Buying Software for Small Business

Author: Cameron Moses

Software that works for your company can mean the difference between struggling with an every increasing pile of paperwork and growing a successful small business.

One of the first steps you should take before purchasing software for your business is to gather as much information about what you hope to achieve by using the software. Break down your list of wants and needs into those that the software must have and those that would be nice to have. Remember to think about where your business will be in five years. The software you purchase now should also meet your needs well into the future. If you haven’t done so already, write a business plan, so you have an idea of what your business will look like in five years.

Small to Medium Enterprises (SME)

The software needs of every SME are different; however there are some generalisations that can be made.

Typical Requirements:

  • Multiple users operating from a single location
  • Limited number of transactions per user per day
  • Records stored locally in a single database
  • Manual file backup/restore from CD/Tape media

There are two different paths you can take when purchasing software for your SME. Firstly you can purchase software from a vendor, usually from a retail outlet or via the Internet. This is known off-the-shelf (OTS) software.

The second alternative is to have your software custom-built to exactly fit your business. This alternative is also referred to as bespoke software.

Off the Shelf Solutions:

OTS software is ready-made, mass-marketed software designed to suit as many business models as possible. The key benefit is cost. OTS software vendors spread development costs over a large customer base, so that the end cost to you is less. The drawback is that the software doesn’t always fit your business and you may have to modify how you do things, just because the software doesn’t support your current processes.

  • ACT!
    • Contact Management software
    • Numerous Add-ons available
    • Limited customisation opportunities
    • Pricing and information available from http://www.act.com/
    • Typical cost $300 (not including setup and customisation)

Custom-built Solutions:

Custom-built software has the advantage of fitting your business needs exactly, because you played an integral in determining how the software would operate. This means there is no need to change your current processes or add additional time-consuming steps, just to utilise OTS software.

The main disadvantage of custom-built software is cost and time. Even using rapid application development (RAD) techniques, developing software from scratch will take longer than OTS software. It will also cost more initially, however because some OTS vendors charge annual fees to continue using their software, the cost over the life of the software may not be significantly different.

  • Microsoft Access database
    • Designed primarily for desktop applications
    • Rapid Application Development – cuts down development time
    • Free ‘Runtime’ version available from authorised developers
    • Easily customisable
    • Easy installation and upgrading
    • Windows compatible
    • Typical development cost $2000-$4000

Large Enterprises

Typical Requirements:

  • Multiple users operating across multiple remote sites
  • Large number of transactions per user per day
  • Records stored remotely on specifically designed servers
  • Backup and recovery handled my Database Management System

Custom-built Solutions:

  • SQL Server
    • Robust database server
    • Applications can be created for desktop or internet environments
    • Applications created with a wide range of development tools, such as .NET
    • Development costs in addition to price of server components
    • Free ‘Express’ version available from Microsoft
    • SQL Server pricing is available from http://www.microsoft.com/sql/howtobuy/default.mspx
    • Typical development cost $50000-$100000 (plus SQL Server licences)
About the Author:
Cameron Moses is an experienced software developer and business analyst who specialises in creating custom-built software for small to medium sized businesses. For more information on small business software checkout some of the products he recommends.