Software for Startups: When to Build vs When to Buy

Startups often need to move fast. And without the right digital tools and software to support their goals, time and money can be wasted. It can also be quite the challenge to find the software that checks out every box when it comes to their needs, so the question “Should we just build our own software instead?” often pops up. The decision isn’t easy or straightforward. Things like budget, timeline, and long-term goals are important aspects to consider here.

From what we’ve seen, the more useful question is actually a different one: Which choice helps us move forward right now, without creating a bottleneck three months from now?

And this is what this article is here to unpack. We’ll look at the parts of the decision founders often overlook, the moments when buying is a fitting solution, and the situations where building genuinely pays off.

What It Means to “Build” Software

Building software for your startup doesn’t mean copying a script or a template and trying to make it work for your business. Custom software is about creating something custom, from the ground up, that fits your startup’s product and workflow.

Most startups consider custom software at the point where off-the-shelf solutions just don’t work anymore, because of missing features or when they need a completely new way for users to interact with their product.

When you have your own custom software, you take full ownership of the roadmap. This means that every feature, release, or small tweak happens under your terms, not the vendor’s. There’s also no waiting for updates or improvements, because you control everything, and this can make things easier, but at the same time, more challenging, too.

Building your own software often takes longer than expected, even with the best software development team and the most straightforward MVP. What sounds like a two-week sprint often turns into a month or more, simply because real products are always messier than the whiteboard version.

For great custom software, you need the right people. And we’re not talking just developers - sometimes you need DevOps to set things up properly, designers for the interface, or maybe even a QA. The more polished you want your product to be, the more roles will need to get involved.

Then there’s the part that many businesses forget or underestimate: maintenance. It’s just as important as the development part. A feature that works great today might break tomorrow because of library updates, API changes, etc. Unexpected issues can happen, and maintaining your product keeps your users happy.

But all this effort comes with a payoff. When you choose to build, you get the flexibility that no off-the-shelf tool can match. You are in charge and can shape the product based on your business needs and users, or even experiment with new ideas. That’s what makes custom software powerful.

What It Means to “Buy” Software

Sometimes, buying is a better option when it comes to startup software development. It means choosing a tool that already exists and addresses the needs of a variety of businesses. This can be a convenient solution when you need something functional ASAP without writing a single line of code. And when you’re in early-stage chaos, it can really be a lifesaver.

The biggest advantage of buying software is speed. You can get a working solution in minutes instead of weeks or months. You also don’t spend time deciding on architecture, features, or debugging at midnight. You just pay the subscription fee, and you’re up and running. For a lot of early processes like analytics, email marketing, or payments, this level of convenience is hard to beat.

But the trade-off is that you’re working inside someone else’s box, using their features, roadmap, and their idea of “good enough”. This can work, especially when you need a quick solution, but you might find yourself bending your product to match the tool instead of the other way around. And at some point, the tool stops saving you time and starts slowing you down.

And then there’s the cost side. Usually, when you buy software, there’s a monthly fee, but you might also need to pay additionally according to the number of users or data you manage. Relying on a single SaaS product can also be risky in the sense that you create kind of a “lock-in”, which makes migrating painful and expensive.

Still, for many teams, especially in the beginning, buying is the smartest move, as it allows them to test ideas quickly and keep momentum. And in the early stages, momentum is everything.

Key Factors to Evaluate

Once you get past the typical surface-level pros and cons, the build or buy decision really comes down to a few factors that matter way more in real life than whatever shows up in comparison charts. These are the things founders consider when they’re trying to move fast without making a decision they’ll regret in 6 months.

How fast you need to move

Speed is usually the biggest decision factor. If you need a working solution by next week, the choice is obvious. Buying can get you started quickly. But if this feature ends up being the core to your product, building is probably a better choice long-term. So, consider how fast you need a working solution, but also think about your long-term goals.

How unique your product logic is

If your workflow is unusual or part of what makes your startup different, buying can feel like trying to fit your unique idea into an existing template. Tools are built to fit a large variety of businesses, not for the exceptions. The more custom your logic is, the higher the chance you’ll outgrow a SaaS tool.

Your team’s actual bandwidth (not the ideal version)

Think about what your internal team can actually handle. Most development teams have limited time and are already juggling multiple tasks, such as product work, fixes, or technical debt. And if building a new product from scratch means delaying working on core features and improvements, then buying becomes a more responsible choice. That’s usually the moment when teams look for software development services for startups. But if your team is strong and available, building your own software will definitely pay off in the long run.

Total cost (not just the price tag)

At first, buying might feel like the cheaper option, until you add up per-user fees, usage-based pricing, add-ons, or extra fees for enterprises. Building feels expensive until you consider the long-term savings of owning the thing outright. Neither is inherently cheaper, but you need to look beyond just the price tag when comparing the two options cost-wise.

How often requirements might change

In startup software development, chances are that the requirements might change over time. Buying is safer when your needs are stable. But if you know that in the future, meaning in the next quarter, you might need extra features that will be essential for your product, owning the code can save you from a lot of workarounds inside a SaaS tool.

The risk of getting stuck later

Vendor lock-in is real. And expensive. Startups often make the mistake of not thinking long-term and buy the solution that fits their workflow momentarily. Then comes the moment when they need to switch, which can be a long and messy process. Buying might be the quickest solution, but it can make switching complicated later.

Hybrid Approach: Build on Top of Existing Tools

In our experience, most teams end up using the combination of the two. This means they usually start with an off-the-shelf solution and later on, when their needs change or become more specific, they build their own software. Or, another example would be using off-the-shelf software for different things, but building their own for the stuff that really matters.

This mix works very well and gives you a nice balance: you move faster, while in full control of your core product.

And if you ever outgrow a tool later, it’s not the end of the world; you still won’t have to deal with a full rebuild.

Conclusion

As with a lot of decisions in software development, there isn’t a right answer to the build-vs-buy question either. Every startup has its own mix of time pressure, budget limit, along big ideas, and those things shift quite often.

What really matters is being honest about what you’re trying to achieve, what your priorities are. If speed is important, buying might be a better choice, but if your product is unique, building can give you much more freedom and control. But if you’re like most startups, you’ll do a bit of both.

At the end of the day, software is never “finished”. You’re always tweaking, fixing, replacing, and improving. The best thing you can do is to choose the option that helps you learn and validate faster, and keeps you moving without locking yourself in.