The Build vs Buy Decision for Startups

Every startup faces this question: Should we build custom software or use off-the-shelf tools?

Both paths have killed companies. Here’s how to think about the decision.

The Default: Buy First

Unless you have a specific reason to build, start with existing tools.

Notion, Airtable, Zapier, Webflow, Stripe, and dozens of other products are battle-tested, actively maintained, and cost a fraction of custom development.

A “no-code” stack of 5-6 tools can run surprisingly complex operations for $200-500/month.

When to Build Custom

1. Core Differentiation

If the software IS your product or creates your competitive advantage, build it. A fintech company shouldn’t use a white-label payment platform. A marketplace shouldn’t run on Shopify.

The test: Would using off-the-shelf solutions make you indistinguishable from competitors?

2. Integration Nightmares

Sometimes the tool combination you need doesn’t exist or creates fragile dependencies. If you’re spending 20 hours/month maintaining Zapier workflows that break constantly, the custom alternative starts looking attractive.

The test: Is the glue between tools becoming more work than the actual work?

3. Scale Economics

Off-the-shelf tools often price by usage. At small scale, this is cheaper. At large scale, it can be 10x more expensive than owning the infrastructure.

The test: Run the numbers at 10x your current volume. Does the math still work?

4. Data Control

Some industries require data to live in specific places. Some business models depend on owning user data. If compliance or strategy requires control, you may need to build.

The test: Are there non-negotiable requirements that existing tools can’t meet?

The Hybrid Approach

Most successful startups don’t fully build or fully buy. They:

1. Start with off-the-shelf tools to validate the business model
2. Identify pain points as they scale
3. Build custom solutions for specific bottlenecks
4. Keep buying for everything that’s not core

Example: An e-commerce company might use Shopify (buy), build a custom inventory management system (build), use Zendesk for support (buy), and build a custom recommendation engine (build).

The Hidden Costs

Building Underestimated Costs

• Ongoing maintenance (20-30% of build cost annually)
• Security and compliance responsibility
• Hiring and retaining technical talent
• Opportunity cost of building infrastructure vs. features

Buying Underestimated Costs

• Vendor lock-in and migration costs
• Feature limitations that force workarounds
• Per-seat pricing at scale
• Integration maintenance

A Decision Framework

1. Is this core to your business? → Build
2. Does a good solution exist? → Buy
3. Can you afford the maintenance burden? → Build only if yes
4. Is this urgent? → Buy now, build later if needed
5. At 10x scale, does buying still make sense? → Build if no

Our Recommendation

For most early-stage companies: Start with buying. Use the time and money saved to find product-market fit.

Once you have revenue and clarity on what matters, start building the pieces that give you an edge.

We help with both paths—setting up no-code systems that work, and building custom software when you’re ready for it.