How big corporations are denying small businesses erp software
Managing a business efficiently is about organisation, focus and process as a massive 55% of businesses don’t make it to their fifth birthday. The observers offer banal opinions as to why this happens. I continuosly observe three key reasons why this tragedy happens so often and to so many individuals with different backgrounds, education and knowledge.
The primary reason is lack of market comprehension.
Refusal to look at the water ahead. For example Individuals dream up the concept, create the product and then expect the market to flock and buy. In networked age there is no excuse for lack of research prior to spending any time and cash on building a product until you have robust evidence there is a market.
The number two reason is lack of understanding of the basics of business.
The majority of folks starting a company know their trade, how to offer a service or make a product, but not how to run a business. Being able to read and track the numbers in the Income statement or the balance sheet is an essential skill. The basic knowledge of accounting is not very often imparted coherently by the business books, internet resources and those in the know such as accountants and bookkeepers. This domain is further exacerbated by manufacturers and their affiliates thrusting small business accounting software at fledgling businesses.
Small business accounting software isnt a complete answer.
Large corporations way back deduced that all of their systems should be wired together to give them a total view of the business and then along came ERP software solutions and packages. One software developer NetSuite had the foresight to see the gap in the market and began offering its small business ERP software. NetSuite pricing has since increased and put their technology out of the financial reach of small companies.
The final reason businesses don’t survive is because of lack of process and procedures that put in place the vital disciplines and continuity a business must have to operate efficiently.
