Being part of a startup means knowing that the company constantly needs to adjust processes quickly, often completely changing the business, especially in the initial phase, when...
The company is adapting to the market, and there are variables that were not foreseen at the start of the company.
This constant movement simultaneously generates a major operational challenge, as companies need to change, scale, and be efficient at the same time—a complex scenario that becomes more agile and less painful when the operation is supported by a modern, flexible, cloud-based, and highly customizable ERP management system.
But choosing the best ERP for startups can be a challenging task. That's because today there are countless options available, which differ substantially from each other.
Therefore, in their selection process, companies need to carefully evaluate which solution offers the best benefits and features they need to increase productivity, reduce costs, improve processes, and scale the business.
But what exactly needs to be considered in this process? Below, you'll find key points to consider when choosing the best ERP for startups. Check it out!
Why do you need to choose your ERP strategically?
Cloud-based ERP management systems are fundamental to the success of companies today. They offer advanced features that allow for cost reduction, process optimization, increased productivity, and the provision of data for better decision-making, among many other benefits.
For startups, which typically have leaner teams, this tool is even more important, because without it, the company only grows and scales with a substantial increase in headcount to perform manual tasks that a system alone could handle.
This characteristic leads to the deployment of many small tools to cover some operational gaps. The big problem is that these tools are usually not integrated. As a result, different data silos gradually form within the company, and the overall view of finances, processes, and tools is lost.
Furthermore, in this scenario, these companies are unable to have a real-time view of their accounting balance sheet, income statement, trial balance, and other relevant reports required by funds and investors.
An ERP management system for startups helps solve this problem, since it links the interfaces of all your company's business areas into a single system.
From purchasing to sales, from personnel planning to time tracking, from accounting records to inventory management; in short, all business processes can be integrated into the ERP, helping to achieve greater efficiency and accelerate growth.
However, to obtain the best benefits for startups, it is essential to choose a tool capable of adapting to this business model. Below you will find the key points to consider.
How to choose the best ERP for startups?
An ERP system requires a significant investment of time and money. Therefore, making the right choice is crucial to ensure the benefits of using this tool and to avoid downtime and disruptions associated with system changes.
According to statistics , implementing an ERP system can take 30% longer than expected and cost three to four times the initial budget.
One of the reasons for this is choosing a solution that does not meet the needs of the companies.
To avoid these consequences, follow these tips on how to choose the best ERP for startups:
1.) Consider the cost
The price you pay for your ERP solution will depend on the complexity of your organization's needs, how you expect the product to function, and the number of users the system will support.
When evaluating potential ERP systems for your startup, you need to have a complete understanding of all the costs involved.
On-premise systems, for example, require investments in IT infrastructure, licensing, and various upgrade costs over time, among other things.
Therefore, in this regard, cloud systems stand out. With them, your company can use a robust, modern, and secure infrastructure from a partner provider at a fixed subscription cost.
Our advice here is: choose an ERP management system that migrates versions AUTOMATICALLY, because otherwise, in the long run, you will have to spend a lot of money to update the system version, apply updates, and perform tests.
In other words, by opting for a cloud-based ERP, you replace a large initial investment in capital expenditure with monthly installments, covering ongoing operational costs.
2.) Make sure the system meets all your needs.
When evaluating ERP options for startups, you should consider your company's current and future needs.
Based on this, you should choose a solution that offers the modules and features that will benefit your business.
Don't hesitate to investigate with your chosen provider all the modules their system offers, as well as all the advantages it will provide, even if you don't plan to implement all the functionalities in the first phase.
It is worth noting that there are some basic modules that a typical cloud-based ERP system includes, such as:
- Sales;
- Stock;
- Shopping;
- Marketing;
- Human Resources;
- Finance and accounting;
- Inventory management;
- Supply chain management;
- Customer Relationship Management (CRM).
It's worth mentioning that you may not need some modules and may need others that are not listed here. Be sure to discuss what is available to ensure you are getting the best system for your startup.
Furthermore, the best solutions should allow integration with third-party tools and tax assessment systems, promoting the integrity, standardization, and efficiency of processes.
3.) Assess scalability
A good ERP solution for startups should allow for seamless scalability, so you don't have to worry about not having enough space for your data when your business starts to expand.
Although all cloud-based ERP systems allow for scalability, which is one of the main goals of this technology, not all vendors offer the same level of scalability.
For example, some vendors use exceptional systems for scaling up, but tend to charge very high penalties when it comes to downscaling.
Although downsizing is certainly not on your agenda, you still need to be prepared for any unforeseen circumstances, which is why you should ensure that your chosen supplier offers a system that can expand and contract according to demand.
If your strategy is to scale globally, make sure the system is prepared to serve other countries, both in terms of operation and compliance with local tax authorities.
4.) Prioritize data security.
Currently, data security is one of the most important concerns for literally all business organizations.
You need to protect not only confidential information about your company, but also ensure the security of your customers' personal data, now that the General Data Protection Law (LGPD) is in effect.
Therefore, when evaluating ERP solutions for your startup, ensure that potential vendors have a suite of information security solutions capable of protecting your company's information.
You should also check the data recovery options to make sure your important information can be easily recovered if something happens.
5.) Check the customization options
The first question to ask is:
Provider, do I have the autonomy to personalize, customize, integrate, and modify the system myself? In other words, without relying on consulting services, if that is my strategy?
The answer to this question will certainly give you insight into how "tied" you are to your current supplier or consultancy. Remember: the system cannot be a limiting factor in your company's growth, but rather a facilitator for scaling your business.
When you're a startup, ease of customization is important. As you grow, there will likely be processes, departments, or modules that you'll want to change.
The best vendors offer features to customize your ERP that you can implement very easily, even when integrating your system with third-party software.
6.) Choose a reliable supplier.
This is another very important factor that you should consider when choosing the best ERP for startups.
You need to make sure that the chosen supplier is truly reliable and will provide software that will bring real benefits to your company.
The best way to verify a supplier's credibility and reliability is to check their reputation and longevity in the market.
Here's a tip: Give preference to a system where you don't depend exclusively on a single company to purchase services.
Conclusion
Finding the best ERP software for startups can be challenging if you don't know exactly what to look for.
That's why you should take into account all the factors mentioned above, as well as others, such as usability and support.
This way, you will have a strong foundation to make the right decision that will allow your company to grow.
Considering these points, you will inevitably arrive at Oracle NetSuite, one of the world's leading ERP solutions for startups.
Click here to discover 3 benefits of this solution.
