6 Mistakes to avoid when buying business software

6 Mistakes to avoid when buying business software

Business software can help you automate repetitive tasks, enhance customer service, and improve your employees’ productivity and efficiency, among other benefits.

When buying software, however, it's not always easy to make the right decision, especially when there are a ton of options available in the market. To avoid this, we've listed the most common mistakes that businesses often commit when purchasing software, as well as tips on how you can avoid them.

1. Having the wrong objective

Some businesses looking to invest in a certain type of software only want one because every other company is using them. This is never a good reason to spend your organization’s money. The software you purchase must instead be able to help you eliminate pain points in your organization.

Identify your process bottlenecks and tasks that your staff are having the hardest time with. For instance, if your finance department is complaining about repetitive data entry work, consider buying software that will automate their tasks and make their jobs easier.

2. Not doing your research

It’s important to get an idea of how a software program works and if it fits your organization before investing in it. Will it accommodate the number of users you have in mind? Is it compatible with the devices and operating systems your employees are currently using? Talk to people who are currently using the software you’re interested in. Alternatively, you can read online reviews.

Also, check if the software offers a free trial. This helps you explore the program’s features and capabilities and see if it works well with your organization’s systems.

Related article: 7 Mistakes you must avoid when buying new IT hardware for your business

3. Purchasing customized software

Some small businesses think that they need a software solution that is fully tailored to their business. However, this can require various custom upgrades and security measures, which can be costly.

Instead, it may be better to purchase off-the-shelf software. These solutions are adequate for most businesses, and many of them can easily be tailored to meet various needs.

4. Not considering the total cost of ownership

The initial price of a software is not the only thing you should consider when making your purchase. You need to take into account other costs, such as subscription fees, installation fees, support and training fees, and upgrade fees.

Add up all these expenses so you can accurately estimate how much the software will actually cost you in the long run. This will help you budget better and avoid any financial surprises down the road.

5. Not having a clear picture of the return on investment (ROI)

Investing in business software is a big decision for any organization. As such, you need to have a clear understanding of the ROI you can expect from the software. To determine this, consider both the direct and indirect benefits of the software.

The direct benefits are those that are easy to quantify, such as the time and money you will save from using the software. Indirect benefits are harder to quantify but just as important, such as improvement in employee morale or a reduction in customer churn.

6. Not having a backup plan

Let’s say you have done your research and are confident that you’ve chosen the right software for your business. It’s still important to have a backup plan as things can go wrong during the purchase or implementation process. For instance, you can encounter data loss or find out that the software isn’t compatible with your system.

Your backup plan could be to revert to your old system until the new one is up and running or to have a contingency budget in case of unexpected costs. This way, you can avoid disruptions to your business operations.

Finding the right software for your business can be tricky. Thankfully, you can turn to a managed IT services provider like Founders Technology Group. We will thoroughly analyze your IT infrastructure and recommend the best software that will help your organization operate more efficiently. Talk to us today to learn more.