Is an ERP or CRM system really worth it for small businesses? Why?

Yes small businesses can also get benefit from ERP and CRM systems. To reduce the TCO (total cost of ownership) the small business should not select propriety ERP software and they should try to implement open-source ERP software which are now very mature and can serve the purpose.

p.s

i have personally used and tested ODOO ERP for small and medium businesses so if you are in need of any good erp for ur small business which includes enterprise level CRM support then you can use it too. (www.odoo.com) (I am not an "ODOO" employee or affiliate)

Best Regards

Obviously the optimum use of your enterprise's resources requires you manage them appropriately. So yes, you MUST enage in some type of enterprise resource planning. Your question seems to be more "Is the potentially substantial cost of purchasing a generic or customised digital ERP system really worth it for small business?" Practically this question is too broad to answer. It depends on too many factors.Here are some questions to help you in making this decision for your own enterprise.

1. Do you really NEED instant acces to data 24 hours a day, 7 days a week?

- YES! A digital ERP should provide timely and accurate access to data that can significantly improve your decision making.

- NO! A 'home made' (paper based or computerised spreadsheet) system may work well for you.

2. Do you, or someone else completely trustworthy, have both the skills and time to manually collect, collate, analyse, and report essential business data in a useful fashion? Remember that depending on your product and business model, all this MAY or MAY NOT require a lot of time and/or skill!

- YES! You may consider a 'home made' (paper based or computerised spreadsheet) system initially to reduce your start-up costs.

- NO! You MUST have useful enterprise data to maximise sales & marketing opportunities, minimise necessary expenses, eliminate unnecessary expenses, and comply with local law requirements. You should seriously consider investing in an ERP system. Remember that you may not (and perhaps never will) need all the 'bells and whistles'. Don't pay for more than you will use in the foreseeable future!

3. Is there a reliable and cost effective digital ERP system available that suits your business model and is sufficiently intuitive to use?

- YES! Consider getting it.

- NO! Devise your own system.

Having experience managing HR policy for a large multi-regional employer, and as cheif decision maker for both medium and small enterprises, I can assure you of two things. First, you need relevant information in a timely manner regardless of the size of your business. Two, digital ERP systems are faster/more timely, and will always come with uncaring 'support' and multiple problems that seriously reduce their time saving advantages.

All the best in your decision making and for your new enterprise!