ERP systems for start-up companies: problems and solutions
17 Nov

ERP systems for start-up companies: problems and solutions

Thinking about an ERP system when founding a company is about the same as thinking about the furnishings when building a house - simply too early. The "everything in its own time" principle applies here, since the business model often has to be adapted before it is ready for the market. After all, how are exact requirements for software for a start-up to be defined at that point in time?

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However, it is easy for administrative tasks to take up too much time and customer support suffers as a result. And an ERP project also takes time. It can take four to twelve months before it can be used. 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 the project time spans differ depending on the type of company. while a ERP implementation For service companies it is quite easy to carry out with a standard solution, an ERP project for manufacturing companies is much more complex.

The budget for an ERP project should also be planned, which is rarely lavish for start-ups. The project costs often exceed the planned sum. That is why rental or leasing models are an attractive alternative for young companies. The project costs, or at least the software licenses, can be paid monthly. Another possibility 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 your own requirements, these must first develop. 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 cost-effectively with a small number of user licenses and fewer functions. The start-up can first "test" the ERP solution and adapt it as required and add additional licenses.
  • Don't limit the range of functions too much
    In a start-up, the business model usually changes over time. This also changes the need for functions in the ERP system. A wide range of software can then possibly map functions that were not even considered in the original functional claim.
  • Define processes 
    In a young company, it is difficult to structure fixed work processes. However, it helps the ERP project immensely if some workflows are already established. Get tips from other companies or do research on process definition. An experienced ERP provider can also be of great use here.
  • Use the standard system as a guide
    If the system is not customized, this has the advantage that it saves costs and that the software can be easily updated to later releases. Special adjustments to an ERP solution are often not used profitably later on. Programming is also expensive.
  • Purchase licenses as needed
    To further avoid unnecessary expenses, user licenses should be purchased only as needed.

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