Many people think that custom software is too expensive for a small business to even
consider. This misconception is a shame (for both of us!) because a custom application can
save a company lots of money in the long run.
Let's assume you have a routine that an employee performs on a regular basis. This
routine involves finding information in files, calculating dollars, and entering
information in a journal. Let's assume this routine takes an hour to complete. If this
routine takes place only once per day, it happens about 250 times per year. At $10 per
hour, it costs you $2,500 per year to run this little piece of your business. Now assume a
conservative error rate of 2%, and apply it to each place where the person could make a
mistake (wrong file, wrong price, math error, etc.) and add the cost of those mistakes to
the $2,500. Now how much does that little routine actually cost? $5,000? $10,000? More?
Now let's assume it costs you $3,000 to have a piece of custom software written to
automates this routine. Instead of taking an hour, the software allows your employee to
perform the task in two minutes. The math is done by the computer. The lookups are done by
the computer. The journal entries are done by the computer. Places for human error are
reduced dramatically, and the time it takes to complete the task is cut to almost nothing.
Now what does it cost? And what will it cost next year, since you already own the
software?
Key Benefits
- Reduce overhead and/or increase capacity
- Reduce the number of areas affected by human error
- Increase your ability to monitor and control your business
