Why ERP Is a Must-Have for Any Start-Up Business

Small businesses are always characterized by limited capital and a small market share. They always fear to expand their market share due to limited resources. Luckily, with a modern ERP system, they can grow and compete with large businesses through:


Enhances efficiency of operations

When you have a team looking at the same objectives and working to achieve them, you achieve efficiency. You can set daily and weekly goals while you share them in the cloud. This form of business practice ensures that you communicate with the relevant teams since all resources can be managed from a central location.

Data integration

The marketing department can work together with the accounting department due to data integration. The ERP software integrates well with the CRM tools to help analyze data and share that information under the same cloud. This form of collaboration helps improve communication and thus decision making. You can decide on the way forward and met deadlines with ease.


Human error, can never the avoided. When you depend on your employees to manually generate reports, you will be asking for inaccurate reports. Inaccurate reports favor inefficient decision making on your part which can delay operation altogether. With an ERP system, you get value for what you want. It produces on demand reports that are not only accurate but in time. For example, if you want daily reports on the inventory level of sales, you can get them on demand.

It gives more room for growth

Most cloud-based systems are highly scalable. You can store large or small data depending on the size of our business. This leaves room for growth as when your business grows, there will be more space to store data. The enterprise resource planning (ERP) system offers a great platform on which businesses can grow. For example, if you have a start-up, you can use few solutions in place and upgrade when you increase your market share or the number of customers. Managing many resources at a time can be strenuous and expensive. However, if you have a reliable system that integrates all those resources, you get to save on the cost and time.

Increases accountability

Real-time reporting is one way ERP software can help you get rid of fraudulent employees. It allows you to track sales and inventory on a real-time basis. For example, if there was any wrongful entry of sales for the day, you will be able to reconcile with your stock at the end of the day and take note of the error. On the same note, the reports will show you which employee is responsible for that particular error or fraud and thus you can hold them accountable.

High ROI

The growth of a business is depicted by the size of its market share. With the growth of the internet, most businesses have gone the e-commerce way. Such a business will require resources and better visibility to make it productive. The ERP system offers a high return on investment (ROI) through automation of tasks and high scalability. As a business owner, you do not have to hire more people once it experiences such growth. This means low cost of doing business and high returns. Invest in a system that has your business in mind in terms of increase in sales coupled with low cost of labor.


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