Costs and Return on Investment

Breaking Down the Investment That Could Transform Your Business

When business owners first consider custom software, there's often an sharp intake of breath when the topic of cost comes up. It's a reaction we're quite familiar with, and we understand why. Custom software is often perceived as the luxury option - something reserved for large enterprises with deep pockets. However, this perception frequently doesn't match reality, and we'd like to explain why.

Challenging the "Too Expensive" Myth

Let's start with a surprising fact: most of our clients see a return on their investment within just 12 months. This isn't a number we've plucked from thin air - it's based on real projects and real results. Custom software isn't just an expense; it's an investment that often pays for itself faster than new machinery, property, or many other business investments you might make.

But to understand why this is the case, we need to look at what you're currently spending on your business software solutions.

The Hidden Costs of Off-the-Shelf Software

Most businesses today use what's known as Commercial Off-The-Shelf (COTS) software. These are the familiar names you'll find in any business software directory - designed to serve as many businesses as possible. While these solutions can work well, they often cover only a portion of what your business actually needs.

Think about your current setup. You might have one system for customer management, another for inventory, perhaps a third for accounting, and probably several spreadsheets filling the gaps between them. Each of these systems comes with its own costs - not just in licensing fees, but in time, effort, and potential errors.

Consider Sarah, one of our clients who runs a medium-sized manufacturing business. Before approaching us, her team was using five different software systems, none of which talked to each other effectively. Every day, her staff spent hours manually transferring data between systems, double-checking for errors, and creating reports by combining information from multiple sources. When we calculated the cost of staff time alone, it came to over £35,000 annually - and that was before counting the £20,000 they were spending on various software licenses.

The Custom Software Advantage

Custom software takes a different approach. Instead of adapting your business to fit the software, we build software that fits your business. This means you get exactly what you need - no more, no less. More importantly, everything works together seamlessly because it's all part of one integrated system.

The result? No more duplicate data entry. No more manual cross-checking. No more workarounds or makeshift solutions. Just smooth, efficient processes that work the way your business works.

Understanding the Investment

Let's be completely transparent: custom software does require an upfront investment. Depending on the complexity of your needs, this could range from a few thousand pounds for a small, focused solution to several hundred thousand for a comprehensive enterprise system. We've included a general pricing guide below to give you an idea of what to expect:

A small web application, such as a basic CRM system with specific features for your business, typically ranges from £5,000 to £50,000. A larger system with multiple user roles and complex workflows might range from £25,000 to £150,000. Enterprise-level solutions with extensive functionality can range from £75,000 to £300,000.

However - and this is crucial - we understand that these numbers can seem daunting. That's why we've developed several approaches to make custom software more accessible:

Phased Development: Rather than building everything at once, we can break your project into smaller phases. This spreads the cost over time and allows you to start seeing returns from the early phases while later ones are still in development. It's also a great way to ensure each part of the system is working perfectly before moving on to the next.

For instance, we worked with a property management company that started with a basic client management system in phase one. The efficiency gains and cost savings from this initial phase helped fund the later development of their maintenance scheduling and financial reporting systems.

Financing Options: Depending on your circumstances, we can explore various financing arrangements. Some clients opt for monthly payment plans, while others might benefit from revenue-sharing arrangements. We've also helped clients identify and apply for local business grants and R&D tax relief schemes that can significantly offset the investment.

Real Returns on Investment

The true value of custom software becomes clear when you look at the returns. Let's take a real example (with the numbers slightly adjusted for privacy):

A professional services firm was spending £24,000 annually on various software subscriptions. Their staff were spending roughly 25 hours per week managing data between these systems, costing approximately £18,000 in salary hours annually. Their custom software solution required a £35,000 investment but saved them £38,000 in the first year alone - and continues to save them money year after year.

Another client, a wholesale business, invested £45,000 in a custom inventory and order management system. They saw their order processing time drop by 75% and eliminated about £52,000 in annual costs related to inventory inefficiencies and manual processes. Their investment paid for itself in just 10 months.

Making an Informed Decision

We encourage potential clients to look carefully at their current situation when considering custom software. Consider:

What are you currently spending on software licenses?
How many hours do your staff spend on manual processes that could be automated?
What opportunities are you missing because your current systems can't support them?
How much is inefficiency costing your business?
What would it mean for your business to have systems that work exactly the way you need them to?

The Next Step

If you're wondering whether custom software could be right for your business, we'd be happy to help you run the numbers. We can look at your current costs, identify potential efficiency gains, and help you understand what kind of return you might expect from a custom solution.

We'll be completely honest with you - sometimes, after this analysis, we actually recommend sticking with off-the-shelf solutions for the time being. But often, businesses are surprised to discover just how achievable and worthwhile custom software can be.

Ready to Explore Your Options?

We invite you to schedule a no-obligation consultation with our team. We'll help you analyse your current situation and explore whether custom software could be a worthwhile investment for your business.