Build or Buy? When Off-the-Shelf Software Stops Fitting
Building your own tool sounds like the way to get exactly what you need. For most small businesses it is the expensive route. Here is how to tell the rare cases where it is not.
When no tool quite fits, the idea of building one is tempting. You would get exactly the features you want and none you do not. For most small businesses, though, building turns out to cost far more than the sticker price suggests.
The hidden cost of building
The first version is the cheap part. After launch someone has to fix bugs, update it as other systems change, keep it secure and train new staff. That ongoing work often costs more over three years than the original build, and it depends on one or two people who may leave.
When buying wins
Buy when the process is common, such as invoicing, scheduling, payroll or customer records. Thousands of businesses have already paid to solve it, and vendors have fixed problems you have not met yet.
When building can make sense
Building is worth considering when the process is the thing that makes your business different, when no product comes close, and when you can fund its upkeep. Even then, many teams start by configuring a flexible tool and only build the part that is truly unique.
| Question | Leans toward |
|---|---|
| Is this a common process? | Buy |
| Is it what makes us different? | Build, or configure |
| Can we fund years of upkeep? | Build only if yes |
| Could a flexible tool do 80% of it? | Buy and configure |
The first version is the cheap part. The upkeep is the price.
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