Insights

How much does a custom system cost a small business?

The honest answer is that it depends. But it depends on things you can understand and influence. Here I go through what drives the cost, how you can start small, and when off-the-shelf software is the better choice.

Why there is no fixed price

A custom system is not a product on a shelf. It is built for how your business works. A simple internal tool for registering orders is a completely different job from a customer portal with login, payments and a link to the accounting system.

That is why it is hard to give a price before knowing what needs to be solved. Anyone who promises a fixed price without understanding the need is guessing, and that guess usually ends up expensive for one of the parties.

What affects the cost

A few factors almost always decide how big the job is:

  • How many different workflows the system must handle, for example booking, orders and invoicing.
  • How many users and roles there are, and who can see what.
  • Connections to other systems, such as a web shop, accounting system or CRM.
  • Whether the system must work on mobile, for staff out in the field.
  • Requirements for reports, export to Excel and PDF, or dashboards.
  • How much existing data has to be moved over from Excel or an old system.

Start small: a first version (MVP)

The best way to keep both cost and risk down is to start with a first version, a so-called MVP (minimum viable product). It solves the problem that takes the most time today, and nothing more.

Once the first version is used for real, you quickly learn what works and what is missing. Then you build on what is actually needed, instead of what you thought was needed at the start.

  • Pick one workflow that takes a lot of time or causes many errors.
  • Build the simplest thing that solves exactly that.
  • Review after a few weeks of use and decide the next step.

Off-the-shelf software or your own system?

Off-the-shelf software is often cheaper to get started with, and for many small businesses it is more than enough. Your own system becomes interesting when the standard software only fits part of the way and the rest is handled in Excel, email and manual work.

There is also a middle ground: keep the software you already have and build what is missing around it, for example an integration or a small tool.

  • Off-the-shelf: quick start, but you adapt to the software.
  • Own system: fitted to your workflows, but needs a bigger effort at the start.
  • Middle ground: keep what works and add what is missing.
  • Whatever you choose: think about support and further development, not just the first delivery.

How I usually work

I have more than 13 years of experience designing and delivering business systems and have worked on 30+ projects for clients in several countries. I always start with requirements and a feasibility study before anything is built, and you get a clear quote and delivery plan. I have also done feasibility studies that weighed in ready-made solutions such as Power BI and Microsoft Dynamics 365, so the choice between off-the-shelf and custom is well thought through.

Want to know what your particular need would involve? Book a free 15-minute meeting and we will look at it together. Read more about custom systems.

Services

Frequently asked questions

Can I get a rough price right away?

It depends on the scope. After a short conversation I can usually say what order of magnitude we are talking about, and after a feasibility study you get a clear quote.

Do we have to build everything at once?

No. It is usually better to start with a first version that solves the most important problem and build on from there.

What happens after delivery?

A system needs support and further development. It is good to plan for that from the start, so it does not come as a surprise.

Shall we meet for 15 minutes?

Tell me what takes up unnecessary time. I drop by in Örebro or we talk remotely – free of charge.