Owning a franchise requires constant investments in your business, from financing new equipment and funding the creation of new marketing materials, to hiring additional team members and — as we saw this past year — purchasing new safety and sanitary measures to comply with COVID regulations. Investment priorities shift depending on several factors. However, an often-overlooked area of investment is cash logistics.
As most business owners can attest, effective cash management and logistics are a priority for every franchise. It is important to know where every dollar is coming from and where it’s going within your business. This is not always easy to manage, and many franchise owners outsource cash logistics, especially those with high-volume cash transactions like food services. Having the right cash logistics partner is important, as it will impact both your daily operations and your bottom line.
There is a lot to consider with cash logistics such as safety, theft, and of course, precious time. When evaluating the various ways to help your franchise run more efficiently and safely, there are five key logistical considerations you should keep front of mind. If implemented correctly, these solutions will allow franchise owners to focus on what they do best — serving their customers.
- Smart safes with a daily credit solution can optimize carrier frequency. A key way for franchise owners to cost-effectively manage their cash supply chains is by implementing a remote cash capture solution. A remote cash capture solution, coupled with a smart safe, enables owners to have access to daily funds via provisional credit and detailed reporting, resulting in fewer pickups and reduced armor carrier fees, which lowers costs. Smart safes validate every note placed in the safe quickly and efficiently, and provide your business with the ability to receive daily credit for the funds to your bank account of choice, while they are still secure in the safe awaiting an optimized carrier pickup.
- Realize the impact of soft dollar savings. While hard savings can have a greater direct impact on your bottom line, soft dollar savings are equally important. Inefficiencies could cost your franchise money, time, and resources. When deciding if your businesses could benefit from an automated solution, consider the soft dollar savings associated with the solution. In many cases, this includes the elimination of cash counting and time consuming trips to the bank. This time could be repurposed towards activities that increase your business’s bottom line – such as customer service, hiring, training, and marketing.
- Allow data to drive your financial health. Data drives businesses and informs decisions. Consider the impact if, as a franchise owner, you could receive additional detailed reporting about your cash flow and your employee activity. The implementation of a remote cash capture solution can provide daily management-level reports that will allow you to easily monitor the monetary aspects of your business.
- Learn to operate in a leaner way. Cash logistics solutions can provide operational efficiencies. Remote cash capture solutions, such as smart safes and cash recyclers, utilize software for cash tracking and reporting, and provide business owners with enhanced cash flow with provisional credit. When you use a smart safe, you can manage your cash with greater ease, efficiency, and transparency. That’s good for the short-term, but it’s also good for the future, because a smart safe provides data and trends that help you forecast your future cash needs, plan for the unexpected, and make informed financial decisions. Streamlining these integral parts of a business’s cash management operation can reduce operating costs and help ensure the organization’s financial health.
- Consider utilizing a third party for cash services. Outsourcing cash logistics processes to a logistics company may be best for your business. Time and safety are priorities and using a third-party organization that can manage everything from in-store cash management to up-to-date cash flow allows you to not only save time, but it ensures your cash is safe, secure, and available. In the end, outsourcing your cash logistics will also save internal resources and can ultimately help save money.
If implemented correctly, automated cash solutions can reduce risk, increase efficiency, and provide a centralized view of the overall health of your business. When researching solutions and third-party providers, ensure you are thoroughly vetting potential partners, confirming they have all the services needed to protect your business now and in the future. From armored carrier management to smart safe solutions, change order, and ATM solutions, your cash logistics partner should be at the forefront of innovating cash logistics and should operate with your business in mind.
John Clatworthy is Senior Vice President, Chief Customer & Strategy Officer at Cash Connect®, a division of WSFS Bank, which is a premier provider of ATM cash and smart safe-related services to over 30,000 restaurant and retail locations in the United States. He has more than 20 years of experience in the cash, payments, and financial services field.