ERP big software for small businesses
Running a company efficiently is about organisation, focus and process as a massive 55% of businesses fail in their first five years of existence. The commentators offer useless ‘insight’ 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 skill.
The primary reason is lack of market understanding.
No foresight. For example People have the concept, build the product and then sit back and wait for the market to appear and buy. In networked age there is no excuse for lack of research prior to wasting any time and money on creating a product until you have firm evidence there is a market.
The second reason is lack of understanding 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 follow the balances in the profit and loss or the balance sheet is an essential skill. The basic knowledge of accounting is rarely imparted coherently by the business books, online resources and experts in the know such as CPAs and bookkeepers. This domain is further complicated by technology vendors and their alliances thrusting small business accounting software at fledgling businesses.
Small business accounting software isnt a complete answer.
Until recently ERP software solutions and packages were only affordable by corporations who had deduced that the back and front office systems need to be wired together to give a complete view of the business. One software developer NetSuite had the vision to see the opening in the market and started selling its small business ERP software. NetSuite pricing has become prohibitive as their product has increased in complexity.
The final reason businesses don’t survive is because of lack of process and procedures that provide the essential behaviours and continuity a business must have to operate efficiently.
