People tend to think that ERP systems are designed for large enterprises with thousands of employees. While ERP is essential for medium and large-sized businesses, smaller companies can also reap the many benefits of ERP. In fact, start-ups, even with a handful of employees and fledgling operations with big aspirations, will discover real added-value in implementing ERP from the get-go, to scale quickly, and grow.
A basic ERP package includes these essential modules – Finance, Procurement, Inventory Management, E-commerce, Sales & Marketing, CRM, Human Resources, and more. The benefits of ERP vast in number, and include automation of repetitive tasks, so that human errors can be avoided, enhanced communication between employees and departments, real-time visibility of your business processes, and unified data for valuable and actionable business intelligence.
Simply put, an ERP is the business management solution every start-up needs to… scale up. Let’s take a look at the five key reasons why an ERP is a vitally important tool for start-ups and small businesses alike.
- Enhance productivity and eliminate redundancy.
Small businesses and start-ups often find it difficult to manage their important documents, invoices, and financial reports. It’s common among start-up owners to try multiple free and low-priced applications for different business operations. But taking this route creates several data sources, while many of these apps may not even be secure. Instead of purchasing a different mobile or desktop app for each and every business function, it makes sense to choose a cloud-based ERP that consists of the essential, “must have” modules to effectively manage and control your business.
- Mitigate risks and thrive in a competitive world.
Start-ups often take tremendous risks to just “survive” their first business days or even years. These risks need to be mitigated to ensure a start-up’s ability to handle the growing pains, and work towards building a successful, thriving business. A cloud-based ERP is a powerful tool for any early-stage business, enabling them to make accurate forecasts based on real-time analytics, and in turn, mitigate risks. An ERP aggregates data from various departments in an organization, ranging from customer-centric functions, such as support, sales, and marketing, to back-end operations, including finance, inventory management, and HR. As a result, risks can be identified quickly and mitigated. This ensures that a budding start-up has a greater chance at surviving and thriving in a highly-competitive business world.
- Improved brand image and business posture.
Just about all start-ups usually don’t or can’t enjoy the reputation that more established companies may take for granted. Newly-launched businesses often face skepticism from both the business community and the consumers they serve. Implementing an ERP is a quick and efficient way to prove that even an emerging organization can scale, and take on challenges just like their more experienced counterparts. What’s more, a streamlined and unified way of operating a business, helps to project and promote an image of a professional, efficient and well-run organization.
- Increased productivity and business efficiency.
Newly-launched businesses tend to agonize over miscommunication or the ‘lack’ of communication between employees, departments, and management, no matter how small their operation is. Instead, some start-ups overlook the importance of real-time business data and how it can boost productivity and efficiency. Even when a start-up is initially profitable, they tend to lose speed over time, due in part, to missing or incorrect data, that can lead to a delayed response. An ERP aggregates business data from all company departments, and stores it securely in a central system database, making it accessible to all employees, based on user-level permissions. With a cloud ERP’s real-time, always up-to-date business data available at any time, from any location, start-ups can reap the benefits of an always on, always available business management system.
- Enhanced transparency and business intelligence.
The vast majority of start-ups depend on external funding from venture capitalists, investors, and business loans. As a result, it’s important for start-up owners to continuously prove their ‘worth’ by delivering results. Cloud ERP helps start-ups to track key performance indicators (KPIs) and present various metrics related to sales, expenditure, profits, customer satisfaction, and more, to various stakeholders. These KPIs not only enhance transparency, but also provide company owners with valuable business intelligence to make timely, better-informed business decisions.
ERP is a start-up’s road to success
Today, most start-up business owners continue to juggle multiple mobile, web, and desktop applications to manage various business operations and tasks. But when all is said and done, this isn’t an efficient nor a productive means to an end. A cloud ERP automates routine business processes, and seamlessly integrates companywide data, all on a single platform, that’s accessible any time – all the time.
A cloud ERP consists of various essential modules that can be customized to meet a start-up company’s unique needs. When supported by an ERP system, a start-up can scale up – increase productivity and efficiency, better manage budgets and financials to raise addition capital, and track KPIs to generate valuable business insight. Truth be told, an ERP is not only built for the ‘big boys,’ it’s a value-added tool for all start-ups to grow their business, and their bottom line.
To find out how cloud ERP can help your start-up to scale up, contact us today to schedule a call with one of our ERP experts.