Why Some Businesses Fail

inventory management software

The Facts

Ever wonder why some businesses make it and others don’t? Here are some facts from the Small Business Administration. Seven out of ten new employer firms survive at least 2 years. Half make it at least 5 years and a third at least 10 years. Why is the attrition rate 70% over 10 years? For many businesses the answer is simple. They continued to try and run a growing operation with the tools they had when they started.

The Problem

Often the story goes like this: When you started your business you wore all the hats. You handled sales, possibly assembly, managed the inventory, kept the books and yes, cleaned the bathroom. As your business grew, these tasks began to be handled by others in your organization. Your accounting was in one program. Your inventory in another. Sales and customer records in one or two other programs. As the business grows you need to be able to quickly look at your business data and see where you stand! But none of your software programs talk to each other. For some business owners this leads to great frustration and might seem like an insurmountable obstacle. My guess is many of them become part of the 70% who are out of business in 10 years. However, there is a solution.

How to Thrive

For businesses that are distribution or inventory centric, managing all of this data becomes increasingly important as the business grows. Missing even small opportunities mean lost profits and lost customers and no business can survive long with that model. Enterprise resource planning [ERP] software is a solution that can help bring together these disparate data systems. Combining accounting, inventory, sales, distribution and purchasing into one software program allows information to be retrieved and reviewed quickly. Anticipating stock level needs based on sales history and real-time inventory management are only the tip of the iceberg of what a good ERP system will provide.

Yes, You Can Do This

In the past ERP software was only feasible for larger corporations in the enterprise space due to the prohibitive costs of the software and hardware systems that it required. AcctVantage ERP is enterprise software for small business. Serving companies that have outgrown their traditional off-the-shelf accounting programs like QuickBooks, AccountEdge, Peachtree etc., their software brings the accounting process together with inventory management, sales, CRM, and distribution into one comprehensive package. Best of all you can use AcctVantage ERP for Mac, PC or mixed Mac/PC installations!