Every week we receive inquiries from companies that finally want their own software.
The reasons always sound similar: Excel is too slow, the existing tools don't fit, the competition has something of their own.
Not because we don't want orders. But because we've seen for 20 years what happens when companies invest in custom development too early, too big, or for the wrong reasons.
This article shows when custom software doesn't make sense — and when it's the right move.
5 Situations Where Custom Software Doesn't Make Sense
Your Processes Aren't Stable Yet
The problem:
You don't yet know exactly what your process will look like in 12 months. Roles are changing, responsibilities are unclear, the workflow is regularly adjusted.
What happens with custom software:
You build software for a process that's still changing. After 6 months, the software no longer fits. Adjustments cost time and money. Frustration builds.
Better approach:
Stabilize the process first with simple tools. Excel, Notion, Trello. Once the workflow has been running the same way for 6 months: then think about software.
A SaaS Tool Covers 80%
The problem:
There's already software on the market that meets 80–90% of your requirements. The missing 10–20% feel important — but often aren't.
What happens with custom software:
You invest 30,000–80,000 € to get 100% fit. In return, you give up: automatic updates, support community, proven security, immediate availability.
Better approach:
Use SaaS and slightly adapt your processes. Most "indispensable" special requests are forgotten after 6 months.
Cost example:
| Option | Year 1 | Year 2 | Year 3 | Total |
|---|---|---|---|---|
| SaaS (200 €/month) | 2,400 € | 2,400 € | 2,400 € | 7,200 € |
| Custom Software | 35,000 € | 5,000 € | 5,000 € | 45,000 € |
The Budget Is Below the Critical Threshold
The problem:
Meaningful custom software requires at least 15,000–20,000 € for a focused project. Below 10,000 € it almost always becomes a compromise that proves expensive later.
What happens with too small a budget:
- Important features get cut
- Security is "done later"
- Documentation is missing
- Support ends after project completion
Better approach:
Wait until the budget is available. Or start with process automation (5,000–10,000 €) instead of a complete application.
Realistic budgets:
| Project type | Realistic budget |
|---|---|
| Simple automation | 5,000 – 10,000 € |
| Focused application | 15,000 – 30,000 € |
| Integrated platform | 30,000 – 80,000 € |
| Complex system | 80,000 – 200,000 € |
You Want to Be "Like the Competition"
The problem:
The competitor has their own app. So you need one too. Without a clear analysis of whether the app even works for the competitor.
What happens:
You copy features that may not deliver any value. You build software for image reasons rather than business necessity.
Better approach:
Ask yourself: What specific problem does the software solve? How much time/money does it save? Are there measurable KPIs?
Your Excel Solution Actually Works
The problem:
The Excel spreadsheet is messy, but it works. Nobody loses data. The work gets done.
What happens with custom software:
You replace a working system with a new one. The team has to relearn. There's a transition phase with errors. After 6 months, the software does the same thing as Excel — only more complicated.
Better approach:
Optimize Excel. Add structure. Maybe use an add-in. Or automate only the most critical part.
- More than 3 people work simultaneously on the same data
- Errors from manual entry cost more than 5,000 €/year
- Compliance requirements demand audit trails
- External systems need to be connected automatically
The Honest Cost Comparison
SaaS: The Hidden Costs
| Cost factor | Typical |
|---|---|
| License per user/month | 20–200 € |
| Premium features | +50–100% |
| API access | Often extra |
| Data export | Sometimes limited |
| Training | Self-organized |
| Customization | Often not possible |
Long-term (5 years, 10 users, 100 €/user): approx. 60,000 € + switching costs if the tool no longer fits
Custom Software: The Hidden Costs
| Cost factor | Typical |
|---|---|
| Development | 15,000 – 80,000 € |
| Hosting/year | 600 – 3,000 € |
| Maintenance/year | 10–20% of development |
| Security updates | Ongoing |
| Feature extensions | Based on effort |
| Documentation | One-time + updates |
Long-term (5 years, development 40,000 €): 40,000 + 15,000 (hosting) + 30,000 (maintenance) = approx. 85,000 €
- SaaS costs > 1,500 €/month (18,000 €/year)
- Or: Process efficiency saves > 30,000 €/year
- Or: Competitive advantage is clearly measurable
- Or: Compliance/data privacy makes SaaS impossible
Decision Matrix
| Situation | Recommendation |
|---|---|
| Processes still unstable | Wait, stabilize first |
| SaaS covers 80%, <500 €/month | Use SaaS |
| Budget < 15,000 € | Automation instead of full software |
| "Because the competitor does" | Check business case first |
| Excel works | Optimize Excel |
| SaaS > 1,500 €/month, rising costs | Consider custom |
| Process unique, not replicable | Custom makes sense |
| Integration of multiple systems critical | Custom makes sense |
| Data privacy requires control | Custom makes sense |
| Time savings > 30,000 €/year possible | Consider custom |
When Custom Software Makes Sense
Not as a sales pitch. But as an honest assessment:
1. Your core process is unique
Not "slightly different" — but fundamentally different from what off-the-shelf solutions can handle.
2. Integration is business-critical
Multiple systems need to communicate in real time. Manual transfers cost more than 20,000 €/year in labor or errors.
3. You're scaling with a stable process
The process is stable, it works, and you need it 10x faster or for 10x more volume.
4. Data control is non-negotiable
Industry regulation, client requirements, or internal policy demand full control over infrastructure and data.
5. The ROI is clearly calculable
You can say before the project starts: "This software saves us X euros per year" — and X is greater than the annual total costs.
Conclusion: The Honest Recommendation
If you've read this article and thought "That applies to us" for more than two points — then custom software is probably not the right next step.
- Document and stabilize your processes
- Systematically evaluate SaaS tools
- Identify bottlenecks and automate them individually
- Build the budget for the right moment
Custom software is not an upgrade.
It's an infrastructure decision with 5–10 years of impact.
Those who understand this and still say: "We need it because our process is unique, we know the numbers, and we're ready" — those are the people we love working with.
Everyone else, we honestly advise on alternatives. Even if that means no contract comes out of it.
This article reflects 20 years of experience building business software. It's not a sales pitch — it's a decision-making guide.
Not sure what's right for you?
In a free 30-minute conversation, we'll give you an honest assessment of whether custom software makes sense for your case. Sometimes we recommend alternatives instead.
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