How to buy custom software without getting burned
Quick answer
Write down what the software must do and who will use it. Get quotes that price each part, not one lump sum. Make sure the contract says you own the code, and check progress against working software rather than promises.
Vastavik Bajpai , Founder
· 3 min read
Most bad software purchases go wrong before any code is written. The buyer did not know what they were buying, the seller did not say what they would deliver, and both found out at the end. This guide is the checklist we wish every client had before their first call with us, or with anyone else.
Start with the problem, not the product
Write one page in plain words. What slows your team down today? Who does the work, and where does the information live now? What would be different a year after the software goes live? You do not need technical terms. A developer who cannot work from this page is the wrong developer.
Decide whether you need custom software at all
If a ready-made tool does most of what you need, buy it. Custom software pays off when your process is genuinely different, when several tools no longer talk to each other, or when subscription fees keep growing. A good supplier will tell you when the honest answer is to buy off the shelf.
Ask for a quote that prices each part
A single number hides the trade-offs. A quote that lists every screen and feature with its own price lets you remove what you do not need, and shows you what the expensive parts are. It also makes it clear what a change will cost later, because the change is added to the same list.
Read the contract for these five things
- Who owns the code. It should be you, once the project is paid for. Read our guide on source code ownership.
- What is delivered and when. Named milestones with working software at each one.
- What happens after launch. Support hours, response times and the monthly cost.
- Third-party costs. Hosting, AI usage, payment gateways and paid components, listed separately.
- How to leave. Handover of code, documents and accounts, whatever the reason.
Check progress against working software
Ask to see the design before any code is written, then ask to see working parts at regular check-ins. A supplier who only shows slides until the end is asking you to trust rather than check. You should be able to click through your own software long before launch.
Plan for the first year, not the launch day
Software needs updates, backups and someone to call. Agree that before you start, so launch is the start of a working relationship rather than the end of one.
Where to go next
The other guides in this series cover what moves the price, how long projects take, how to pay and how to choose a company; the published ones are listed below. When you are ready, tell us what you need and a senior engineer will reply within one working day.
Questions people ask
Do I need a technical person on my side?
No. You need someone who knows how your business works and can make decisions. The supplier should explain everything in plain words.
How many quotes should I get?
Two or three is enough, as long as each one prices the same written scope. Quotes for different scopes cannot be compared.
What is the biggest mistake buyers make?
Starting without writing down what the software must do. Everything that follows is guesswork until that page exists.
Related pages
Pages people read alongside this one.
- How much does custom software cost?
- How long does software development take?
- Who owns the source code in a software contract?
- Fixed price or pay by the hour: which is better?
- How do you choose a software development company?
- Custom software or ready-made: which to buy?
- Custom software development
- SaaS development
The service this guide is about
More guides
Custom software or ready-made: which to buy?
Buy ready-made software when it does most of what you need and your process can bend to fit it. Build custom software when your process is the advantage, when several tools no longer talk to each other, or when subscription costs and workarounds are eating the savings.
How do you choose a software development company?
Judge a software company on how it works, not on its sales pitch. Ask who you will actually talk to, how it quotes, whether you own the code, what happens after launch, and ask to speak to a past client. The answers matter more than the size of the company or the length of its client list.
Fixed price or pay by the hour: which is better?
Choose a fixed price when the scope is clear and written down. Choose paying by the hour when the work is genuinely uncertain and you can watch it closely. Most business projects do best with a fixed price per part, which gives you a firm number for what is known and a clear process for what changes.