Becoming A Cash-Only Business: Some Do's And Don'ts

Do you want to become a cash-only business? If so, it’s a good idea to think carefully about it first before taking the plunge. It can be a significant decision and have serious ramifications for how your company works. 

Fortunately, this post can help. We look at some of the things you should do if you want to become cash-only, and other things you should not do. Here’s a rundown: 

In This Article:

What To Do When Starting a Cash-Only Business

Here are a few things to do when you are building or making the move to running your business only on cash.

Do Evaluate Feasibility

Start by thinking about whether it is actually feasible for you to run a cash-only business. While it might be popular among small retailers and food trucks, it may not work if you run a legal firm or construction company. Some businesses just don’t work as well with cash as others. 

Do Build Your Record-Keeping 

At the same time, you’ll want to think about your record-keeping. Maintaining proper logs of the money you receive is essential if you want to avoid audits and other forms of government intrusion. 

Record-keeping with cash is more challenging because you can’t rely on digital tools. As such, you’ll want folders of receipts, expenses, and transfers, plus a full read-out of your bank statements. 

Do Keep Cash Management Systems Secure

Meanwhile, you also want to keep your cash management systems secure. Don’t fall into the trap of thinking that your money is safe. 

How you do this is up to you. Most businesses pay a security company to take their money to the bank and deposit it. However, you may want to do this yourself. Just be aware of the risks. 

If you are driving around with a lot of cash, lock your doors. Also, look for times of day to transport items when traffic is minimal. This way, you can avoid a hold-up when stuck in traffic. 

Furthermore, you should invest in your on-site security measures, including safes and lockups. Putting the proper money into these makes it simpler to protect your assets. 

Do Put An ATM Outside Your Store

You should also consider putting an ATM outside your store if there isn’t one already. Again, this can help customers access payment methods quickly without having to go somewhere else first. 

If you want, you can subsidize withdrawal fees by coming to an arrangement with the provider. You can also locate close to an existing machine, but this could be difficult. 

Numerous ATMs for sale for businesses offer additional features, like balance checking and card blocking. These features could be a reason for shoppers to come closer to your store, particularly in areas where other machines aren’t available. 

Do Train Employees On Cash Handling

Another thing to do is train your employees to deal with vast quantities of cash. Emphasize accurate counting and safe storage to prevent issues. 

If you have employees handling money who you don’t know personally, put security measures in place, like CCTV. Third-party companies have expertise in staff theft issues and can provide advice on how to prevent it. 

If handling larger amounts of cash, have procedures in place that boost security. For example, you might get cashiers to work with a manager whenever they count totals. 

Do Communicate Your Cash-Only Policy

Finally, it is an excellent idea to communicate your cash-only policy to your customers as clearly as you can. Make sure they know that it is the only form of payment you take.

Most businesses do this by displaying signs outside and inside their premises. However, you can also remind customers via email outreach or on your website. 

Sometimes, you will get customers coming into your store or business demanding to pay by card and these can be difficult to deal with. Fortunately, there are ways of gently dealing with this issue, including providing an ATM next to the checkout they can use. 

What You Should Not Do When Running a Cash-Only Business

To make a cash-only business work, there are a few things you need to avoid.

Don’t Ignore Digital Marketing Opportunities

Just because your payment method is old-fashioned doesn’t mean you have to ignore every other type of technology. In fact, using digital marketing methods like email, blog posts, a killer website, and social media can be an excellent way to boost your brand and grow your following. 

For example, suppose you sell take-out food locally and only accept cash. Advertising to prospective customers via email and social media is still a good idea. You want them to see your food and get in the mood for it.

Engaging with online reviews can also help. These add social proof to your operations and convince customers to choose you over the competition. 

Don’t Let Security Slip

Meanwhile, you also want to avoid letting security slip. While the risks might not seem as high as they are with an online business, they still exist, and you could become a target for robbery. 

For this reason, the best strategy is to make frequent bank deposits. Don’t allow cash to build up on your premises unused. 

Also, think about investing in additional security measures, like adding CCTV cameras. These can deter many criminals, making them think twice about carrying out a specific act. 

Don’t Ignore The Impact On Your Credit Score

As a business, you also want to avoid the temptation to ignore the impact of becoming a cash-only business on your credit score. Banks will often look at your transaction history to determine your creditworthiness. But if this information isn’t available, then they may deny you credit. 

As such, continue to take out and repay loans (if you need them). Work on maintaining a relationship with the bank, even if you don’t intend to be a customer long-term. 

Don’t Ignore Customer Preferences

Finally, our advice is to avoid ignoring customer preferences. While it might seem like they want to pay in cash, many may not. 

In this situation, it could be better to offer a mixture of cash and card. Sure, it costs more, but it can also encourage individuals to use your business, and make you feel like you’re everyone else. 

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