why small business erp might save your business
Managing a company efficiently is about organisation, focus and process as a massive 55% of businesses don’t survive the first five years. The observers offer shallow explanations as to why this occurs. I consistently see three key reasons why this tragedy occurs so often and to so many people with different backgrounds, qualifications and skill.
The first reason is lack of market comprehension.
Refusal to look at the water ahead. For example Individuals have the idea, build the product and then sit back and wait for the market to come and purchase. In networked age there is no excuse for lack of research 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 comprehension 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 not how to run a business. Being able 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 publications, internet resources and those with the knowledge such as accountants and bookkeepers. This subject is further exacerbated by technology vendors and their affiliates thrusting small business accounting software at fledgling businesses.
Sage software and other vendors as usual are underserving small businesses.
Large corporations way back worked out that all of their Information systems should be wired together to give them a complete picture of the business and then along came ERP software solutions and packages. One vendor NetSuite had the vision to see the opening in the market and started selling its small business ERP software. NetSuite pricing has since increased and put their technology out of the financial reach of small businesses.
The last reason companies don’t make it is a because of the absence of good management processes and policies to enable a sustainable fabric of disciplines and behaviours.
