small business erp

Running a business effectively is about organisation, focus and process as a massive 55% of businesses fail in their first five years of existence. The observers offer banal opinions as to why this happens. I consistently see three key reasons why this tragedy occurs so often and to so many individuals with different backgrounds, education and knowledge.

The first reason is lack of market comprehension.

Refusal to look at the water ahead. For example Individuals have the idea, build the product and then sit back and wait for the market to come and purchase. In this connected age there is no excuse for lack of research prior to spending any time and money on designing a product until you have robust evidence there is a market.

The second reason is lack of understanding of fundamental facts about business.

A significant proportion of folks starting a business know their trade, how to offer a service or make a product, but know very little about running a company.  Having the ability to understand and track the numbers in the Income statement or the balance sheet is a vital. The basic knowledge of accounting is not very often imparted coherently by the business publications, online resources and those in the know such as CPAs and bookkeepers. This subject is further complicated by technology vendors and their affiliates peddling small business accounting software at fledgling businesses.

Small business accounting software isnt a complete answer.

Until recently ERP software solutions and packages were only affordable by larger enterprises who had figured out that the back and front office systems need to be wired together to give a comprehensive view of the business. One software developer NetSuite had the vision to see the gap in the market and began selling its small business ERP software. NetSuite competitors have seen the opening as well and as a result lower cost easier to use systems have appeared.

The third reason companies don’t survive is a because of the lack of practical management processes and policies to enable a sustainable fabric of disciplines and behaviours.

small business erp

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 observers offer useless ‘insight’ as to why this occurs. I consistently see three key reasons why this tragedy happens so often and to so many people with different experience, education and skill.

The primary reason is insufficient market comprehension.

Refusal to look at the water ahead. For example People dream up the concept, create the product and then expect the market to come and purchase. In information age there is no excuse for lack of investigation before wasting any time and money on creating a product until you have robust confirmed there is a market.

The number two reason is lack of understanding of the basics of business.

The majority of folks starting a business know their trade, how to offer a service or build a product, but not how to run a business.  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 coherently by the business manuals, online resources and those with the knowledge such as CPAs and bookkeepers. This subject is further complicated by manufacturers and their alliances pushing small business accounting software at fledgling businesses.

Small business accounting software isnt a complete answer.

Large enterprises years ago worked out that all of their systems should be fused together to give them a comprehensive view of the business and then along came ERP software solutions and packages. One vendor NetSuite had the vision to see the gap in the market and began selling its small business ERP software. NetSuite competitors have seen the gap as well and as a result cheaper easier to use systems have appeared.

The last reason companies don’t make it is a because of the absence of good management processes and policies to enable a cohesive fabric of disciplines and behaviours.

erp for small business

Managing a business effectively is about organisation, focus and process as a massive 55% of businesses fail in their first five years of existence. The experts offer banal opinions as to why this occurs. I continuosly observe three key reasons why this tragedy occurs so often and to so many people with different experience, education and skill.

The first reason is lack of market understanding.

No foresight. For example Individuals have the concept, create the product and then expect the market to flock and buy. In networked age there is no excuse for lack of research prior to wasting any time and money on building a product until you have robust evidence there is a market.

The second reason is lack of understanding of fundamental facts about business.

The majority of people starting a company know their trade, how to offer a service or make a product, but not how to run a business.  Having the ability to understand and follow the numbers in the profit and loss or the balance sheet is an essential skill. The basic knowledge of accounting is not very often imparted coherently by the business publications, online resources and experts in the know such as CPAs and bookkeepers. This problem is further exacerbated by software companies and their partners pushing small business accounting software at fledgling businesses.

Small business accounting software is only half of the solution.

Until recently ERP software solutions and packages were the privilege of corporations who had deduced that the back and front office systems need to be wired together to give a comprehensive view of the business. One technology business NetSuite had the vision to see the opening in the market and began selling its small business ERP software. NetSuite competitors have seen the opening as well and as a result lower cost easier to use solutions have appeared.

The final reason companies don’t make it is a because of the absence of practical management processes and policies to enable a sustainable fabric of disciplines and behaviours.

erp for small business

Managing a business efficiently is about organisation, focus and process as a massive 55% of businesses don’t make it to their fifth birthday. The observers offer banal opinions 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, education and knowledge.

The primary reason is lack of market comprehension.

Refusal to look at the water ahead. For example Individuals dream up the concept, create the product and then expect the market to flock and buy. In networked age there is no excuse for lack of research prior to spending any time and cash on building a product until you have robust evidence there is a market.

The number two reason is lack of understanding of the basics of business.

The majority of folks starting a company know their trade, how to offer a service or make a product, but not how to run a business.  Being able to read and track the numbers in the Income statement or the balance sheet is an essential skill. The basic knowledge of accounting is not very often imparted coherently by the business books, internet resources and those in the know such as accountants and bookkeepers. This domain is further exacerbated by manufacturers and their affiliates thrusting small business accounting software at fledgling businesses.

Small business accounting software isnt a complete answer.

Large corporations way back deduced that all of their systems should be wired together to give them a total view of the business and then along came ERP software solutions and packages. One software developer NetSuite had the foresight to see the gap in the market and began offering its small business ERP software. NetSuite pricing has since increased and put their technology out of the financial reach of small companies.

The final reason businesses don’t survive is because of lack of process and procedures that put in place the vital disciplines and continuity a business must have to operate efficiently.

small business erp

Managing a business effectively is about organisation, focus and process as a massive 55% of businesses don’t survive the first five years. The commentators offer banal opinions as to why this happens. I continuosly observe three key reasons why this tragedy happens so often and to so many people with different backgrounds, qualifications and knowledge.

The primary reason is insufficient market understanding.

No foresight. For example People have the concept, create the product and then sit back and wait for the market to come and purchase. In networked age there is no excuse for lack of investigation prior to spending any time and cash on building a product until you have solid evidence there is a market.

The second reason is lack of understanding of the basics of business.

A significant proportion of folks starting a business know their trade, how to offer a service or build a product, but not how to run a business.  Having the ability to read and track the balances in the profit and loss or the balance sheet is a vital. The basic knowledge of accounting is rarely imparted coherently by the business manuals, online resources and experts with the knowledge such as CPAs and bookkeepers. Companies such as Sage software and Intuit aggressively hoodwink business managers with their messaging that their systems are the holy grail.

Sage software and other vendors as usual are underserving small businesses.

Until recently ERP software solutions and packages were only affordable by corporations who had deduced that the back and front office systems need to be fused together to give a comprehensive view of the business. One technology business NetSuite had the vision to see the opening in the market and started selling its small business ERP software. NetSuite competitors have seen the gap as well and as a result cheaper easier to use solutions have appeared.

The final reason companies don’t survive is a because of the lack of practical management processes and policies to enable a cohesive fabric of disciplines and behaviours.