There is a myth going around that ERP costs millions and is only meant for large companies like Apple, Microsoft and Google. This is absolutely false and even small companies can invest in ERP if they plan carefully. The myth regarding expensive ERP arises from the fact that so little is understood by what ERP is and how it can help a company.
Of course, ERP can cost quite a lot but only if you are a company employing hundreds and thousands of people with clients all over the world, making thousands of transactions. In reality, most companies do not engage in this kind of numbers and they will be able to purchase ERP in prices they didn't know they could afford. ERP is meant to help you save costs and reduce expenditure, and not add up financial burden.
Thus, ERP is not going to cost you millions. Instead, it could help you earn that million by reducing costs, automating business processes and doing away with unwanted staff. Automating helps you to reduce costs and increase efficiency, which even helps you to gain back whatever you probably have spent on initial implementation.
How much will you be spending on ERP anyway?
If you are a small business and have only a handful of employees, you can expect to pay a few thousand dollars per user. The number of users affects the price and so does the complexity of the business. The type of business also has an effect on the cost of ERP. Prices can increase if you choose to install third-party software programs as add-ons. This may become necessary if you have a niche business for which existing ERP solutions are not enough.
Implementation will of course involve an additional sum of money. Some companies offer training as well, as it is not possible to use ERP without adequate knowledge. Training is an essential part of ERP implementation and its success. This may cost you an additional sum of money, especially if your ERP required customizations.
No matter what it is, if you are a small business, you will clearly not spend a gargantuan amount of money. However, the answer to the question "how much will I spend" cannot easily be answered. You will need to speak to our executives who can assess your needs and requirements and finally give you an estimate.
Reducing ERP costs
There are a number of ways you can reduce ERP costs. One of the ways is to seek fewer customizations. There are many companies that unnecessarily seek customizations even when it is not required. Moreover, if you have a technically sound staff, you probably will require fewer hours of training. You could also reduce costs by choosing only a few stripped-down modules instead of a full suite of ERP.
By taking necessary measures and by knowing what your requirements really are, you can reduce ERP costs a lot. In fact, ERP is a lot more affordable than most business owners think. Moreover, ERP exists to help you save money and streamline your business processes, which ultimately helps you to make more profits.