Scaling Your Business With Cloud ERP

Scaling Your Business With Cloud ERP

Cloud ERP

Scaling up a business is difficult. New businesses often have successful launches, but encounter difficulties when trying to grow to the next level. In fact, one of the biggest mistakes that small and medium sized businesses make is to think their job is done as soon as they have successfully prototyped a new product or service and are selling it to users. The problem is that they have defined success as developing something customers want and not as fully exploiting the potential of their new offering.

Of course, the launch of a new product should mark the start of a new project, not the end. Many successful companies around the world have failed to take advantage of a good service or a strong market position because of their inability to scale up quickly and effectively.

Failing to properly understand scaling can signal the death of a new business just as it should be entering its most exciting and productive phase. A 2011 report by Startup Genome looked at the most common reasons why start-ups fail, and found the number one cause (70 percent) was scaling too much, too soon.

Startup Genome Report

Premature scaling also afflicts medium size companies. Too often they spend capital on non-critical expenses before they have correctly matched their latest product or service to the market. Such non-critical spending could include hiring a large sales team, using expensive marketing, over-perfecting the product or renting unnecessary office space.

The danger with scaling too soon is two-fold. Firstly, it uses up a new company’s vital cash more quickly, meaning it has less chance to discover small problems that may become huge obstacles further down the road. Secondly, it reduces a company’s agility and flexibility by making it become organisationally, financially and emotionally committed to its current approach. In economics this is known as the sunk cost trap and in psychology it’s known as escalation of commitment. Both cases can quickly kill a project, or even an entire business.

So, we know about the importance and dangers of scaling, but how can cloud-based ERP help?Cloud-ERP

The first part of the answer is how ERP can help. ERP (enterprise resource planning) is a type of business management software that a company can use to collect, store, manage and interpret data from business activities as diverse as product cost and development, manufacturing and service delivery, sales and marketing, inventory management and shipping.

Such an extensive and thorough system that can provide highly-detailed feedback of all aspects of a business ultimately forces a company to get the small things right, which if done properly it can produce impressive holistic results. The catch is that ERP needs to be both properly implemented and sustainable. Without these qualities the system will not give the user the necessary pointers in reports and dashboards to quickly draw their attention to any problems or issues within the business.

The second part of the answer is how the cloud can help. Traditional ERP programs which are installed, used, and edited on local machines have several inherent flaws for modern SMEs. Their biggest drawback is their inflexibility – they do not have the ability to offer deployments that meet specific needs. Earlier in the article we spoke about how one the main problems when companies scale up is that they spend too much capital on non-critical expenses. With regard to ERP software this gives business owners a paradox – ERP is essential to scaling, but an ERP system that is suitable for a company with ten employees will be dramatically different to the ERP system that the same company would need to use if it grows to fifty employees. Does the owner spend on a small system that will need to be replaced when they grow, or spend on a system that is unnecessarily large and expensive until the company grows?

The answer is neither. Acumatica’s cloud-based ERP software negates the issue by offering a cost-effective cloud-based solution for SMEs. Their software provides both the freedom to scale and grow the software as required and the ability to constantly add new features and functions as they become necessary – which when combined reduce the risk of spending on unnecessary expenses and thus directly reduce the chance of business failure. Other benefits – such as high-level security, easily accessibility, and no lock-in – all add to the feeling that Acumatica really cares about helping you grow your business.

Post Sponsored By Acumatica

By Daniel Price

About Daniel Price

Daniel is a Manchester-born UK native who has abandoned cold and wet Northern Europe and currently lives on the Caribbean coast of Mexico. A former Financial Consultant, he now balances his time between writing articles for several industry-leading tech (CloudTweaks.com & MakeUseOf.com), sports, and travel sites and looking after his three dogs.

Find out more
View All Articles

Sorry, comments are closed for this post.

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Recurring Revenue Business Metrics Recurring revenue is the secret sauce behind the explosive growth of powerhouses like Netflix and Uber. Unsurprisingly, recurring revenue is also quickly gaining ground in more traditional industries like healthcare and the automotive business. In fact, nearly half of U.S. businesses have adopted or are planning to adopt a recurring revenue model,…

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

The 80-20 Rule For Security Practitioners  Everyday we learn about yet another egregious data security breach, exposure of customer data or misuse of data. It begs the question why in this 21st century, as a security industry we cannot seem to secure our most valuable data assets when technology has surpassed our expectations in other regards.…

An Old Recurring Revenue Model Gains New Converts

An Old Recurring Revenue Model Gains New Converts

An Old Recurring Revenue Model Due to a range of market forces, a recurring revenue model that’s been used for decades in industries such as airplane manufacturing is undergoing a resurgence. Widely referred to as outcome-based pricing, output-based pricing, and performance pay, it offers companies a compelling way to stand out in a crowded field.…

The Meaning Of Secure Business Agility In The Cloud

The Meaning Of Secure Business Agility In The Cloud

Secure Business Agility In The Cloud As cloud continues to accelerate business delivery and shift away the balance of power from IT and InfoSec to business users, organizations need to find ways to ensure that security is part of a business process rather than an afterthought. Today’s organizations are transacting some of their most valuable…

Cloud Has Transformed the Costs and Capabilities of CRM

Cloud Has Transformed the Costs and Capabilities of CRM

Transformation of CRM Services Over the last decade, the Cloud has transformed the costs and capabilities of customer relationship management (CRM) tools. Users can now update and access contacts and sales data anywhere, whether in the office or at an impromptu meeting a hundred miles away. These systems promise an easy setup, decreased cost, and…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor