The Default Should Be "Buy"

Let's be clear upfront: most software needs should be solved with existing products. The SaaS ecosystem is mature, competitive, and covers almost every standard business function.

Building custom software is expensive, time-consuming, and creates ongoing maintenance obligations. You need a compelling reason to go custom.

But sometimes that reason exists.

When to Buy: The 80% Case

Off-the-shelf software wins when:

The Problem Is Common

Accounting, email marketing, CRM, project management, HR—these are solved problems. Thousands of businesses have the same needs, and products have evolved over years to address them well.

QuickBooks handles accounting for millions of businesses. Could you build something better for your specific situation? Maybe. Is it worth it? Almost certainly not.

You Fit the Target Customer

Every SaaS product has an ideal customer profile. If you match it, the product will feel natural. If you don't, you'll fight the software constantly.

Signs you're a good fit:

The pricing tier makes sense for your size
The feature set matches 80%+ of your needs
The integrations connect to your existing tools
Other companies like yours use it successfully

Time Matters More Than Perfection

Buying gets you running in days or weeks. Building takes months. If speed to operation matters more than perfect fit, buy.

The Capability Isn't Strategic

If the software handles a supporting function rather than your core business, optimization matters less. Good enough is good enough.

When to Build: The 20% Case

Custom software makes sense when:

Your Process Is Your Advantage

Some businesses compete on operational excellence. Their workflows are genuinely different—faster, more accurate, or more efficient than competitors.

If your process is a competitive moat, encoding it in off-the-shelf software means:

Competitors can copy it by buying the same tool
You're constrained by the vendor's assumptions
Your differentiation erodes over time

Custom software protects and enhances what makes you different.

Nothing Fits

Occasionally, you genuinely have requirements that existing products don't address:

Industry-specific regulations or workflows
Unusual integration requirements
Scale or performance needs beyond typical solutions
Security or data residency constraints

If you've evaluated 5+ products and none work, custom might be necessary.

The Math Works

Sometimes the build cost pays back through:

Eliminating per-seat licensing at scale
Reducing manual workarounds
Enabling revenue opportunities
Avoiding multiple tools that should be one

Run the numbers over 3-5 years, including maintenance costs for custom solutions.

You Have (Or Can Get) Technical Capability

Custom software requires ongoing attention:

Bug fixes and updates
Security patches
Feature additions
Infrastructure management

If you can't maintain it, you shouldn't build it.

The Hybrid Approach

Most businesses benefit from a thoughtful combination:

Buy for:

Standard business functions
Non-strategic operations
Areas where you want vendor innovation
Anything with compliance complexity (payroll, taxes)

Build for:

Core business workflows
Customer-facing differentiation
Integration layers between systems
Automations specific to your operations

Connect with:

APIs and webhooks
Integration platforms (Zapier, Make, n8n)
Custom middleware when needed

Often the answer isn't "build vs. buy" but "buy, then build on top."

Questions to Guide the Decision

1. How unique is this requirement really?

Be honest. "We do things differently" is often "we haven't explored how others solved this." Talk to similar businesses before concluding you're unique.

2. What's the total cost of ownership?

Buy: License fees + implementation + training + ongoing subscription Build: Development + infrastructure + maintenance + opportunity cost

Build looks cheaper at the start. It rarely is over 5 years.

3. What happens when requirements change?

SaaS products evolve with the market. Custom software requires active development for every change. Which future do you prefer?

4. What's the vendor risk?

SaaS vendors can raise prices, change features, or go out of business. Custom software requires your ongoing capability to maintain it. Neither is risk-free.

5. How strategic is this function?

Strategic functions might justify custom investment. Supporting functions rarely do.

Red Flags in Each Direction

Red Flags for "Build"

"I want it to work exactly like our spreadsheet"
No budget for ongoing maintenance
Underestimating timeline (it always takes longer)
Building to avoid learning a new system
The requirement is actually a preference

Red Flags for "Buy"

Significant business process changes to fit the software
Key requirements are "on the roadmap"
Workarounds for more than 2-3 major gaps
Integration with your systems is difficult
Per-seat pricing doesn't scale with your growth

A Framework for Decision

Score your situation on these dimensions:

Uniqueness (1-5): How different is your requirement from standard solutions? Strategic Value (1-5): How central is this to your competitive position? Change Frequency (1-5): How often will requirements evolve? Scale (1-5): How much will usage grow? Technical Capability (1-5): Can you maintain custom software?

Score interpretation:

Under 12: Strong case for buying
12-18: Evaluate carefully, likely buy with customization
18-22: Consider building or heavily customized solution
Over 22: Custom development likely justified

The Path Forward

If you're genuinely unsure:

Start with buying: Get operational quickly
Document pain points: Track where the bought solution falls short
Quantify the gap: Put numbers on the cost of workarounds
Evaluate build only if: Pain persists and cost justifies investment
Build incrementally: Start with highest-value custom components

The best technology decisions are reversible ones. Buying lets you learn what you actually need before committing to building it.

Trying to decide if custom software makes sense for your situation? Let's evaluate it together.

Build vs. Buy: When Custom Software Makes Sense