Over the past decade almost all of major businesses in the US have implemented Enterprise Resource Planning (ERP) systems to run daily business operations. However, a complex ERP system, if not implemented properly, can easily disrupt, or sometimes cripple, the flow of the manufacturing and other operations. While large organizations are in a unique position to implement a good RP system, most small companies cannot afford the acquisition and implementation cost of a big name ERP system. Therefore, smaller organizations rely on vendors with affordable, but not necessarily proven, ERP systems. To help small businesses avoid implementation problems and system glitches after ERP implementation, two proactive initiaves are recommended. ERP readiness and ERP selection. This article organizes a checklist for each initiative so that small companies are better prepared to overcome implementation challenges and their expectations are more aligned with the norm of an ERP implementation