Start-ups are often busy building a business model, which leaves little time to think about the processes within the business. It would be easier if someone from outside were to introduce the processes and develop them further as the business grows. Or the start-up invests in a ERP software.
Why start-ups fail with Excel and Co
As a newcomer, it is tempting to manage all business via spreadsheets, as these programmes are easy to use and often cheap or even free. Excel and Co. can quickly become the undoing of a young company after the first few months in terms of customer data, resources and invoice management. Because when the company starts up, the amount of data also grows. Maintaining this data with the familiar tools is only possible to a limited extent. For example, information on good customer management cannot be retrieved in time or correctly. Today, however, more and more people are used to receiving a personalised approach and care. Accordingly, it is also essential for marketing strategy reasons to be able to call up the right data at the right time and in the right place.
On ERP system not only provides the data, it can even automate the personalised contacting process. In addition, ERP software can be used to retrieve specific information about customers. For example, who bought what and when. This allows start-ups to tailor promotional campaigns to individual buyers. It can also be used to define the content of newsletters, for example. For this purpose, an ERP solution offers a multitude of suitable analysis options that a company can use to filter the information it needs at the moment. Even the biggest Excel guru would be overwhelmed by a certain amount of data. However, data is one of the most important resources for growth today - especially for companies in the process of development - if it is used correctly.
ERP too expensive for start-ups?
The advantages of investing in an ERP system are obvious: a start-up can adapt its business to already proven, functional corporate processes and, based on uniform data, make targeted decisions that serve the growth and success of the young company. Nevertheless, many start-ups shy away from the high Costs associated with software investments. Because depending on the provider and scope, even a 'small' ERP solution costs between 10,000 and 30,000 euros ? ERP solution costs between 10,000 and 30,000 euros ? too much for most start-ups. Which exact Costs on a start-up for an ERP solution like SAP Business One usually requires a precise analysis. Nevertheless, start-ups can benefit significantly from the automation of processes and shorter processing times, as they can invest much more time in their core business without getting lost in various spreadsheets. In the long run, this means optimised processes, fewer errors, cost savings and improved information flow in growth.
But where to get this software? Recently, one solution in particular has become increasingly attractive for young companies: the cloud. Software from the cloud can often be booked ?monthly? for less money, can also be adapted to the needs of the business and has the great advantage that the cloud software is always capable of its full best performance through regular updates.
Especially in resource management, a ERP system from the cloud can be of great benefit to start-ups in promoting a more efficient way of working. Often, young companies are not up to the challenge of rapid growth in terms of personnel. Overtime and home offices are the logical consequence. With a flexible ERP system, home office days or part-time employees can also be accounted for with appropriate employee scheduling. In this way, the company can grow with its tasks. This is a blessing for a balanced corporate climate.
Another advantage of cloud software is that access to company data is not spatially bound. This enables freedoms such as working from home. This is also an advantage when working in the field, as available data makes a professional and progressive impression everywhere. Whether at the trade fair or at the customer's ? bringing the desired information to light with a few clicks is always good and is not possible with GoogleDocs.
Where else ERP software helps start-ups
Resource management also offers a lot of advantages internally. For example, when it comes to ordering materials or stock-keeping, an ERP solution can be used to act much more quickly and appropriately. The data on inventory and demand is always available in real time. Expenditure and income can thus be planned appropriately and a reliable supply system can be guaranteed. This insight is also essential for accounting. Especially the legal side is often neglected or simply forgotten in start-ups. But when the tax office is at the door, it is advisable to have the accounting properly prepared and filed ? otherwise it can be costly. An ERP system is a good help when it comes to these deadlines and regulations.
SAP Business ByDesign vs SAP S/4HANA Cloud
SAP Business One vs SAP Business ByDesign
Business process reengineering before ERP implementation
Enterprise software adoption - surprisingly non-technological
ERP selection ? if it were that easy / part 9
