Custom ERPs: Are You Just Wasting Money?
Introduction: The ERP Dilemma
Hey there Founder!
Every growing business eventually reaches a point where managing operations through spreadsheets, disconnected tools, and manual processes becomes inefficient. You aren’t special – we all go through this. Enter night… Enter ERP systems the all-in-one solution that streamlines workflows, improves efficiency, and provides better visibility into business operations. Kind of… These ERPs also often cloud a business in a sense of false security, thinking their operations are well laid out but in actuality if the foundations are rotten, the ERP will just amplify that.
But when it comes to choosing an ERP, many businesses face a crucial decision:
1?? Adapt an existing ERP system (often cheaper and faster but lacking key elements crucial to their own business)
2?? Build a fully custom ERP (expensive and time-consuming but personalized)
Many companies insist that their business is “too unique” to use an existing ERP solution. But is that really the case? Or is it just ego making you think you’re the exception?
The Myth of “Our Business is Unique”
It’s easy to believe that your company operates in a way that no off-the-shelf software could ever accommodate. I mean it is your baby after all and don’t all others simply pale in comparison? But let’s be honest so we can help you – 90% of businesses share the same fundamental needs, such as:
?? Inventory and order management
?? Financial tracking and reporting
?? CRM and customer interactions
?? Marketing Strategies & Content Calendars
?? Automated workflows and integrations
?? And a couple more functionalities, not to name them all, but there are roughly ten that repeat themselves across the board.
While every company has specific processes, the reality is that most operational needs are not as unique as you think. In many cases, existing ERP solutions can be easily customized to match your workflows, without requiring an expensive from-scratch development. Herein lies the problem. A lot of companies that hire dev-teams to build them custom solutions force them to build it from scratch. Every time a new update is required guess what it means? Thousands of euro down the drain and countless work-hours spent in sprints trying to get that software ready for you.
So, When Should You Adapt an Existing ERP?
If your business follows standard industry practices and requires a system to manage common operations, adapting an existing ERP system is almost always the smarter choice. I mean – imagine a retail store? Or a manufacturing plant? Or a marketing agency? You think you’re one of a kind because of the way you handle certain things? Give it up and focus on simplicity and here’s why:
? Lower Cost – Off-the-shelf ERPs come with built-in features that save you the cost of developing everything from scratch and typically can be customized (somewhat) to fit your needs.
? Faster Implementation – No waiting months (or years) for a fully custom system. You can start using a proven solution almost immediately. All you really need to focus on is training your staff (and trust me, that’s a big enough issue for all as is).
? Scalability – Most modern ERPs offer modular solutions, allowing you to expand functionalities as your business grows. Trust me – you do NOT need to manage EVERYTHING through the ERP from day 1. Start simple so you can learn the basics. Maybe with an ERP system and help that one department (or one person) get used to the new tool. Then start migrating the rest. Change management is a massive thing and there’s reason it’s a profession for a lot of people.
? Continuous Updates & Support – SaaS-based ERPs are regularly updated with security patches, new features, and industry improvements. For us with our Notion ERP Done Right we also have the benefit of knowledge-sharing. If one client asks us to develop a new functionality, we not only do it for free, but we also then offer it to everyone else in-case this previously unthought-of update may be useful to others.
? Customization Options – Many ERPs offer configurable workflows and APIs to integrate with other tools or adjust to specific business needs. You want to pull data directly from your website so you can manage it all in one place (e.g. Notion)? Pretty much all ERPs allow some levels of integrations. To toot our own horn – with ours we offer to integrate your new Notion Workbook with whatever is needed for free as part of your subscription.
For 90% of businesses, adapting an existing ERP is the smarter, more cost-effective choice and there are obviously reasons to choose a Custom ERP too, but knowing the audience who are reading this – you’re not it. Trust me and save yourself that money.
When Do Custom ERPs Make Sense?
That being said, there are specific cases where building a fully custom ERP solution is the right decision:
?? Highly Regulated Industries – If your business operates in a niche with unique compliance and security requirements that no existing ERP meets then you may be forced into doing something by yourself. Think fin-tech, health-tech, edu-tech style businesses where regulation and compliance rule with an iron fist.
?? One-of-a-Kind Business Model – If your company’s core competitive advantage relies on an entirely unique process that existing systems seriously cannot support. I mean not just because you like what you do and you think you’re special. I can’t even name an example of this kind of a business model right now – that’s how rare this situation would be.
?? Complex Legacy Integrations – If your business relies on older, highly specialized systems that cannot integrate with off-the-shelf ERPs. Picture businesses that have been around since our times dwelling in caves. Maybe then this stuff works.
?? Language Barriers – Here’s something that hits home for a lot of my Eastern-European colleagues. What is common about all those big brand ERPs on the market? They’re typically in English and made for Western-European markets.
Here’s the catch – most businesses think they fall into at least one of these categories when they truly don’t. Many companies mistakenly believe they need custom software when an adaptable ERP would have met their needs at a fraction of the cost. I have a dear friend who has spent easily over 6-figures in building his own solution and every time he needs any changes made it costs him in the high 4, low 5-figures. The real issue? It's too expensive and too much of a hassle to go through the change-management process for all his employees to get a new solution in place.
The True Cost of Custom ERPs
If you’re still considering a fully custom ERP, let’s talk numbers.
?? Initial Development Costs – A custom ERP can cost anywhere from €10,000 to €500,000+, depending on complexity.
?? Ongoing Maintenance – You’ll need in-house developers or external consultants for updates, bug fixes, and security patches.
?? Long-Term Scalability Issues – Unlike SaaS-based ERPs, custom-built solutions don’t evolve with industry trends, meaning you may need to reinvest heavily in upgrades down the line.
?? Developer Dependency – If the developer or agency that built your ERP leaves, you could be left stranded with no support and good luck finding someone willing to invest in learning the inner-workings of your existing technical infrastructure to be able to edit and build on top of it.
Now compare this to a well-chosen existing ERP, where customization is included, updates are automated, and implementation costs a fraction of the price.
Our Approach: No Ridiculous Fees
One of the biggest reasons companies opt for custom-built ERPs is because they’re afraid of hidden costs, lack of flexibility, and poor support in off-the-shelf solutions. That’s exactly why our ERP solution offers:
? Free Onboarding – No expensive training sessions or setup fees.
? Free Customizations – We adapt the system to fit your needs without extra charges.
? Free New Functionalities – If you need a feature, we build it for everyone, not just for a single company at an absurd price.
Why should businesses pay a fortune for something that should be available to all?
Conclusion: Don’t Let Ego Drain Your Budget
Before deciding on a fully custom ERP, ask yourself:
?? Are my business needs truly unique, or can I adapt an existing system?
?? Could an existing ERP cover 90% of my needs with minor tweaks?
?? Am I willing to take on the long-term costs and risks of a fully custom solution?
More often than not, the better business decision is to adapt an existing system rather than reinventing the wheel.
If you’re still unsure, let’s chat. We’ll honestly assess your needs and help you decide whether you should go fully custom or customize an existing ERP—no unnecessary costs, no BS. ??
Good luck and get yourself a free consultation on your business needs today, Lenard
Supply Chain Executive at Retired Life
1 周Top ERP Failures – Enterprise Resources Planning. https://www.supplychaintoday.com/top-erp-failures/