Rent, Don't Build

Know what to rent and what to own in your business

I've spent years helping owner-operators rebuild their businesses from the ground up, replacing rented SaaS tools with custom-built operating systems. Through this work, I've learned that there are certain things you should never try to build yourself.

As an operator and founder, I've seen firsthand the benefits of owning software that's tailored to your specific business needs. But I've also learned that there are some areas where it's better to rent than to build. In this essay, I'll share my hard-won experience on what you should keep renting and never try to build yourself.

The Case for Renting

When I first started working with owner-operators, I thought that building everything from scratch was the way to go. But as I delved deeper into the world of SaaS and custom-built operating systems, I realized that there are some areas where renting is not only more cost-effective but also more practical.

For example, I worked with a business that had 16 departments, each with its own unique needs and requirements. Instead of trying to build a custom solution for each department, we decided to rent a few key SaaS tools that could meet their needs. This not only saved us time and money but also allowed us to focus on building the custom solutions that would give us a real competitive edge.

What to Rent

So, what should you rent and never try to build yourself? In my experience, there are a few key areas where renting makes more sense than building.

• Commodity software: If you need a piece of software that's widely available and doesn't require much customization, it's usually better to rent it.
• Specialized tools: If you need a specialized tool that's only used occasionally, it's often more cost-effective to rent it rather than building it yourself.
• Infrastructure: Unless you have a large team of experienced IT professionals, it's usually better to rent your infrastructure rather than trying to build and maintain it yourself.

The Benefits of Ownership

While there are certainly areas where renting makes more sense, there are also areas where owning your software is crucial. When you own your software, you have complete control over it and can tailor it to your specific business needs.

I've seen this firsthand with one of my clients, a ~200-employee owner-operated business. By replacing 21 SaaS tools with a custom-built operating system, they were able to eliminate $0 ongoing cost and focus on what really matters: growing their business.

Conclusion

In conclusion, knowing what to rent and what to own is crucial for any business. By renting the things that don't require much customization and owning the things that do, you can create a tailored operating system that meets your specific business needs and gives you a real competitive edge.