·6 min read
Build or buy? A practical test for business software
When off-the-shelf tools are the right answer, when custom software pays off, and the hybrid most companies end up with.
Custom softwareOperations
Most businesses should buy most of their software. Accounting, email, HR and payroll are solved problems. The question is what to do about the processes that make your business different.
Buy when
- Your process is standard and a tool covers most of it.
- The vendor's roadmap is likely to keep up with your needs.
- The cost per seat stays reasonable as you grow.
Build when
- The process is a competitive advantage and generic tools would flatten it.
- Integration is the hard part — data must flow between systems that don't talk.
- You are paying for five tools and using 20% of each, with spreadsheets filling the gaps.
- Field teams need a mobile, offline workflow that tools don't support.
The usual answer: a hybrid
Keep the systems of record you already trust — accounting, ERP, payments — and build the operational layer on top: the workflow, the approvals, the dashboards and the mobile app. You get a product that fits without replacing everything.
Questions to ask before building
- Who will own this software in two years?
- What happens to the data if we stop?
- Which spreadsheet does it replace, specifically?
- What is the smallest version that removes the most manual work?
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