small business erp,erp for small business
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 don’t make it to their fifth birthday. 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 experience, education and knowledge.
The primary reason is insufficient market comprehension.
Refusal to look at the water ahead. For example People dream up the idea, create the product and then expect the market to appear and purchase. In information age there is no excuse for lack of investigation prior to wasting any time and cash on building a product until you have firm confirmed there is a market.
The number two reason is lack of comprehension of fundamental facts about business.
A significant proportion of people starting a company know their trade, how to offer a service or build a product, but not how to run a business. Being able to understand and track the numbers in the P&L or the balance sheet is an essential skill. The basic knowledge of accounting is rarely imparted well by the business books, online resources and experts in the know such as accountants and bookkeepers. IT Giants such as Sage software and Intuit aggressively fool business owners with their messaging that their applications are the holy grail.
Small business accounting software is only half of the solution.
Large corporations years ago worked out that all of their Information systems should be wired 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 gap in the market and started offering its small business ERP software. NetSuite competitors have since emerged.
The final reason companies fail is because of lack of process and procedures that provide the essential disciplines and consistency a business must have to perform efficiently.
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