Marbella SEO
Why ERP for small businesses can make a real difference to survival rates
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 experts offer shallow explanations as to why this occurs. I consistently see three key reasons why this tragedy happens so often and to so many people with different experience, qualifications and knowledge.
The primary reason is lack of market understanding.
No foresight. For example Individuals dream up the idea, create the product and then expect the market to appear and buy. In this connected 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.
A significant proportion 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 read and track the balances in the profit and loss or the balance sheet is an essential skill. 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. This problem is further exacerbated by manufacturers and their affiliates thrusting small business accounting software at fledgling businesses.
Small business accounting software is only half of the solution.
Large enterprises years ago deduced that all of their systems should be fused together to give them a total view of the business and then along came ERP software solutions and packages. One technology business NetSuite had the foresight to see the opening in the market and started offering its small business ERP software. NetSuite pricing has since increased and put their solution out of the economic reach of small businesses.
The last reason businesses don’t survive is a because of the lack of practical management processes and policies to enable a sustainable fabric of disciplines and behaviours.