How big corporations are denying small businesses erp software
Companies need efficient process, the focus of leadership and structure that can adapt to enable the company to grow safely as a massive 55% of businesses fail in their first five years of existence. The observers offer useless ‘insight’ 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, qualifications and skill.
The first reason is lack of market understanding.
No foresight. For example People dream up the concept, build the product and then sit back and wait for the market to come and buy. In networked age there is no excuse for lack of research before wasting any time and money on building a product until you have solid confirmed there is a market.
The second reason is lack of comprehension of the basics of 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 understand and follow the numbers in the Income statement 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 with the knowledge such as CPAs and bookkeepers. The problem is made worse by greedy and short sighted technology companies such as Sage software misleading the market by providing only a portion of the functionality actually needed by small businesses.
Small business accounting software isnt a complete answer.
Large enterprises years ago worked out that all of their systems should be fused together to give them a complete picture of the business and then along came ERP software solutions and packages. One vendor NetSuite had the foresight to see the opening in the market and began selling its small business ERP software. NetSuite competitors have since emerged.
The last reason companies don’t survive is a because of the absence of good management processes and policies to enable a sustainable fabric of disciplines and behaviours.
