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Sri Lankan business context is something that has been on a rollercoaster for decades now. If we are going back to history, the Sri Lankan economy grew more centralized and domestically focused between the middle of the 1950s and 1977, with a mostly public sector and widespread administrative regulations. It goes without saying that in 1977 economic liberation played a large role when it comes to businesses of all sizes in Sri Lanka. People tend to embark on their business journeys freely without any restrictions and many more new things keep arriving in the market day by day. It was like a ‘blooming land’ for the new and small-scale businesses.
However, that is when the Sri Lankan Civil War hit the trades hard, and due to security reasons, the capacities of the businesses were limited heavily. Again in 2009, as the end of the war era was marked, more companies and small-scale businesses started growing in the domestic market while eyeing the international markets. Further, due mostly to the increase in non-tradable industries, the economy began to develop more quickly after the civil war ended in May 2009, reaching 8.0% in 2010 and 9.1% in 2012. However, the period of prosperity did not continue, and GDP growth for 2013 dropped to 3.4%. Everything went normally facing ups and downs until the Covid 19 hit hard the nation along with a strong economic crisis. Moreover, with many regulations to trade, taxes, and limitations to importing businesses have been facing unlimited barriers until today. With the USD rate flying up like a thunderbolt, small-scale businesses in the Sri Lanka business context battle with various issues to survive in the market.
Understanding the Sri Lankan Business Landscape
The Sri Lankan business landscape reflects a blend of opportunities and challenges in its current environment. Sri Lanka has made significant strides in economic development, driven by sectors like tourism, manufacturing, and services. Then, the government has initiated reforms to attract foreign investments, aiming to position the country as a regional economic hub. However, problems like a heavy debt load, a complex administration, and limited infrastructure still exist.
The country’s resilience in the face of external shocks, such as the COVID-19 pandemic, has underscored its potential. Until 2020, the tourism trade has been one of the major industries that Sri Lanka was gaining revenue from. With the international travel barriers, the whole sector was hit hard and this applies to all the other industries. However, like every dark cloud has a silver lining, the online business context of Sri Lanka expanded throughout the Covid period as many people tend to spend more time on the internet. Again, after 2020, industries such as food, clothing, and beauty came to the spotlight as internet-based businesses and that’s where the Sri Lankan as a whole country understood the importance of staying relevant to the changing situations.
However, still, there are many challenges faced by Small and medium-scale businesses in Sri Lanka that compromise their growth and sustainability. Let’s have a quick look,
1. Access to Financing
Sri Lankan SMEs often struggle to secure affordable financing, as access to credit can be limited, and the interest rates may be high, making it challenging to invest in business expansion and development.
2. Bureaucratic Red Tape
Complex and time-consuming bureaucratic procedures, including obtaining permits and licenses, can be a significant hurdle for SMEs, increasing operational costs and delaying business operations.
3. Infrastructure Deficiencies
Inadequate infrastructure, including unreliable power supply, limited transportation options, and insufficient logistics support, can hinder the efficient functioning and competitiveness of SMEs.
4. Skills Shortage
Finding skilled and trained labor can be a challenge, as there may be a gap between the skills required by businesses and the skills possessed by the available workforce, which can impact productivity and innovation.
5. Market Competition
SMEs face stiff competition from larger, more established businesses. Accessing markets and gaining a competitive edge can be challenging for smaller enterprises with limited resources.
6. Regulatory and Tax Burdens
This is one of the major obstacles in the country at this very moment. Further, complying with a complex and frequently changing regulatory environment, along with high tax burdens, can add significant operational costs and administrative burdens for SMEs in Sri Lanka.
What is a POS System?
Let us explain to you how a POS System Works to back up Sri Lankan Business Operations:
You might know that a Point of Sale (POS) system is the central hub of a business’s sales and transaction processing. It works by capturing and processing sales data at the time of a sale. But how can it assist small businesses to simplify their sales? That’s something to discuss about. In the section below let’s see how it operates and its role in Sri Lankan business operations:
1. Transaction Initiation
A customer brings their selected items to the checkout counter. The cashier or sales associate scans barcodes or manually inputs product information into the POS system.
2. Price Calculation
The POS system calculates the total cost of the items, including taxes and any discounts or promotions applied.
3. Payment Processing
The customer chooses a payment method, such as cash, credit card, or mobile payment. The POS system securely processes the payment, issues a receipt, and records the transaction.
4. Inventory Management
The POS system updates the inventory records, decrementing the quantity of sold items. This ensures accurate stock levels.
5. Data Storage
The transaction data is stored in the system’s database, which can be accessed later for reporting, analytics, and customer management.
6. Reporting and Analytics
Business owners and managers can use the data collected by the POS system to generate reports on sales performance, customer behavior, and inventory trends. This information helps in making informed decisions, optimizing inventory levels, and identifying growth opportunities.
7. Customer Engagement
Most of the POS systems in the market have CRM features that collect and store customer data. This information can be used for personalized marketing, loyalty programs, and enhancing the overall customer experience.
8. Powerful Integration
Modern POS systems often integrate with other business software, such as accounting and e-commerce platforms, streamlining various business processes.
Benefits of Using a POS System in Sri Lanka
As we mentioned above, the whole point of employing a POS system for Sri Lankan businesses is to manage their sales. Is that all? No! There are many other perks of having a POS system for small businesses. You know that the implementation of a POS system in Sri Lankan small-scale businesses can significantly reduce errors and offer various benefits such as,
1. Accuracy in Transactions
POS systems reduce human errors in calculating prices and processing payments, ensuring that transactions are precise.
2. Inventory Management
Accurate tracking of inventory levels minimizes errors related to stockouts, overstocking, and product shortages.
3. Real-Time Reporting
Access to real-time sales and inventory data allows businesses to make informed decisions promptly, reducing decision-making errors.
4. Improved Record-Keeping
POS systems automatically store transaction data, simplifying accounting and reducing errors in manual record-keeping.
5. Elimination of Price Errors
Barcoding and automatic price calculations help prevent pricing mistakes, resulting in correct billing for customers.
6. Enhanced Cash Handling
Reduced reliance on cash payments decreases the risk of errors associated with cash counting and change dispensing.
7. Faster Checkout Process
Streamlined transactions through POS systems reduce queuing times and potential errors caused by rushed manual transactions.
8. Easy Access to Customer Data
POS systems with customer databases help in providing personalized service, and minimizing errors in addressing customer needs and preferences.
Types of POS Systems Available
The next question that comes to your mind is ‘What sort of POS system should I select?’. Yes, there are various POS solutions in the market right now. The thing is you need to align your business size, type, and the main requirements with the features and functionalities of the desired POS system. For your convenience, we will discover the main types of POS systems available in the business context at the moment.
Traditional POS System
A typical POS system is a computerized device used in conventional physical retail stores, restaurants, and other customer-facing enterprises to allow merchants to record transactions.
Mobile POS Systems
This solution can be accessed through your mobile device anywhere anytime. Smartphone and tablet POS services can process payments and manage some inventory and customer information. Just by downloading the app and installing it on the smartphone, you can process transactions and sales easily.
Tablet POS Systems
iPad and Android point-of-sale options are becoming more and more common since they need no initial expenditure and frequently work with existing tablets. With credit card processing, some tablet POS providers are free, while others charge a small monthly membership cost but let you select your own credit card processor.
Terminal POS Systems
These point of sale The systems are the ones you often see at the counter. Despite being hardware- and software-based, the majority still need internet connectivity and might employ cloud-based services. They are frequently marketed as all-inclusive systems that feature cash drawers, barcode scanners, and other devices.
Cloud-Based POS System
A form of the point-of-sale system known as a cloud-based POS system or cloud-native POS software can be operated online and is stored on private, secure servers at a different location from the POS client. A company with several locations, such as a major shop, will typically use a cloud-based POS system so that they can view their data from anywhere.
Self-Service kiosk POS
This makes it possible for consumers to freely place orders, make payments, and personalize their goods. These touchscreen terminals reduce wait times and raise customer satisfaction in a variety of businesses, including restaurants, retail, and entertainment venues. They also streamline transactions, boost efficiency, and provide convenience.
Multichannel POS Systems
Multichannel POS systems are extremely useful for businesses that offer their goods in many online or physical locations. All of your sales from your internet store, social media pages, and physical stores are integrated with this kind of POS system.
Open-Source POS Systems
You can alter the functionality of your POS software interface using open-source POS solutions. To make this happen, you’ll need software developers, and since these professionals sometimes demand significant fees, open-source POS might be expensive. However, this is ideal for bigger and established companies with specialized POS requirements.
Choosing the Right POS System for Your Business
Selecting and implementing a POS system for a small business involves several key steps. Here we are talking about the six main steps to guide the process,
Step 1: Understanding Your Business Needs
You can start by identifying your business requirements, such as the type of products or services you sell, the volume of transactions, and any specific features you need. It is good to determine what problems you want the POS system to solve.
Step 2: Research and Compare the Available Options
As the second step, research various POS systems available in the market, considering factors like cost, features, ease of use, and compatibility with your business type. It will be helpful if you create a shortlist of systems that meet your needs.
Step 3: Request Demos and Trials from the Suppliers
You must request providers on your shortlist to request demos and trials. Test the systems in a real-world environment, involving your staff in the process is important.
Step 4: Evaluate Costs and Contracts
Analyze the total cost of ownership, including setup fees, monthly subscription charges, transaction fees, and any additional costs. Carefully review contract terms, look for hidden fees, and understand your commitment.
Step 5: Customize and Implement
Work with the chosen POS system provider to customize the system to fit your business requirements. Ensure that your staff receives adequate training on using the system. Set up hardware and software components as needed.
Step 6: Test and Monitor
Before full implementation, conduct extensive testing to identify and address any issues. After implementation, closely monitor the system’s performance, making necessary adjustments as you gain insights into its operation.
Find the Best Sales Companion within ‘Sellmo’
Sellmo POS system enters the Sri Lankan business context to help simplify sales management requirements of small, medium to large-scale businesses. Sellmo is enriched with these features,
Integration: Sellmo expresses a powerful integration with various devices such as Android smartphones, Tablet, and Android based POS machines
Multiple payment methods: Whether it’s cash, card, Cheques, Credit, or any combination of them, you no longer have to disappoint your customers.
Issue prebill: Issue prebills before giving the service when your customers want to have a pre-estimation.
Work offline: Make sales even without a network connection. All data will be automatically synced to the back office once the connection is restored. You can use Sellmo even on the go.
Multiple terminals: You are helped to manage multiple Terminals under a singular view. It is easy to track your sales, inventory, employees customers, etc under one online roof.
Cloud-Based: Since Sellmo comes out as a cloud-based POS solution, you don’t need to worry about its storage.
24/7 Customer Service: Sellmo team is always there to help you with your concerns.
Wrap Up
It is not easy to enter the Sri Lankan business context as a new small business. It is rather difficult to survive the ever-changing economic landscape of Sri Lanka with the complex political involvements. However, finding the best solution to stay relevant is in your hands now. Stay connected with the technology to find the stable answers for all your industry-related problems.
