Written by
Anne Mulvenna

How To Know Your Business Is Ready for An ERP

Genius ERP: ready out-of-the-box for custom manufacturing.

Getting your first ERP is a big step for a small business. There are many reasons to want one, including increased visibility of your entire operation, enhanced collaboration between departments, and improved productivity. But how, exactly, do you know if you are ready for one?

Below, we outline the top three signs your small manufacturing business is ready for an ERP.

3 Signs Your Small Business Is Ready for an ERP

1. Rapid Business Growth

This is the number one reason manufacturers start looking for an ERP system: Their business is growing fast, lots of changes are happening, and they need a more robust system to help them not only adapt to the changes within their organization but also to also support future growth.

If you are starting to experience rapid growth in terms of revenue, workers, or processes, it’s time to start thinking about getting an ERP system. An ERP will help you manage your new and expanding organization. With one, you can streamline your processes and automate time-consuming tasks, allowing your small shop to be more efficient and take on more jobs

ERP solutions designed for small businesses will assist you in organizing how you source, track, and manage orders, which in turn will help you to better manage your cash flow and get more jobs out the door on time. ERPs can automate tasks like inventory management and purchasing to save you both time and money and improve your shop’s efficiency — all of which will help give you time to focus on more important things, like growing your business even more.

RELATED ARTICLE: Motrec Is Ready to Grow With Genius ERP

2. You’ve Outgrown Excel

You could probably get by with Excel in the early days of your manufacturing business. It is, after all, an important business tool that can help you manage day-to-day operations. But over time, as your business grows, your processes become more complex, and you will need a more comprehensive tool to manage your business.

When you are just starting out, Excel is fine for managing everything from scheduling to inventory management to data analysis. But as your operations become more complicated and you have more customers and jobs you need to fulfill, you need to get a tool that can handle more.

The fact is that spreadsheets don't deliver real-time data and aren't flexible enough for a complex manufacturing business. If you are still using Excel to manage your business, you probably overhear regularly around your shop: “Are you sure you are working with the right file? It doesn't look like the most recent version …” 

The truth of the matter is that without real-time data, it doesn’t take much to throw your shop off.

A job may seem like it is going smoothly, but a problem can easily occur if you discover that you are out of a crucial component because the inventory levels weren't properly documented on your spreadsheet. This delays the job, meaning you miss the deadline and disappoint a customer.

An ERP system can manage every element of your manufacturing company for you from one completely integrated system, including production, planning, purchasing, manufacturing, sales, distribution, accounting, and customer support.With total visibility of your operation you willoptimize your production, and ensure you always deliver on time.

3. More Problems Are Occurring in Your Business

Without an ERP system, your manufacturing company will be more prone to issues and problems. Your data, including financial accounts, will contain errors, and you will be more likely to waste time following bad business decisions. To ensure your shop runs smoothly — and to increase production and efficiency — you will benefit greatly from ERP software.

With an ERP, your entire shop will be integrated, and you can do away with multiple spreadsheets, uncoordinated systems, andpaper-based orders; plus an ERP system will help increase accuracy and efficiency within your organization. Your staff will no longer have to spend hours manually cross-referencing and re-entering data as all company information is in a single database. Thanks to an ERP system, your employees can work more productively and have more time to focus on important responsibilities.

Modern ERP solutions not only include financial and accounting capabilities, manufacturing, supply chain management, advanced reporting, business intelligence, and project management, but they also can offer field services, sales force, marketing automation, and CRM management — everything you need to manage a manufacturing business in the 21st century.

Advantages of an ERP System for Small Manufacturing Businesses

An ERP will give your business many competitive advantages:

  • One centralized platform
  • Reduced human error
  • Accurate job costing
  • Better inventory control
  • Integrated and automated business processes
  • Reliable real-time data
  • Optimized production schedules
  • Higher flexibility
  • Better business analytics
  • Increased collaboration
  • Improved planning and forecasting
  • Increased throughput
  • Better data control
  • Maximized shop capacity

Make Better Decisions for Your Business

ERPs are great tools for small businesses and can help you to make better decisions about your business to guide it in the right direction. When your small business is going through rapid growth, there is no better time to get an ERP. The decisions you make about your business now are going to have a lasting impact on your future and can set you up for success or failure.

ERPs give you access to the information and data you need to make the best decisions possible. Using your ERP’s tools to analyze your data will help you become a more efficient, leaner, and productive organization. Your ERP can show you where there are gaps or inefficiencies in your production line and help you improve your manufacturing processes.

Manufacturers rely on Excel far too frequently to evaluate their data and produce reports. Excel lacks the real-time capabilities that manufacturers need and is not sufficiently reliable. Companies can cut operational costs by 23% and administrative costs by 22% by using ERP software that delivers precise, real-time information about everyday operations.


Knowing when to make the move to an ERP is crucial for a small business. Click here for more information on how to make an ERP work for your small business, plus learn our top tips on how to select the right ERP for you.

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