ERP for Small Businesses: The Ultimate Guide

17.10.22 01:57 PM By Usama
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Did you know that small businesses own almost 90% of all businesses in the United States? Did you also know that approximately 96% of small businesses fail within the first five years? The reason for this is that most small businesses fail to grow. They fail to adopt new technologies, new ideas, and best practices. They are not able to scale their business and instead remain a local business with local customers. It doesn’t have to be this way. Small businesses can adopt new technologies and implement software solutions that help them manage their business on a larger scale, as well as reduce inefficiencies and costs. Read on to learn more.

 What is ERP?

ERP stands for Enterprise Resource Planning and is a type of business management software that is designed to manage key business processes such as accounting, inventory management, CRM, supply chain management, procurement and HR. An ERP system is designed to integrate with other business software and systems to allow all business processes to run smoothly and efficiently together. ERP systems bring together various business functions and integrate them into one system. This allows businesses to make better and more strategic decisions, increase efficiency and increase profitability.

 Why Should You Implement an ERP System for Your Small Business?  

ERP systems have been around for decades, so why should you implement an ERP system for your small business? If you have been running your business for a long time, you probably have systems for managing your finances, your inventory, and your hiring process. But what happens when you have to expand into new geographies or have to scale your business? You need to make changes that integrate all these systems, otherwise you will be wasting time and money. 


An ERP solution for your small business will allow you to track your business’s inventory and manage your supply chain. This will allow you to make more accurate pricing and forecast decisions. You can also use an ERP solution to manage your customer relationships with CRM solutions, as well as manage your employees with HR systems.

3 Best Small Business ERP Software Options

 ZOHO:

ZOHO is a good ERP for small businesses because it is easy to use, affordable, and has many features that are designed to help small businesses run more efficiently. ZOHO offers many different user interfaces (UI) options, so it is easy for users to find the one that best suits their needs. 


There are also a variety of different features built into ZOHO, such as automated workflow management, inventory tracking, and automated order processing. These features can all help small businesses run more efficiently, resulting in lower costs and higher profits. In addition, ZOHO is affordable for any size business, so there is no risk of large startup costs. Finally, ZOHO has a robust customer support system in place that can help small businesses quickly solve any problems they may encounter with the software.

  Microsoft Dynamics:

This is another cloud-based ERP software solution for small businesses. It is designed for small and midsize businesses that are looking for a robust ERP solution. This software comes with many features such as sales forecasting and analytics. 

 Oracle Advanced Business Management:  

Oracle Advanced Business Management is a robust solution for small businesses. It includes financial planning, inventory management, and sales forecasting functionality. It is a high-end solution and will be more expensive than other options.

 Important Factors to Consider Before Selecting an ERP Software

What are your company’s needs and requirements? This is the most important factor that you will need to consider when selecting ERP software. You will need to understand your company’s needs and requirements before moving forward with selecting an ERP solution.


  • What type of business are you?
  • Do you manufacture products or do you provide services?
  • Do you sell online?
  • What is your budget? 

 

These are all important factors that will help you determine what type of software will work best for your business. Once you have a better idea of what type of business you are in, you will be better prepared to select the right ERP solution. All ERP software solutions come with different price tags. You will also need to understand your budget before moving forward to make the best decision for your company.

 How to Implement an ERP Software for your Small Business?   

The good news is that most of the leading software providers offer free implementations and onsite training. If you are looking to implement an ERP solution for your business, keep these tips in mind: 


Make sure that the vendor is certified

The vendor should be certified by Gartner or Forrester. Make sure that the vendor has been certified within the last 12 months. You should also make sure that the vendor has been recommended by your peers and colleagues. 


Get a demo

You will want to test drive the software and make sure that it is right for you. You should take the demo as seriously as you would an actual sales meeting. You will want to ask lots of questions and get as much information as possible. 


Get references

References are extremely important when you are selecting an ERP solution. You will want to make sure that the vendor has references from businesses that are similar in size and scope to your business.

 Conclusion

ERP systems are powerful business management tools that can help small businesses grow and scale. Small businesses can benefit from implementing an ERP solution to help manage their financials, customers, inventory and operations. 


The good news is that most leading ERP software vendors offer free implementations and onsite training along with a free 30-day trial for all small business customers. Now that you know what ERP is, why you should implement an ERP system for your small business, which small business ERP software to choose, and how to implement an ERP system, it’s time to start improving your business with ERP software.

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