Small businesses are a surprisingly common thing. There are around 32 million of them in the US alone.
Most small businesses also share some common concerns. Their owners worry about things like staffing, inventory, and making their loan payments on time.
Then, of course, there is enterprise resource planning.
“Wait,” you say. “ERP for small businesses? Do I really need that? I thought that was a thing for major corporations.”
If you never considered whether ERP software was right for your business, keep reading. We’ll cover the ERP essentials and some of the ways your business can benefit from it.
What Is ERP?
Enterprise resource planning is generally a reference to ERP software, such as IFS ERP. That software touches on most, if not all, of the major areas and processes of your business. Some common things that ERP touches on include:
- Finance
- HR
- Supply chain
- Operations
The software serves as a central point for most of your critical business data.
ERP Benefits
Most business owners might feel rightly suspicious about software that spreads throughout its processes that way. How can one software package possibly serve equally well in sometimes drastically different business environments? Your average restaurant brings wildly different needs to the table than a small manufacturer.
This is where the structure of ERP software really shines. The best ERP software is set up in modules with a fair degree of customization possible. That means you can take a pass on the supply chain module if your business doesn’t use a complex supply chain.
Centralizing data from areas as diverse as human resources and customer relationship management also arms you with information. You can glean insights into where your organization falls short and where it shines. Those insights let you make better and more strategic decisions about how you manage the business.
Do You Need ERP?
There are no absolute answers to this question. Almost any business can benefit from additional clarity about its own operations, supply chains, and human resources.
At the same time, most small businesses already run independent software packages to help them manage things like finance, HR, operations, and customer relations.
For the solopreneur or business with a mere handful of employees, ERP is often an overkill solution. For small businesses with dozens or even hundreds of employees, ERP software can often prove invaluable in helping you make the best decisions for the business.
ERP for Small Businesses
If you already run software that helps you manage these diverse areas of your business, why bother with ERP for small businesses? The problem with running independent software packages is the development of information silos.
Your finance people control the finance data. Your customer service people control the customer relationship management data. The data never gets seen in context.
With ERP software, you can often put those diverse pieces of data into the appropriate context to see how they relate.
Looking for more tips on business management and business technology? Check out the posts over in our Blog section.
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