the POS systems of today from the cash registers of days past. In the following sections of this guide, we’ll bring you up to speed with what exactly a modern POS system can do for your business.

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Important payment-processing factors to consider

Modern payment methods.

There are so many ways to pay these days. Here’s a list of all the methods we can think of:

• Credit card (including swipe, dip, and tap)
• Debit card (including swipe, dip, and tap)
• Digital wallets like Apple Pay, Android Pay, and Venmo
• Direct bank transfer (ACH payments)
• Cryptocurrency exchange

Each of these payment methods represents a way customers may want to pay for goods and services from you . Some methods are more common than others, but the kind of payments you usually take depend on specific business factors like location, industry, and services offered.

If you know what payment methods your customers want to use, you’ll want to find a POS system that makes accepting those kinds of payments easy.

Transaction fees

The next thing to consider is how expensive the fees for payment acceptance are. Keep in mind that different payment methods (like the following) have different fees assessed:

• Cash payments don’t have any fees assessed by the processor.
• Debit and credit card payments have fees assessed by the processor with debit card fees usually being a bit lower.
• Digital wallets, direct bank transfers, and cryptocurrency exchange usually have fees assessed as well.

It’s important to note that these fees are not pointless —processing a credit card is too complicated for small businesses to handle on their own. That’s why almost all businesses use the services of a processing company.

Transaction fee types

Transaction fees usually come in two types:

• Flat rate fees are when you get charged the same amount for every transaction.
• Interchange-plus fees have a variable amount that changes based on what the credit card company charges.

Generally speaking, interchange-plus fees are cheaper than flat-rate fees because interchange-plus fees are more responsive to the actual cost of processing. That said, some processors that use interchange-plus pricing will charge a high monthly fee. So, the key to saving money with interchange-plus is processing enough transactions to make up for the monthly fee.

If you don’t process a lot of transactions or have trouble with consistent processing, a flat-rate fee may be more cost-effective. See the tables below for an example where flat-rate processing is more cost-effective and an example where interchange-plus processing is more cost-effective.

100 transactions per month at $10 per transaction

1,000 transactions per month at $20 per transaction.

Some processing companies don’t list their processing fees and instead work out a fee with you over the phone. It’s important to use your negotiation skills to get a decent price when working with processing companies like this.

POS hardware can range from a simple card reader to a kitted-out iPad stand. The kind of hardware you’ll need depends on how you plan to use it. Here’s a list of the hardware you may want to consider :

• Mobile card reader . These card readers often attach to your smartphone or tablet. Some are battery powered. But all of them have one simple function: the ability to process credit cards anywhere.
• Standard terminal . The classic credit card terminal has no bells and whistles. It’s usually just a card reader with a number pad that needs stationary power and an internet connection.
• Smart terminal . There’s a lot of variety in smart terminals. Most POS providers have their own versions of these types of terminals. The function of a smart terminal is to handle more complicated business tasks, like inventory management and item lookup.
• Cash drawer . A standalone cash drawer allows you to connect to your smart terminal to make change for cash payments.
• Receipt printer . Many businesses are going paperless with receipts using smart terminal receipt options like email. But, if your customers need or expect paper receipts, you may want to pick up a receipt printer.
• Barcode scanner . This one is pretty self-explanatory—it scans product barcodes. It also helps with inventory management on smart terminals.
• iPad stand . Some POS providers have built their software for iPad and will only sell you an iPad stand. One nice thing about using an iPad for POS is that you can remove the tablet from the stand and assist customers around the shop with a mobile POS device.
• Classic cash register . We wouldn’t really recommend using the old-school cash register systems. They tend to be clunky, more expensive, and have fewer smart features.

Using the above-listed features as a guide, you can decide what your business needs. Many modern brick-and-mortar businesses opt for something simple like a smart terminal and a cash drawer.

Software features are the heart and soul of modern POS systems. It’s in the software that all the magic happens—magic that allows you to automate your business operations from one central place.

Inventory management

Tracking and managing inventory can be a pain if your POS system isn’t helping you do it. Luckily, today’s POS systems offer comprehensive inventory tracking and management tools. The best POS inventory management integrations will help automate many tasks:

• Keeping track of in-store stock
• Keeping track of stock in multiple locations
• Notifying when inventory of a certain item is low
• Making it easy to order new inventory
• Analyzing the flow of inventory to generate reports on top-selling items

Each of these functions can be a game changer. For example, POS systems that have inventory-management programs that can track inventory at multiple locations can make it possible to automate your shipping process.

If for example, a person wants an item that’s in a different store, you can either send them to that store, or you can offer to ship them the product from that location. Thus, this functionality not only consolidates your inventory more efficiently, but it also gives you more opportunities to make a sale.

There’s no underestimating the power of good inventory management software . It’s a feature you’ll definitely want to consider when choosing a POS system.

Square is the best free point-of-sale system on the market. From invoicing to inventory tracking, Square gives you all the features you need to boost your POS experience.

Employee management

Employee management makes it easy to track employees and manage their permissions to your POS software.

A good employee management program will allow employees to clock in using a login you’ve created and permissions you’ve designed. The program will also track employee sales and will generate performance reports to help you determine if an employee needs further training.

Many POS systems integrate with third-party accounting software like QuickBooks . Automating your accounting process will help simplify your already-complicated business taxes. And the point of sale is a great place to have your accounting software working for you by tracking your sales and returns.

Customer loyalty

Many modern POS systems offer customer loyalty integrations. You can set up rewards programs, offer gift cards, and keep better track of your return customers. Not only do rewards programs keep people coming to your place of business, they also help you gain insight as to what keeps your customers coming back.

Industry tools

Some POS systems have specific tools for a given industry. Upserve, for example, offers a ton of restaurant-focused tools that automate the ordering process. There are many POS systems that are built around a specific industry, but the most common industry tools you’ll find in a POS system include restaurant and retail programs.

No matter your industry, it may be worth doing a quick search to see if there is a POS system designed for your kind of business.

This is a list of terms commonly used in talking about point-of-sale systems.

POS.  Abbreviation for point of sale.

Terminal or credit card terminal.  A piece of hardware used to process transactions.

Interchange-plus pricing.  A common pricing model used by credit card processors. The word “interchange” refers to a fee that major credit card companies charge. This fee changes from transaction to transaction, so interchange-plus pricing is whatever the major credit card company charges plus the fees of the credit card processing company.

Digital wallet.  A kind of payment method made via smartphone. Customers will have apps like Apple Pay or Android Pay on their phones that they’ll want to use to purchase items at your store. There are also online-only digital wallets and checkouts, like PayPal and ChasePay. These payment methods make for faster online checkouts.

Swipe . Swipe payments use the magstripe on the back of the card.

Dip . Dip payments use the EMV chip on the front of the card.

Tap . Tap payments use an embedded chip that emits radio waves and connects to the card reader.

ACH . This acronym stands for automatic clearing house. It’s an online network for processing transactions between financial institutions.

Cryptocurrency . A type of digital currency made popular by the rise of Bitcoin. These currencies are decentralized in that no official governing body distributes them. Coins or tokens held in these types of currencies are not physical entities; they are digital only.

The takeaway

POS systems can be a total game changer for your business. The level of automation and data reporting they can bring to your workflow is a catalyst for greater efficiency and faster growth. Now that you know what to look for in a modern POS system, the next step is to find the right one for your business.

We recommend checking out our detailed reviews of the top POS systems on the market today .

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

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Small Business Trends

14 best point of sale systems for small businesses.

If you buy something through our links, we may earn money from our affiliate partners. Learn more .

A point-of-sale system is one of the best tools for small businesses looking to accept payments. Point-of-sale systems enable business owners to be more agile with their payment processing and forego using the cash drawer. The best POS system allows you to accept multiple types of payments and additional features for financial insight and performance. We’ll look at some of the top POS solutions currently available for this article.

What Is a Point of Sale POS System?

A point of sale (POS) system is used to accept payments, like a cash register. The system has built-in payment processing so you can ring up customers and take payments, including credit card and debit card payments. While cash registers served as an early type of POS, they have since evolved to include cloud-based POS systems and mobile POS systems.

• READ MORE: 16 Mobile Payment Apps

Our Methodology to Pick the Best Point of Sale Systems

For small businesses, the point of sale (POS) system is more than just a means to transact; it’s the operational hub where sales, inventory, and customer management converge.

When evaluating the best point of sale systems, we at Small Business Trends used a detailed approach. Our scale, where 10 signifies the highest importance and 1 the lowest, guided our assessment process.

• We prioritized POS systems with intuitive, user-friendly interfaces. Ease of use is critical for quick adoption and efficient operation.
• Systems that seamlessly integrate with existing software (like inventory management and accounting) scored higher for their ability to streamline business processes.
• The ability to customize the system to fit specific business needs was a key factor in our evaluation.
• We looked for POS systems offering a wide range of payment processing options, including credit/debit cards, mobile payments, and online transactions.
• Systems with robust reporting and analytics tools were preferred for their role in informed decision-making and business growth.
• We considered whether the POS system is compatible with a variety of hardware or requires proprietary equipment.
• Access to reliable customer support and adequate training resources was a significant consideration.
• We evaluated the cost relative to the features and value provided, mindful of the budget constraints typical for small businesses.
• The security of transaction data and customer information was a top priority, given its critical importance in today’s digital landscape.
• The ability of the POS system to grow with the business was an important consideration, ensuring long-term viability.

These features collectively ensure that a POS system can not only manage day-to-day sales but also serve as a comprehensive tool for business management and growth.

Best Overall Point of Sale Systems

Before you get into the nitty-gritty of our list, here’s a concise table showcasing the best POS systems and their distinctive features. This table is an easy-to-use reference to help you pinpoint the system that best suits your business-specific requirements.

The right POS system will differ based on your business and needs. There are many different kinds of POS systems available; some are general, while others are industry-specific. Some of the best overall point-of-sale systems include:

Square is one of the best POS systems for small businesses because it is easy to use and can be used in a variety of settings. Square is mainly used for restaurant POS systems and retail and hospitality businesses. However, it has become a favorite POS for small business owners. It comes with its own card reader and offers additional features such as payroll, inventory management tools, sales data, and more.

2. Brilliant POS

The Brilliant POS system is one of the top small business pos systems. Brilliant is a full-service POS solution and includes a POS terminal, receipt printer, and barcode scanners, so there’s tons of value for your money. It can be used in many different settings, such as brick-and-mortar stores and hospitality, restaurants and other establishments.

3. PayPal Settle

PayPal has released its own sales POS system for small businesses, Zettle . Paypal Zettle includes various key POS features, including payment processing, sales data, inventory management, and more. There are no monthly fees with Zettle, and it has the backing of a strong payment processor like Paypal.

• READ MORE: Shopify Launches All New Point of Sale System for Small Businesses

POS Systems for Retail

Retail pos systems are crucial for providing a friction-free customer experience. For ease, traditional POS systems for retail include POS terminals, card readers, and a barcode scanner. Some of the best POS systems for retail include:

Vend is one of the easiest retail POS system solutions out there, with many features to make retail a better experience for customers. For retailers, Vend can process in-store transactions and includes multichannel inventory management.

Retail stores can also use Vend for stock-taking and to track inventory. Vend also includes features for customer management and customer loyalty programs as well. Plus, Vend also has a mobile POS option and is one of the top modern POS systems currently on the market.

SumUp is a complete service payment solution with minimal processing fees. With SumUp, retail stores can process payments faster in-store, and it can be used in multiple locations. It’s one of the best point-of-sale options for small businesses since it also offers POS system records and analytics for added customer insight.

For small businesses on a budget, the eHopper POS system can work great for a retail store. With eHopper, you have a payment solution that uses reliable payment processors and more. eHopper includes a customer relationship management option, loyalty management, as well as a mobile POS system.

• READ MORE: How Your Business Can Benefit from the Cashless Payment Revolution

POS Systems for Restaurants

A restaurant pos system needs specific types of features, including easy online ordering and table management. Some of the top restaurant sales pos systems are:

Toast is one of the leading POS systems for restaurants, with 24/7 customer service and many powerful features. With Toast, restaurants can manage in-person sales and online deliveries and use POS data to grow their business. In addition, staff can process payments faster with Toast, and there are options for employee management, such as schedules and shifts. So it’s one of the easiest user interfaces for this type of business.

8. Lightspeed

Lightspeed has become increasingly popular in the hospitality field and has steadily grown its customer base. Lightspeed’s popularity is primarily based on its efficiency since it’s fast and reliable with minimal processing fees. With Lightspeed, restaurants can enable online ordering for customers and manage third parties for food delivery. Additionally, Lightspeed also has advanced features for restaurant accounting and other customer management initiatives to help restaurants grow their business.

Used by leading businesses, Revel is a cloud-based POS software and hardware solution with inventory management features. Revel is an iPad-based POS system that offers advanced features and integrations for restaurant owners. Revel’s key features include tools for managing inventory, third-party management for delivery partners, real-time ordering tracking, and additional kitchen management tools.

10. TouchBistro

TouchBistro has a strong name for itself in the restaurant industry for its powerful and intuitive user interface. With Touchbistro, restaurants can increase operational efficiency, including turning tables faster, more accurate ordering, and a better customer experience overall. TouchBistro also offers additional data and insights to improve operations and gain more financial oversight.

• READ MORE: 82% of Small Business Owners Ready for Digital Payments

POS Systems for E-Commerce

E-commerce requires a very specific set of features to make online ordering easy. With an e-commerce POS system, you can sell online with ease. Some of the best POS system options include:

11. Shopify

For a powerful POS software solution, Shopify should be a top consideration. Shopify is used by merchants worldwide because of its easy functionality and intuitive features. Shopify integrates with your online store for easy payment processing and includes features such as inventory management, low-stock alerts, and other crucial tools for online business owners.

Depending on needs, Clover has many payment solutions for e-commerce and brick-and-mortar stores, including simple card readers or larger payment terminals. Clover enables business owners to take payments with its cloud-based POS. It also includes features to harness customer data, such as a custom dashboard with financial insights and other customer management tools.

POS Systems for Inventory Management

Many POS providers offer solutions for inventory management to make running a retail business easy and manage stock and inventory. Leading POS systems for inventory management include:

13. Shopkeep by Lightspeed

Shopkeep by Lightspeed is a POS system specifically designed for retailers and offers a lot of value for small business owners. With Shopkeep, retailers can access the powerful features Lightspeed already offers with its POS solutions, including POS hardware, payment processing, and inventory management.

14. Livepos

For powerful inventory management capabilities alongside payment processing, Livepos should be on your radar. It includes inventory and employee management features across multiple locations to make retail store operations efficient and easy. It also has powerful data integrations and dashboards for additional insight into customer data and accounting.

Why Should You Use POS Software?

Having a modern and advanced POS system can enable businesses to run operations faster and more efficiently. Some of the benefits of using POS software has the following benefits:

• Speed: You can process payments much faster, giving customers a better experience.
• Easy access to data: With so much access to customer data and financial insight, there is more opportunity to grow the business and craft targeted marketing strategies.
• Simplicity: Rather than trying to manage multiple payment solutions, you can consolidate finances and have one seamless solution to manage and track payments.
• Additional features: Beyond payment processing, POS software offers many other features to help businesses run more efficiently, such as inventory management, customer loyalty programs, online ordering, and more.
• Industry-specific features: Depending on the type of business, many POS systems offer features designed specifically for industries such as restaurants and retailers to ensure the software delivers value beyond payments.

How Much Does a POS System Cost?

When planning to invest in a POS system, it’s important to familiarize yourself with the potential costs involved. You can reference Bankrate’s 2022 data they gleaned from popular POS providers like Square, Shopify, Clover, Toast, and others to get an idea of the typical price ranges you can expect to encounter:

1. Software Costs: The cost of POS software typically falls between $29 and $300 per month. The price often depends on the complexity and range of features the software provides.

2. Hardware Costs: The cost of the physical components of the POS system can range from $0 to $2,000. This includes items like terminals, card readers, cash drawers, receipt printers, and barcode scanners. The cost depends on the quality and quantity of the hardware you need.

3. Installation Costs: Some providers may offer free installation, while others might charge up to $700. This cost often depends on the complexity of the system and whether any custom integrations are required.

4. Payment Processing Fees: Most POS providers will charge a fee per transaction. This typically ranges between 1.5% to 3.5% per credit card transaction.

5. Add-Ons and Integrations: The cost of additional features or integrations with other software (like accounting or inventory management systems) can vary significantly. These add-ons can offer valuable functionality, but it’s important to assess whether each one provides enough value to justify its cost.

Keep in mind that while costs are an important consideration, it’s also crucial to choose a POS system that best fits the specific needs and operations of your business. An investment in a system that can scale with your business may offer better value over time, even if the initial cost is higher.

How Do POS Systems Work?

Most POS systems operate in a similar manner with software and hardware component. A POS provider will include a frontend point-of-sale system software that processes and records payments. The backend of the POS system will have data on the transactions and granular insight such as transaction fees, inventory levels, and other vital functions in retail operations. The hardware is the physical device that collects the payment (e.g., a card reader) and sends it to the software for processing. Once the payment is processed, the money is deposited into relevant accounts.

Sale POS systems may also have additional functionality, including payroll, employee management, and customer tools such as loyalty programs. POS systems also offer finance and accounting data, such as custom dashboards, for greater oversight of business performance.

Relatedly, you might want to check out this informative video, ‘4 Best iPad POS Systems for Small Business’ by Women in Small Business. The video provides a practical and insightful look into iPad-based POS systems, making it a valuable companion resource as you navigate your search for the perfect POS solution for your business.

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Point-Of-Sale: The “Do It Now” Theory

“Why? Because I’m the mommy and I said so.” – Anonymous mommy

Do it now and let’s get on with whatever is next! 

Point-of-sale is a phrase taken from the cash register industry. It describes action “where the purchase takes place.” Consider the latest generation of cash register which instantly updates inventory and orders new product. Before the customer walks out of the store, a replacement for the purchased item is in the works. This concept is a key component of the Work the System method as described in our 30 Principles document, item number 14: Do it NOW. All actions build on “point-of-sale” theory. We don’t delay an action if it can be done immediately. Just like any major retail outlet, we “update inventories and databases at the exact time the transaction takes place.” There is no paperwork fl oating around the office aft er a physical transaction. We ask, “How can we perform the task NOW without c reating lingering details that we must clean up later?”

The concept of point-of-sale, with its various subtleties, has the single purpose of gobbling up details and tasks as they arise. Accomplishing this is the antithesis of fire-killing. Poin t-of-sale means being in the off ense, eye s open, ready to handle whatever comes up, in stead of defensively looking backward, burning up precious time sorting through piles of old details.

For business and personal life, the point-of-sale posture allows you to focus on the path ahead while your other systems-strategies take care of the details that arise behind. Wear the point-of-sale banner on your sleeve and you will experience robust confidence, the opposite of overwhelm. The excuses “I don’t have enough time” and “I’ve been too busy” will disappear from your life.

In a nutshell, here are two point-of-sale strategies that will make your life simple and clean:

1.       The first is to reject procrastination. Get tasks out of the way now by immediately doing them, delegating them, or discarding them. Make it your quest to knock off tasks as they appear!

2.       The second strategy is to eliminate the requirement for personal action by automating and systemizing tasks. By making things happen automatically, the “do it now” goal is achieved without any effort at all.

Here’s an additional benefit of the point-of-sale stance: You will be in an alert, assertive posture, prepared to handle the inevitable body-slams that are part of having a life.

Above excerpt taken from Sam Carpenter’s book , Work the System: The Simple Mechanics of Working Less and Making More.

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Best POS Systems for Small Businesses of 2024

The POS providers listed below are our top picks for the Best Point-of-Sale Systems for Small Business of 2024. Each POS provider offers a unique POS system with features, pricing, and hardware that meets the needs of small businesses and startups.

Popular POS Systems

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Toast »

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According to Capterra’s research , retailers across the U.S. are saying goodbye to traditional POS systems with bulky counter registers and opting for cloud-based POS software that runs on tablets , with iPads being the most favored hardware option. In fact, small to midsized businesses doing less than $10 million in sales make up 79% of cloud-based POS system users.

The mass adoption by small businesses of cloud-based POS systems, also known as mobile points-of-sale or mPOS, makes sense. Small businesses have different needs than larger enterprises, and cloud-based business software meets a lot of those needs. Mobile POS systems are ideal for small businesses because they tend to be more affordable and provide busy business owners with the flexibility needed to grow their companies. Cloud-based POS systems can cut costs with month-to-month subscriptions and minimal upfront expenses, since they are often designed to run on mobile devices, such as tablets and smartphones. Cloud-based POS systems also allow owners to keep track of business on the go, through mobile apps on their cellphones.

The modern approach of mPOS systems is a great fit for any small business, whether it’s an e-commerce site, local coffee shop, or boutique clothing store. To help you identify the right POS provider for your small business or startup, we compiled a list of the Best POS Systems for Small Business, based on our overall rating of the Best Point-of-Sale Systems of 2024 .

Our Best Rated POS Systems for Small Businesses

• Block (formerly Square)

Vend by Lightspeed

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How Much Does a Small Business POS Cost?

Cloud-based POS systems tend to be cheaper than traditional on-premise options. In fact, Capterra’s research suggests that most mobile POS providers actually design and price POS software for small businesses. Abandoning long-term contracts and hefty upfront costs, many cloud-based POS systems use month-to-month subscriptions or don’t charge a monthly fee at all. However, mobile POS systems don’t just cut costs on software; upfront hardware expenses also are less for cloud-based POS systems. Instead of outfitting your entire restaurant or retail store with expensive equipment, cloud-based POS providers typically design POS software for tablets. Downloading a mobile app onto your smartphone or tablet gives you access to a fully functional POS system that can be used in your store or on the go at farmers markets and trade shows. This makes cloud-based POS systems a great option for startups that can’t afford an upfront POS hardware investment or may not even have a space for a standard register.

While mobile POS systems are less expensive, small businesses still pay credit card processing fees, monthly software fees, and hardware expenses, depending on the POS provider. For instance, Block’s POS system is free to use without signing any contracts. It also provides users with one free magstripe reader to begin taking payments. However, you must use Block Payments , its integrated in-house payment processor, as your credit card processing solution. This means that while you don’t pay a monthly fee for its POS software, you will pay it a per-transaction fee for its payment processing.

Other POS providers, like Vend by Lightspeed , don’t have in-house payment processors. Vend charges a monthly fee for its POS software that starts at $99 per month if paid annually, and allows you to shop around for the best payment processing rates from more than 20 compatible third-party credit card processing companies . Lightspeed offers different monthly fees depending on your industry and Shopify has a tiered-plan structure designed to provide you with different price options based on the features your business needs.

Consider both how much you’re paying and what you’re paying for to find the right POS system for your small business. Not all POS systems provide free equipment, but free card readers may not meet your needs. A POS provider’s monthly fees may be higher than another, but it may include features that other providers only offer as add-ons for additional costs. It is best to call a company representative and get a quote for your exact business needs.

POS Systems Price Comparison Chart

What Should I Look for in a Small Business POS System?

The best small business POS systems are cloud-based. Therefore, you should begin your search by identifying mobile POS providers. From there, you should narrow down your POS options with the following factors in mind.

• Industry: Point-of-sale systems tend to come in two varieties: retail and restaurant. Choose a POS system that is designed for your industry. This can be more challenging for cafes and other businesses that straddle the line between retail and restaurant. Think about where the majority of your sales come from and choose a POS system that will have features that best support these transactions.
• Price: Mobile POS systems are generally less expensive than traditional on-premise systems. Therefore, cloud-based POS systems are a better fit for small businesses and startups with tight budgets. The main expenses of a mobile POS are monthly fees, the number of locations and registers, hardware, add-on features, and credit card processing fees. Be sure to take advantage of free trials to ensure that the POS system you’re interested in will work for your small business.
• Hardware: Cloud-based systems are designed to run on tablets, most commonly iPads. However, some businesses need additional equipment, such as card readers, cash registers, cash drawers, receipt printers, barcode scanners, kitchen display systems (KDS), and customer-facing displays. Be sure to pick a POS system with the hardware your small business needs.
• Features: Retail and restaurant POS systems provide different features to help you run your particular business efficiently. Retail stores will find inventory management tools that can sync across multiple locations to be helpful, while restaurants may focus on loyalty programs, online reservations, and mobile or web order-ahead technology. According to Capterra’s research , restaurant patrons find these features to be the most important to their overall experience. Capterra also found that 52% of restauranters cite high operating and food costs as their top challenge. Restaurant POS systems offer menu management features that track the price of ingredients and other food costs that can help restaurant owners optimize their menu.
• Customer support: When it comes to POS providers, choose one that offers 24/7 customer support. The ability to call a live representative instead of using email or online chat with a bot makes a big difference when your business is experiencing a POS system error that's keeping you from making sales.
• Payment processor: Payment processing is one of the most important factors in choosing a POS system. Some POS providers offer an integrated in-house payment processor, while others allow you to shop around for a third-party credit card processor. Both have advantages and disadvantages. In-house payment processing means that everything is handled under one provider and can be easier to manage for a small business owner. However, shopping around for a payment processor may reduce your processing fees. Read our rating of the Best Credit Card Processing Companies of 2024 to make sure your credit card processor is right for you.

Security: A POS system should have security features, beyond Payment Card Industry compliance, that protect your business and its customers. The National Retail Security Survey reports that 72.5% of businesses use POS data mining as a part of their loss prevention system.

Point-of-Sale Features

What Is a Small Business POS System?

A POS system is a combination of software and hardware that in its most basic form allows you to ring up sales. At its most advanced, a POS system runs numerous aspects of your business like sales analytics, payroll , and customer relationship management (CRM) platforms. A small business POS system is one that provides quality budget-friendly POS options for growing businesses and startups.

A POS system and payment processing are different. Payment processing, also known as credit card processing , is done by a processor that acts as an intermediary by transferring funds between a merchant account and a business’s bank account. The credit card processor does this by integrating with a POS system. The POS system is the software and hardware used to accept the payment. It collects the payment information through a swipe, dip, or tap of the customer’s credit card, and encrypts and passes along the data to the payment processor.

You can learn more about this process in our What Is Payment Processing? Guide.

To use a POS system, you will need a phone, a tablet, or a laptop . You will also need a merchant account, payment processor , internet connection, and subscription to a POS account. The hardware is needed to set up your various accounts, build an online store, and sell goods. A merchant account allows you to accept payment from debit and credit cards, while a payment processor is used to process a payment-card-based transaction. An internet connection connects your business to the payment processor, and a subscription to a POS provider brings the whole thing together.

If your business has a physical location, you may need additional hardware, such as a cash register and cash drawer, a receipt printer, and a computer or tablet to connect everything and use as an interface.

For more information, visit our guide How to Use a Point-of-Sale (POS) System .

Read our ratings and reviews for more information on point-of-sale systems.

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U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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One day left to watch Dune, Succession, and March Madness live for 42% off with Max annual discount

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There's one day left to cash in on major savings through Max, formerly HBO Max, annual subscriptions. Through April 9, you can catch Dune, House of the Dragon, and Succession for up to 42% off if you select one of the service's three annual plans. Plus, you'll be able to tune into the March Madness Championship game live without cable. We'll breakdown the full savings options for each plan below.

• Save up to 42% on subscriptions at Max.com

Max offers three plans: With Ads, Ad-Free, and Ultimate Ad-Free. These annual plans typically cost about $100, $150, and $200, respectively. If you opted for monthly, the total amount you'd spend each year would be $119.88, $191.88, and $239.88, respectively. At about $70, $111, and $140 a year, this limited-time annual discount offer would save you around 42% this year if you chose yearly over month-to-month subscriptions. Check out our complete breakdown below for a full comparison of exact prices, before taxes and fees. 

Save up to 42% on your Max streaming sub

If you opt for an annual plan, you'll pay the discounted price upfront and be covered for the full year. At this time next year, subscriptions will automatically renew at the current annual rate, unless you decide to cancel. These are probably the best prices you'll see until Black Friday rolls around later in the year, so if you've been planning to get Max, now is your chance.

What you'll get with a Max sub

Max is the streaming home for HBO shows, Max originals, and a large selection of film and television. You can expect to find HBO shows like The Sopranos, Game of Thrones, and Succession here, but it also has Pretty Little Liars, Friends, and The Vampire Diaries.

Among the collection of on-demand films are Wonka, Barbie, and Dune (this is also where you'll most likely be able to stream Dune: Part 2 once it leaves theaters and the rental period is over). With a few exceptions, most HBO shows stream on Max simultaneously as they air on the network, so there's no waiting around if you don't have cable. 

Also for a limited time only, all Max plans have access to the new free B/R Sports Add-on, which will eventually cost about $10 a month. It includes live sports coverage, like the NBA on TNT, the MLB on TBS, and much more. Most notably, this will allow subscribers to live stream the 2024 March Madness final . This is a means to tune in to the game without cable and without paying for a traditional live TV package, which can end up (in some cases) costing about the same monthly amount as this one-time annual discount deal.

You can purchase logo and accolade licensing to this story here . Disclosure: Written and researched by the Insider Reviews team. We highlight products and services you might find interesting. If you buy them, we may get a small share of the revenue from the sale from our partners. We may receive products free of charge from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. We operate independently from our advertising team. We welcome your feedback. Email us at [email protected] .

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Lawmakers press US regulators to scrutinize Optum plan to acquire Steward’s physicians network

“i approach this with a deeply skeptical eye,” says sen. elizabeth warren.

The state’s congressional delegation is urging US regulators to scrutinize the proposed sale of Steward Health Care’s doctors network to UnitedHealth’s Optum unit — and block the deal if they find it would harm patient care, drive up costs, or reduce competition.

In a letter to top officials at the Federal Trade Commission and the Department of Justice’s antitrust division Friday, the two senators and nine House representatives from Massachusetts asked both agencies to take a hard look at the deal, announced last month.

“I approach this with a deeply skeptical eye,” Senator Elizabeth Warren said in an interview.

She warned that a UnitedHealth buyout of the physicians network, called Stewardship Health, could further weaken Steward’s eight hospitals in Massachusetts, including St. Elizabeth’s Medical Center in Brighton and Carney Hospital in Dorchester.

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Warren said the lawmakers’ top priority is to keep the financially troubled hospitals open. The cash-strapped hospital system, which moved its headquarters from Boston to Dallas in 2018, has fallen behind in paying vendors and is seeking new owners for its hospitals in the state.

“Steward and Optum are trying to sell this deal as a savior for the hospitals,” Warren said. “But I’m concerned this deal would not help and would potentially make things worse . . . There’s no guarantee that any of the money [from the sale] would be used to strengthen the hospitals.”

In the letter, the lawmakers noted that Steward, which operates 31 for-profit hospitals in eight states, faces a “deep cash crunch” because of what they called mismanagement by executives who cashed in millions in dividend payments after selling the hospital buildings and leasing them back from an Alabama real estate investment trust.

“Steward’s threat to close hospitals should not prevent DOJ and FTC from conducting a close and careful review of the proposed UnitedHealth acquisition,” the delegation members wrote.

A spokeswoman from the FTC declined to comment on the lawmakers’ letter. The agency is required to conduct a preliminary review of any merger with a value topping $101 million to determine if it raises anticompetitive issues that merit a deeper review.

Representatives from the Justice Department didn’t respond to an inquiry on whether they plan to review the Steward-Optum deal.

Steward and UnitedHealth filed a nonbinding letter of intent on March 26 with the Massachusetts Health Policy Commission, which will also conduct a preliminary review of the proposed acquisition. The filing did not list a purchase price.

Neither Steward nor UnitedHealth would comment on the delegation’s call for a review of their purchase plan. The parties also didn’t respond to questions about the ownership of Stewardship or how many doctors are part of the Stewardship network.

Members of the Massachusetts delegation have been deeply critical of Steward and its chief executive, Ralph de la Torre, lambasting him for declining an invitation to testify at a Senate field hearing in Boston last Wednesday. The hearing also focused on the role of Steward’s former private equity backer, Cerberus Capital Management, which cashed out of its investment in the hospital system in 2020.

But in their letter to the DOJ and FTC, the lawmakers were equally critical of UnitedHealth, the nation’s largest and most profitable health care conglomerate, noting that it owns multiple assets, including a pharmacy benefit manager, a claims processor, a bank, and home health care operations in addition to its insurance and physicians businesses.

They said Optum’s expansion in Massachusetts was particularly concerning because it employs or has affiliations with about 10 percent of all US physicians, giving it a “stranglehold” over the market.

“UnitedHealth can, and indeed does, force doctors to limit networks, cut services, and see more patients per day to pad its profits,” the letter said.

Robert Weisman can be reached at [email protected] .