Ask Yourself These 7 Questions Before Spending More Money on Software
Lost in the "Should I buy?" software maze? From adaptability to negative reviews to a vendor's vision, key areas to explore before committing to a purchase.
The entrepreneurial journey involves a drumbeat of technology-related decisions, with none perhaps as pivotal as the strategic acquisition of software. This process can be hard because transparency is elusive, and the informational advantage often seems to favor the seller. Whether on the cusp of a significant investment or contemplating a strategic upgrade, you need to know what to look for, and what to ask.
Buying transcends a mere transaction; it's a pivotal partnership that can profoundly impact efficiency, innovation and overall success. Armed with the right questions, you can transform an otherwise daunting purchase into one that aligns seamlessly with your company vision.
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1. Ask about negative reviews
When it comes to just about any acquisition, astute entrepreneurs recognize the need to go beyond glossy presentations and promises. Negative reviews, which are often overlooked, can be a goldmine of insights. Before sealing any software deal, proactively explore the shadows of user experiences. The following question to vendors might shed some light:
"Can you share insights into the specific concerns raised in your negative reviews, and how your company evolved in response?"
This inquiry isn't just about uncovering potential challenges; it's a litmus test for the vendor's commitment to growth and client satisfaction. Their negative reviews aren't mere deterrents: Instead, they become stepping stones to improvement and collaboration. Deft responses show the software vendor wants to both grow and improve.
2. What's the best price they can offer?
Embrace the art of negotiation, certainly, while also recognizing that the best deals are often shrouded in the fine print. With a steady eye on budget constraints, put the following to the vendor:
"If I signed a contract tomorrow, what's the best price you could offer?"
When you exercise financial constraint, it not only tests their willingness to collaborate but also gives further insights into potential discounts, add-ons and hidden costs. Negotiating carefully helps both sides find a sweet spot and goes a long way towards ensuring that software not only meets day-to-day needs but also fits nicely within the bottom line.
3. Is it possible to sample without a long-term commitment?
Any entrepreneur trying to make more money than they're spending is interested not only in the functionality of a service but also in its flexibility. Vendors should know that if they let customers test the waters before diving into a long-term commitment, they may be more likely to make a sale. So, consider posing this:
"Is it possible to try out your product without locking into an annual/long-term contract?"
By exploring avenues for trial or other short-term engagements, owners gain firsthand insights into the software's performance and compatibility with their needs. This is also a good way to gauge whether the vendor understands how important hands-on experience is in decision-making. The ability to "try before you buy" not only builds knowledge but also a relationship in which both sides become more invested in success.
4. Access to current customers
The right choice involves more than vendor assurances and product demonstrations. A reasonable seller should acknowledge the power of firsthand knowledge, and so be happy to hear you ask:
"Can I talk to another customer about their experience?"
This is another gateway to valuable insights — the chance to connect with peers who perhaps share a similar business profile. Engaging with those who have navigated the same software landscape provides a beneficial perspective on the practicalities and challenges of implementation, as well as overall satisfaction. Peer-to-peer conversations help ensure the solution not only meets expectations but also resonates with real-world experiences of similar businesses.
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5. Company trajectory
The right software partner isn't just a provider, but a collaborator along your company's future path. It's only smart, therefore, to inquire as to where it's headed. One question might be:
"Is your company growing and building, or is it stagnating?"
Though seemingly straightforward (blunt, even), this aims to uncover the vendor's commitment to staying at the forefront of industry advancements. By framing the question cleverly, perhaps by inquiring about recent achievements or the company's future roadmap, you gain insights into its long-term vision. A vendor in growth mode is more likely to adapt to evolving needs, offer continuous improvements and provide necessary support over the product's lifecycle.
6. Future scaling
It's important to think beyond immediate features and make sure that software aligns not only with present needs but also with the dynamic future of an enterprise. Central to this foresight is this pivotal question:
"How does your software ensure scalability to accommodate our evolving demands?"
A good answer helps ensure that this investment will remain a reliable asset, even as operations scale. You can also delve into the realm of customization, seeking assurance that it can be reliably tailored as your needs evolve.
7. How does the service integrate with your product?
Seamless integration of software is a linchpin for efficiency and productivity. Entrepreneurs recognizing the importance of a cohesive tech infrastructure should ask:
"How does your software ensure seamless compatibility with our existing tools and systems?"
The response needs to go beyond surface-level assurances, delving into the vendor's experience with integration. So, consider as a follow-up question: "Can you share insights into your experience in this area, highlighting both successes and challenges?" The answer may offer a comprehensive view of the vendor's proficiency in navigating the complexities of diverse tech environments.
By actively engaging with potential partners and seeking peer insights, you transcend the transactional and forge real collaboration. As you make your choice, the questions shouldn't be mere checkpoints, but a roadmap to success — empowering you to make a pick that resonates with your business aspirations and propels sustained growth.
John Boitnott is a journalist and digital consultant who has worked at media companies for 25 years. He writes about startups, marketing and leadership at Entrepreneur, the Motley Fool, Readwrite.com, Jotform.com, and his blog.
This post appeared on Entrepreneur.com.