Bespoke Software Can Impact Valuation!
Bespoke software (Custom Software) is ideal for business owners on the lookout for ways to maximise the value of their company. They are taking full advantage of how the day-to-day costs can be reduced with great streamlining features and tools to create added value when taking the company to market.
An often overlooked opportunity is the investment in Bespoke Software to manage the workflows in a business. If, when buying a system, the software is developed as a custom build on a SaaS agreement (Software as a Service), the benefits can multiply, not only in streamlining your day-to-day costs but in the potential increase in value it creates when exiting a business.
The following points will look at how such an investment could improve your daily operations and impact your business’s commercial value when you decide to sell.
What is Bespoke Software?
Bespoke Software is simply a system built specifically to meet a business’s unique needs and challenges. It offers functionalities tailored to enhance specific workflows and improve operations unavailable to a COTS system.
Custom-Made – Designed and built specifically for a particular business or task.
Unique – Unlike Commercial off-the-shelf software (COTS), it’s tailored to fit your business needs precisely.
Flexible – Easier to modify or update as your business grows or changes.
Cost – Usually more expensive upfront but can be cost-effective in the long run, especially if it gives your business a competitive edge.
The SaaS Advantage
SaaS stands for “Software as a Service.” In a SaaS model, your custom software is hosted in the cloud, meaning you can access it anywhere and anytime via the Internet. The service provider handles Updates and maintenance, making it a convenient option for many businesses.
Why Bespoke Software Makes Sense:
Predictable Revenue Stream
The subscription model provides a regular and predictable income that appeals to potential buyers.
Lower Customer Churn
With constant updates and improvements designed with customers in mind, clients are likelier to stick around, lowering churn rates.
As long as you have an internet connection, SaaS can be easily accessed from anywhere, making your business appealing to remote users & buyers.
Reduced IT Expenses
Lower IT costs mean higher profits, making your business more valuable.
Advantages of Field Service Management (FSM)
- Task Automation – Custom software can automatically assign jobs to field teams based on location, skills, or availability.
- Real-Time Updates – Get immediate updates on job status, inventory levels, or client information.
- Comprehensive Reports – Generate reports focusing on key performance indicators (KPIs) that matter to your business.
Advantages of Job Management System (JMS)
- Efficiency – Streamline invoicing, quotes, and job scheduling to reduce manual processing.
- Client Portal – Include features like a client login, where customers can book or track services.
- Quality Control – Implement checkpoints for quality assurance right within the system.
General Benefits of Using Bespoke Software
- Integration – Easily integrate with existing software, like accounting or CRM systems.
- Scalability – As your business grows, the software can be updated without buying a new package.
- Competitive Edge – Stand out by offering features that generic software solutions don’t provide.
By tailoring the software to meet your specific needs, you’re not just investing in technology; you’re investing in the growth and efficiency of your business.
How Bespoke Software and SaaS Add Value for a Business Sale
Unique Selling Proposition (USP)
Proprietary software delivered as a SaaS can be a significant asset, setting you apart from competitors and providing that commercial edge.
The software is tailored to your business, making operations smooth and efficient, reducing the “clicks” – a strong selling point for many buyers.
Higher Profit Margins
Both bespoke software and the SaaS model can lead to higher profit margins. They are streamlining, Overhead efficiencies, Customer retention & more work output per day. Not to mention faster invoicing and improved cash flow.
Command a Higher Asking Price
You’re not just offering your current business but also a highly specialised tool delivered in a convenient and modern format, which can significantly increase your asking price.
Investing in Bespoke Software, primarily when delivered as a SaaS, can be a powerful way to increase your business’s value. Whether you plan to sell soon or down the line, these assets can make your business significantly more attractive to potential buyers.