What Fast-Growing Startups Should Consider When Choosing an ERP

Written by Sean Barbera | May 15, 2026 1:00:00 PM

Choosing an ERP is one of the most important technology decisions a fast-growing startup will make.

The goal isn’t just to replace spreadsheets or entry-level accounting software with something more robust; it is to build a foundation that supports visibility, automation, and smarter decision-making as the company grows. The right system will not only support today’s operations but also scale with rapid growth, new markets, and increasing complexity.

“Can your systems support where you want the business to be in two or three years?” asks Christopher Beck, the former global head of IT for unicorn men’s grooming products manufacturer, Harry’s. “It is always challenging to plan ahead as a startup. But try to aim for that as opposed to playing catch-up after the fact

Factors a Startup Should Consider when Choosing an ERP

There are at least eight factors that a startup should consider when choosing an ERP for the first time.

Scalability. A fast-growing startup evolves fast and juggles many things. The right ERP solution will be flexible and scalable so the business can set its backend infrastructure and continue growing without the need for a new system in a few years. Startups need more than a migration path for when the company grows, they need a system that supports where they are now but also can grow along with the business at the same time.

Vendor and community. Your ERP will be with you for a long time, so you want an ERP partner and associated support community that is robust and healthy. Look for a big player with a reputation for supporting both fast-growing companies and larger, established enterprises.

Implementation speed. Now is not the time for a long systems project that ties up key company resources. While implementing any comprehensive backend solution will take time, the right ERP solution for a fast-growing startup is one that can start small and roll out fast while still being able to expand later.

Total cost of ownership. Whether flush with seed capital or bootstrapping the business, a startup will want to look at the total cost of ownership that comes with an ERP solution because the system will be with the organization for a while. Look not just at initial costs, but also at the ongoing monthly expenses associated with a given ERP solution in terms of maintenance, support, and potential add-on functionality.

Industry fit. When choosing an ERP, examine industry-specific functionality and see if other businesses in your space also are using it. While all ERP solutions will handle core business functions, the right ERP for your startup will also have specific industry functionality for your line of business.

Analytics and reporting capabilities. More than most, your business needs a good feedback loop. As a startup, real-time visibility and reporting are essential for making the right moves at the right times. So mind the analytics and reporting capabilities that come with an ERP solution by default. Will your startup have all it needs for gauging market demand, pivoting to new products or service offerings, and capturing operational dynamics for ongoing adjustment?

Integration availability. The right ERP solution will connect with the tools and services your business already uses, and come with both turnkey integrations for common scenarios and a framework for easily building out more custom integrations. Choosing an ERP is defining your connectivity potential going forward, so make sure your system makes integration simple and universal.

Best practices by default. Your startup doesn’t want to reinvent the wheel, so you can achieve faster implementation velocity and quickly implement industry-standard practices by choosing an ERP solution that comes with standard workflows baked in by default. Your startup should be focusing on what makes it unique, not how it handles accounting or human resources.

Set the Foundation for Growth

For unicorn shoe manufacturer, Rothy’s, choosing an ERP solution and rolling it out did take time. And of course, there were a few headaches along the way. But having the right system in place early in the company’s development was a key part of its growth.

“We wanted to make sure that Finance and Operations were evolving with the rest of the business; we didn’t want the wheels falling off in 12-18 months,” says Ulion Riebe, Rothy’s head of finance during its formative growth years. “We wanted a platform we could see ourselves using for the rest of our time as a company, one that satisfies all of our needs now, but also could satisfy all our needs in the future.”