ZAM

Owning Software

How owning your software changes the cost curve over time for small businesses

I've spent years working with owner-operated businesses, helping them rebuild their operations from the ground up. One thing I've learned is that the way you approach software can completely flip the cost curve of your business. When you're renting SaaS tools, it's easy to get caught up in the perceived convenience and low upfront costs. But over time, those costs add up – and you're often left with a patchwork system that doesn't quite fit your business.

The Problem with Rented SaaS

The issue with rented SaaS is that it's designed to be generic. It's built to serve the widest possible range of customers, which means it's rarely tailored to your specific needs. I've seen businesses try to shoehorn their operations into a SaaS tool, only to find that it's not quite the right fit. This leads to workarounds, manual processes, and a whole lot of frustration. And even if the tool mostly works, you're still at the mercy of the vendor – if they decide to change the feature set or raise the price, you're stuck.

I've worked with a business that had 16 departments, each using a different set of tools. We were able to replace 21 SaaS tools with a custom-built system that actually fit their workflow. The result was a significant reduction in overhead costs – and a system that actually worked the way they needed it to.

Owning Your Software

When you own your software, the cost curve looks completely different. Instead of paying ongoing rental fees, you're making a one-time investment in a system that's tailored to your business. This means you can avoid the ongoing costs of SaaS tools – and you're not locked into a vendor's pricing model. I've seen businesses achieve $0 ongoing cost for their software, which is a huge advantage when it comes to budgeting and planning.

  • Custom-built system tailored to your workflow
  • No ongoing rental fees
  • Avoid vendor lock-in
  • Ability to make changes and improvements as needed

Adding AI and Automation

One of the biggest advantages of owning your software is the ability to add AI and automation where it makes sense. I've worked with businesses that have implemented 25+ AI agents to automate routine tasks and free up staff to focus on higher-value work. This not only saves time and money but also helps to reduce errors and improve overall efficiency.

The key is to approach AI and automation in a thoughtful and strategic way. It's not about throwing technology at a problem and hoping it sticks – it's about understanding your workflow and identifying areas where automation can really make a difference.

Training and Improvement

When you own your software, you're not just buying a tool – you're buying a system that can evolve and improve over time. I've worked with businesses to train their teams on new systems and workflows, and it's amazing to see the impact it can have. With a custom-built system, you can make changes and improvements as needed, which means you're always getting better and more efficient.

The takeaway here is simple: owning your software can completely change the cost curve of your business. By avoiding the ongoing costs of SaaS tools and creating a system that's tailored to your workflow, you can achieve significant savings and improvements in efficiency. It's not always easy, but it's worth it in the end.