ERP for small businesses

Small businesses often struggle with decision-making as they lack the resources to operate different departments and rely on limited staff to manage multiple processes. This can lead to biased decision-making and subjective opinions. However, an ERP system can help overcome this challenge by providing objective insights based on real-time data stored on a centralized server. It automatically stores and identifies critical data, generating valuable insights to help make informed decisions. With an ERP system, you don’t need a large team of leaders and decision-makers to analyze and interpret data; you can rely on the system to provide the necessary information to make informed decisions.

An ERP system that prioritizes mobile functionality allows for uninterrupted business activity and enhances the productivity of managers and staff alike, regardless of location, and allows remote workers and mobile employees across offices, construction sites, factories, or warehouses to perform various tasks on mobile devices when they cannot access a desktop or carry a laptop.

An ERP system brings together different IT functionalities onto a single centralized platform. This platform is updated in real-time, meaning small businesses do not need to subscribe to or purchase multiple IT products for different business operations. Small businesses can reduce their IT-related expenses by consolidating IT operations while gaining access to enterprise-grade software at a lower price.

In addition, an ERP significantly improves organizational efficiency by streamlining operations, which, in turn, indirectly reduces expenses.

It also helps comply with rules and regulations and avoids the risk of paying penalties and fines. A flexible, customizable ERP system allows small businesses to choose only the modules relevant to their operations and add more features as they grow, which helps reduce costs dramatically.

ERP solutions for small businesses provide pre-built collaborative features, including task and document management functionalities, which help employees share files and ideas.

Even if you have only a few employees and no multiple departments, an ERP system can improve the quality of their work and help them collaborate and manage their tasks more efficiently. Most importantly, it helps your employees understand what they need to do, when they need to do it, and how, by easily setting reminders, updating task statuses, and ensuring everyone is on the same page when making workflow decisions.

The increasing concern about security-related risks such as malware installation, phishing, and data theft compels businesses of all sizes to comply with different data security regulations and privacy standards, such as GDPR and HIPAA, depending on their location.

Enterprise Resource Planning (ERP) systems provide peace of mind through ongoing 24/7 monitoring across all system elements, such as the operating system, database, and network, preemptively identifying and addressing potential vulnerabilities and ensuring adherence to upstream compliance with security standards like SOC 1/SSAE 16/ISAE 3402, SOC 2, and PCI DSS, ensuring that sensitive information is secure.

Although implementing an ERP system can help reduce your IT-related expenses in the long term, and has an indirect cost-saving impact, it’s important to remember that there will be an initial or recurring investment. It’s crucial to evaluate your business profitability and decide how much you will allocate for your ERP implementation.

Speak with a vendor who can provide a detailed explanation of the various functionalities of the ERP system and how they can help improve your ROI. After a thorough discussion and careful consideration, you will be able to make an informed decision and select the right ERP product that meets your specific needs.

When searching for an ERP vendor, it is important to find one that, in addition to basic ERP features, also specializes in specific and niche areas. This will allow your company to expand its operations whenever necessary. Some key features to look for in an ERP system are financial services, CRM and sales, supply chain management, warehouse management, retail features, business analytics, and task management.

Consider your niche, if you have any, and discuss it with the vendor to see if they can customize it for your specific use case. Furthermore, to prepare for the future, consider mobile ERP capabilities and AI-enhanced features like Integration with IoT, Predictive Analytics, Process Automation, and Augmented Strategic Planning.

Studies have shown that small businesses that use ERP systems tend to grow in the subsequent years. While small businesses are usually unprepared for growth and find it challenging to scale up, they must set the foundation for expansion. This includes selecting the right IT solution to support you while you scale up your operations. You might begin with the basic functionalities of an ERP and then add more features as you grow. It is crucial to choose an ERP product specifically designed to meet the needs of small businesses (e.g., businesses subjected to many changes in workflows due to operational shifts or disrupted market dynamics). Speaking with your vendor should help you obtain the information required for your use case.

Implementing an ERP system is typically a lengthy process that requires some preparation. You must ensure that your data is cleansed and compatible before being migrated to the new platform, and after implementation, you must ensure everything functions as expected while orchestrating a smooth onboarding.

However, all stages require technical assistance and professional experience. If you do not have an in-house IT team, it is recommended that you inquire if the vendor provides implementation services and after-sale support.