Business software, such as ERPs, have traditionally been used by large, well-established organizations. For start-ups, the investment can seem so daunting it dissuades decision-makers from making an earnest pursuit. But should this be the case? Are start-ups actually too small for ERPs to be worth it? 

This is the question the leaders of young start-ups have been asking since the advent of ERP platforms more than 20 years ago. While it may not have been the case in Y2K, ERPs are more accessible than ever, and in fact, help smaller businesses compete with larger competitors. 

For many start-ups, shying away from the daunting world of ERP feels like a safe bet to avoid the risk of over-investment and inefficiency. Instead, they opt to do the work manually, handling all the ordering, billing, inventory management and client data themselves. But while this may seem manageable at first, these administrative tasks can occupy hours of valuable time. 

Where manual input saves you money, it detracts from your productive activity. In most cases, this results in a net loss. With an ERP platform, start-ups benefit from a faster turnaround times, greater efficiency, integration between disparate departments and more accurate decision-making that is empowered by real-time data.

These days, ERP providers target smaller companies by developing products tailored to their needs. This has naturally led to changes that benefit small and start-up companies specifically, such as quicker implementation times, more manageable scale and features, and lower start-up costs. And with the ever-emerging cloud ERP market, those initial start-up costs and implementation times have been lowered even further, with pricing models that cater to even the smallest companies.

Ultimately, the assistance a good ERP offers to the operational capacity of small businesses can greatly hasten a company’s ability to scale. Thus ERPs should be looked upon less prohibitively, and in fact, as more of a necessity.

ERPs can provide users with the tools needed to speed up turn around time, boost efficiency and positively impact the experience of customers – something desperately needed if your start-up is trying to make a name for itself in a market with long-established competitors. 

If this all sounds doubtful, just know that we’re speaking for experience. Not long ago, Pareto was a small software company working out of a garage. We know what it means to be entrepreneurs embarking on a new start-up venture. We lived the story. We understand the marketing struggle, the money management, the investor reports and the need to be better than the competition. And we know how an ERP can help your business grow.