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How to Make Effective Training Videos

Posted: 25 Nov 2019 12:00 PM PST

Training videos are effective tools for communicating information to an audience who are learning about a specific subject. The audience can range from employees or curious individuals who are looking to expand their skill set. 

Training videos can be a stand-alone tool or a part of a training module. They are available online and can be accessed anywhere. However, sometimes these videos can come off as boring or even cheesy. This results in ineffective learning and even worse, the message the video is trying to deliver isn't received and the viewer is left baffled. 

What makes a bad training video? We've heard countless people say those lousy instructional videos from the 90's as an example. Let's not forget the stiff acting and cringe-worthy lines; not to mention, unclear instructions. We now know what to avoid.

What makes a training video good? Take Melbourne Metro Trains' video for raising awareness for train safety for example. You might've heard of the Dumb Ways to Die video. Train safety sounds like a pretty mundane subject so how can Metro get their point across about safety without the audience taking a snooze?

They decided to make a weird, yet pretty scary video to promote train safety. In the end, the catchy video ended up generating $50 million in free ads, contributed a 30% reduction in "near-miss accidents," and went viral. 

Although there are several things that make it good, here are some simple elements to keep in mind when making effective training videos.

Visuals

Research shows that people are able to retain information from visuals or graphics in their long term memory in a much more effective way than written or spoken information. A study showed that individuals are only able to retain 10-20% of written or spoken information whereas they were able to remember 65% of visual information after three days.

When we read information, there's a high possibility we'd forget what we read in an instant. This is called regression and happens mostly when we read written text.

If you want to make an effective training video, don't forget to utilize visuals in the video. Believe it or not, it makes all the difference. 

Our attention spans are dropping and there's really not much we can do about it. Living in the age of instant gratification does that and we need to adapt to the change.

So, adjusting your content marketing strategy to meet your customers' expectations can do wonders for your campaign. Visuals in videos not only attract attention, but they are able to retain it. 

Our eyes are also attracted to movement so naturally, videos draw people's attention. According to research, video ads interest people more than a static ad.

Duration

Most people don't watch videos that are longer than 5-10 minutes unless it's a movie or they're really immersed in the topic. Keeping your video short and sweet can do wonders. Instead of opting for long videos, go with short ones that emphasize important points. 

By keeping it short, the message you're delivering will be received and you'll be saved from your audience snoozing off. 

No one has the time to commit to a 10-minute video even if you have a lot of useful information. The key is to get your point across in the beginning because that's when everyone is truly paying attention.

Avoid clickbait and respect your viewers by keeping the video to a maximum of 3 minutes. Some users tend to close the video when they find that the title and the content don't match or the duration is too long and the video is full of rambling.

Although it's a good technique to catch your audience's attention, you should always put them first and consider the duration of your video.

Content

Remember to create content that the learner (your audience) needs. Make sure that the content you're creating is relevant to what the audience needs to perform a task, tells a story, and is easy to understand by viewers. 

Your content plays a huge part and it should always focus on the person watching it. Making a video that doesn't pique anyone's interest or even worse, serves no purpose.

It's important to research what your audience is interested in and what they want instead of what you think they want. Oftentimes, content creators think their idea is the best without considering what the audience would think of it. 

Lastly, don't forget to make it memorable. This can be done by repeating key points in different ways — visually, audibly or a story.

In the end, the audience should be able to perform a task they were learning about. The end goal of a training video is to help people learn or do something. Although it's important to be aesthetically pleasing, functionality and clarity matter more.

Branding

Another element to have for having an effective training video is distinct branding. You don't have to be fancy with intricate thumbnails. However, it's important the audience recognizes your video when they see it.

It would be a pity to create an awesome video and have people forget where it came from because it didn't have your branding on it.

We're not saying to put a huge logo on every video, but having a signature style of design should be essential. If you're doing a presentation with slides, using the brand's color scheme or logos in certain areas would be great. 

Whether it be certain presenters, a signature style of animation, or company colors, the audience should feel like they belong when they watch your training video. Remember to not go overboard and keep it subtle. This can be a challenge.

Intention

What is the goal you want to achieve with the training video? Your video may be well made with visuals and great audio but if it doesn't have a purpose, then it probably won't do a good job at explaining.

Know the objectives of the video. For example, you want the audience to differentiate between what's the right or wrong way to perform a task. Sometimes cinematic techniques aren't needed to show this.

You can turn to simple techniques to communicate your message. This means, using a linear sequence such as consecutive steps that advance according to the audience's understanding.

Avoid abstract sequences or concepts that may confuse the audience. Sometimes functionality needs to come before aesthetics. 

You need to remember to put the objective of the video as a top priority. Secondly, make sure that the steps or the message you're trying to convey are illustrated clearly so people can understand. 

Making an effective video doesn't have to be difficult and you don't need all kinds of expensive equipment. It just takes some research, getting to know your audience, and investing in a solid script and concept. 

With these five elements, any training video will definitely be effective. So now that you have a rough idea of what elements make a good training video, it's time to start brainstorming.

The Best Decision Makers in the Company Aren’t Who You’d Expect

Posted: 25 Nov 2019 11:00 AM PST

Many of the decisions made in your business are going to be wrong, regardless of who makes them or how long they cogitate before they do so. Nobody gets it right all the time and we all learn from our mistakes.

That's is because, in many organizations, it is the bosses who make all the important decisions. Other people are afraid of what will happen if, or when, they make a mistake. In a hierarchical organization, it is often risky to be seen to carry the can for something that looks like the wrong choice, and nobody wants to be in the wrong.

Hierarchical companies conform to the idea that the best decision-makers are the most senior people in the business. This is because people see that business leaders may have the most experience and the greatest depth of knowledge. In these traditionally-structured businesses too, they may be the only ones who have visibility of all the information, such as the financial data and statistics about how the company is doing and growing. They also may be the only ones who really understand the vision for where they want it to get to. Therefore, they are the ones making the decisions.

This is what many people expect, it is the way things have tended to happen in the past. Structuring the company like this probably works fine when the company is made up of three people and a dog, all sharing the same office space. It may also work well for a company that is not growing, in a marketplace where there is little prospect of disruption or rapid change. For instance, picture the Ministry of Dog Licenses in a small imaginary country with a static population and a stable government.

Out in the real world, in the era of rapid technological disruption, it doesn't work that well. In this kind of organization, information has to be collected around what is happening on the ground, and then push it up the hierarchy to the decision-making layer. The data will be reviewed, and a course of action selected that has to be relayed back down to the team who will put it into practice.

Who are the best decision makers?

It's slow, it's bureaucratic and it doesn't give scope for people across the organization to grow their skills and develop. For example, I remember once interviewing an individual who was billed as a rising star. On paper, she was in charge of a large team. But yet, when I drilled into her experience, I found that the responsible part of her role, including having difficult conversations with customers and making hard decisions, were being done for her by her boss, not her. I didn't hire her. In my view, dynamic and fast-growing businesses in the digital age work best with autonomous employees and self-managing teams. 

Highly-skilled employees who are in customer-facing roles are generally best-placed to know the best thing to do in specific circumstances. They usually make the best decisions. Not only that, but they are also the main potential source of fresh ideas and innovations that will drive real value for customers. 

Organizations which are agile in the accepted sense of that term work to reduce bureaucracy and red tape and to allow people across the organization to step up, to take responsibility and to make decisions for themselves. That's engaging for the employees and delivers better value for customers. It motivates them, empowers them to take a chance and gives them responsibility to make choices.

But, an organization that does things this way has to first accept the reality that people will, in fact, make mistakes. Everyone needs to understand that this is inevitable, acceptable and that we learn from them and move on. It is completely counterproductive to have a 'blame culture'.

Have transparency in your organization, which means sharing information widely across the company and keeping everyone in the loop, no matter what position they hold. This is vital in the growth of any business and provides employees with all of the information they need, essentially arming them with the ability to make decisions.

How to make the best decisions

To make decisions with the best possibility of success, people have to have access to the right data. There must be openness and consistent information sharing. It is also useful to have a decision-making process to think about what may be the next best step in situations that often occur. This will also make sure everyone is on the same page when it comes to task delegation and will ultimately increase productivity among an employee base.

Workplace technology utilizing AI can be used to help guide less experienced employees to work at the level of the best. With the appropriate technology and help, they'll be able to perform at a higher level and integrate with company. It's important to provide employees with the tools necessary for success in order to build up their skill level and put them in the best possible position to help make these decisions for the organization.

Data is helpful, but it is not always a complete solution, however, because in my experience there is usually data which can be used to back more than one course of action. An important caveat when using data, is to try to spot trends. Over-reacting to point in time snapshots is rarely a good idea. Digest the data you have and apply it to the organization in a way that everyone will be able to benefit from it.

There are always choices to be made in any line of work. As a manager, I feel I have a duty to support a generally forward-looking and decisive culture for my company. So, if someone comes to me with a solution to a problem they have spotted, I would look to support their decision rather than procrastinate. When they are able to share their thoughts on what to do, it is often that they will have more relevant knowledge of the situation than I do. In my experience, if they get a swift go ahead. But they have some unexpressed concerns about whether it really is the wisest course of action, they will flag that upward immediately.

If I do have concerns about the course of action an employee is recommending, I might simply ask why they feel this is the right decision. Perhaps they are not in possession of all the facts, or perhaps they know something that I don't. Discussing decisions and having a process in place helps to keep everyone on the same page and to arm all employees with the information necessary will eventually lead to better decision making overall.

Communication is important, and so is consultation. High-performing professionals don't generally want to work for organizations that micromanage them and that don't support them to do their best work. So in short, the best decision-maker about your role in your company is probably you, no matter what your pay grade! Motivate your employees to make decisions, train them to do so, and make sure there is transparency across all levels in order to make the organization grow successfully.

How to Start an Online Business From Home

Posted: 25 Nov 2019 08:00 AM PST

  • Choose a company name
  • Write a business plan
  • Learn the legal requirements
  • Arrange for technical support

You can improve your odds of home-based entrepreneurial success by taking the time to consider a few key points about your proposed enterprise. What's more ideal than owning your own business? The answer is owning a company that you run from the comfort of your home.

A growing number of entrepreneurs are starting home-based online businesses. However, it's essential to take the right steps to lay the foundation for success.

The fun part: Choosing a name

Business is about conducting transactions with people. You should think about that when choosing your name. Effective and professional communication can make or break your business, so you want to choose a name that projects the right image.

Your business name is one of the most important parts of shaping the image of your brand. Of course, your tastes will influence the business name that you choose, but you should also think about how you want customers to view your enterprise.

You must choose a name that's creative and unique. You want a business name that makes sense for your service or good. Also, you don't want to choose a name that customers may confuse with another business. Nor do you want one that may compel an existing proprietor to sue you.

However, it's essential not to overthink your choice. In the beginning, you don't need to pick the perfect business name. You can change it at any time between now and when you launch your business. You do, however, need to solidify your decision by the time you're ready to start registering your business. Before you open your doors, you need to register with the appropriate municipal and government agencies.

It's also a good idea to register a website for your business, even if you don't plan to use it right away. Registering your website name will protect your business name from domain squatters, who look for companies without websites hoping that, one day, the owner will pay a handsome fee for the right to use the domain name.

Also, choose a name that evokes a positive image. A surefire way to minimize sales is to choose a name that offense customers. In addition, you'll want to choose a name that will compel customers to take your enterprise seriously, but not so professional that it includes jargon that your ideal customer won't understand.

Finally, keep it short and sweet. Google is the first place most consumers look to find out information about businesses. You want to make sure that your business name is short and easy to remember so that customers can find you.

Write a business plan

Nearly any consultant will recommend that you write a business plan – although some entrepreneurs may disagree. A business plan is not a guarantee of success. However, it is a practical exercise in figuring out all the things that you need to do to improve your chances of success.

Every business plan is different, but most have common elements, for example, the:

  • Executive summary
  • Business description
  • Market analysis
  • Product or service description
  • Sales and marketing strategy
  • Financial plan

Some business plans also include an optional appendix for information that's too cumbersome for the central part of the document.

Together, this is a lot of information to consider. When you present your plan to stakeholders – for instance, investors or lenders – limit it to two or three pages. There's no point in submitting a 20-page business plan that someone will never read.

The business environment is fiercely competitive. Resultantly, you'll need every advantage at your disposal.  Therefore, you should also consider anything that you can leverage to your advantage when creating your business plan.

For instance, veterans have unique opportunities in the form of small business loans, credit and other funding explicitly intended for the nation's former soldiers.

As an example, the Small Business Administration sponsors the SBA Express Loan Program, which serves veteran-owned small businesses. Veterans can go through the program to apply for small business loans of up to $350,000. Also, the SBA's Veterans Advantage Program offers business loans with better terms compared to current market rates.

Learn the legal requirements

Even though you're launching a home-based business, you may still have to comply with some legal requirements. For instance, your municipality may require you to apply for tax registration or an occupational license. Depending on your field or industry, you may also have to file your business with state or federal agencies.

For some aspiring entrepreneurs, the cost of hiring a lawyer to sort out legal issues may prove burdensome. If a lawyer isn't feasible for your budget, visit your local Small Business Administration. They have branches across the United States, and they'll also connect you with SCORE. The nonprofit organization is staffed by experienced executives who will volunteer their time and provide you with their expertise to help you launch your business. If you're a senior citizen, you may also want to visit AARP's small business center.

It's also essential to protect your home-based business dream so that a small mishap doesn't end your enterprise before it even gets started. Accordingly, it's a good idea to purchase additional business insurance – whether you own or rent your property.

A typical homeowner's or renter's insurance policy does not cover business activities. Depending on your business, you may pay an extra $100 annually for about $2,500 of additional coverage. The actual cost will vary based on your type of business, the kind of work you will perform and the amount of inventory that you'll need to protect from damage or theft.

Find the right technical support

Nearly any business can benefit from technology. Accordingly, it makes sense to add tech skills to your executive toolkit.

As a home-based small business owner, you most likely won't have the budget to hire a tech support person to fix things every time that something goes wrong. Fortunately, you can get up to speed quickly by taking a computer class at your local community college. If you use Apple products, such as a MacBook, you can take lessons at an Apple retail store.

If you need to conduct presentations, teleconferences or videoconferences, you'll also want to brush up on a few digital presentation tools. Some presentation tech vendors are:

Each provider offers a user guide that will walk you through their product. [Interested in a business phone system? Check out our reviews and best picks.]

You'll also need to consider the primary technology that you can use to run your business. For instance, it may surprise you to know that, today, many small businesses with a limited budget can afford to take advantage of data analytics tools. Every business is different, but most enterprises can benefit from a few common tech resources, such as:

You also need to consider whether you or your employees will need hardware specifically for your enterprise – such as computers, laptops or mobile devices.

It takes a lot of work to start a business. However, nothing good comes easy. By taking the time to consider the possibilities for your home-based business, you can increase the likelihood of success and long-term sustainability.

4 Ways Military Service Prepares You for Entrepreneurship

Posted: 25 Nov 2019 07:00 AM PST

Military veterans are almost twice as likely to become entrepreneurs as non-veterans are. As one of top organizations in the U.S. for producing business owners, the military has a strong track record of teaching valuable lessons that are crucial to owning and operating a successful business and helping veterans succeed after service.

In fact, there are many programs and financial resources specifically for veterans looking to start a business. Some quick online research will turn up a handful of small business loans and grants, as well as excellent entrepreneurship programs and experiential training opportunities for veterans to explore. In addition to these resources, I believe veterans should learn from each other's firsthand experience in business. Sharing experiences and lessons learned is a great way to help a fellow veteran start their own business journey.

As a veteran myself, I can attest that many of us apply lessons from our military service to business. Vetrepreneurs, as veteran entrepreneurs are often called, do things a little bit differently. Veterans have an inherent entrepreneurial spirit. They're generally quick learners – and hungry to continue learning, which is increasingly important as the shelf life of a skill dips below five years. Perhaps more obviously, veterans tend to be fundamentally loyal, honest and accountable. These characteristics are also the qualities necessary to become a great entrepreneur.

Based on my experience, I believe you learn four key lessons during military service that can help mold an entrepreneurial spirit, and I hope to help veterans start their own business ventures by sharing these insights.

1. Lead from the front.

"Lead from the front" is a military mantra that is easily misapplied throughout business. Leading from the front in business requires many of the same strategies as in the military, such as target acquisition (goal setting), innovation and advancement. But as a leader, you can't be at the front of all processes and maintain the proper perspective – that's one of the key differences of managers vs. leaders.

Managers who misrepresent a "lead from the front" ideology may find themselves micromanaging and focusing more on process management than on inspiring their people. While these types of managers try to oversee and control every detail of a process, leaders trust their people to handle these finer details by using a shared vision as a roadmap. Good leaders build what the military calls esprit de corps – a feeling of pride, fellowship and loyalty. Leaders recruit talented people who will buy into the broader strategic vision and understand how each process aligns with that mission to execute tasks appropriately. They lead by example and create a clear sense of direction for their people.

Leadership is a must because, while we encourage innovation, it's important to innovate within the parameters of the primary mission. If you don't properly synchronize all facets of your business, the glue becomes weak and things can fall apart. This should not be misinterpreted as micromanagement; it's steering the business and maintaining mission focus.

Whether you are entering a new space or instituting a new approach, your team needs inspiration and encouragement, but they also need the freedom to fail. There will be failures – and good leaders prepare for them – but it's the job of a leader to pick up the pieces and understand what worked, what didn't work, and where to go next. It's our job to allow our teams to fail and provide the resources and guidance to get them back on course with more energy and focus than before.

Every successful company or idea I have worked on experienced early failures. I recall a situation not long ago when a clinical device was not performing well in an X-US study. The travel and schedules were intense, and we had less than 30 days to make a modification, go back into manufacturing, and return with new sterile devices. It was pure chaos, but we kept encouraging the team to dig deep and let them know we were behind them.

2. Set a clear strategic mission.

The centering point of the military world is a clear strategic mission. Building a small business is no different in this. It requires you to set the broader strategic objective and break it down into small, achievable tactical goals.

For veteran entrepreneurs and small business owners, every little detail counts, just as it does in the military. Setting realistic goals and actionable tactics – and executing on them – is the most important step you will take as an entrepreneur. These smaller touchpoints mitigate colossal failures by encouraging you to monitor the overall health of your business frequently and measurably.

It starts with a clear vision and open dialogue that challenges your team members to discuss potential obstacles and identify opportunities. People support what they help create, so this strategy encourages our team members to take an active and invested role in the company's success. Teams that work closely together, even when they are completely different philosophically or technically, optimizes the deliverable or result. 

3. Encourage innovation while staying mission-focused.

A good idea is a good idea, whether it comes from the CEO or an intern. While you should recognize that many innovative ideas, by their nature, are likely to fail, it's also your role as a leader to commend the effort and encourage your employees to keep coming back until they get a hit.

There's a catch, though. Innovation should never come at the expense of the overall mission. This doesn't just apply to business – it applies to life.

After serving in war, I made it my new life's mission to make a difference by helping people in the world of health. I have succeeded and I have failed, but everything I have done since I left the Army in 1991 has been in support of my core mission. Over the last 20 years, everything in my professional life has been focused on helping people in healthcare. That being said, everyone would like to shoot for the stars and innovate ways to eradicate the most challenging diseases, but we have to understand our limitations and what is feasible.

Around 2009, I began identifying problem spots in women's healthcare and thinking about new ways to bring medically proven technologies directly to the end user. The goal was to be at the forefront of this new movement, providing patients with solutions to bridge a growing gap in healthcare. We started with The Stork Products, an at-home conception device, and, more recently, developed Revive, a reusable bladder support that could change the game for more than 15 million women in the U.S. who experience light bladder leaks. This solution not only helps the everyday women struggling to maintain an active lifestyle with bladder leaks – it also helps military women and veterans both on and off duty. This is one way that I believe I can personally give back to the military – by helping veterans and active personnel with some of their most intimate health concerns.

These products, in a lot of ways, have created an entirely new category of products for women's health. There were other ideas and innovations we considered along the way. As a leader, though, you have to choose the right ideas to build your business.

4. Evaluate and assess risks.

Only when you can effectively see all the moving parts in a business can you identify trouble before it becomes a crisis, deploying resources as needed and engaging your team in honest conversations. Despite the negative connotation, risk is not a bad thing – there's inherent risk in everything we do.  

One thing that makes the U.S. military the premier force in the world is its ability to normalize discomfort, challenging its troops to train their minds and bodies to think about how they will react to a situation before it happens. Service men and women practice the chaos of war in their everyday lives, so they are aptly prepared to assume the risks of entrepreneurship. I am personally grateful for having adopted this quality in the military to eventually transition into the business world.

It's not an easy life, leading companies in new spaces of innovation. Entrepreneurship is filled with failures, disappointments and stress. When you do experience success, though, that feeling is irreplaceable. For me, making a difference in women's lives today – through innovation and teamwork – is truly a miracle and blessing.

While many programs, financial tools and training options are available to veteran entrepreneurs, I believe that life lessons, like the four I shared above, are critical. I hope that these four principles can help other veterans begin their own entrepreneurial journeys and start on the path to success.

Shopify vs. Square

Posted: 25 Nov 2019 05:00 AM PST

  • Shopify and Square offer competitive point-of-sale systems, complete with software, hardware and credit card processors.
  • Shopify offers customers flexibility in choosing hardware, credit card processors and integrations. It is a great choice for businesses whose revenue comes from e-commerce sales.
  • Square offers reasonably priced POS software, hardware and transaction fees. It can perform all the functions an entrepreneur or small business needs from a POS solution. Square is a great, affordable choice for businesses whose revenue comes from in-store sales. 

A point-of-sale (POS) system is a combination of hardware and software used to complete sales transactions. But that's not all that POS systems do. They also store customer contact information, organize your sales data, and provide insightful metrics about how your business is doing. 

There are hundreds of POS systems that are available. And though the best POS system for your business depends on your needs and budget, two competitive POS systems that are often compared with each other are Shopify and Square. 

If you're stumped over whether you should go with Shopify or Square, we can help. We've examined both POS systems, including what each company offers, their costs (including their processing rates), features and their limitations. Here's what we found, which, hopefully, makes your decision easier.

 

Editor's note: Looking for the right POS system for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

 

 

Shopify vs. Square POS Software: Pricing and plans

Shopify charges a flat monthly fee, plus card processing fees for each transaction. Here are the rates for each plan. 

Basic Shopify

  • Cost: $29 per month, plus 2.9% and 30 cents for each online credit card transaction. In-person credit card transactions are charged 2.7%. If you choose to use a payment provider other than Shopify Payments, you pay a 2% fee for each transaction
  • What it includes: Unlimited devices, online store integration, two staff accounts, manual order creation, discount codes, SSL certificate, abandoned cart recovery and fraud prevention
  • Best for: A brand new business 

Shopify

  • Cost: $79 per month, plus 2.6% and 30 cents for each online credit card transaction. In-person credit card transactions are charged 2.5%. If you use a payment provider other than Shopify Payments, you pay a 1% fee
  • What it includes: Everything in Basic Shopify, plus five staff accounts, gift cards and professional reports
  • Best for: A small or growing business 

Advanced Shopify

  • Cost: $299 per month, plus 2.4% and 30 cents for each online credit card transaction. Each in-person credit card transaction is charged 2.4%. If you choose to use a payment provider other than Shopify Payments, you pay a 0.5%
  • What it includes: Everything in Shopify, plus 15 staff accounts, advanced report building and third-party calculated shipping rates
  • Best for: A larger business needing advanced features 

Shopify's fees, contracts and discounts

  • Fees: Shopify does not charge setup or bandwidth fees.
  • Additional plans: Shopify offers a basic plan for online transactions (Shopify Lite for $9 per month) and an enterprise-level plan for large businesses (Shopify Plus with customized pricing).
  • Contracts: Shopify offers a 14-day free trial. Plans are offered on a month-to-month basis – you can cancel at any time, or upgrade or downgrade as needed.
  • Discounts: Discounts are available (10% on annual plans and 20% on biennial plans) if you pay upfront.

Square does not charge a monthly fee for its basic POS software; there is, however, a monthly fee for the Square for Retail and Square for Restaurants plans. 

Square's plans and pricing are as follows: 

Square

  • Cost: $0 per month, plus 2.6% and 10 cents for each credit card transaction
  • What it includes: Unlimited devices, inventory tracking, reporting and analytics, invoicing and fraud prevention
  • Best for: Small and growing businesses 

Square for Retail

  • Cost: $60 per month (one POS per location), plus 2.5% and 10 cents per credit card transaction. Additional points of sale cost $20 per month
  • What it includes: Online and in-store sales, scan and search capabilities, customer management, inventory tracking, employee management, third-party integration, and real-time reporting and analytics
  • Best for: Businesses that need advanced retail features 

Square for Restaurants

  • Cost: $60 per month (one POS per location), plus 2.6% and 10 cents per credit card transaction. Additional points of sale cost $40 per month
  • What it includes: Custom floor plans, menus by daypart, order entry and inventory tracking, employee management, multiple location management, discounts, real-time sales and shift reports, and third-party integrations
  • Best for: Businesses needing advanced restaurant features 

Square's fees and contracts

  • Fees: Square does not charge setup, annual, monthly, PCI compliance or chargeback fees for its standard POS software plan. Customized rates are available for some businesses that have an average ticket size of more than $15 and process more than $250,000 in card sales.
  • Contracts: Square offers a 30-day free trial. You're not required to sign a long-term contract, and you can cancel at any time without incurring early termination fees. 

POS Hardware: Peripherals, custom kits and bundles

In addition to POS software, Shopify and Square sell hardware, which you can buy as individual components or as kits and bundles. 

Shopify POS hardware

From Shopify, you can purchase card readers ($29-$49), iPad stands ($119-$169), barcode scanners ($229-$329), label printers ($119-$149), receipt printers ($289-$359), receipt paper and mPOP receipt printer rolls ($29-$89), cash drawers ($119-$399), shipping labels and printers ($25-$279), and shipping scales ($39-$79). 

Retailers can purchase the Shopify Retail Kit for $180, which includes a tap and chip card reader, card reader dock, iPad stand, mounting kit and mini dock cable. The Shopify Retail Kit is only compatible with U.S.-based stores that operate with Shopify Payments card processing. The iPad stand is compatible with (but does not include) an iPad 6th generation, iPad 5th generation, iPad Pro (9.7 inches), iPad Air 2 and iPad Air. Shopify has a 30-day return policy on its hardware. 

There is also the Shopify Custom Kit. You can choose from a wide selection of Shopify hardware, and prices start at $589 per kit. Each kit comes with one iPad stand (iPad not included), a cash drawer, receipt printer and card reader. (Multiple selections are available for each item.) The Shopify Custom Kit is only compatible with U.S.-based stores that operate with Shopify Payments card processing. 

Shopify offers mPOP bundles that start at $439 and go up to $549 – these bundles are recommended for merchants who need a smaller or portable POS system. 

Square POS hardware

Square, too, sells peripherals and kits. You can purchase countertop hardware like the Square Register ($799 each or $39/month for 24 months), the Square Stand ($199 each or $18/month for 12 months) and the Square Terminal ($299 each or $27/month for 12 months). A Square Reader for contactless and chip transactions costs $49, and the Square Reader for magstripe transactions is $10, though Square gives you the first reader free. Square has a 30-day return policy, too, on its hardware.

Square offers custom kits for businesses in the food and beverage, beauty and wellness, and retail industries. For brick-and-mortar stores, kits start at $555 and range in price up to $1,329; for mobile businesses, prices range from $526 to $625. 

Payment processing

Square and Shopify are similar in their payment processing capabilities – each one acts as its own credit card processor. Square customers, though, can only use Square as their credit card processor. Shopify POS software users can use Shopify Payments or partner with an external merchant (additional fees apply). 

Both companies accept all major credit cards and contactless payments, and both work offline in the event of an internet outage (though Shopify can only process cash and custom payments offline, not card payments). 

POS features

With Shopify and Square, you get a plethora of really useful features – mobile apps, detailed reporting and analytical tools, and third-party integration capabilities. A lot of these features are very similar, with some slight differences. 

Mobile applications

Shopify and Square both offer mobile POS applications that run on iOS and Android devices. Both have user-friendly mobile dashboards, inventory management features, customer contact access and sync your data. Square includes the mobile app in its free version, whereas you pay a subscription for Shopify. 

Reporting and analytics

Shopify's user-friendly dashboard lets you view orders and sales, traffic data, even which products are the most popular all in real time. Retail reports detail the location and time of each sale, the customer, and which employees made the sale. Shopify tends to offer more detailed reporting. With Advanced Shopify, you can customize reports to get even more specific data. Square has an intuitive dashboard, too; you can view sales, customer analytics and business trends in real time. Square's free plan includes basic sales and customer engagement data, while the Retail and Restaurant plans provide more advanced reporting. 

Advanced features and integrations

Shopify integrates with a number of applications to streamline your operations – more than 1,200 to be precise. You can connect with marketing, inventory management, customer support apps, and track customer engagement and employee management. Square doesn't have quite as many integrations, though you'll find many for accounting, e-commerce, team management, marketing and customer management. 

Pros and cons of Shopify

Shopify offers more flexibility and customization when it comes to which hardware and credit card processor you can use with its POS software. This is especially beneficial for business owners who need a highly customized system or want to work with another payment provider or gateway. If you are an online business or most of your revenue comes from e-commerce sales, Shopify is a great choice. 

The downside to using Shopify is the price. Unlike Square, the entry-level plan, Basic Shopify, charges a monthly fee, and although it has slightly lower processing fees than Square, that's only if you use Shopify's in-house credit card processor. 

Pros and cons of Square

Square's hardware costs less than Shopify's hardware, plus you can purchase it with a payment plan. Also, Square does not charge monthly fees for its standard POS software. If you run a business and most of your revenue comes from in-store sales, Square is an affordable and all-around great choice. 

But Square does not offer as much flexibility with some features as Shopify does – case in point, with Square, you don't have the option of using another credit card processor, you must use Square. 

At business.com, we've evaluated more than 100 POS systems. Visit our best picks page to read our reviews of Shopify Payments and Square, and to see the POS systems we recommend. 
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