The CEO of a brewery POS software company shares insights from raising a seed round that can apply to software companies at any stage.
Bill Lodes, executive vice president of business development & strategy at First American Payment Systems sat down with ISVinsights to discuss what software companies need to know about recurring revenue, evaluating residuals from different payment processors, increasing payment residuals, and what kind of investments ISVs are making with these increased revenues.
In the last few years, point of sale (POS) ISVs have converged on the user interface as a main point of differentiation. However, that advantage will not be sustainable because there isn’t a high barrier to creating good front-end apps. In addition, some ISVs have been able to rely on first-mover advantage, larger venture capital funding, a strong regional presence, and sometimes, just plain luck to grow their market share. But these strategies only last so long. As the ISV market begins to consolidate, the focus needs to shift to providing real, and continual, value to the merchant and the consumer.
When you’re selling to multi-location retailers, the challenges go beyond the point of sale. The world of retail security, data and payments is growing more complex—all three are blending together in the solutions that your customers expect today. Every ISV has a tough decision to make: They can broaden their focus, or they can keep their attention on their core expertise and partner with a company that helps them in other areas. The two options offer a different set of benefits and challenges.
As a new, lighter POS approach emerges,solutions no longer depend on PCs to operate. This opens significant opportunities for ISVs to help clients weigh options and make decisions. And in helping their customers, ISVs will help themselves.
Ubiquitous mobile technology – from smartphones and tablets to smart watches and other devices – has forever changed the way people interact with each other and their environment. That is abundantly apparent in the retail sector, where consumers are using mobile devices to comparison shop, research purchases, access coupons, make online purchases, and pay for goods in person using mobile payment processing solutions.
So you think you’re ready to go into business? That’s great! Forbes contributor Jeff Rose calls entrepreneurship one of the best ways to build wealth fast, and if you make the leap, you’ll count yourself among the 28 million U.S. business owners who are driving 40% of all retail sales in the country.