ERP for small business

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ERP for small business

Tuesday, November 17th, 2009    Subscribe To Our Feed

Companies need effective process, the focus of leadership and structure that can adapt to enable the business to grow safely as a massive 55% of businesses fail in their first five years of existence. The observers offer useless ‘insight’ as to why this happens. I continuosly observe three key reasons why this tragedy happens so often and to so many people with different experience, education and knowledge.

The primary reason is lack of market understanding.

Refusal to look at the water ahead. For example Individuals have the concept, create the product and then sit back and wait for the market to come and purchase. In this connected age there is no excuse for lack of investigation prior to spending any time and cash on creating a product until you have firm evidence there is a market.

The second reason is lack of understanding of fundamental facts about business.

The majority of folks starting a business know their trade, how to deliver a service or build a product, but know very little about running a company.  Being able to understand and follow the balances in the P&L 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 in the know such as CPAs and bookkeepers. Companies such as Sage software and Intuit aggressively fool business managers with their messaging that their systems are the holy grail.

Small business accounting software isnt a complete answer.

Large corporations way back figured out that all of their systems should be wired together to give them a total picture of the business and then along came ERP software solutions and packages. One technology business NetSuite had the foresight to see the gap in the market and began selling its small business ERP software. NetSuite competitors have since emerged.

The final reason companies fail is because of a dirth of process and procedures that put in place the essential behaviours and continuity a business must have to perform efficiently.