ERP big software for small businesses
Commercial organisations need effective process, the focus of leadership and structure that can adapt to enable the company to grow safely as a massive 55% of businesses fail in their first five years of existence. The observers offer shallow explanations as to why this occurs. I consistently see three key reasons why this tragedy occurs so often and to so many individuals with different backgrounds, qualifications and skill.
The first reason is lack of market understanding.
Refusal to look at the water ahead. For example People dream up the idea, build the product and then sit back and wait for the market to come and buy. In networked age there is no excuse for lack of research before wasting any time and money on building a product until you have solid confirmed there is a market.
The number two reason is lack of comprehension of the basics of business.
The majority of folks starting a business know their trade, how to deliver a service or manufacture a product, but know very little about running a company. Having the ability to read and follow the balances in the Income statement or the balance sheet is an essential skill. The basic knowledge of accounting is rarely imparted well by the business books, online resources and experts in the know such as accountants and bookkeepers. Companies such as Sage software and Intuit callously fool business managers with their marketing that their systems are the cure for all ills.
Small business accounting software isnt a complete answer.
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 foresight to see the gap in the market and began selling its small business ERP software. NetSuite pricing has since increased and put their technology out of the economic reach of small businesses.
The final reason companies don’t make it is a because of the lack of well thought through management processes and policies to enable a sustainable fabric of disciplines and behaviours.
