October 2024
Custom Software vs. Off the Shelf: When to Build Custom
When your business needs new software, you face a choice: buy an off the shelf solution or build something custom. Both have pros and cons. Here's how to decide.
When Off the Shelf Software Works Well
Off the Shelf software is a good fit when:
- Your needs are standard: Email, accounting, basic CRM these are solved problems
- You're just starting: Early-stage businesses should use proven tools, not build custom
- Time to market matters: You can start using off the shelf software immediately
- Budget is tight: Monthly subscriptions are cheaper upfront than custom development
- You don't need customization: The software does what you need without modification
When Custom Software Makes Sense
Custom software becomes worth it when:
1. Your Process Is Unique
If your business has unique workflows, pricing models, or operational processes that don't fit standard software, custom tools can give you a competitive advantage.
Example: A manufacturing company with complex, custom quoting needs that no off the shelf solution can handle.
2. You're Paying for Features You Don't Use
Enterprise software comes with hundreds of features. If you're paying $10,000/year but only using 10% of the functionality, custom software tailored to your needs might be cheaper.
3. Integration Costs Are High
If you need to connect 5+ different off the shelf tools, the integration costs (both time and money) can exceed the cost of building a unified custom system.
4. You Need Full Control
With off the shelf software, you're at the mercy of the vendor. They can raise prices, discontinue features, or go out of business. Custom software gives you full control and ownership.
5. You've Outgrown Spreadsheets
If you're running your business on complex spreadsheets with macros and formulas that break constantly, a custom tool can formalize your process and make it more reliable.
Real-World Example: Ironsmith Manufacturing
Ironsmith was using a 15-year-old Microsoft Access system that crashed regularly. They tried off the shelf solutions, but nothing fit their unique quoting process and internal workflows.
We built them a complete custom business system:
- Business portal for managing quotes, orders, and operations
- Integrated website synced to their product catalog
- Desktop app for file server access
- Migrated 15 years of legacy data
Result: A reliable system that fits their exact needs, costs less than enterprise software, and gives them full control over their data and future.
Hybrid Approach: Custom + Off the Shelf
The best approach is often a mix:
- Use off the shelf for commodity functions: email (Google Workspace), accounting (QuickBooks), payments (Stripe)
- Build custom for your unique competitive advantage: quoting systems, internal portals, specialized workflows
- Integrate everything so your tools talk to each other automatically
This gives you the speed and cost-effectiveness of proven tools plus the competitive edge of custom software.
Questions to Ask
Before building custom software, ask yourself:
- Is this a core competitive advantage? If yes, custom might be worth it.
- Have we tried off the shelf solutions? Make sure there's no existing tool that fits.
- What's the total cost of ownership? Compare custom build cost vs. years of subscriptions + integration costs.
- Do we have support? Who will maintain custom software after it's built?
- Can we start small? Build a minimal version first, then expand based on results.
Our Approach
When clients come to us, we first look for off the shelf solutions that might work. We only recommend custom development when it truly makes sense for your business.
And even then, we prefer to build in phases:
- Start with the most painful problem
- Build a minimal solution
- Get feedback and refine
- Expand based on what's working
This reduces risk and ensures you're getting value at every stage.
Getting Started
Not sure if custom software makes sense for your business? Let's talk. We'll help you evaluate your options and recommend the best path forward whether that's custom development, off the shelf tools, or a combination.
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