erp for small business
Running a business efficiently is about organisation, focus and process as a massive 55% of businesses don’t survive the first five years. The commentators offer useless ‘insight’ as to why this occurs. I consistently see three key reasons why this tragedy occurs so often and to so many people with different experience, education and knowledge.
The primary reason is insufficient market understanding.
No foresight. For example People dream up the idea, build the product and then sit back and wait for the market to appear and buy. In information age there is no excuse for lack of research prior to spending any time and cash on creating a product until you have robust confirmed there is a market.
The number two reason is lack of understanding of fundamental facts about business.
The majority of folks starting a business know their trade, how to offer a service or build a product, but not how to run a business. Having the ability to understand and follow the balances in the profit and loss or the balance sheet is a vital. The basic knowledge of accounting is not very often imparted well by the business books, internet resources and those with the knowledge such as accountants and bookkeepers. Vendors such as Sage software and Intuit callously hoodwink business managers with their marketing that their packages are the holy grail.
Sage software and other vendors as usual are underserving small businesses.
Large corporations years ago worked out that all of their systems should be joined together to give them a complete view of the business and then along came ERP software solutions and packages. One technology business NetSuite had the vision to see the gap in the market and began offering its small business ERP software. NetSuite competitors have since emerged.
The third reason companies don’t survive is because of a dirth of process and procedures that provide the vital behaviours and continuity a business must have to work effectively.
