Most business sellers want to know what can enhance the sale of their business. Several times this year the question has been, (you have my business listed,)” should I add a point of sale system. “ These systems are also known as point of purchase system. They can range in price from less than $1,000 to multi-thousands, depending on the type of system, capabilities, and business size. Whether it helps the value of the business in a sale depends….
A point of sale (purchase) system is one that can manage business functions, typically, in the simplest of capabilities the transaction of a sale. However, more complex systems can monitor staff work schedules and times, inventory management, purchasing functions, and more. Some can be integrated into the bookkeeping and accounting systems, making all work easier.
Like any other purchase, some are good and some are not; many are highly dependent on the user doing the right things.
Whether any business needs one, is a decision to be carefully thought out. To come to conclusion, these are some questions an owner needs to ask:
• Am I able to monitor my inventory relatively easily without a system?
• Will the system supplant some other function or staff that is costly or needs replacement anyway?
• How many transactions to I have in a given day?
• Does my accountant believe that the current methods are working well enough to not change?
• Is my planned growth such that installing one now would help to manage significant growth?
One business, a store, I can think of does not have a cash register or other point of sale system. They have about 10 transactions a day and monitor their large inventory in a spreadsheet program. They don’t need a system because the entry of the ten items a day is easy enough with the existing, appropriate staff level of two.
Another store with thousands of items in inventory, 50 transactions a day, and 10 staff, would benefit from one. They could also incorporate timecards, inventory, integration with accounting systems. If this store were to be on the market for sale, it might make the business a tad bit more attractive but dollar for dollar, the owner will not get her investment back. She may find that turning the store over to a new business owner will be easier and life from now to the sale will be more enjoyable.
Only make the investment if you need it to operate and account significantly better. Use your accountant and references to help guide you.