why small business erp might save your business
Companies need effective process, the focus of leadership and structure that can adapt to enable the company to grow safely as a massive 55% of businesses fail in their first five years of existence. The observers offer banal opinions as to why this happens. I continuosly observe 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.
No foresight. For example People dream up the idea, create the product and then expect the market to flock and buy. In networked age there is no excuse for lack of investigation before wasting any time and cash on building a product until you have firm evidence there is a market.
The second reason is lack of comprehension of fundamental facts about business.
The majority of folks starting a company know their trade, how to deliver a service or manufacture a product, but know very little about running a company. Being able to understand and follow the numbers in the P&L or the balance sheet is a vital. The basic knowledge of accounting is rarely imparted coherently by the business manuals, internet resources and those with the knowledge such as accountants and bookkeepers. Vendors such as Sage software and Intuit callously fool business managers with their messaging that their applications are the cure for all ills.
Sage software and other vendors as usual are underserving small businesses.
Until recently ERP software solutions and packages were the privilege of corporations who had figured out that the back and front office systems need to be wired together to give a complete picture of the business. One technology business NetSuite had the foresight to see the gap in the market and began selling its small business ERP software. NetSuite pricing has become prohibitive as their product has increased in complexity.
The final reason companies fail is because of lack of process and procedures that put in place the essential disciplines and consistency a business must have to perform efficiently.
Tags: erp for small business, erp solutions and packages, netsuite competitor, sage software, small business accounting software, small business erp