ERP systems: Do they cover small businesses?
5 min read
ERP systems are often associated with large companies, production and supply chains, facilities that require expertise and high costs. However, ERP platforms are not only the privilege of large companies, but even small businesses can benefit from their installation and use.
But are there really ERP systems for small businesses? That fit both their needs and their budget? The answer is of course yes!
What are ERP systems?
ERP (Enterprise Resource Planning) is a software system that brings together all the key departments of a business on a single platform.
From production, warehousing, distribution, pricing, CRM, real-time traceability, all departments work in coordination. In this way, all members of the business have a complete picture of the activity at any time.
Does a Small Business Need ERP?
You may be wondering why a small business needs an ERP system. And while it is not necessary for a small business to operate with an ERP system, adopting such a solution can offer significant advantages, improving the daily operation of the business and competitiveness in the market. How?
Processes are automated and time is saved
With ERP software, time-consuming processes, such as placing orders and updating inventory, are automated. This allows employees to focus on more strategic activities.
Errors are reduced
Manual systems often lead to errors that cost time and money. With an ERP system, however, these errors are drastically reduced, as all data is updated in real time.
Improves communication between departments
An ERP system allows departments within a company to share the same database and the flow of information becomes direct and transparent. This way, there are no mistakes in orders, nor are there delays in issuing invoices.
Provides data for better business decisions
Businessmen have access to reports and statistics that give them useful information about the course of the business. This traceability and data analysis allow for more documented and profitable decisions.
Despite the many benefits that a small business can have from installing an ERP software, many owners hesitate to take the step and invest in an ERP system. Limited budget, lack of specialized personnel for complex systems, but also the need for simple flexible solutions, are some, or all, of the reasons that make businessmen hesitate.
However, by choosing an ERP solution tailored to their needs and size, there will be no second thoughts!
What are ERP solutions for small businesses?
There are now several flexible ERP options for small businesses on the market that combine low cost, ease of use, and scalability in case of large growth. The most popular solutions are three.
Cloud-based ERP
Cloud-based ERP systems are hosted on remote servers and provide access from anywhere there is an internet connection. This allows for no investment in expensive equipment or internal servers, while upgrades and maintenance are automatically handled by the provider. It is an ideal choice for businesses that need flexibility and want to reduce initial installation costs.
Modular ERP
A modular ERP allows businesses to choose only the modules they need, such as warehouse, invoicing, CRM, or whatever else they need. This way, a business doesn’t have to invest in features they don’t use. Of course, new modules can be added as a business grows.
All-in-one economical ERP systems
All-in-one economical ERP systems offer all the basic functions in a single package, at an affordable price. They are usually easy to use, with quick staff training, and meet the needs of small companies that want to immediately start organizing their business without complicated settings.
Industry-specific ERP systems
Some providers offer ERPs specifically designed for specific industries, such as retail, catering, or craft. These systems incorporate functionality that addresses the specific needs of the industry, such as recipe management in catering or product traceability in the food industry.
What should a small business consider before choosing an ERP system?
Choosing an ERP system is a significant investment that should be made seriously, after mature thought and consideration of certain factors to avoid wrong decisions and unnecessary expenses.
Be compatible with existing systems
The ERP system must be compatible with the tools that the company already uses. The ERP is integrated with the e-shop, as well as CRM applications, and with many other parts of the company. Easy interconnection reduces implementation time and prevents additional adaptation costs.
Be simple and easy to use
A small business ERP should be user-friendly so that staff can learn it quickly. A complex environment can discourage use and negate the benefits of the investment.
Scalable and flexible
A business may be able to integrate its ERP system while it is small, but that doesn’t mean it won’t grow. The ERP must be able to be upgraded and add new features without requiring a complete replacement.
Provide support and updates
Technical support is critical. The provider should offer immediate assistance, frequent updates, and security upgrades to keep the system operational and protected.
Have a sustainable installation and maintenance cost
In addition to the initial purchase or subscription price, ongoing maintenance costs, staff training and potential upgrades must also be calculated. A transparent costing model helps with proper budgeting.
ERP systems are not only the privilege of large organizations. Even small businesses can invest in economical, flexible and easy-to-use solutions that can dramatically improve their organization, productivity and profitability.
At Hubin you can find an ERP system that will form the foundation for stable growth and will also give the business a competitive advantage.
Frequently asked questions about ERP systems for small businesses
Is an ERP system mandatory for small businesses?
It is not necessary for a small business to have an ERP system, but it can really make a huge difference in organization and efficiency. No matter how small the business, an ERP system helps automate processes and reduce errors, two things that all owners would like for their business.
What is the cost of an ERP system for a small business?
The cost of an ERP system for a small business depends on the type of ERP, whether it is cloud or on-premise, the modules that the business will choose and the customization needs. There are solutions that start at a low monthly subscription cost, ideal for small budgets.
Can an ERP expand as the business grows?
Most modern ERPs for small businesses are modular and can be expanded with new modules or functions to meet the growing needs of the business without requiring a system change.
Is staff training needed to use the ERP system?
Modern ERP systems are designed to be user-friendly. However, during the installation of the ERP system, the partners also provide you with appropriate training.
Are there ERPs specifically for specific industries?
Of course. There are solutions designed exclusively for retail, catering, processing, and the food industry with functions tailored to the specific needs of each sector.
