break even on cash flow within the next year. “We’re getting close to paying our bills” he says.
ShopKeep offers two main types of software. The management platform runs in the cloud and is accessible through the Apple iPad, Google Android-based tablets, and other Web-enabled devices. Retailers can use this software to oversee inventory and other store-related data via the Web.
The technology gets a bit more specialized when it comes to handling sales transactions. Small businesses—many have just one or two stores—that sign up with ShopKeep must use an iPad app if they want to conduct transactions with the platform. The iPad can be mounted on a counter much like a traditional register. ShopKeep sells iPads packaged with additional equipment such credit card readers to charge consumers. Richelson says ShopKeep largely supports the iPad because of the device’s widespread adoption among small businesses.
A Java version of ShopKeep’s sales software exists for Android tablets but he says that platform is only available for larger, enterprise customers.
Richelson is not alone seeing tablets as a potential future for point of sale systems. Square in San Francisco for example makes a credit card reader that functions with Apple iOS and Android devices. Square also offers an iPad app for processing sales.
Embracing new types of electronic payments is part of ShopKeep’s long-term strategy. At select coffee shops, ShopKeep’s software is set up to accept payments from customers who want to use their PayPal accounts. The platform may expand to include electronic payments from such services as Dwolla and LevelUp, Richelson says.
ShopKeep’s roots extend to a wine store he opened in 2004 called The Greene Grape in the Fort Greene section of Brooklyn. Some of the challenges he faced as a retailer inspired the creation of ShopKeep. “I was having trouble with [computer] servers in several of my stores where they kept crashing,” Richelson says. Fixing those databases himself became a hassle. He also wanted a way to monitor his stores’ sales from his home office. “I could not easily see what was going on each store,” he says. “That’s not the way things work in today’s world.”
Back in 2008, he looked for cloud-based point-of-sale systems to resolve his dilemma, but he did not find anything that fit his needs. That inspired the development of ShopKeep. Early funding for ShopKeep came from the stores. Richelson has since handed over the reins for The Greene Grape stores to a partner.
ShopKeep has a staff of 30 and plans to add up to 15 more hires, thanks in part to its latest funding. The company also moved into a 4,300-square-foot office on Broad Street at the end of June compared with the 2,100 square feet of space it previously occupied within the same building. Richelson says he plans to stay in the space at least one year while hiring more staff. He expects his company to continue growing as retailers adopt new technology. “Tablets will be replacing those [point of sale systems] over the next three to five years,” he says.
