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By: Cybrosys Technologies

5 Reasons Why Start-Ups Require ERP System


An ERP system orchestrates the business processes of an enterprise by streamlining the data across the different aspects of business like manufacturing, inventory, CRM, accounting, and so on. The modular approach employed by most ERP vendors lets the multiple business processes of an enterprise be broken down into modules and yet managed from a single centralized database. Large data sets are handled by the ERP and thereby improve production planning, inventory management, customer service, and so on. It brings together data from across platforms to improve the collaboration and efficiency of an enterprise. 
As for start-ups, it operates with hopes of high growth, with a lack of clarity on the structure the business would assume in the longer run. They are typically a project started by one or more entrepreneurs who wish to revolutionize the industry with their idea of product or service. Start-ups are usually low-funded businesses with revolutionary visions. The focus of most start-ups is to convince investors of their possible success and find enough funding to start running their projects. The revenue is low in the beginning and this is why most start-ups look for venture capitalists to fund their projects. 
The business models for start-ups are rudimentary and their solid capital is only the product or service idea. The initial periods for start-ups is very important. The failure rate is high with a lot of strategic planning to get their idea to be successful in the market. The initial phase must be tread with care. Unlike the various small and medium-sized enterprises that began their journey with tried and tested business ideas, start-ups bring to the plate innovative ideas that, if successful in catching on, can change the market scape.
An ERP system manages the financial, manufacturing, inventory, quality, and project management in the organization. It stands the benefits of, 

Automation of process

A large part of your operational flow is automated with the help of ERP software. The time and money saved can be used for better activities. Optimized processes help progress in the operational aspect of a business with ease. 

Centralized Data

A single source of data as provided by the ERP system allows all workers to be on the same page and to reduce data error caused by manual duplication of data across records and reports. 
Streamlines Communication
The communication within the company and with the customers is streamlined through the communication channels and medium manageable from an ERP. It also helps set reminders and automate communication with the clients running the customer or client management aspect smoothly. 
Strategy Building
The holistic view that an ERP provides can be very helpful in creating a successful business strategy. An ERP system would have insight into all aspects of the business, thus letting you see the whole picture in order to better strategize the business plans. 
Money Management
The ERP system provides transparency to the costs and expenses of the business. The cost transparency in the business would let us manage between our expenses and income more tactically. 
Well if you're a start-up you must surely find these benefits attractive, but to invest in an ERP project we must consider a few things. Starting since start-ups cordially have shown a high failure rate. Making the wrong investment at the wrong time can be very important for start-ups considering the nature of these businesses. You must consider the following before deciding the kind of investment in an ERP system,
- The start-up must have defined processes in it functioning.
- The production of the company is standardized. 
- Your product or service concept has found a suitable market. 
- The quality management system is in place.
In short, a start-up can invest in an ERP once we are sure what the ERP has to do for us. Without a standardized system, we cannot expect ERP to make things efficient. It only improves upon an existing system that has formed a proper structure. 
If your start-up has ticked these qualifiers, you can surely think of investing in an ERP that would optimize the performance and production of your start-up. An ERP would help the company reach healthy profit margins and succeed as a business. While implementing ERP software in a start-up, we must take into account the following factors,


Think about your budget before deciding to choose the ERP system. An ERP investment can take a big toll. Thus, a company that can manage with dissipated software solutions to manage individual aspects can go ahead and work with them. We can start with a freemium in case of start-up and upgrade later. Odoo Community is a free open source ERP that can be installed and used by many startups to streamline their processes in the beginning without making the investment for Odoo enterprise, the licensed and more functional version. Once the start-up has its feet firm, they can upgrade to the Enterprise version to meet all their requirements. 


An ERP system that is scalable according to the growth of your start-up is really important. Making the investment on an ERP that later cannot be scaled according to the changes in the market requirement for the company will be a bad investment especially when working with a start-up. Accommodating the changes in requirements and the resources will be an important aspect of ERP systems for start-ups. ERP systems with cloud hosting make it possible to scale the ERP according to changes in the business. 
In usage as well as in making changes, simplicity is a major factor that will make an ERP system ideal for the start-up. We must care not to waste time and money on features that are worthless to our requirements. We can scale up the features according to our requirements and for startups, it is ideal to start off with a basic toolkit. But adding and making changes, later on, should not be hectic as the change would be constant for start-ups until established a successful business. 
Intuitive UI
A simple modern user interface that communicates well to the end-user is important in making the work easier and impressive for a start-up. The organization of the menu and dashboard should be clean and apt to make the necessary within reach. Having to forage for the right information at critical times can undo all the benefits of an ERP. 

Responsive Support:

make sure the ERP vendor or partner can provide you with support at all times. A responsive support system will be necessary to help you through the implementation phase and to migrate and customize whenever necessary. Thus choosing a vendor or partner that offers good support is essential. 
Whether they make the investment in the initial days or once the capital and resources are in place is for the start-up to decide. But implementing an ERP is a matter of survival. You cannot compete in the market without an ERP system. But we must do it with caution considering the versatile nature of the business models, plans and strategies in a start-up as they slowly find their niche in the market.

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