If you lead a small business, you may be wondering if an ERP is right for you. After all, ERP sellers advertise the huge range of scalable services their solutions provide for big companies across the country. Is an ERP worth the investment for a small business?
Definitely! ERP solutions cater not only to large corporations but also benefit small and mid-sized enterprises. Contrary to the common misconception that ERP software is exclusive to large entities, businesses of all sizes, including small-scale operations, stand to gain from the robust data management and analytical capabilities of ERP systems. Below are five key advantages that small businesses can obtain by embracing an ERP solution.
- Unified Business Operations and Data Management
Even small businesses have a lot of data they must handle, from customer data to regulatory compliance details. However, emerging businesses often rely on fragmented systems, with separate platforms for accounting, operations, and human resources. As these businesses expand, isolated data becomes a bottleneck, complicating data consolidation and impeding swift decision-making. This opacity in data can stifle growth and competitive edge.
An ERP system consolidates processes and data across the organization into a singular framework, facilitating access to company-wide data for enhanced decision-making and dismantling data silos. This integration streamlines business operations and saves substantial time and effort in data management.
- Access to Data in Real-Time
Cloud-based ERP systems not only offer flexibility but also ensure immediate access to data. With cloud synchronization, data is consistently updated and accessible in real-time, enabling accurate monitoring of customer behavior, inventory levels, pricing, and more. These data points are important no matter the size of your company!
- Scalable Solutions
It’s always best to start out on the right foot—with software as with anything else. As anyone in business knows, one of the most expensive and time-consuming processes you’ll experience is switching to a new software system.
ERPs present a scalable advantage for small businesses. As a company expands, cloud-based ERPs can be effortlessly scaled up without the need for expensive hardware or infrastructure. New functionalities can be incorporated through additional modules or extensions to support evolving business needs.
- Cost Efficiency
While the initial cost of adopting a cloud-based ERP might appear steep, it is essential to evaluate the current expenses associated with running multiple platforms. This includes not just software licensing fees but also the time invested in data compilation and reconciliation. The absence of data transparency can be a significant hindrance.
Moreover, cloud ERPs eliminate the need for substantial hardware investments. Employees can access the system using their existing computers. In the long run, companies generally experience cost savings after transitioning from disparate, isolated systems to a unified ERP.
- Enhanced Customer Service
ERP systems afford a comprehensive view of the company’s information, empowering any team member to retrieve customer data and address inquiries with consistent information available across the system, for example. This level of service excellence boosts customer satisfaction, fostering loyalty and encouraging repeat business, which is typically more cost-effective due to reduced marketing expenditures.
Looking for an ERP? We’re Here to Help!
If you think it’s time for your small business to take advantage of the benefits an ERP can offer, ASI is ready to help. We provide two of the most popular ERPs on the market, Acumatica and Sage 100, in addition to other business software solutions. We can help you find the perfect solution for your company’s unique goals and needs. Contact us or schedule your free consultation today to get started.