The Build vs Buy Decision Framework

Before you spend $50K on software (or $50K avoiding it)

Every business eventually faces the build vs buy decision. The wrong choice can cost you:

Months of development on something that already exists
Thousands in SaaS fees for features you'll never use
Vendor lock-in that holds your business hostage
Technical debt from hasty implementations

This framework helps you decide with clarity — not gut feeling.

The Evaluation Scorecard

Rate each factor 1-3 for your situation. Higher scores favor building custom.

Factor Buy Hybrid Build

Uniqueness of workflow

How different is your process from industry standard?

Competitive advantage

Does this process differentiate you from competitors?

Integration complexity

How many other systems need to connect to this?

Change frequency

How often does this process need to evolve?

Data sensitivity

How critical is it to own and control this data?

Long-term cost

5-year total cost: SaaS fees vs one-time build?

Internal capability

Can your team maintain this long-term?

Scoring: 7-11 = Lean Buy | 12-16 = Hybrid (Buy + Customize) | 17-21 = Build Custom

Red Flags to Watch For

These warning signs suggest you're heading toward a bad decision:

🚩

Annual contract, no exit clause

If they won't let you leave easily, they know you'll want to. Get month-to-month or at minimum a 30-day out.

🚩

"Unlimited" with asterisks

Unlimited users, unlimited storage — until you read the fine print. Know exactly what you're buying.

🚩

No data export option

If you can't easily export YOUR data, you don't own it. You're renting it.

🚩

Proprietary everything

Custom file formats, no API, walled garden. The harder it is to connect, the more trapped you'll be.

🚩

Build estimates without discovery

Anyone quoting a price before understanding your problem is either lying or inexperienced.

🚩

"We'll figure it out as we go"

Agile doesn't mean no plan. If there's no clear scope, expect scope creep and budget explosion.

5 Questions to Ask Before Any Decision

1

What happens when this vendor disappears?

Startups fail. Companies get acquired. Have a plan for migration before you need one.
2

What's the true 5-year cost?

Monthly fees compound. $500/mo = $30,000 over 5 years. Often more than a custom build.
3

Who owns the IP?

If you're building custom, make sure you own the code. No "work for hire" surprises.
4

Can I see it working before I commit?

Demos can be faked. Ask for a trial, a pilot, or references doing exactly what you need.
5

What's the cost of doing nothing?

Sometimes the answer is neither build nor buy. Quantify the problem before solving it.

The Decision Matrix

Buy (SaaS)

Off-the-shelf software that solves your problem well enough

Best when: • Standard workflow
• Speed matters most
• Low customization needs
• Short-term solution OK

Hybrid

Buy the foundation, build the connections and customizations

Best when: • Good core tool exists
• Need custom integrations
• Some unique workflows
• Want to own key pieces

Build Custom

Purpose-built solution owned entirely by you

Best when: • Truly unique process
• Competitive advantage
• High data sensitivity
• Long-term investment OK

Your Decision Summary

Scorecard total: _____ / 21

Red flags identified: _____ / 6

Recommended path: □ Buy □ Hybrid □ Build

Key factors driving decision:

Need help evaluating your specific situation? Let's talk through it.

Book a Strategy Call →