Enterprise Software: Preventing Business Failure
Business owners are steering your ship across rocky terrain these days. The Telegraph claims that the UK is going to narrowly avoid a recession. Whilst the Independent says the chance of recession is 50/50.
Regardless the outcome of the UK’s economic forecast, post Brexit Britain is likely to be a bit bumpy for businesses.
Already this is manifesting itself in tighter control of finances, defensive strategies and a clamp down on unnecessary spending.
Main Causes of Business Failure
ICAS website recently published an article about how better control of KPIs can improve business outlook. In the article they outlined the main causes of business failure as being:
– Loss of market: perhaps as a result of competition, failure to know your customer, costs etc.
– Management of failure: otherwise known as failure to manage. A symptom of not keeping on top of performances
– Bad debt: made worse as a result of poor credit control procedures
– Lack of working capital: correcting your credit control might go some way towards helping with this one
ERP Investment Crucial to Business Success
I would add another to this list: Navel Gazing – a distinct lack of action, a failure to review the big picture
Too often business owners spend time contemplating their situation at the expense of a wider view. Without, having the correct information with which to make good business judgments, you are only crystal ball gazing. That’s where the ERP come in to play.
How ERP Can Prevent Business Failure
ERP software acts like your beacon of light as you navigate through stormy seas.
Having an excellent awareness of your financial circumstances coupled with an anticipation of problems is the best remedy for potential business failure. You increase your chances of success exponentially by simply having a plan and looking for continuous improvement.
A great ERP system will really help you steer your ship through the choppy waters. Here are all the ways it can help:
- A great CRM will help you “get to know” your customer and make better decisions about who to talk to about which products and services. This will cut back on essential sales time in the opportunity to sale process. Closing faster will improve revenue, profit and cash flow.
- Automated dunning routines within your ERP will help you keep a tight control of finances and manage bad debt in a swift and efficient manner.
- Improvements in your time to bill gives you optimum opportunity to collect cash quickly and bolster cash reserves
- Identify your most profitable customers and products so that your team are expending effort where you will get the best reward
- Forecasting is instantly more accurate
- Cash flow can be measured more accurately and in real time
- An integrated view of your business creates superb business intelligence and meaningful reports – instantly, and in real time
And of course the show stopper:
- Live KPIs – right on your online dashboard – which allow you to manage by exception, make faster decisions, look for improvement and manage performance
If you are a CEO, FD or business owner who is worried about steering the ship through the post Brexit terrain; or if you recognise the need to put tighter controls in place to prevent business failure then you need consider arming yourself with the right kit. To talk to someone about how ERP can improve your business, please get in touch.
At Cofficient we promise to give you free and impartial advice about ERP systems. In our portfolio we boast the two world leading business software solutions, including NetSuite. Among our team we have Scotland’s longest standing NetSuite implementation consultant and financial expertise at CA level.
Written by Emma Stewart – Sales and Marketing Director at Cofficient