Custom software or off-the-shelf: how to decide

Most software decisions go wrong because they begin with a product or a quote. Begin instead by writing down how the work really happens: who does each step, what information moves between people, and where it gets stuck. Include the awkward exceptions, because that is where ready-made products usually stop fitting.

Once the process is on paper, you can test any option against it. A product that handles 90 percent of the steps and bends on the rest is a strong candidate. One that forces you to change how you win business probably is not.

A ready-made product is faster to start, tested by many other users and supported by its vendor. It is usually the right choice when your process is common to many businesses, such as accounting, standard CRM or email marketing.

• A product already covers most of what you need.
• Your team is willing to change small habits to fit the tool.
• You want to start quickly and keep upkeep with the vendor.

Custom software fits unusual processes and avoids per-user fees that grow with your team. The price is a larger up-front effort and the need to look after the software afterwards, so it should solve a problem that matters.

• Your process is part of what makes your business different.
• You are stitching several tools together with manual workarounds.
• Per-user fees would grow faster than the cost of owning the software.
• You need a portal for customers or dealers that no product offers.

You do not have to choose one or the other. Many businesses configure a product for the standard parts, such as accounting or customer records, and build a small custom layer for the pieces that are unique, connected through the product's own interfaces. This keeps the build small and the risk low.

Whichever way you lean, get clear answers to these before any money is committed.

• Who owns the code, the data and the accounts it runs in?
• How can you export your data if you leave?
• What does it cost to keep running each year: hosting, licences and support?
• What is the smallest first version that would replace the manual work?
• Is the scope written down, including what is not included?