ERP big software for small businesses
Businesses need effective process, the focus of leadership and structure that can stretch to enable the company to grow safely as a massive 55% of businesses don’t make it to their fifth birthday. 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 first reason is lack of market understanding.
Refusal to look at the water ahead. For example Individuals dream up the concept, build the product and then sit back and wait for the market to flock and purchase. In networked age there is no excuse for lack of investigation before wasting any time and money on building a product until you have solid confirmed there is a market.
The second reason is lack of comprehension of fundamental facts about business.
The majority of folks starting a business know their trade, how to deliver a service or manufacture a product, but know very little about running a company. Having the ability to read and track the balances in the Income statement or the balance sheet is an essential skill. The basic knowledge of accounting is rarely imparted well by the business manuals, internet resources and those with the knowledge such as CPAs and bookkeepers. Vendors such as Sage software and Intuit callously fool business owners with their messaging that their software are the cure for all ills.
Small business accounting software is only half of the solution.
Until recently ERP software solutions and packages were the privilege of larger enterprises who had deduced that the back and front office systems need to be fused together to give a complete view of the business. One technology business NetSuite had the vision to see the opening in the market and started offering its small business ERP software. NetSuite pricing has become restrictive as their product has increased in complexity.
The final reason companies don’t survive is because of a dirth of process and procedures that provide the vital behaviours and consistency a business must have to perform effectively.
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