The first step in launching an ERP solution is defining the requirements of your startup and ERP software. Below, we examine the typical requirements for ERP software among new businesses.
Every one of our ERP consultants is ready to expedite the process for all small business owners to save time and meet deadlines if you’re beginning to develop your ERP requirements for your upcoming NetSuite ERP implementation.
ERP Functionality Requirements for Startups
1. Software as a Service
Startups widely use cloud ERP software. For startups, maintaining and developing IT systems that don’t generate income is inefficient. As a result, more and more startups desire to deploy and use cloud-based enterprise resource planning (ERP) systems like NetSuite, Odoo, SAP, and Microsoft Dynamics.
Startups may expand globally with the help of cloud ERP software while giving their staff access to data and procedures essential to the firm’s operation. This enables startups to grow to their full potential by setting up new offices.
2. Quick Implementation
Startups cannot afford to spend time or money on laborious ERP implementations. Startups need to adopt ERP software in a matter of months, not years. To facilitate a speedy implementation, ERP software for startups must include preconfigured templates or accelerators, where an ERP consultant will be in every step of the process.
ERP systems for startups must be built in such a way that it’s able to scale several scales. This can involve growth in new markets and geographies, volume and transaction growth, and growth through acquisitions. With NetSuite ERP implementation, every business can scale as it goes and does not have to fear outgrowing its system.
Change and pivoting are common parts of a startup company’s development. ERP for startups must therefore have the flexibility to change in a quick manner
5. User Experience
In 2021, startups were relying on the experience of their employees to distinguish themselves from well-established market leaders. It could be anything between benefits, culture, and the systems and software they employ. Along with having easy-to-use procedures and functions, ERP Software for Startups must be able to be mobile-friendly and provide accessibility to quick access when on the go.
Parameters to consider when choosing the right ERP Solution for Startups
Every ERP consultant considers it crucial to remember that choosing the best ERP solution requires much more than choosing one with great features. Many ERP systems are available, but only a handful have the perfect mixture of functions and costs for small businesses. Therefore, before choosing a system, consider the following:
1. Your vertical focus
If, for instance, you’re beginning a new business that involves distribution and manufacturing, you’ll require an ERP solution like Oracle and SAP. These two and other ERP solutions have modules that can meet your particular needs and allow the manufacturing company to operate quickly. At the same time, these ERPs for verticals are perfect for businesses emphasizing manufacturing or substantial fulfillment. Still, they aren’t the best option for startups that aren’t focused on manufacturing and fall into different industries.
2. Level of funding and growth
If for instance, you are just starting out and don’t have much financial help. In that case, it is a good idea to explore government funding options for small businesses and research purposes. These solutions can scale up as your business grows or your financing improves. As your funding increases, you can move from a PaaS solution to an enterprise solution that is more flexible and adaptable to your business’s needs, one like NetSuite that is perfect for any size of the business by contacting a NetSuite Solution Provider.
3. Budget limitations
Like how you structure your legal company, The solution to the question you’re asking will largely depend on the amount of capital you’re able to get in addition to the form of company you’re operating. Like other decisions, the most effective solution for your business will be somewhere in between the amount you’ll need to invest and the number of features you’ll need. Also, it would be best if you focused on speed and flexibility as ERPs are as wedding gowns: you typically pick one and then stick with it for a time.
4. Resource availability
If you’re only in the beginning stages, your ERP solution will need to expand as you grow. Unfortunately, your company will have to grow more quickly than your ERP solution can handle, which is a difficult balance to find. An ideal ERP solution for small businesses comes with various options right in the initial setup.
What to expect for an ERP software license cost as a Startup owner?
Software for cloud-based ERP is typically the choice of startups. However, some startups opt for On-Premises ERP software.
1. Cloud-based ERP software costs
From a cost standpoint, the Cloud ERP program is purchased annually. Therefore, it is classified as an operating cost that includes maintenance, software licenses and hosting all in one cost.
Cloud ERP licensing ranges between $10-200 per user per month, based on your selected ERP program and the user’s capabilities.
2. On-premise ERP software costs
On the contrary, software on-premises is categorized as a capital cost and does not include the day-to-day operating costs like maintenance and hosting. That means the initial acquisition of the could be higher in the first year than Cloud. Furthermore, you’ll need to factor in hosting, maintenance, and software upgrades/maintenance costs.
Startups that use on-premises software will cost between $100-$ 2000 per user, based on the type of solution used and the number of features the user has access to.