Are You Ready for ERP Software?
There is a tipping point in every business when the small, nimble team that worked its magic for years starts to degrade under the weight of data. Too many customers to keep track of in your head, larger projects require more juggling to keep track of schedules and costs in a timely manner and the pressure to react just as quickly and effectively keeps increasing as you continue to grow.
Typically the first reaction is to hire another (non-billable) person to compile the information.
The second reaction if you have time, is to put in new systems to keep track of the increasing amounts of information. However, point solutions lack integration and eventually the second remedy requires more of the first. Plus you’ve now added significant costs to the operation thereby creating a staircase effect, which increases expense, but does not increase revenue and it’s a difficult growth stage to navigate through.
The third reaction is a strategic one. It’s marked by the transition from a reactive way of thinking i.e. focusing on fixing the next problem that crops up in the business to a strategic way of thinking i.e. focusing on investing in a new way of operating that will take your business from where you are now to one that crosses the chasm to take you to where you want to go.
The real challenge is to figure out where you are on that growth spectrum and whether or not you’re willing to react to the need or plan for it.
Here are a few questions to help you gauge whether you’re ready for ERP Software
- Are you hiring someone to manage how information is organized between systems as their primary role?
- Were you just informed that someone missed a 5 or 6 figure billing milestone?
- Do you only know whether or not you made money on a job a month or more after the job has closed?
- Is it true that after you discover that you made money on a job, no one can tell you why?
- Are your spreadsheets getting bigger, more complicated and less accurate?
- Is it taking you an increasing amount of time and effort to close out each month end?
- Is your bank paying closer attention to your WIP schedule and is your use of your line of credit increasing?
If you answered yes to 2 or more of these questions you’re likely ready for Enterprise Resource Planning.