How big corporations are denying small businesses erp software
Running a business effectively is about organisation, focus and process as a massive 55% of businesses fail in their first five years of existence. The experts offer shallow explanations 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 first reason is lack of market understanding.
No foresight. For example Individuals have the idea, build the product and then sit back and wait for the market to appear and purchase. In networked age there is no excuse for lack of research prior to spending any time and cash on designing a product until you have firm evidence there is a market.
The number two reason is lack of understanding of fundamental facts about business.
The majority of folks starting a business know their trade, how to offer a service or build a product, but know very little about running a company. Having the ability to read and follow the balances in the P&L or the balance sheet is an essential skill. The basic knowledge of accounting is rarely imparted coherently by the business manuals, online resources and those in the know such as CPAs and bookkeepers. This whole area is further complicated by manufacturers and their partners thrusting small business accounting software at fledgling businesses.
Small business accounting software is only half of the solution.
Until recently ERP software solutions and packages were only affordable by corporations who had deduced that the back and front office systems need to be wired together to give a comprehensive view of the business. One software developer NetSuite had the vision to see the gap in the market and began selling its small business ERP software. NetSuite pricing has become prohibitive as their product has increased in complexity.
The last reason companies don’t survive is a because of the lack of well thought through management processes and policies to enable a sustainable fabric of disciplines and behaviours.