Is your business becoming too complicated to manage? Many small and mid-sized business owners find themselves in the same position. As businesses grow and make the transition from start-ups to established businesses, they outgrow their processes. Owners need to find ways to simplify their growing businesses’ operations.
One of the ways this can be done is with an enterprise resource planning (ERP) system. These systems have multiple modules to help you manage all the different parts of your business. Why are ERP systems so helpful for small business owners? Here are some ways you can simplify your business operations with an ERP system.
Store Business Data in One Place
When you first started your business, you didn’t have much data to keep track of. It wasn’t a big deal to use various spreadsheets or computer programs to manage different aspects of your business. However, when businesses get larger, these systems don’t work as well anymore. You start to spend more time searching for information than actually doing your job.
An ERP system can make finding important data much simpler. All your business operations, from customers to orders to inventory, are stored in the same system. Managing your growing business is much less stressful when you always know where to find the information you’re looking for.
Poor communication isn’t just frustrating. It also costs businesses a lot of money. Companies with 100 employees are estimated to lose an average of $420,000 per year to miscommunication among employees. Every time an employee sends a confusing email, passes on incorrect information, or doesn’t answer the phone, your company can lose money. Other employees need to spend time tracking down correct information, or they may make errors because they can’t get good information.
An ERP system can help with this. You can give your employees access to data from other departments, so they can look up the information they need on their own.
Automate Business Tasks
Repetitive tasks aren’t just boring and stressful; they’re not a good use of your time. As a business owner, your time is too valuable to be spent performing repetitive tasks that could be automated. For example, tasks like compiling data and creating reports take a lot of time. You need to sort through all your business’s spreadsheets, collect the relevant data, and enter it into yet another spreadsheet. The hours you spend creating reports are hours you can’t spend growing your small business.
With your ERP system, you can automate boring tasks like these. The system can automatically gather analytics from various areas of your business and automatically create reports for you. This can save a lot of time. Thanks to automation, you’ll have time to analyze the reports and make smarter business decisions.
Use the Same Software Long Term
Shopping for new software for your business can be stressful. If you’re among the 64 percent of small business owners who are overwhelmed by technology, you probably don’t want to do this task too often. Regularly shopping for new business software complicates your business operations and distracts you from more important tasks. You need to select software, learn how to use it, and teach your employees how to use it.
The solution is to choose software that can be used long term. ERP systems are designed to scale with companies of all sizes. Once you start using an ERP system, you can keep using it for years, no matter how big your business gets. When you can rely on the same software long term, you have one less thing to worry about.