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.