Look like a big dog using the right management systems
Starting out in business is challenging, but a big positive is that you can usually manually keep up with transactional relationships. Building personal relationships with customers, customising what you offer them and managing your orders and invoicing can be done with the help of a small team.
Darren de Vries
As the business grows, a primary aim is obviously to increase both the volume and value of transactions. You want to outperform competitors, including some who may have been around for longer and have a bigger footprint.
To do that, you have to convince both new and existing customers that you have a credible business and that they can trust you to deliver on what you promise. Every time.
A small business can create a perception of being bigger than it is with the right systems.
What are the most important processes to get right for growing small business with a “big dog mentality”?
“It is important to start with the basic processes such as finance and operations which are usually managed by the back-office users. Once this foundation is in place, the user base can be easily extended, using mobile technology, to customer-facing employees, including delivery, sales and service staff,” says Darren de Vries of Seidor.
“This fosters integration between key processes, information and users; providing visibility and alignment across the whole company. That in turn, translates to tangible business benefits such as improved productivity and cost savings.”
Small but growing businesses are often risk-averse and the cost of investing in business management systems is something that is carefully considered. It is not surprising that the owners or managers of small to medium-sized businesses question the cost of investment into an Enterprise Resource Planning (ERP) system versus the bottom-line rewards they can expect as they grow.
De Vries says that responsible business owners should do exactly that type of due diligence. To make sure that it’s a solid investment for the best long-term results, it’s important to have the right business partner with the expertise to help them adopt the right system.
“Smaller companies sometimes expect to see a return on their ERP investment within a year or two but realistically, an ERP solution should be seen as a long-term investment in the growth and success of a small company,” de Vries explains.
“Small companies, fortunately, do not require large capital expenditure in ERP and supporting infrastructure anymore, as most vendors now offer an operational cost alternative in the form of a subscription-based model, also commonly referred to as the cloud option. Mobile technology has also allowed businesses to expand its user base beyond the back-office to improve productivity and customer service levels.”
When to make your move to punch above your weight
The timing per business is unique. The decision can be the result of the lifecycle phase of the business, the business strategy or both, which de Vries explains.
“Some companies outgrow an accounting package quite soon and make a strategic decision to invest in an integrated business management solution to support their rapid growth. This is a simpler and more cost-effective route because the business has not become too complex yet.”
“With other companies, it may be more a lifecycle issue. Process and/or system gaps are gradually filled with spreadsheets and other software packages as the business grows. The downside to this approach is that the implementation process of an ERP solution tends to be more expensive and take longer because these islands of information require integration into a single system.”
Set up to run with the big dogs
Once internal systems are in place, smaller companies should seek continuous improvement by integrating processes and information with their suppliers and customers. Examples include the ability to place electronic orders on your supplier’s system and providing your customers with a platform to view and pay their invoices online. Integration can vary from simple file exports and imports between systems to the exchange of real-time information between business partners.
These projects were traditionally complex and resource-intensive which meant that only larger businesses could afford to undertake them. However, de Vries says there are now platforms with pre-built connectors available as subscription models, which has made integration simpler and more affordable for smaller companies who should use the opportunity now to embrace technology to realise tangible business benefits.
Adopting emerging technologies
An exciting development de Vries highlights is that a potential next step could be the adoption of emerging technologies such as the Internet of Things (IoT), which is still considered an emerging technology. IoT, through information generated by sensors and devices in remote equipment, enables preventative maintenance and exception management which provides valuable business benefits.
An example of how IoT can be used is a company which supplies and services equipment at a customer site. Sensors and devices allow the remote equipment to send status information to the ERP solution so service technicians can perform preventative maintenance to stay within service level agreements and improve customer satisfaction levels.
“We have been assisting small and medium-sized businesses to run better and allow them to grow using innovative solutions and our professional services. These businesses operate across many industries but the greatest successes we have been privileged to see over the years were most notably in the wholesale distribution, manufacturing, retail, services and projects sectors,” concludes de Vries.
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