How do you know you need customized software?
If you find you have to work around your current software, because it does not
do exactly what you want, or if you're simply unhappy with the way the computer
works then you may need a specialized software package. There are a lot of good
canned software on the shelf, but it may not always work for every situation.
By working with a company's staff and management as a team we can help you
determine if you're getting enough out of your systems, both hardware and
software, or whether a more unique approach is needed.
Why spend the money?
There is really only one reason to spend money and that is to make money. In
the world of business, those who do well have determined when to spend it and
when to hold on to it. There are two rules-of-thumb to follow. First, when
putting out a software package for retail sale, it only has 18 months of life
from conception. You may get more, but unless you make improvements then its
time is limited. Second, if you are creating software to run your business,
then make sure you can recover the cost of the software in a year or less. It
may not be easy to determine your recovery time based on the realized income
vs. the unrealized income.
Realized Income vs. Unrealized Income
Realized income is easy to determine. The customized software clearly adds to
your bottom line, for example, by attracting new clients. But unrealized
income is not so easy. Say, for example, that the new software saves 5 of your
employees 12 minutes a day. That doesn't seem like very much, but that's time
you don't have to pay for or time they can do something else. Now let's say
those employees make $5 per hour each. Five employees at 12 minutes a day is
an hour a day times 260 working days a year. That's $1,300. If it only cost
you $800 for the software then you've made money! Not easy to see, but an
increase in money is an increase in money, no matter where it comes from. Now
if you had 50 employees or 500 or …, well, try it for yourself with the
Customized Software Savings Calculation below.