Start-ups are often busy building a business model, which leaves little time to think about the processes within the company. It would be easier if someone from outside were to introduce the processes and develop them further as the company 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 your business via spreadsheets, as these programmes are easy to use and often inexpensive or even free. Excel and co. can quickly become a young company's undoing after the first few months in terms of customer data, resources and invoice management. As the company gets off the ground, 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 good time or correctly. However, more and more people today are used to receiving a personalised approach and support. It is therefore also essential for marketing strategy reasons to be able to retrieve the right data at the right time and in the right place.
On ERP system not only provides the data, it can even automate personalised contact. ERP software can also 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 content in newsletters, for example. For this purpose, an ERP solution offers a wide range of suitable analysis options that a company can use to filter the information it needs. Even the greatest 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 being established - 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 tried-and-tested, functional company processes and use standardised data to make targeted decisions that help the young company grow and succeed. Nevertheless, many start-ups shy away from the high Costs associated with software investments. Depending on the provider and scope, even a "small" 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 need to be analysed in detail. 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 term, this means optimised processes, fewer errors, cost savings and an improved flow of information as the company grows.
But where to get this software? Recently, one solution in particular has become increasingly attractive for start-ups: 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 performing at its best thanks to regular updates.
Especially in resource management, a ERP system The cloud can be of great benefit to start-ups in promoting a more efficient way of working. Young companies are often unable to cope with rapid growth in terms of personnel technology. Overtime and working from home are the logical consequence. A flexible ERP system with appropriate employee scheduling can also be used to account for home office days or part-time employees. This allows the company to grow with its tasks. A blessing for a balanced corporate climate.
Another advantage of cloud software is that access to company data is not tied to a specific location. This allows freedom, such as working from home. However, this is also an advantage in the "field service", as available data makes a professional and progressive impression everywhere. Whether at a trade fair or at the customer's premises - getting the information you need with just a few clicks is always a good idea and is not possible with GoogleDocs.
Where else ERP software for start-ups can help
Resource management also offers a lot of advantages internally. When it comes to ordering materials or warehousing, for example, an ERP solution allows you to act much more quickly and appropriately. The data on stock and requirements is always available in real time. This means that expenditure and income can be planned appropriately and a reliable delivery system can be guaranteed. This insight is also essential for accounting. The legal side in particular is often neglected or simply forgotten in start-ups. However, when the tax office arrives, it is advisable to have the accounting properly prepared and filed - otherwise it can be costly. However, 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
Introduction of business software - surprisingly not technological
ERP selection - if it were that easy / Part 9
