ERP for Small Business - A Starter Guide

Your Guide to ERP for Small Business

Top Reasons Small Businesses Implement ERP Software

The best ERP for small business is the one that aligns with your business operations and positions you for further growth.

Running your own business comes with challenges. The volume of tasks is immense – from operations, payroll, accounting, and employee engagement – to sales, marketing, strategy and more. In today’s business world it’s also normal to face technology challenges. Common challenges we see small businesses facing can often be summed up into two main problems:

Your business software no longer supports your business
You have a mix of software solutions that are disconnected, and don’t “talk” to each other

This is what typically sets small businesses on the path that leads to enterprise resource planning (ERP) software. Some of the top reasons that small businesses choose to implement ERP software include:

Having one comprehensive business software and one source of truth for business data
Increasing efficiency
Reducing costs
Improving reporting and analytics
Supporting growth
Improving customer service

What is ERP for small business?

Enterprise resource planning is business management software that enables organizations to have one system to manage business processes. This concept sounds simple, but often isn’t, and can be game-changing – especially for small business.

An ERP software solution is a suite of modules that all operate in one database that serves as a master source of enterprise information. ERP is accounting and operations oriented, with modules such as inventory management, project management, human resources, supply chain management and more. Other key business functionalities included are sales, marketing, manufacturing, inventory, e-commerce. Read more in: What is Enterprise Resource Planning?

Your small business’ priorities are likely different than a large enterprise and your ERP software should reflect that. Some typical small business problems that ERP software can help solve include:

Manual processes
Little to no visibility into business data
Disparate systems
Lack of reporting and analytics

An ERP solution provides business insight, a suite of tools that provide reporting and real-time analytics, the ability to automate manual processes and is simple and easy to use. But not all ERP software is the same – choosing the best solution for your business is a crucial step in the ERP implementation process.

Comparing ERP for Small Business

A smaller business requires software that is designed to support growth, while providing employees with tools to do their jobs better. What are the best ERP options for small business? Below are some of the top vendors.

Acumatica: Their Small Business Edition is a cloud-based ERP designed specifically for small businesses that have basic accounting needs and require fewer than 10 users. It operates as a bridge from accounting programs to a full ERP solution with the potential to grow.
Oracle NetSuite: A full-service solution, NetSuite provides complete visibility into business data at a price point smaller businesses can afford. NetSuite will scale with you as a long-term solution as your business grows. NetSuite is largely considered the world’s number one cloud ERP – chosen by more than 43,000+ organizations.
Sage: This vendor offers multiple products that cater to the needs of small businesses – taking control of finances and automating processes that reduce time spent on administrative tasks.

How much is ERP for small business?

ERP software pricing can depend on a few different factors, including:

Number of users
Software footprint – the modules implemented
Hosting
Integrations

There is no getting around the fact that ERP is an investment of time and money – ERP software for small business is less expensive but can still be a significant budget item. Below are some facts and figures regarding ROI on ERP for small business.

Small businesses that implement ERP software are able to reduce operating costs by up to 20%. Other cost saving areas include admin costs and inventory costs.
Small businesses that implement ERP software achieve 100% ROI within 27 months, on average
Cloud ERP lowers upfront cost (compared to traditional on-premise ERP) – as subscriptions are paid monthly. Cloud software also allows you to account for the cost as an operating expense (versus a capital expense for on-premise hardware).

NetSuite Small Business Pricing

As an Oracle partner, we implement NetSuite for small business. We can help you navigate the ERP software selection process and determine if NetSuite is the right fit for your business. As a NetSuite reseller, we can help you with pricing – determining your software footprint and how many users you need. We can also connect you with NetSuite for a professional services activation – a simpler, lower-cost implementation – or you can work with our team on your NetSuite implementation. We lead you through every step of the process and help you ensure a successful project and long term ROI.

ERP Software Selection Process

Once you’ve determined how ERP can help your small business, you need to choose which software is the best for you. There are some key things to keep in mind when evaluating ERP for your business. Below are the top 10 – read the full info on ERP selection criteria here.

The functional fit for your organization – does the software functionality meet the needs of your business?
Industry experience – is the software used in your industry, does it have helpful industry-specific features?
Price
ERP vendor viability – how long has the product been around? How many organizations are in the customer base? What is their financial viability?
ERP implementation project considerations – when is the right time to take on this project? Who will be the internal and external (often ERP consultants) leaders of the project?
Technology – does the software include key features like end-user reporting, good user experience, data security, ability to integrate with other software?
Risk – make a plan and consider key areas to avoid risk.
Scalability – consider how the software suite fits with your business strategy today, and down the road.
References – talk with other companies who have implemented the ERP. Both the software vendor and implementation partner should be able to provide references.
Post go live – what is the on-going support and training plan?

ERP Software Consulting

Before making a final decision in the software selection process, consider what you need from an implementation partner. To make the project a success, you’ll need the right team on your side. An ERP implementation isn’t just an IT project – it’s a business project because it will have an effect across your company as a whole. Check out this resource to learn more about ERP Software Consulting. We cover the frequently asked questions below.

Frequently Asked Questions About ERP Consulting

When to engage with an ERP consulting firm?
What should I expect from an ERP consulting team?
What are average rates for ERP consultants?
How does a technology consulting partner help ensure a successful ERP project?

Still Not Sure Where to Start?

After doing the research, you may still be unsure what ERP software is best for your company. This is where a business technology assessment comes in. At Terillium, we offer an assessment in which our team will come in and evaluate your existing technology and business goals. This will help you build a roadmap that can be used to assist in the ERP selection process. Get in touch with our team today to learn more.

During an assessment we review: