How ERP Systems Help Small Businesses Grow!
Every big business started small. Many factors contribute to growth, but one of the most integral tools that usually gets overlooked includes ERP (Enterprise Resource Planning). These systems bring everything a business needs into one place: finances, inventory, customer management, and staff management. And today, ERP systems are accessible and affordable for small and mid-sized businesses too.
In this article, we shall look at how ERP helps small businesses grow by simplifying operations and making smarter decisions easier.
1. What is ERP?
ERP or Enterprise Resource Planning is a type of software that connects the different parts of a business. Instead of separate systems for finances, inventory, HR, customer service, etc. ERP consolidates these into one easy-to-use platform.
2. Why Small Businesses Benefit from ERP
Some small businesses seem to believe that an ERP system is for large corporations only, which is no longer the fact. Many of the ERP systems developed today bear the small business in mind. Here's how ERP can help:
Time and Mistake Saver:
ERP automates some common tasks, like creating invoices or updating inventory. Hence, your team will spend less time on manual work and reduce further errors.
Better decision-making is possible.
ERP provides updated data from various business aspects and therefore makes it easier for the business owner and manager to make informed decisions.
Fits you as you grow:
If your business happens to be growing, then an ERP system could also grow with you, whereby you will easily be able to add more users or further features to it.
3. Key Features of ERP Supporting Small Business Growth
These provide different functions of ERP systems that support the development of enterprises. Let me outline some of the major features which small businesses will generally find most useful:
a) Financial Management
ERP centralizes your financial records into a single database, thereby making it easier to keep track of revenues, expenses, and payroll.
b) Inventory Management
ERP keeps track of your stock levels and controls ordering so that you don't either run out of or over-order.
c) Customer Management
ERP can also offer customer management, allowing you to record sales, follow up on sales, and keep data about customers in one location.
d) Personnel and Payroll Management
Within a small team, payroll, leave requests, and other HR-related duties become reasonably easy and effortless with ERP.
4. Real-Life Example: How ERP Helped a Small Business Grow
Let's take an example to understand the difference ERP makes.
Case Study: Sarah's Eco-Friendly Boutique Sarah owns an online boutique selling eco-friendly apparel. As the scale of the business continued to grow, she started finding it difficult to manage her inventory, followed by delays in placing orders and maintaining her books. After deploying an ERP system, here is how business improved for Sarah:
Efficient Inventory Management: ERP helped Sarah track her stock to ensure she was neither overstocked nor understocked.
Accurate Finances: Sarah could track all revenue, expenses, and payroll in one place without errors and saved a lot of time.
Better Customer Service: As customer information was available, queries were answered more quickly by Sarah's team, hence providing a better experience to customers.
A year later, her business grew 30% - this is a very good example of how ERP can make business growth manageable and smooth.
5. Selecting an Appropriate ERP System
It is very important to find the right type of ERP system that you want for your business. Here are a few things you should consider in finding the right ERP system for your organization:
Budget: Choose an ERP with a low starting cost that scales as your business grows..
Scalability: Choose such systems that will grow with your business.
Ease of Use: Make sure that it is easy for you and your team to learn and use.
Industry Fit: There are ERPs created for specific industries like retail and manufacturing.
6. Why ERP Is Worth Considering
An ERP system is more than just software-it's a way to bring all parts of your business together. For small businesses, ERP simplifies operations and allows you to make smart decisions while laying the foundation for future growth. As your business grows, ERP makes it easier to scale and stay competitive.
Want to know if ERP is right for your business? Contact us to learn more or book a demo!