What makes a custom software company a good fit for a small business?
A good fit is a provider that understands how your work runs: the steps, the exceptions, the approvals and the people. Company size and technology lists tell you much less.
| Tells you less about fit | Tells you more about fit |
|---|---|
| Company size or office count | The questions they ask about your process |
| A long list of technologies | A demonstration of one complete task like yours |
| Review counts and "best company" claims | A reference who can discuss delivery and support |
A nearby office can make meetings easier, but it does not replace a demonstration. If you are buying in North Texas, see what to check when hiring a Dallas software developer.
Before you contact anyone, name the one process you most want to fix, such as quoting. Custom software is built around a process, so naming one gives every provider the same target.
How do you compare software companies on equal terms?
Give every provider the same example and the same questions. Otherwise you end up comparing sales presentations instead of fit.
Pick one real record.
A quote, spreadsheet or job form from a typical job, plus one awkward exception.
Anonymize it.
Replace names, addresses and account numbers. Keep the structure and the odd cases.
Send the same pack to everyone.
The record, two lines on who uses it, and the same questions.
Ask how they would move it through your operation.
From arrival to the finished job.
Write down the questions they ask.
They show how well each team understands the work.
Listen for questions about exceptions, approvals, data ownership and the people who will use the system. For example:
- "What happens when the customer changes the order after approval?"
- "Who signs off, and what happens when that person is out?"
- "Who on your team owns this data, and who else needs it later?"
- "Who will enter this, and where are they when they do it?"
What should a software demonstration show you?
A useful demonstration completes a whole task, start to finish, on an example close to yours. An attractive home screen alone does not show that the software fits your operation.
For a manufacturer, that might mean following one record through every step:
- 1Create the estimate
- 2Revise it
- 3Approve the revision
- 4Release the job
During the demo, ask the provider to:
- Use your sample record, or one built to match it.
- Show the exception, not only the easy case.
- Show who can see and change the record at each step.
Read case studies the same way. When you browse any provider's portfolio of past projects, ours included, ask which project is closest to your process, and why.
How do you compare software development proposals?
Line up the scope first and compare totals last. A lower quote may leave out work that another provider has already included.
Scope check for each proposal
7 items
Then ask three ownership questions, and get the answers in writing:
- Who owns the custom code?
- Who controls the hosting accounts?
- How can we export our data?
A lower quote is not cheaper until the scope matches
Ask each provider which assumptions would increase the price. A quote that assumes clean data, no imports or no training can look lower on paper and end up costing more. Compare the assumptions as carefully as the totals.
To see why quotes for similar work can differ, read what drives custom business software cost.
How do you make the final choice between providers?
Score every provider on the same criteria, then call a reference from a project like yours. Ask how delivery and support went, including what went wrong and how the provider handled it.
Try this yourself
The six-point vendor scorecard
Set this up before your first call. Right after each meeting, score that provider from 1 (weak) to 5 (strong) on each line.
- Workflow questions. Did they ask about exceptions, approvals, data and users?
- Demonstration. Did they complete a whole task, or only show screens?
- Written scope. Are deliverables, assumptions and exclusions written down?
- Ownership. Is it clear who owns the code, who controls hosting and how you export your data?
- Testing. Will they test with your real examples, including the awkward ones?
- Support. Is support after launch defined: what is covered, and for how long?
Total each provider out of 30. As a rule of thumb, treat a 1 or 2 on scope or ownership as a stop sign, whatever the total.
Ask each provider what happens between the first call and a signed agreement. OpenCollar's onboarding steps, from first request to kickoff, are one example to compare against.
Once you have picked a provider, the agreement shapes the day-to-day work. See what to agree with a software development partner before work starts.
