Build or buy? How to decide on custom software

When a business hits a problem its current tools can't handle, the first instinct is often to build something custom. Before you commit to that, look hard at what already exists.

Start with what already exists

If an existing product solves 80 to 90 percent of what you need, that is usually enough. The missing part is often something you can live with, work around, or change in your own process.

Custom software is not a one-time cost

The quote you get covers building it. It doesn't cover owning it. Once the software is yours, so is everything that comes after:

• Fixing bugs and keeping it secure
• Hosting and running it
• Changing it every time the business changes
• Depending on the people who know how it works

When building makes sense

• Your workflow is genuinely different from how everyone else works
• Existing tools create a real limitation, not a small annoyance
• The software itself gives you an advantage over competitors

It doesn't have to be one or the other

Often the best answer is a mix. Use existing products for the standard parts of the business, and build only the part that makes you different.