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What's the best ERP for Startups? Best Startup Cloud ERP Software 2023
ERP software for startups can help small and growing businesses to optimize processes and scale efficiently. ERP ...
ERP software for startups can help small and growing businesses to optimize processes and scale efficiently. ERP software is crucial for startups, especially as they transition into the 'scale-up' phase after raising sufficient capital or reinvesting profits to expand. But with so many ERP solutions available, we are often asked:
What is the best ERP software for startups?
How do you compare Cloud ERP for startups?
What are the top ERP systems for startups?
In this article, we'll explore some of the common functionality and needs for startup ERP software, as well as list some of the most popular ERP software for startups and more.
Best ERP Software for Startups:
There are many options when it comes to ERP software for startups. But let's look at some of the most popular startup ERP systems below:
Oracle Netsuite is perhaps the most popular ERP for startups. Netsuite is one of the most mature Cloud ERP solutions available on the market and has allowed many companies go from startup to IPO and beyond, or simply cope with stable growth rates.
From our experience, Netsuite is generally implemented in a fast time frame from 3-4 months for low to medium-complexity projects.
Netsuite is also well catered to many startup industries including SaaS, other subscription-based companies, e-commerce, and more.
Sage Intacct is a popular ERP software for startups. Intacct is a Cloud-native financial management software with strong capabilities for people and service-centric startups from professional services firms to software and SaaS companies.
Whilst many people associate SAP with ERP software for multinational corporations, the German software provider is also very popular with startups and SMBs. Their Cloud ERP product SAP Business ByDesign is designed to meet the needs of small and startup companies, providing standardization out of the box.
Odoo is an open-source ERP system that has become very popular with startup companies in recent years. Odoo offers a flexible, low-cost ERP option to startup companies. Odoo is available free to use or at a low cost, making it an affordable startup ERP solution.
What ERP functionality do startups need?
Defining the needs of your startup and ERP software is the first step in going to market for an ERP solution. We explore the common needs of startup companies in ERP software below.
If you're starting to build your ERP requirements, feel free to use our free ERP requirements template to speed up the process, save you time and hit your deadlines:
Cloud & Software-as-a-Service (SaaS)
Cloud ERP software is extremely popular with startups. Maintaining and building IT systems that aren't revenue-generating for startups isn't efficient. As such, more and more startups want to implement and use Cloud ERP systems such as Netsuite, Odoo, SAP and Microsoft Dynamics.
Cloud ERP software for startups allow them to scale and grow on a global scale whilst providing access to business-critical information and processes to their employees. This allows startups to open new offices and expand at their full potential.
Fast ERP Implementation
Startups can't afford to waste time or resources on lengthy ERP implementations. Rather than taking several years, startups need to implement ERP software within months. This means that ERP software for startups needs to come with predefined templates or accelerators to enable a fast implementation.
ERP software for startups needs to be designed to scale in multiple ways. This can include horizontal & vertical growth, growth into new geographies and markets, volume and transaction growth as well as growth by acquisition.
Pivoting and changing is a normal part of a startup companies growth. Therefore ERP for startups need to be able to accommodate the ability to change and do so quickly.
User Interface & Experience
Startups in 2021 are depending on their employee experience to differentiate themselves from old established market players. This can range from benefits to culture as well as the software and systems they use. As well as having intuitive processes and functions, ERP software for startups needs to provide mobile applications and access for quick access on the road (or the beach).
How much does ERP for Startups cost?
ERP software costs can arguably be broken down into three broad categories: ERP software licenses, implementation and support costs. Let's break these categories down further:
Startup ERP Software License Costs
As we mentioned previously, Cloud ERP software is usually the preference for startup companies, but some startups also choose On-Premise ERP software.
Cloud ERP Software Costs for Startups
From a cost perspective, Cloud ERP software is paid for on an annual basis and is classed as an operational cost which includes software licenses, maintenance and hosting in one fee.
Cloud ERP licensing can range from $10-200 per user per month depending on the ERP software you choose and the user capability.
On-Premise ERP Software Costs for Startups
On the other hand, On-Premise software is classed as a capital expenditure cost and doesn't include day-to-day running costs such as hosting and maintenance. This means that the upfront purchase of the software license can be much higher in year one versus Cloud. Furthermore, you'll need to factor in additional running costs such as hosting, maintenance and software upgrades/maintenance.
On-Premise software for startups can range in cost from $100-2000 per user depending on the solution and the level of functionality the user can access.
Startup ERP Implementation Costs
For startup companies, the cost of implementing and purchasing a startup ERP solution can range from $50,000 to several million.
The cost of your startup ERP implementation will depend on the size of your business, the functional scope of your ERP implementation and the complexity of the ERP software you choose as well as the day rates and resourcing model of your ERP implementation partner or systems integrator.
You may also choose to do it yourself.