Finding the Right Time to Build Your Software Instead of Buy

There are few things as valuable to a business as well-designed software. Organizations today rely on software for just about everything – from managing customer relationships to optimizing production processes. This is why efficient and reliable solutions are so important.

However, the more a business grows over time, the closer it gets to needing to make an important decision – should they continue using off-the-shelf software products or invest in building their own custom solution?

Several factors influence the best approach here, and not every business looks at the same criteria when making a decision. Still, by understanding the advantages and disadvantages of each option, businesses can make sure they’re making a decision that aligns with their unique needs in their industry.

Understanding Today’s Enterprise Solutions

Finding suitable business solutions today isn’t that difficult. It seems like every business challenge an organization might face has a corresponding software designed to help. Many of the readily available options are labeled as “enterprise services” or “SaaS (Software-as-a-Service) solutions.”

These types of products are often built to be useful for businesses of all sizes, especially for organizations in need of supporting services to help them scale their operations.

One of the best things about off-the-shelf software solutions is its immediate usability. Once you’ve set up an account or paid your subscription, you’re essentially ready to go. Depending on the software, businesses can start seeing instant benefits across various departments or when introducing more automation to certain processes.

However, while off-the-shelf solutions are definitely a versatile option, their design can also be somewhat restrictive. Because they typically are built to cater to a large range of businesses or industry sectors, they often have a range of general features, some of which may not be overly valuable to your business.

The Differences When Creating Your Own Software

While readily available software you can purchase online may seem like the easier option to go with, custom software development offers a unique set of advantages to consider.

When you build software from the ground up, you’re creating a completely unique solution designed specifically to support your business goals. It’s like purchasing a custom vehicle with all the bells and whistles, and no one owns one except for you.

The primary goal of custom software is to help a business maximize its investment in a particular solution. Instead of purchasing a pre-made software package with features you may never use, you get a solution that’s tailored to your specific needs. This ensures that you’re paying only for the functionality that you’ll actually use, which is often much more efficient and cost-effective in the long run.

Of course, custom software development typically requires a larger upfront investment compared to off-the-shelf solutions. The cost can vary significantly depending on the complexity and scope of the project. 

However, it’s important to consider the potential return on investment. By streamlining operations, automating tasks, and improving productivity, custom software can usually help your business greatly improve its capabilities and position it for more sustainable growth.

Choosing the Right Time to Build or Buy

When it comes to software solutions, there’s no universal answer to whether buying or building is the right choice. Each business should carefully evaluate its own needs or financial constraints.

However, to help make this decision easier, there are four main things you should consider:

Think About the Software’s Primary Purpose

Each piece of software is designed with a core objective in mind. It’s important to make sure this objective aligns with your short- and long-term business needs when you’re deciding on the right technology investment.

While many businesses share common requirements, the most effective software solutions will cater to specific industries or niches. This is important to remember since some solutions may be better suited for other types of organizations and not provide the same level of value to you as its advertised benefits.

If the software you’re looking at can provide you with the competitive advantage and desired features you’re looking for, it’s definitely worth considering. However, if it misses core elements specific to your business, a customized solution could be a more effective choice.

Consider Your Company’s Capabilities

When evaluating the feasibility of a custom software development project, organizations should always consider their current structure and available resources. Smaller businesses with limited staff may find it challenging to allocate the necessary staff and internal resources that will be required to get things up and running.

Even when working with outsourced software development teams, a significant amount of internal commitment is still important for successful project completion. If your organization is currently short on resources, it may be better to consider subscription services, at least temporarily, until your teams have scaled enough to support the demands of a large development project.

Break Down Your Needs and Wants

Matching a pre-existing software solution with your company’s exact requirements can be challenging. Most of the time, the software you purchase off-the-shelf will have imitations of customization, similar to how you can only make certain modifications when renovating a house.

To help make the right decision, it’s important to distinguish between your “must-haves” and “nice-to-haves.” Making concessions on desired features is different from lacking the core functionalities needed for your business to operate effectively.

If your research shows that many off-the-shelf options fall short of your needs, consider exploring custom software solutions instead.

Set Reasonable Expectations

When deciding on whether it’s smart to buy or build your software, your budget should be one of the most important deciding factors. Off-the-shelf software typically offers much more transparency when it comes to predictable spending month-to-month.

Custom software projects, similar to home renovations, can involve many unforeseen expenses during development. These can include ongoing maintenance costs, performance upgrades, security enhancements, and other necessary improvements.

However, regardless of these extra expenses, keep in mind that a custom solution gives you complete control over the development roadmap. This allows you to prioritize the investments you put in. Even though an off-the-shelf solution may seem faster and less expensive initially, the long-term benefits of custom software could be more cost-effective for your business overall.

Get the Right Solution for Your Business

There is no shortage of software options for businesses to choose from to help them grow. However, before committing to any particular option, it’s important to thoroughly assess your needs and consider whether a customized software solution might be the better choice for your business.

Author Information

Author Name: Dalip Jaggi

Author Bio:

Entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company with a goal to democratize house flipping. Since its 2020 inception, Revive has since become the smartest solution for homeowners to maximize their home’s sales value across the nation.