small business erp
Running a company efficiently is about organisation, focus and process as a massive 55% of businesses don’t make it to their fifth birthday. 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 Individuals have the concept, build the product and then sit back and wait for the market to flock and buy. In information age there is no excuse for lack of research prior to spending any time and cash on designing a product until you have robust evidence there is a market.
The second reason is lack of comprehension of the basics of business.
A significant proportion of people starting a company know their trade, how to deliver a service or manufacture a product, but not how to run a business. Being able to understand and track the balances in the P&L or the balance sheet is an essential skill. The basic knowledge of accounting is not very often imparted well by the business publications, online resources and experts in the know such as CPAs and bookkeepers. Companies such as Sage software and Intuit aggressively hoodwink business managers with their messaging that their packages are the holy grail.
Small business accounting software is only half of the solution.
Large corporations way back figured out that all of their systems should be joined together to give them a total view of the business and then along came ERP software solutions and packages. One software developer NetSuite had the vision to see the gap in the market and began selling its small business ERP software. NetSuite competitors have seen the gap as well and as a result lower cost easier to use systems have emerged.
The final reason businesses don’t survive is because of lack of process and procedures that put in place the vital behaviours and consistency a business must have to operate efficiently.
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