ERP Systems for Small Businesses

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Enterprise Resource Planning (ERP) is an important business management solution that is designed to automate and integrate business processes to increase productivity.

ERP systems also monitor resource availability and allocation from an accurate and detailed database management system. Some of the functions of an ERP system include payment tracking, shipping, manufacturing, accounting, inventory management, customer relations, and purchase planning.

If you own a small outfit, then you may be wondering if there’s a solution out there that is tailored to your needs. Well, there are and you can visit LogicData for some examples. In this article, we explain the benefits of an Enterprise Resource Planning system for small businesses. We will also show you 7 things to consider before you choose one for your firm.

Come with us and let’s show you these benefits and how to make the right choice for your small business.

Benefits of ERP Systems to Small Businesses

Here are some of the benefits of Enterprise Resource Planning systems to small businesses:

  1. Improved operational efficiency which leads to better customer satisfaction.
  2. Eliminates errors in information management and increases transparency.
  3. Provides detailed analysis and reporting with real-time data for planning purposes.
  4. Helps businesses track sales targets and improve overall sales management.
  5. Organizations can conduct quality assurance and quality control tests to ensure customer satisfaction.

Click to find out why ERP is necessary for your small firm.

How to Choose an ERP System for Your Small Business

Now that you know how useful a good ERP system can be to your business, the next step is to find the right system for you.

Here are a few of the factors to consider before you select an Enterprise Resource Planning system for your business:

1. Does it suit your business functions?

Not every ERP system in the market is suitable for every small business. This is why it is advisable to determine the functionalities of your business and select a solution that is most suited for it.

Note that ERP investments can be quite significant. So, be sure to choose one that meets your business needs perfectly.

2. Relevance to industry.

If you’ve never had to get an Enterprise Resource Planning tool for your firm, you can start your search for the right one by learning more about systems that are currently being used in your industry. By identifying them, you can then make a choice based on your specific needs.

In essence, the ERP solution you choose should be relevant to your industry.

3. Price

ERP for small businesses is usually not as elaborate or sophisticated as the ones designed for medium and large businesses because small businesses usually don’t need as many processes or applications as other business sizes. This factor affects the price.

ERP solutions for small organizations tend to be cheaper than the systems designed for mid-size and large companies.

Factors that can affect the price of Enterprise Resource Planning software include the integrations and hosting required, number of users, and number of software modules.

4. Vendor Facts

Before you choose an ERP system, be sure to learn more about the vendor and ensure that you put them through your selection criteria. You can learn more about this here.

One of the things to note is how many other small businesses are in the vendor’s customer base. If there are only a handful of businesses that use the system, then it is advisable to drill in further to find cogent reasons to buy it. If you don’t find any, consider a different system.

You also want to know how long the product has been around, as well as the financial benefits that existing customers enjoy if any.

5. System Features

ERP systems may vary in functionality and application. But there are a few features that the one you eventually choose should have.

For instance, you want to know if the system provides ample security for your data. Does it also offer a good user experience? Will you be able to integrate it with other existing systems or systems that you may acquire in the future?

6. Scalability

It is not likely that you want to remain under the umbrella of small businesses. You probably plan to scale your business and maybe play on the global stage.

If that’s the case, then you need to consider how useful the ERP system you choose will be when the time comes for the scaling to begin. It must be able to support your strategy.

7. Use Referrals

Enterprise Resource Planning may be relatively cheaper for small establishments. But it still doesn’t mean that they are a dime a dozen. The investment is often significant.

To ensure that you get good value for your money, we advise you to speak with other small business owners who use Enterprise Resource Planning software to learn about their experience with these systems. These business owners will be in a good position to tell you about solutions to consider and the ones that you need to avoid.

You are likely going to get a list of recommendations from your conversations with these people. All you need to do is to go through each of the recommendations and make a shortlist based on your specific business needs. Compare the items on the list and make a choice that is suitable for you.


There are ERP systems designed for small businesses. They are usually not as sophisticated as the ones meant for bigger firms. But this rarely takes away the usefulness of such solutions to a small business.

However, not every solution is suitable for every small business. This is why we have explained 7 major factors to consider before you make a choice.

For instance, it is important to consider systems that are relevant to your industry, or you may struggle with their application to your business.

What’s more? Recommendations from other business owners in your industry can be incredibly useful in helping you identify the right system for you.