Nearly all organizations today rely on software to help them drive their business forward. Whether managing their supply chain, organizing their finances, or keeping their projects on  track, companies rely on software to help them streamline various elements of their operations.

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However, as businesses begin to scale, they’re often confronted with an important question – should they continue purchasing off-the-shelf software, or is it time to build their own solution?

The answer to this question isn’t as straightforward as you might hope since there are a number of considerations to make. That being said, understanding where and how each format is best used is a great starting point and can give you the perspective you need to make the right choice for your business. 

What Is an Off-the-Shelf Software Solution?

Off-the-shelf software solutions are a dime a dozen today. No matter what type of problem you’re trying to solve for your business, chances are there’s software you can invest in to assist. 

You’ll often find these types of software solutions categorized as an “enterprise solution” and is specifically engineered to be highly relevant for businesses of all sizes, especially larger organizations with complex structures.

The great thing about many of these solutions is that they’re essentially ready to use as soon as an account is setup or subscription fees have been paid. Depending on the type of software, organizations could immediately start benefiting from improved customer relationship management, database storage, detailed analytics and business intelligence, or improved cybersecurity.

However, while off-the-shelf solutions can serve many different purposes, their design structure will be limited to some degree. Since this type of software is typically designed to appeal to a wide range of businesses and supporting industries, there will often be a variety of generic features available that your business may or may not find value in.

How is Custom Software Different?

Unlike a traditional off-the-shelf software solution, custom software projects are designed to be completely structured and formatted for your business’s specific needs. Think of it as buying a suit from a tailor instead of going to a department store.

As you might expect, the entire purpose of custom-built software is to give the organization full value in their software investment. Rather than purchase bloated software where you’ll only maybe use 40-50% of available features, custom-built software creates a comprehensive solution for your business with little waste and maximum utilization.

Of course, though, having a solution that is designed from the ground up to support your business comes with a heavier price tag. Price ranges for a custom-built solution can be in the thousands or even hundreds of thousands for larger enterprises. However, considering these solutions are designed to enable a business to reach its full potential, the returns on these investments can be considerable.

Deciding on Whether or Not to Buy or Build Your Own Software

There is no right or wrong answer when it comes to buying or building software solutions. Each business will need to weigh their own needs against what they can reasonably budget. 

However, to simplify this process, here are four questions you can ask and answer that might point you in the right direction:

What is the Software’s Purpose?

Every software solution has a primary purpose. It’s important that you’re able to align your own business objectives along with it. 

It’s important to remember that many business needs are common ones shared among all businesses – more organized finances, streamlined communication across teams, etc. However, not all solutions are designed to support organizations in the industry you’re in and may be missing certain important features that can help you thrive in it.

If the software you’re investing in will give you the edge you’re needing and the features you want – buy it. But if there are fundamentals missing, consider if a custom solution might be the better choice for you.

How is Your Company Currently Structured?

Smaller businesses or organizations that maintain a lean operating structure may find it difficult to take on large-scale software development projects. Even if you’re thinking about outsourcing your software development work to other companies, these types of projects will often require a fair amount of internal resources and collaboration from your team members to make it a success.

Consider how your company is structured and if it makes sense to pursue a custom-build project at this time. It might make more sense to use an off-the-shelf software solution until you’ve scaled your teams enough to support larger projects.

Can You Make an Off-the-Shelf Solution Fit Your Business?

Trying to force a pre-built software solution to meet your business needs isn’t always that easy. In most cases, there will be various restrictions in place that only allow you to “customize” your options or features so much – no different than when renovating your home.

It’s important to take the time to think about what are your “needs” and “wants.” Compromising what you’d like your software to be able to do is very different than not having the essential components you require to run your business more efficiently.

If, when doing your research, you’re finding that too many off-the-shelf solutions are coming short of your expectations, you may want to consider getting some quotes on a custom software solution.

How Much Time and Resources Can You Invest?

Of course, one of the primary considerations you should be making has to do with where your budget will land. The important thing to remember about off-the-shelf software vs. custom solutions is that a ready-made solution is typically much more transparent when it comes to your total investment costs.

Just like during home renovation projects, custom software projects can often be met with unexpected spending, both during the development stage and when needing to handle ongoing maintenance, performance upgrades, security improvements, or other necessary adjustments.

The upside of a custom solution, however, is that you’ll have complete control over the development roadmap and can decide how much or how little you’d like various elements invested in. While an “as-is” solution might be the faster route to take with less up-front costs, you may find that the long-term payoff of custom software might be more affordable for your business overall.

Choose the Software Solution That’s Right for You

There is no shortage of options available to businesses looking to invest in new solutions to help their organizations scale. But before paying your subscription fees, consider the points discussed and evaluate whether or not custom-built software might be the better way to go.

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.