10 Reasons for SMEs to Invest in an ERP System in 2024

SMEs to Invest in an ERP System in 2024

Small businesses and startups often think that Enterprise Resource Planning (ERP) solutions are only for enterprise-level large-scale companies. They used to be true in the past, but not anymore. Nowadays, thanks to technological advancements, there are cutting-edge business solutions like Odoo ERP. Odoo serves all business sizes, whether they are small, medium, or large.

Cost, time constraints, and the requirement for IT support contribute to the reluctance of SMEs to adopt ERP. Consequently, they resort to manual operations relying on excel spreadsheets. However, this reliance on outdated methods often leads to errors, inaccuracies, and frustration among employees. 

Today, modern technology has addressed most of the challenges that once deterred small businesses from adopting ERP systems. Below are 10 key reasons why an affordable and powerful ERP for small businesses is important.  

10 Reasons to Invest in ERP for Small Businesses

Running a successful business means making smart decisions, and being able to adjust to changes in the market. Today, it’s important to have strong tools that help you organise work, use your resources wisely, and make good choices. That’s where ERP software comes in, it helps businesses manage their work in a whole new way. While ERP systems are usually thought of as something for big companies, they are just as important for small businesses. Here’s why ERP for small businesses is something all kinds of businesses should consider using now. 

Enhanced Productivity and Efficiency:

Using old-fashioned methods or outdated software can slow down your small business’s progress and make it harder to come up with new ideas. Imagine if your team had to keep doing the same tasks over and over again, entering data into different systems. Odoo brings everything together in one place. This means you won’t have to enter the same information more than once, and a lot of tasks can be done automatically. This makes your work faster and more efficient. For instance, if you run a small factory, you can use an ERP system to handle orders, manage stock, and plan production. This kind of automation saves time, reduces mistakes, and lets your employees focus on more important jobs, helping your business to grow. 

Informed Decision-making and Planning:

To make smart choices, you need the right information at the right time. But if you are using different systems and putting data together by hand, it can take a long time and you might miss out on important opportunities. An ERP tool helps you see what’s going on in your business right away and gives you accurate details about things like money coming in, how much stock you have, and what your customers are doing. For example, a small shop can use an ERP system like Odoo to look at what’s selling well, how quickly they are selling out of things, and what customers like to buy. With this kind of information ready when they need it, they can make quick decisions, spot trends in the market, manage their stock better, and design marketing plans that target the right customers.

Reduced Human Errors:

When you handle data with spreadsheets by hand, there’s a bigger chance of making mistakes, which can mess up reports and make it harder to make good decisions. But if you switch to an ERP tool, you can keep all your data in one place, making sure everyone’s working with the same information. Think about an accounting company that uses spreadsheets to do their money calculations. If they start using an ERP system instead, it takes care of a lot of the money stuff automatically, cuts down on typing mistakes, and makes sure the numbers are right. This makes the company look more reliable, keeps clients happier, and lets accountants spend more time on important tasks like looking at finances and giving good advice.

Improved Communication and Collaboration:

When everyone in a small business can work together easily, it helps the business grow. But if each department is using different systems, it can slow things down and cause confusion. An ERP tool fixes this by bringing everything together in one place. For instance, a marketing company can use an ERP for small businesses to handle projects, keep track of clients, and manage finances all in one place. This makes it easier for everyone to work together, talk to each other, and focus on the same goals because all the information they need is in one spot. This makes everything run more smoothly, projects get finished on time, and clients are happier with the work.

Easy Connectivity and Mobility:

Nowadays, workers want to be able to get information whenever they need it, no matter where they are or what device they are using. ERP for small businesses like Odoo make this possible by letting you connect from your computer, phone, tablet, or the internet. Picture an online store that is run by a team of people working from different places. With an ERP system, the owner can keep an eye on sales, see how much stock is left, and answer customer questions from anywhere. This flexibility means they can respond quickly, make smart decisions, and stay connected to their business using any device they like.

Increased sales:

Keeping track of sales using an excel sheet can be overwhelming for businesses. It is hard to know if a sale has reached the customer or if it has been returned, leading to forgetfulness or missed opportunities. An ERP system solves this problem by automatically verifying sales. It sends daily reports showing the status of each sale and any actions that need to be taken. This way, nothing falls through the cracks, and businesses can stay on top of their sales process. With the help of an ERP, businesses can streamline their sales tracking, ensuring that every sale is accounted for and followed up appropriately. This not only improves efficiency but also enhances customer satisfaction by reducing errors and delays in processing sales orders. In essence, an ERP provides a reliable system for managing sales data, helping businesses stay organised and proactive in managing their sales pipeline. 


For a company to function effectively, it is crucial to have everything under one roof. This is where an ERP (Enterprise Resource Planning) system comes in handy. It acts like a unified platform, connecting all the different parts of the company, like different departments, teams, and tasks into one big database. This means an ERP stores all the information, from sales to inventory to finances, in a single place. With everything centralised, it is easier for everyone in the company to access the same information, whether they are in sales, HR, or finance.

This helps avoid confusion and ensures that everyone is on the same page. Plus, it streamlines processes by eliminating the need to jump between different systems or spreadsheets. By providing consolidated and centralised data, an ERP system makes it simpler for businesses to make informed decisions and adapt quickly to changes in the market. In short, it is like having a control center that keeps everything running smoothly and efficiently.

Reduced Operational Costs:

Entering the same data into multiple spreadsheets takes up a lot of time and needs more people to do it, which means spending more money on wages. Plus, if there are mistakes because the information is delayed, fixing them costs even more. But with an automated business solution, all this extra cost is avoided. That is one of the big advantages of using an ERP system. It takes care of a lot of the work automatically, so you don’t need to hire as many people or spend as much time on data entry. And because everything happens faster, there are fewer mistakes, which means less time and money spent on fixing them. Basically, an ERP system helps businesses save money by making everything more efficient and accurate. So, it’s not just a good way to organise things, it’s also a smart financial move.

Getting Rid of Obsolete Technology:

When you decide to use an ERP system, you’re not just buying software for now. It’s an investment that lasts a long time. This means the software can keep getting better with regular updates, keeping up with all the new technology. So, even if something new comes along, your ERP won’t be left behind. Instead, it’ll always be up to date, using the latest and greatest technology to help your business run smoothly. With this ongoing improvement, you won’t have to worry about your system becoming outdated or obsolete. You can trust that your ERP will continue to evolve along with the ever-changing tech landscape, ensuring that your business stays competitive and efficient in the long run. In short, investing in an ERP system means saying goodbye to outdated technology and hello to a future-proof solution that grows with your business.

Improves Flexibility:

Small businesses have a special strength, they can scale and evolve quickly to meet the needs of the market or their customers but only using the right software. Unlike big companies, they don’t have lots of layers of rules and processes to slow them down. ERP for small businesses like Odoo offer high flexibility to businesses. That’s why it’s crucial to choose software that can change easily when you need it to. With the right software, you can make adjustments whenever you need to, whether it’s adding new features or changing how things work.

This flexibility is key for small businesses to stay competitive and keep growing. It allows them to respond quickly to changes in the market or new customer demands, without getting bogged down by rigid systems. So, when looking for software solutions, it is important to prioritise flexibility, ensuring that your business can adapt and thrive in today’s ever-changing business landscape. 

Essential Features of ERP for Small Businesses

Choosing an ERP for small businesses with these key components can significantly benefit the organisations, enhancing productivity, facilitating growth, and ensuring that the system meets their specific operational requirements. Here are some important features of ERP for small businesses. 


ERP for small businesses are reliable and adaptable, allowing for easy expansion as the company grows. This ensures that the system can handle increasing numbers of users and data without significant disruptions.


Transparent pricing structures are essential for small businesses. Affordable ERP for small businesses like Odoo encompass costs for setup, maintenance, and ongoing support, providing clarity and predictability for budgeting purposes.

Easy to Setup:

Small companies often don’t have IT experts for complicated setups. That’s why it is important for SMEs to use an easy-to-use ERP.

Cloud-Based Choices:

Cloud-based ERP for small business like Odoo have many benefits. They don’t need expensive hardware on-site, and you don’t have to worry about ongoing maintenance. Plus, because they are in the cloud, you can access them from anywhere, making remote work and collaboration simpler.

Streamlined Design:

Small companies might not need all the features of an ERP system right away. That’s where modular ERP systems come in handy. You can pick and choose the modules you need now and add more later as your company grows. This flexibility means you are not paying for stuff you don’t need yet, tailoring the system to fit your needs.


Being able to adjust the ERP system to match the specific needs and ways of working of a small business is crucial. This software ensures that the system fits perfectly with the company’s unique requirements and processes.

User-friendly Interface: 

Small businesses often can’t afford extensive training. That’s why ERP for small businesses like Odoo have interfaces that are easy to understand and use. This helps staff learn quickly and get up to speed without a lot of fuss.

Integration Capabilities:

ERP for small businesses work smoothly with other common business tools, like e-commerce platforms, CRM systems, and accounting software. This stops things from being done twice and makes everything simpler.

Data Security:

Having strong security is vital for protecting a company’s private information. This means regularly updating security measures, limiting who can access certain data, and using encryption to keep everything safe from cyber threats. And that’s what an ERP ensures. 

Accessible Anywhere:

With more people working remotely, ERP for small businesses can be accessible from mobile devices. ERP ensures easy accessibility of apps and web portals on phones and tablets. That way, users can get to important information and features no matter where they are.

ERP software is like an all-inclusive tool for managing your business under a unified platform. It is all about bringing together different parts of your business like accounting, sales, CRM, and more into one place. With an ERP for small businesses, you have everything you need to keep your business running smoothly. And with a single platform, everyone in your company stays on the same page. 

But here’s the thing, a lot of small businesses don’t start out with this kind of system. Instead, they use a bunch of different tools for managing different tasks. Maybe they use QuickBooks for accounting and Office 365 for emails and spreadsheets, and so on. Though it works, but it is not ideal. Because when you are using all these separate tools, it is like trying to drive a car with a bunch of different pedals. It is confusing, it is inefficient, and it is a real headache for everyone involved.

That’s where ERP for small businesses comes in. By bringing everything together in one system, ERP software makes life a whole lot easier. You will have all your data in one place, so there’s no more searching through different systems to find what you need. And with automation built in, you can speed up your processes and make fewer mistakes.

So if you are tired of using different tools, it’s time to switch to an all-in-one integrated system like Odoo. With Odoo ERP software, you will have everything you need to grow your business without all the headaches. 

Choosing an ERP software system like Odoo ERP can streamline and automate your small business processes. ERP empowers SMEs to thrive and grow in this competititve marketplace by improving collaboration, minimising human errors and enhancing efficiency. An ERP software offers a myriad of advantages, from boosting productivity and efficiency to automating and streamlining decision-making and planning. It is like upgrading from a bicycle to a sports car, once you try it, you will wonder how you ever lived without it. So why wait? Give your business the tools it needs to thrive with ERP software today. Leverage these perks of using an ERP and maximise your business potential with Envertis, an official Odoo Gold Partner.