SaaS, WordPress or Custom Software? What’s best for your business?

Is it time to say goodbye to Excel and finally automate the processes in your company? Imagine your business a few months from now. You and your employees have gained plenty of time, the necessary information is available in one place for everyone, and you’re wondering, “Why didn’t we do this sooner?” This vision skips the hardest part: making the choice between ‘before the change’ and ‘after the change. So, what can you choose from? There are three options: a license for ready-made software (SaaS), a WordPress-based solution, or developing your own custom application.

Read the article to learn about the pros and cons of each option.

Why haven’t you implemented improvements yet?

You or your employees spend dozens of hours each month on processes that could be automated or simplified. During that time, you could be focusing on tasks that help grow the company.

Such tedious and repetitive work is not only costly but also lowers employee satisfaction. In the long run, manual, repetitive tasks make employees less motivated, and they perform them even less efficiently than we’d like to admit. You know that improvements would benefit everyone.

So, why haven’t you done it yet?

Maybe the hardest part of the change—the so-called ‘messy middle’ of exploring options and making decisions—has been holding you back. The range of technological options is vast, and each has its pros and cons that need to be analyzed. This can make the decision-making process overwhelming, leading to paralysis.

First, you need to determine which approach will best suit your company’s situation and financial capabilities: A license for ready-made software (SaaS) A WordPress-based solution A custom-built application (“custom”)

Below you’ll find a brief overview of each of these options, with particular attention to the following aspects:

• Capabilities 
• Limitations
• Ownership 
• Speed 
• Costs

What exactly are “costs” when comparing different solutions?

When considering the choice between SaaS, WordPress, and custom software, it’s not just about which option has the lowest price on the invoice. The full picture matters.

Imagine your company has a Costly Problem that you’re looking to solve. Depending on your situation:

• Custom software can solve the entire Costly Problem
• SaaS can solve 70% of the Costly Problem.
• WordPress can solve 40% of the Costly Problem.

Even if a SaaS or WordPress solution initially seems cheaper than a custom-built application, what if it lacks a feature that is crucial to your team’s efficiency?

Every hour spent working around system limitations is a hidden cost that grows over time. True savings only become visible when we compare what we’re losing by not implementing the right tool.

It may turn out that investing in your own tailor-made application will be more beneficial than a “cheaper” off-the-shelf SaaS or WordPress solution, simply because only the custom solution can eliminate the problem that has been consuming the most of your team’s time.

Option 1: A License for Off-the-Shelf Software (SaaS)

SaaS (Software as a Service), also called off-the-shelf solutions, are basically ready-to-use apps that let you skip the whole process of building them from scratch.  SaaS is particularly popular in process automation because it requires no management of technical infrastructure or worrying about system updates.

Examples of such applications include Google Workspace, Salesforce, Slack, Asana, and LearnGO. Today, SaaS solutions are typically available via a web browser and don’t require installation on a computer (the exception being design programs like Adobe Creative Cloud).

Capabilities:
SaaS software offers a wide range of ready-made solutions to handle many business processes, such as CRM (customer relationship management), accounting, project management, or HR. If your business operates in a repeatable model (e.g., restaurant management, language schools, recruitment agencies), there is likely already a solution that addresses the challenges and specifics of your industry.

Limitations:
Your business might operate in a typical model for your industry, but it may still require features that go beyond standard offerings, such as an advanced loyalty program with analytical modules and personalized discounts. If your company requires custom functionality, off-the-shelf software may not be sufficient, and adapting it to your needs can be difficult or expensive.

Ownership:
With SaaS, you have minimal control over the functionalities and development directions of the software. Instead, you pay for access to a system that runs on the provider’s infrastructure. This means you are dependent on the provider’s licensing terms, updates, and pricing policies. While it’s a convenient option in terms of technical support, the lack of full control may limit flexibility, especially if the provider makes changes that are not in your company’s favor.

Speed:
One of the key benefits of SaaS is the speed of implementation. Instead of building a system from scratch, you can almost immediately start using it (plug-and-play), provided you don’t need additional integration with the systems you already use. The performance of SaaS depends on the provider’s infrastructure, server reliability, and how well the app is optimized.

Costs:
The initial costs of using SaaS are relatively low because you don’t need to invest in infrastructure or software development. The subscription model allows you to spread costs over time, which is advantageous for small and medium-sized businesses. However, over the long term, costs can increase, especially if you use advanced features or plans for large teams. For a large company or one with custom needs, creating a custom application may ultimately be more cost-effective.

Option 2: A Custom WordPress Solution

WordPress is the most popular CMS (content management system) that can be used to create a wide range of websites and applications.

Capabilities: WordPress is ideal for building corporate websites, blogs, online stores (with the WooCommerce plugin), and applications that don’t need to integrate with complex systems. You can extend its functionality by adding plugins that automate processes like reservation management, payment processing (WordPress has plugins for most payment gateways), and many others. This makes WordPress a flexible option, best suited for companies that don’t require very complex, custom solutions.

Limitations: WordPress is by nature a monolithic solution (i.e., not headless). This means that the front-end (user interaction) and back-end (logic and databases) are combined into one system. Integrations with other systems can be problematic or even impossible. WordPress won’t be suitable if your company needs advanced functions, such as a supply chain management application that automatically tracks inventory and optimizes delivery routes. Additionally, WordPress may struggle with handling high traffic and requires regular maintenance, especially when using multiple plugins. Too many plugins can lead to conflicts between them.

Ownership: WordPress is an open-source platform, which means that the applications built on it are fully owned by you. You have complete control over the code, allowing you to modify and adapt it as your company’s needs evolve. You can also move your website or application to any server and use it as you see fit. However, it’s important to note that many plugins may be paid or offer paid technical support, which could involve additional costs.

Speed: The performance of a WordPress-based application largely depends on the server it’s hosted on, as well as the optimization of the plugins and themes. WordPress, being a PHP-based system, is not the lightest solution, but with adequate resources and optimization, it can meet the expectations of small and medium-sized businesses. For more demanding applications handling large amounts of data, considering a dedicated server or additional optimization tools may be necessary.

Costs: The initial costs of implementing WordPress are higher than with SaaS, as you need to pay for the time of specialists who will create the solution from scratch. However, they are still relatively low compared to building custom applications from the ground up. With WordPress, you don’t have to pay a subscription, so the long-term costs are low.

Option 3: A Custom-Made Solution

Building software is often compared to constructing a house, and this metaphor applies here as well. Imagine you want to build a house on a very narrow plot, with a significant slope. There’s little chance you’ll find a ready-made design on the market that takes into account your unique situation. You need the help of an architect who, together with you, will create a tailor-made solution.
In the same way, you can design an application that perfectly fits your company’s needs. This is a good option for companies operating in specific industries, with complex business processes or that require custom functionalities.

Capabilities:
The technological possibilities are immense. In this case, “the sky’s the limit.” You can design a system that integrates with the software you’re already using (ERP, CRM, e-commerce platforms, etc.), supports custom processes, and provides a unique user experience.

Limitations:
The main limitations of custom-built applications are:

• Integrations with other systems, especially older ones that often lack documentation for seamless data exchange.
• The time and cost of developing the software.

Ownership:
With your own application, you have full control over its code, data, functions, and future development. The code created by the developers is entirely yours. You’re not dependent on the software provider*, and you can switch companies maintaining and developing your software, or hire your own developers at any time.
*as long as the provider didn’t implement very niche technologies.

Speed:
A custom-built application is designed specifically for your company, which allows for full control over optimizing every aspect of it – from the database to real-time data processing. It can be much faster than WordPress or SaaS because it can be designed for maximum efficiency, tailored to specific requirements. A well-written custom application on efficient servers can be extremely fast.
As for the development process, it takes significantly more time than deploying WordPress or SaaS. Building from scratch can take anywhere from a few months to a year, depending on the system’s complexity.

Costs:
The costs of creating a custom application are initially higher than with off-the-shelf solutions, but the investment can pay off in the long term – automation and optimization of custom processes in your company will save your employees time.
Once implemented, you won’t incur ongoing licensing fees (subscriptions) like with SaaS, which can be more financially advantageous for larger companies. You should also consider the costs of maintenance, development, and technical support, which may be a regular expense if the company doesn’t have an in-house IT team.

Why would you need ownership, and when you don’t

Ownership refers to having full control over the application. With complete control over the application’s code, you can:

• Modify and adjust the application at any time to meet changing needs. The code is yours.
• Save on long-term licenses: unlike the SaaS model, you don’t have to renew a subscription monthly or yearly, and your costs are limited to one-time maintenance fees.
• Change the software provider at any time or hire your own IT team to maintain and further develop your software. You are not dependent on a single provider.
• Sell the solution you created.

But do you really need ownership of the code? This might not be necessary if:

• You need standard solutions, and SaaS software can fully meet your needs (e.g., Asana, Jira, Hubspot).
• You want to launch the system quickly without the need for customization.
• You want to avoid the costs of maintaining IT infrastructure: in the SaaS model, the provider takes care of maintenance, updates, and security, so you don’t have to worry about these aspects or bear the related costs. You pay for access, and everything else is handled for you.

A list of questions to ask yourself if you’re still unsure:

1. What are my minimal but essential functional needs?
2. Is there SaaS software that solves my problem?
3. Are there WordPress plugins that solve my problem?
4. What processes will need to be automated in the future for the company to grow efficiently? Is this a 1-3 year perspective or longer?
5. How complex or non-standard are my current processes?
6. In a few months or years, will this option stop meeting my requirements, forcing me to completely change the solution?
7. What potential gains am I losing each month by not implementing a more efficient solution?
8. What key systems (CRM, ERP, e-commerce platform, accounting) would my new solution need to integrate with?
9. Does the selected solution have built-in integrations with the systems I currently use, or will additional work be required to create those connections?
10. Is it necessary to have access to the code to modify the software myself, or is a ready-made solution that meets my current needs enough?
11. What is my budget for the solution in the short and long term?
12. Will this option solve a real problem in my company?
13. What does the technical support and maintenance of the solution look like?
14. Which option is definitely off the table?

Summing up

There are many ways to improve the efficiency of your business. Among them, three categories stand out: SaaS, a WordPress-based solution, and a custom-built application. Each option offers different benefits but also comes with various challenges. Implementation speed, costs, and control over the software are just the tip of the iceberg. The most important thing is to choose a solution that fits your needs, both now and in the future. Ultimately, the right technology not only saves time and money but also allows your business to grow on its own terms.