running and keeping a small business - why small business ERP is important

small business erp,erp for small business

Companies need efficient process, the focus of leadership and structure that can stretch to enable the company to grow safely as a massive 55% of businesses don’t survive the first five years. The commentators offer banal opinions as to why this happens. I consistently see three key reasons why this tragedy happens so often and to so many individuals with different backgrounds, qualifications and knowledge.

The primary reason is insufficient market understanding.

Refusal to look at the water ahead. For example Individuals have the concept, build the product and then expect the market to appear and buy. In networked age there is no excuse for lack of investigation before wasting any time and cash on creating a product until you have solid confirmed there is a market.

The second reason is lack of understanding of the basics of business.

A significant proportion of folks starting a company know their trade, how to deliver a service or build a product, but know very little about running a company. Being able to read and follow the numbers in the Income statement or the balance sheet is a vital. The basic knowledge of accounting is rarely imparted well by the business books, internet resources and those with the knowledge such as accountants and bookkeepers. The problem is worsened by greedy and short sighted vendors such as Sage software misleading the market by providing only a portion of the functionality actually needed by small businesses.

Small business accounting software is only half of the solution.

Until recently ERP software solutions and packages were the privilege of larger enterprises who had deduced that the back and front office systems need to be joined together to give a comprehensive picture of the business. One vendor NetSuite had the vision to see the opening in the market and began offering its small business ERP software. NetSuite pricing has become restrictive as their product has increased in complexity.

The third reason companies fail is because of a dirth of process and procedures that put in place the vital disciplines and consistency a business must have to perform efficiently.

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