Since I started working in the ERP space, a few friends with small businesses have asked me whether they should consider something like Microsoft Dynamics 365 Business Central.
Most of them have been teams of 2 to 10 people using basic accounting software and spreadsheets to manage things like finances, inventory, or reporting.
To help answer the question, I put together a non-exhaustive checklist to help small teams figure out whether they are ready to explore ERP, or whether it still makes sense to keep things lean for now.
Micro-Business ERP Readiness Checklist
For companies with 2 to 10 employees using basic accounting software and spreadsheets
Step 1: Current State
- Do you need to manage more than basic accounting such as inventory, job costing, or project management?
- Do you sell through multiple sales channels such as e-commerce, distributors, or direct sales reps?
- Do you need real-time reporting and dashboards across sales, finance, and operations?
Step 2: Growth and Complexity
- Do you expect to grow from 2 to 10 employees to 15 to 25 in the next year or two?
- Are you planning to open a second location, warehouse, or facility?
- Is your inventory or supply chain becoming complex, with more than 100 SKUs or the need for reorder forecasting?
- Do customers or partners require system integrations such as EDI, portals, or advanced reporting?
Step 3: Technology and Budget
- Can you budget for an ERP project with implementation costs ranging from $10,000 to $75,000+, with $70 to $120 per user per month for licensing?
- Do you have time and staff capacity to work with an implementation partner for process mapping, training, and adoption?
- Are you starting to run into limitations such as manual reporting, disconnected CRM tools, or difficulty scaling operations?
Decision Path
✅ Mostly “Yes” You are likely ready for ERP. A platform like Microsoft Dynamics Business Central can provide more visibility, integration, and structure to support your next phase of growth.
⚖️ Mixed “Yes and No” You may be in a transitional stage. Your current tools might still be working, but there is value in supplementing them with tools like a CRM or inventory solution. ERP often becomes necessary as team size or operational complexity increases.
❌ Mostly “No” You are probably fine sticking with your current setup. Keep things simple and revisit ERP once growth creates more complexity or operational friction.
Final Thought
ERP is not just for big companies. It becomes relevant when the way you are working starts to limit the progress you are trying to make.
If you are running on basic accounting software and spreadsheets and some of these questions sound familiar, I hope this checklist gives you a clearer picture of what to consider next.
No matter what your checklist results look like, feel free to reach out. Always happy to discuss your specific use-case.
Cole Edwards
Business Development Manager | Custom Systems | 📅 My Calendar
Helping small and mid-sized businesses grow with Microsoft Business Central
