Avoiding Disaster – What Really Goes Wrong in SMB Software Projects

Intro: Let’s Get Honest We’ve all heard the horror stories.

❌ A company spends six figures on software that never gets used.

❌ A project blows past deadlines and budget… and still doesn’t work.

❌ A new system goes live—and the warehouse grinds to a halt.

At Fonseca Advisers, we’re often called in after things go off the rails. And you know what? The software usually isn’t to blame. The real reasons for failure are almost always the same—and they’re avoidable.

This week, we’re shining a light on the common traps SMBs fall into during software implementations, especially in manufacturing and distribution. If you're planning (or stuck in) an implementation, these are the red flags to watch for—and how to steer clear.

🚨 Trap #1: No Clear Owner, No Clear Direction

The Problem: No one’s leading the project. Or too many people think they are. That’s how you get misaligned decisions, stalled timelines, and a lot of finger-pointing when things go wrong.

What to Do Instead: Assign a single project owner with the authority (and time) to manage timelines, decisions, and accountability. Bonus points if they have cross-departmental respect. Surround them with a small task force of doers—not just decision-makers.

📏 Trap #2: Scope Creep + Shiny Object Syndrome

The Problem: What started as a simple ERP rollout now includes CRM, BI dashboards, mobile apps, and a drone delivery integration. Sound familiar?

Scope creep usually comes from excitement + lack of boundaries. It’s tempting to “just add this one more feature,” but these add-ons compound complexity, training, and risk.

What to Do Instead: Stick to your original goals. If new ideas pop up (and they will), log them in a “Phase 2” list. Evaluate them after go-live when your team has capacity and clarity.

🗃️ Trap #3: Dirty, Disconnected Data

The Problem: Old systems are full of duplicate vendors, outdated part numbers, and inconsistent customer records. But instead of cleaning house, many companies just copy-paste the mess into their shiny new system.

Now you have expensive software—and garbage data.

What to Do Instead: Clean your data before migration. Standardize formats, remove duplicates, and validate key fields. Assign a team (or bring in support) to scrub and review. A few weeks of cleanup now saves months of frustration later.

🧪 Trap #4: No Real Testing

The Problem: Everyone’s rushing to meet go-live. There’s no time for testing—or it’s only done by IT. Then launch day arrives, and nobody knows what happens when you try to split a shipment, apply a credit, or backdate a production order.

What to Do Instead: Test real-life scenarios with real users. Create test orders. Ship them. Return them. Break stuff on purpose. Simulate worst-case scenarios. You’re not testing the software—you’re testing your business on it.

🙈 Trap #5: Ignoring Early Warning Signs

The Problem: You start hearing things like:

“We’ll fix that after go-live.” “I don’t really know how to use this part yet.” “We’re still waiting on a few integrations.”

Red flags. All of them. But many teams ignore these signs because they’re already tired, over budget, or feel too committed to turn back.

What to Do Instead: Pause. A 2-week delay to fix a major gap is cheaper than six months of workarounds. Bring in an external advisor (hi! 👋) to audit your rollout and identify quick-win corrections.

Real-Life Debrief: The “We’ll Fix It Later” Fiasco

One manufacturer we met had a system go live with missing data connections between inventory and production. Why? Their integrator ran out of time. “We’ll fix it after launch,” they said.

But it never got fixed. The company spent the next year working in spreadsheets, manually correcting stock counts, and blaming the software. Spoiler: it wasn’t the software.

Eventually, they brought us in. We repaired the configuration, trained the team, and established a clear process for ongoing testing. Within a month, things stabilized—and the team finally saw the benefits they’d been promised a year earlier.

Moral of the story? Don't settle for broken.

🧭 Conclusion

Most software disasters don’t come from the software—they come from poor planning, unclear ownership, dirty data, and rushing the process.

By watching for early warning signs, keeping your scope in check, and building in time for real-world testing, your implementation won’t just avoid disaster—it will set you up for long-term success.

Next Tuesday, we’ll look at a question that trips up every growing SMB: “Should we customize this system—or learn to work with it out of the box?”