ERP systems for start-up companies: problems and solutions

Thinking about an ERP system when founding a company is a bit like considering the furnishings during house construction – simply too early. The „everything in its own time“ principle applies here, as the business model often still needs to be adapted until market readiness. After all, how can precise software requirements for a start-up be defined at that point?

SAP Business One ideal for start-ups

However, it is easy for administrative tasks to take up too much time and for customer service to suffer as a result. And an ERP project also takes time. It can take four to twelve months before it can be implemented. This means that even a Start-up company should consider the selection of a suitable ERP solution in good time. It should also be noted that project timescales vary depending on the type of company. While a ERP implementation While an ERP project is quite simple to implement for service companies with a standard solution, an ERP project for manufacturing companies is much more complex.

The budget for an ERP project, which is rarely generous for start-ups, should also be planned. The project costs often exceed the planned amount. This is why rental or leasing models are an attractive alternative for young companies. The Project costsor at least the software licences, can be paid monthly. Another option are lessors who have committed themselves to financing IT projects.

In addition to financing and time pressure, the lack of process experience is and remains the biggest problem for start-up companies. In order to find a suitable ERP system for the company and adapt it to its own requirements, these must first be developed. An experienced ERP provider may be able to help with a good process analysis. But every young company can also prepare itself well for an ERP project. Here are a few tips:

Choose a phase concept
In a phased concept, the ERP system is set up with a small number of user licenses and less functionality, but at a low cost. The start-up can thus initially „test“ the ERP solution and adapt it as needed, adding further licenses.
Do not restrict the range of functions too much
A start-up's business model usually changes over time. This also changes the need for functions in the ERP system. Broad-based software can then map functions that were not even considered in the original functional requirements.
Define processes
It is difficult to structure fixed work processes in a young company. However, it helps the ERP project immensely if some work processes are already established. Get Tips with other companies or research the topic of process definition. An experienced ERP provider can also be of great benefit here.
Use the standard system as a guide
The advantage of not customising the system is that it saves costs and the software can be easily updated to subsequent releases. Often special adjustments of an ERP solution cannot be used profitably later on. Programming is also expensive.
Purchase licenses as needed
To avoid further unnecessary expenditure, user licences should only be purchased as required.

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