I have been in the software world for a good number of years now. And while talking to yet another "potential" client recently, something came to the forefront of my mind that hadn't been there in a while. The fact that seemingly every business that needs a computer program to help them run the day-to-day operations needs a custom-built "homemade" solution.
While I was engrossed in conversation about the needs of this potential client, he showed me his current "canned" software program that he currently spends lots of money on and yet it frustrates him and his employees because it just doesn't do "exactly" what he needs it to do and has a lot of features he will never use. Now, sometimes (and I use that term to mean "rarely") a canned solution will work. For instance, in the restaurant industry one Point of Sale system will work in thousands of scenarios. However, even with the businesses I have failed to sell myself to, I notice
a recurring theme. Most of the time, these canned solutions just don't cut it.
Think about this, at one point or another most of those "canned" programs were "homemade" for some other business who so arrogantly (and maybe rightly so) claimed it could work for everyone else and so they began selling it. Just like great-grandma's pie recipe that now sits in the freezer at the local supermarket. Not everyone's tastes are the same, inasmuch as not every business' needs are the same (yes, even if they are identical businesses). Because not everyone that runs a cab service, runs it the same way.
In most cases, the reason companies go with the canned program is because it's available right here, right now. But as a fellow business owner, wouldn't it make more sense to spend that same amount of coin on something that you know without a doubt is going to do what you need it to do, even as your business grows and evolves?
Here is a scenario to get you thinking strategically about the software tools your company uses and the long term financial effects our choices make:
Picture two companies, both using our earlier example of opening a cab service. We'll call them, CabbieA and CabbieB. Both will obviously have similar needs.
CabbieA goes online and searches for a good dispatch software program. He finds one and drops an initial $5000 on it and also has to pay $1000 per year in maintenance/support fees. This is actually pretty typical for small-business software costs. It does mostly what he needs it to do and some things he doesn't need it to do. It keeps track of his vehicles, his returning customers, and when and where his cabs go. But after 6 months of using it he has a list of things he wants changed in the software to get it to work just the way he wants it. For instance, let's say the program doesn't keep track of vehicle maintenance schedules. And it doesn't allow for anyway to schedule a ride online for his customers. Typically, if you called the company that makes the canned software program, they will charge you upwards of $50 per hour to have extra features developed and added to the program for your specific needs. This is on top of what you're already paying for maintenance, etc.
On the other hand, we have CabbieB. She starts out by keeping track of her dispatch on paper, the ol'fashioned way. She searches online and finds the same software that CabbieA found but doesn't put all her eggs in the canned basket quite yet. She calls up a reliable software developer (cough, cough... ME.. cough) and asks for a quote on what it would take to build something "homemade". The developer listens to her needs, asks questions, listens some more, and then goes to work on a quote. He calls CabbieB back in a day or two and tells her that he can build her initial program for $8000 and will take 4 months to complete. And this number includes the exact features she needs, it can run on the we
b and customers can login to schedule a ride because the program is built to handle that from the ground up. Initially, the sticker shock hits her. But then she notices, that after 5 years of being in business she will have paid less for her "homemade" software and owns the source code. Also, there isn't a $1000 per year maintenance fee. So if she doesn't require any more features, she will owe no more money. And when she wants to expand into a limo service as well, then that online scheduling system just came in even more handy and made her even more money.
I feel obligated to also mention that there are obvious potential downsides to having a "homemade" solution built. You may hire an unreliable developer if you don't do your homework. You may put the cart before the horse and add so many features during development that it increases the cost and time it takes to complete. The initial cost and time investment is what sends most running.
5 Keys to "Homemade" Software:
- Don't overdo it!
- Get the features you need and nothing more.
- Be in it for the long haul.
- It will pay for itself.
- Make software adapt to you, not the other way around!
The goal of any business is to be around for a long time. So in looking at this from a long-term perspective, it makes total sense to have "homemade" software built just for your needs.
And... homemade ALWAYS tastes better! :)
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