Why Small Businesses Need Custom Software (Not More SaaS)

Small businesses are drowning in SaaS subscriptions. $50/month here, $200/month there—it adds up fast. Before you know it, you're spending $30K+ annually on software that doesn't quite fit your workflow. There's a better way: custom software built specifically for your business.

Over 17 years, I've built custom platforms that replaced expensive commercial software for healthcare organizations, saving them over $150K annually. Here's why custom software often makes more sense for small businesses than another SaaS subscription.

The Real Cost of SaaS

Let's look at a typical small business software stack:

CRM: $100-300/month (HubSpot, Salesforce)
Project Management: $50-100/month (Asana, Monday.com)
Ticketing System: $80-150/month (Zendesk, Freshdesk)
Document Management: $50-100/month (Brandfolder, Bynder)
Employee Recognition: $200-400/month (WorkHuman, Bonusly)
Form Builder: $40-80/month (Typeform, JotForm)

Total: $6,000 - $15,000+ per year

And that's before you factor in:

Features you don't need but still pay for
Integration headaches between tools
Data scattered across multiple platforms
Learning curves for each new tool
Price increases year after year

When Custom Software Makes Sense

Custom software isn't always the answer, but it's worth considering when:

1. You're Using Multiple Tools for Related Tasks

If you're paying for three different tools that barely talk to each other, a single custom platform could replace all of them.

Real example: I built a ticketing system that replaced Zoho for a healthcare network. It included email-to-ticket conversion, automated routing, and integration with their existing systems—all for a one-time development cost that paid for itself in 8 months.

2. Your Workflow Is Unique

Off-the-shelf software forces you to adapt your process to their features. Custom software adapts to YOUR workflow.

Real example: Healthcare provider networks have specific compliance requirements that generic tools don't handle. I built network adequacy mapping tools and compliance portals that understood these unique workflows—something no SaaS product offered.

3. You're Paying for Features You Don't Use

Most SaaS products are bloated with features that 90% of users never touch. You're paying for enterprise features when you need basic functionality.

Custom approach: Build exactly what you need, nothing more. Start simple, add features as you grow.

4. Data Privacy and Control Matter

With SaaS, your business data lives on someone else's servers. Custom software gives you complete control and ownership.

Healthcare reality: HIPAA compliance isn't optional. Custom platforms let you implement security exactly how you need it, not how a vendor thinks you should.

The Economics of Custom Software

Let's break down the math:

SaaS approach for 5 tools:

Year 1: $10,000
Year 2: $10,500 (price increase)
Year 3: $11,025 (another increase)
Total over 3 years: $31,525

Custom software approach:

Development cost: $15,000 - $25,000
Annual maintenance: $2,000 - $3,000
Total over 3 years: $21,000 - $34,000

After 3 years, custom software has paid for itself. Every year after that is pure savings.

What I've Built (And What It Replaced)

Here are real platforms I've created and the commercial software they eliminated:

Ticketing System → Replaced Zoho ($1,800/year saved)

Email-to-ticket conversion
Automated routing and assignment
Status tracking and notifications
Integration with existing systems

Digital Asset Management → Replaced Brandfolder ($2,400/year saved)

IP-based access controls
Organized by category and tags
Easy upload and download
Secure sharing capabilities

Employee Recognition System → Replaced WorkHuman ($4,800/year saved)

AI-powered recognition suggestions (Claude API)
Peer-to-peer nominations
Department and company-wide visibility
Custom awards and categories

Survey and Data Collection → Replaced Typeform/SurveyMonkey ($960/year saved)

Custom survey builder
Real-time response aggregation
Automated reporting
Integration with existing databases

Workflow Management → Replaced Zip Flow ($3,600/year saved)

Provider tracking across states
Custom status workflows
Power BI integration
Audit-ready reporting

Total annual savings: $13,560+ (and that's just from five replacements)

The Build vs. Buy Decision Framework

Ask yourself these questions:

Is this a core business function? If yes, custom might be worth it.
Are we using less than 50% of the features we pay for? If yes, you're overpaying.
Do we have unique workflows that generic tools can't handle? If yes, custom adapts better.
Are we integrating 3+ tools to accomplish one task? If yes, consolidate with custom.
Will we use this software for 3+ years? If yes, the ROI is there.

Common Objections (And My Responses)

"But what if the developer leaves?"

Good documentation and modern frameworks mean other developers can maintain it. I've built systems that organizations maintain years later.

"SaaS gets automatic updates"

Custom software gets updates when YOU need them, not when a vendor decides to redesign everything and break your workflow.

"What about support?"

With SaaS, you're one of thousands of customers. With custom software, you get personalized support from someone who knows your business.

"Isn't custom software risky?"

More risky than betting your business on a SaaS company that might shut down, get acquired, or 10x their prices?

Start Small, Scale Smart

You don't have to replace everything at once:

Identify your most expensive SaaS tool with the simplest functionality
Build a custom replacement with just the features you actually use
Test it alongside the SaaS for a month
Cancel the subscription if the custom solution works
Reinvest the savings into the next replacement

This approach minimizes risk and proves ROI quickly.

The Real Value: Owning Your Tools

Beyond cost savings, custom software gives you:

Speed: No waiting for vendors to add features you need
Control: Change anything, anytime
Integration: Connect everything exactly how you want
Competitive advantage: Your competitors can't buy what you built
Data ownership: Your data stays yours, in your format

Who Should Build It?

You have options:

Hire a developer (employee or contractor) - Best for ongoing development
Partner with a development agency - Good for larger projects
Work with a technical co-founder - Ideal for startups
Build it yourself - Feasible if you have some technical skills

I started as an executive assistant who taught himself to code when I saw expensive problems that needed solving. The tools I built saved my employers six figures and gave me a career.

Conclusion

Not every small business needs custom software, and not every SaaS subscription should be replaced. But if you're spending thousands on tools that don't quite fit, if you're cobbling together multiple platforms to accomplish simple tasks, or if you have unique workflows that off-the-shelf software can't handle—custom software might be your answer.

The math is simple: Would you rather rent software forever, or invest once and own something built specifically for your business?

For many small businesses, the answer is clear. Stop paying for software you don't need. Start building software that actually works for you.

I've spent 17 years building custom software that replaces expensive SaaS for small to mid-size organizations. If you're considering custom software for your business, I'd be happy to discuss whether it makes sense for your situation.