Build vs Buy Decision Framework
Answer eight questions about your business context. Get a structured recommendation on whether to build, buy, or take a hybrid approach.
Question 1 of 8
How unique is your core business process?
Question 2 of 8
How many people will use this daily?
Question 3 of 8
Does an existing solution cover 80%+ of your needs?
Question 4 of 8
What is your timeline?
Question 5 of 8
Do you have in house technical capability?
Question 6 of 8
How often do your requirements change?
Question 7 of 8
Is this a competitive differentiator?
Question 8 of 8
What is your budget range?
The Real Cost of Building Custom Software
After 18 years of building software for businesses that operate in the physical world, the most common mistake I see is underestimating what "custom" actually means. Building custom software is not just writing code. It is committing to an ongoing relationship with a system that will need updates, bug fixes, security patches, and feature additions for years.
The initial build is typically 30 to 40 percent of the total cost over five years. The rest is maintenance, iteration, and the organizational overhead of managing a technical product. Companies that budget only for the build phase end up with software that works on day one and becomes a liability by year two.
That said, when building is the right choice, it is transformatively right. SELL 360 exists because no off the shelf product understood how FMCG distributors in emerging markets actually operate. The custom build allowed us to design workflows around real field conditions, not theoretical ones. That specificity is what drives 2000+ daily users to open the app every morning.
When Buying Is the Smarter Move
There is no shame in buying software. Most business functions are not unique. Your HR processes, your invoicing, your email marketing, your project management. These are solved problems. Buying a proven solution for a commodity function lets you redirect engineering attention to the things that actually differentiate your business.
The best signal that buying is right is when an existing product covers 80 percent or more of your requirements. That remaining 20 percent feels important in a requirements document. In practice, it is often workaround territory. A $50 per month SaaS tool with a few manual workarounds beats a $200K custom build that takes six months and still has bugs.
The trap is buying when your needs are genuinely unique. If you are forcing your operations into someone else's workflow, the hidden cost is not the license fee. It is the productivity loss from a process that does not fit your people.
The Hybrid Approach Most Businesses Ignore
The most underrated option is building on top of something that already exists. Use an off the shelf CRM but build a custom integration layer that connects it to your specific operational workflow. Use a standard ERP but build custom reporting that reflects how your business actually measures success.
This approach requires the most architectural skill. You need someone who understands both the capabilities of the off the shelf product and the technical requirements of the custom layer. Done well, it gives you 80 percent of the speed of buying with 80 percent of the flexibility of building.
Done poorly, it gives you an unmaintainable integration that breaks every time the vendor pushes an update. The difference is almost always in the quality of the technical leadership making the architecture decisions.
If you are wrestling with this decision for your business, reach out. I have been on every side of this equation and can help you think through the specifics of your situation.
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Frequently Asked Questions
How does the framework calculate its recommendation?
Each of the eight questions maps to weighted scores across three paths: Build, Buy, and Hybrid. Your answers accumulate points for each path. The recommendation is the highest scoring path, and the confidence score reflects the margin between the top two options.
Should I always follow the framework recommendation?
The framework provides a structured starting point for a complex decision. It captures the key factors that drive build vs buy outcomes, but every business has unique constraints. Use the recommendation as input to your decision, not as the final word. A low confidence score is a signal to dig deeper before committing.
What is the hybrid approach to software?
A hybrid approach uses an off the shelf product for the 70 to 80 percent of functionality that is standard across businesses, then builds custom integrations, workflows, or modules for the parts that are unique to your operation. This balances speed to market with the flexibility to differentiate.
How much does custom software actually cost?
Custom software costs vary enormously based on complexity, team structure, and timeline. A focused internal tool might cost $30K to $80K. A full SaaS platform can run $200K to $500K for an initial release. The real cost includes ongoing maintenance, which typically runs 15 to 20 percent of the initial build cost per year.
When is buying clearly the better option?
Buying is clearly better when your process is standard across the industry, your timeline is under three months, you lack in house technical capability, and the function is not a competitive differentiator. In these cases, the total cost of ownership for an off the shelf solution is almost always lower.
Need help evaluating your specific situation?
A framework gives you direction. A conversation gives you a plan. Let us walk through your requirements, constraints, and options together.
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