Technology enables efficient operation and convenience of conducting business. In current times the evolution of retail technologies such as a Store Operating System provides comprehensive data & intelligence that helps the store owner to make the right decision and also automate complex processes for an error-free practice. They save on labor costs, make better use of resources and optimize opportunity cost.
Store owners know the benefits of technology but find it challenging to get it right or arrive at the perfect budgeting practice to accommodate the desirable technologies in their store.
Yes, It is simple:
Technology budgeting is based on the principle of “paying less for more”. That means paying less for a solution that does bulk of the work and is very easy to maintain, upgrade, and migrate from.
Prioritize Opportunity over Task:
Store operations were conventionally divided into “customer-facing tasks” and “operational tasks”. This division is a bit flawed. Successful store owners say that customer-facing tasks and operations are intertwined, and both influence each other. Hence while budgeting for technology, prioritizing the requirement for one set of tasks over the other may not deliver the end result of profitability and growth.
Budgeting will be easy when you -
- Have as little as possible:
It is better to employ fewer solutions that do maximum work. This reduces the maintenance, implementation & upgrading cost. This means that, while it is essential to have a Point of Sale (POS) to collect payments, it is also important to evaluate what more can it do -
Does your Point of Sale (POS) also manage inventory?
Does your Point of Sale (POS) with inventory management also manage vendors?
Does your Point of Sale (POS) that manages vendors & inventory, also be device agnostic and possess CRM capabilities?
You get the drift. As a store owner start evaluating technologies that go the distance. When you have a lean technology setup, it saves on employee training, saves on operation cost and makes it easy to scale enabling growth in revenue and in efficiency.
- Try before you buy:
The good news is that the business-to-business retail technology market is very competitive. As such, many services and products offer quite generous trial periods, which can allow you to see how a tool works firsthand.
“Try before you buy” arrangements give you a practical window into whether a piece of tech works for your business. It can help you avoid getting tied into years of subscription costs for things that won’t work for you.
- Think around the tech:
Think about your teams, employees and customers. What is it that they need from the tool? What will they need to help them use the tool?
Your product or service needs to solve your business needs but also work for those who will be using it. Your business might also lack the necessary skills and manpower required to make a technology work. These shortcomings can be rectified, but only if you plan ahead. Often the fix can be quite simple, like upskilling employees or hiring the right people.
What to consider when you budget?
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Categorize Expenses: Divide your technology expenses into categories such as hardware, software, subscriptions, maintenance, payment surcharges, transaction fee and upgrades. This will help you allocate funds more effectively.
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Hardware and Software Costs: Estimate the costs of hardware such as computers, tablets, Point of Sale (POS) terminals, barcode scanners, and receipt printers. For software, consider expenses related to POS software, inventory management software, accounting software, etc.
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Subscription Services: Factor in subscription costs for cloud-based software and services. Examples include Point of Sale (POS) subscriptions, email marketing platforms, e-commerce platforms, and more.
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Cloud Storage and Backups: Include expenses for cloud storage solutions to store important business data securely. Budget for backup solutions to prevent data loss.
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Marketing and Online Presence: Equipping your store to be accessible or searchable across social media, Search engines and other online platforms.
Remember to tailor your technology budget to match your store's size, location, and target market. Reviewing regularly and adjusting your budget to stay up to date with industry trends can be avoided with a Store Operating System.
