You may already have heard this about start-up companies: nine out of ten fail. Yet, investing in an Enterprise Resource Planning (ERP) software might just change this statistic. And in my opinion, NetSuite from Oracle is the best option. Here’s why.
Start-Up Company: Quite the Adventure
Of course, the validity of this number is hard to ascertain since there are various types of start-ups, and “failure” is open to interpretation.
However, the fact is that, for many reasons, several of these companies do not survive over five years. For that matter, in order to support the start-up ecosystem, a great deal of entrepreneurs who “failed” write a book – in hindsight – that sets out the reasons why they shut down their start-up business, from their point of view.
CB Insights released a report in late 2019 which lists the top 20 reasons why start-ups fail. You will find at the top of this list the absence of market need (42%), running out of cash (29%) and lacking the right team (23%).
In front of such a long list, many may wonder if it is a wise choice to jump into the venture. Any entrepreneur will answer in the affirmative since it is often the experience of a lifetime.
How Can I Succeed?
First of all, can it still be considered a failure? Some will say it’s a great bargain, that it’s in the nature of things, that you have to learn to walk before you run, and that in order to walk you have to accept falling. Besides, the beauty of post-mortems is that they guide anyone who wishes to bring a product/idea to market toward success.
Many will that the greatest challenge for a start-up is to survive rather than to kick off. In addition there are multiple resources to help in starting a business, and very few to help maintain it.
A study conducted by CPP Inc. in 2017 (Myers-Briggs Type Indicator (MBTI®) assessment) shows that successful entrepreneurs are likely intuitive (they rely on their gut feeling) and perceptive. They are also spontaneous and flexible. On pages 49 and 50 of the report, we can also read general advice on how to improve chances of commercial success, namely:
Anticipate future trends
Take a more high-tech approach
Have at least some structure
Four Keywords and a Tool
Starting and maintaining a company is thought to be related to innovation, anticipation, currentness and structure. How can these four concepts be used on a daily basis?
Whether it is found in the product or service you market, or in the methods and technology you use, innovation must be at the heart of your philosophy. Flexibility should be an important concept in the daily operations of your start-up company.
One of the major challenges for start-ups is, of course, to keep ahead of the competition. When you get an idea to market, you should already have other ideas for new projects in mind, in order to adapt to the customer’s needs.
Being conservative can be a good thing in many cases. But for a start-up, taking risks seems to be a part of the whole strategy. Today, high technology is everywhere, and not paying attention to it would be a mistake.
A start-up that operates with a one- or two-person team will not experience the same challenges as a company with a larger team. An organization devoid of operational structure will develop in an organic manner, where each individual will act on his/her own volition.
ERP software allow companies to transform, integrate and improve their operations. An ERP software will help you innovate and anticipate thanks to accurate and simplified data management, and analysis of such data.
These tools even use artificial intelligence, which is at the forefront of the latest technology. They can also integrate with your machines to make a foray in Industry 4.0. In the end, these software allows for structuring your company with best-practice methods.
“But I am a mere start-up company; I have a lot of expenses, and implementing software like that seems to be a non-essential expenditure. How can I know if I’m ready for such a tool? ”
The answer can vary depending on the situation, but here a few guidelines:
Your data are duplicated, fragmented or left out because you use multiple tools (spreadsheets, warehousing and shipping software, etc.).
You have more questions than answers in regard to key information about your business.
You noticed a decline in sales and an increase in the number of customer complaints.
Your company is growing fast, which causes you headaches.
If you are experiencing at least one of these situations, you are likely ready to implement an ERP system.
At Createch, we distribute several ERP software. Only one stands out for start-ups: NetSuite from Oracle. For a second year in a row, NetSuite is the reference in terms of cloud-based ERPs according to Gartner, global research and advisory firm in information technology.
How Can NetSuite Help My Business?
First, it is important to note that NetSuite is the only cloud-based ERP system able to support companies of all sizes. It is designed to evolve in step with the organization, and doesn’t require additional IT resources for maintaining the service. Extra costs are limited to implementation and training.
NetSuite offers preconfigured solutions to the company’s commercial reality. In our case, the SuiteSuccess Starter Edition solution helps small, growing businesses manage all their activities using a single system.
This edition allows you to be operational thanks to various key performance indicators (KPIs), workflows, reminders, reports and dashboards based on value, and helps you meet your strategic needs on a daily basis, from the beginning of your operations.
NetSuite develops solutions by following a tiered approach.
In the Starter edition, you can start by laying the foundations of your company:
Finance and accounting, which are the core of both the system and the company
From prospect to bid, converting a lead to a prospect in a smooth manner
From order to cashing
From supply to payment
Items and inventory management
You will be operational on day one.
Then, as your business evolves, or depending on your needs during the implementation, you can use additional features (management of affiliates, management of low-level production, e-commerce, financial analysis, marketing, etc.) without the need to purchase complementary modules up front.
Plus, when getting to thenext level, you will have a solid experience and a good knowledge of the tool; the transition toward additional tools still integrated into NetSuite will be seamless.
I like to compare NetSuite to a set of interlocking bricks such as Lego or Mega Bloks. You can start with a basic set and expand your collection by purchasing other kits.
Even if you buy a special set to build a car, you can pretty much build something completely different with the same bricks, with a little creativity. That’s the beauty of NetSuite. It is highly configurable thanks to a non-proprietary programming language.
Finally, NetSuite is updated twice a year, automatically, without halting business operations. This allows all employees to work with the latest version, and to benefit from a host of new functionalities every six months.
To conclude, if you operate a start-up company and you wish to become a large corporation, do not waste any time and contact us. We have just the booster you need to grow strong roots.