The COVID-19 pandemic has made it clear to us that all businesses, regardless of the size, need to have an ERP system in place. Gone are the days when the mention of the term ERP zeroed down to medium and large scale businesses. Today, the times have dictated that even start-ups and small businesses matter.
With disruption heavily affecting basic planning and decision making, we have witnessed a rise in the demand for real-time data to enable the journey back to normal. Ideally, a smart, fast and automated solution is all that a small enterprise would need to achieve this.
Why do small businesses need ERP systems?
As a result of accumulated misconceptions and myths, numerous small businesses rely on outdated and unreliable solutions to manage operations. This results in the failure to identify exactly what is happening in the enterprise.
The lack of knowledge of how much inventory the business needs, limited access to up-to-date financial information when needed, as well as inconsistency in the information gathered from the various departments can ruin the business direction. This is where an ERP system comes in!
With an ERP solution, owners and managers do get a view of what’s happening in every area of their business, while ably addressing the challenges facing the enterprise. So, how do you conclude on the best ERP solution to adopt?
How to select an ERP system for your small business
It is always important that you to understand your business needs before selecting an ERP system. Additionally, you should also be certain that the ERP software can help you address them. At the very least, you should know how the system will impact the day-to-day business processes.
You need to consider your budget for migrating to ERP software and how long this process will take. The overall expected cost of the system should be affordable and any deadlines to be met should be specific.
The other consideration to make is a choice between a cloud, on-premise or best-of-breed solution. This depends on the size and scope of your business. Majority of small businesses go for cloud-based ERP software because it is less expensive to adopt and implement than on-premises solutions, due to the nature of SaaS. However, you should consider a business management solution that combines the best of cloud ERP and on-premise ERP software for better service.
Benefits of ERP software for your small business
An ERP brings you up to speed with every part of your business. This includes all the departments in it such as sales, production, procurement, and customer service. It gives you a much better insight into your business’ performance across the board.
Additionally, an ERP offers secure cloud and mobile access to your business information, while simplifying the management of the company. Here, it adapts to your teams’ roles, preferences, and workflows. You can as well customize the ERP system to meet the specific needs of your industry.