It\u2019s hard to imagine a thriving business that doesn\u2019t rely on software. Certain software and technologies can become so mission-critical, were they removed, the entire business would fall apart and cease to function.<\/p>\n
Of course, the converse is true. Important software can make your business run faster, free up important human hours, and keep things ticking along on automatic. A \u201cperfect fit\u201d software can drastically improve the way your business works \u2026 in terms of managing human resources, making sales, database management, and more.<\/p>\n
The only problem is that creating this kind of software often means buying customized software. And, customized software can be expensive. Not to mention time-consuming. So, there\u2019s this misconception that custom software is exclusive to the top-market business.<\/p>\n
Can small businesses or mid-tier businesses afford the costs it takes to develop fully customized solutions that match their every need?<\/p>\n
Maybe. It depends on your needs. Even if a software is inexpensive or free, the costs of underperformance may actually be MORE expensive than ordering a custom solution.<\/p>\n
In fact, an \u201cout of the box\u201d software with sub-par speed, flexibility, and integration options can actually lose you more money, in the form of opportunity costs, than you may spend on an expensive custom solution. Then again, maybe not. If you\u2019re a decision maker or a budget holder, you\u2019ll need to assess the long term costs and risks associated with each.<\/p>\n
That\u2019s what we\u2019ll be discussing in this post.<\/p>\n
Even if your company needs custom software in some places, it\u2019s highly likely you\u2019ll be using out of the box solutions for certain processes \u2014 productivity management, CRM, and accounting software are a few examples. There\u2019s a lot of competition in these areas and you can probably just purchase a monthly subscription for these solutions.<\/p>\n
The tradeoff for \u201crenting\u201d these products on a month by month basis is that the vendor handles maintenance, updates, and infrastructure management\u2026 all you have to do is learn to use the product. This saves you a considerable amount of resources in terms of labor and your team\u2019s focus.<\/p>\n
While that seems convenient at first, monthly subscriptions can actually prove to be quite costly. The first issue is, of course, the monthly fee. But there\u2019s also the matter of features and functionality.<\/p>\n
To get the most out of a mass-market subscription product, first make an assessment: do the functions of the product validate the price? You might think so at first, as long as the product offers certain benefits you\u2019re willing to pay for. But are you using EVERYTHING it offers? Or will you simply ignore some functions \u2014 for which you\u2019re getting billed anyway?<\/p>\n
And, if you\u2019re paying for features you don\u2019t use, aren\u2019t you just wasting money? Now, remember that this charge is compounded month after month. The costs begin to add up\u2026 even in \u201cinexpensive\u201d software\u2026 and you incur them every month regardless of how much you used the software.<\/p>\n
So, the convenience comes with tradeoffs.<\/p>\n
Moving on\u2026<\/p>\n
While off the shelf solutions are usually \u201cone size fits all,\u201d they occasionally come with the options for plugins, modularity, or small customizations you can make with your own time, and at your own expense. This provides a temporary \u201cstop-gap\u201d solution where you can buy the software, then buy the customization, then put it all together as a kind of \u201cFrankenstein\u2019s monster\u201d that hopefully handles all your needs.<\/p>\n
There are two things you need to know about this approach.<\/p>\n
1 – While the product might be off-the-shelf, customization options might require a request, a consultation, and further costs, to add on. In this case, you\u2019ll be paying time and labor costs, in addition to the monthly software fees.<\/p>\n
2 – They aren\u2019t always available.<\/p>\n
So, if you\u2019re looking into an \u201coff the shelf\u201d monthly subscription software, just know that you may incur additional expenses making it work for your team\u2026 in addition to monthly subscription fees.<\/p>\n
Which brings us to:<\/p>\n
Custom software is more expensive and takes more time to develop upfront, especially if you want to get it right the first time. You will also probably need to perform maintenance and management on it yourself.<\/p>\n
However, those are really the only downsides. The payoff? You\u2019ll end up with a solution that can help your business for years to come.<\/p>\n
Plus, the perceived negatives aren\u2019t actually that bad. For example, the maintenance and management you pay on the software are the only regular or semi-regular fees you might incur. And, you might not even incur them (see below).<\/p>\n
You will essentially own your custom software and won\u2019t have to pay for it month after month. You usually won\u2019t have to pay for extras and add ons\u2014 they\u2019ll be baked into the one-time price.<\/p>\n
Speaking of price\u2026<\/p>\n
While getting custom software development<\/a> is expensive \u2014 and there\u2019s no way around it \u2014 it might actually save you costs in the long run. Lower monthly fees are just the start. Imagine all the money a custom solution can save you in terms of human capital and management, for example.<\/p>\n