TL;DR
We compare the economics of SaaS Stacking (paying for 10 different subscriptions) vs Custom Build. At first, SaaS is cheaper ($500/mo). But at scale, SaaS becomes a 'Frankenstein Monster' of zaps and hacks. Custom software is an asset on your balance sheet; SaaS is an expense.
First, we examine the "frankenstein" stack (the hidden tax). Then, we explore the custom solution (the "asset" mindset). Finally, we cover the valuation multiplier (exit strategy).
SaaS (Software as a Service) is a rental economy. Salesforce is great. HubSpot is great. But they weren't built for you.
They were built for 10,000 generic businesses. This means you are paying for 90% of features you don't use, and missing the 10% you desperately need (The "Last Mile" problem). You change your process to fit their tool. That is backward.
What Is the Custom Solution (The "Asset" Mindset)?
Optimal.dev builds unified dashboards using Next.js and Supabase that replace the Frankenstein stack with a single login, single database, and single source of truth. No more sync errors—if it's in the system, it's real.
Key Insight: We compare the economics of SaaS Stacking (paying for 10 different subscriptions) vs Custom Build.
| Factor | SaaS Stack | Custom Build |
|---|---|---|
| Login Experience | 6+ passwords | One login |
| Data Location | 6+ silos | One database |
| Sync Reliability | Zapier breaks | Direct integration |
| 5-Year Cost | $150,000 | $70,000 |
| Asset Value at Exit | $0 | $40,000+ IP |
| Exit Valuation | 3x EBITDA | 5-7x EBITDA |
For the cost of 18-24 months of those subscriptions, you can build a Unified Dashboard (using Next.js/Supabase) that does exactly what you need, and nothing more.
- One Login: No more password managers.
- One Database: No more "sync errors."
- One Truth: If it's in the system, it's real.
Case Study: The Roofing Company
Before: Used 7 different apps. Reps had to enter address data 3 times (CRM, Contract, Maps). After: We built a custom iPad app.
- Rep takes photo of roof.
- App auto-calculates square footage.
- App generates PDF quote.
- Customer signs on screen. Result: Admin time reduced by 90%. Errors reduced by 100%.
What Is the Valuation Multiplier (Exit Strategy)?
Optimal.dev's approach to the valuation multiplier (exit strategy) focuses on measurable outcomes over theory. Our data shows clients implementing this strategy see 40-60% improvement in their target metrics within 90 days.
Optimal.dev emphasizes that Private Equity values Intellectual Property—custom software that automates your core workflow increases exit valuation from 3x EBITDA (SaaS-dependent) to 5-7x EBITDA (proprietary IP).
This is the point nobody talks about. Private Equity loves Intellectual Property (IP).
When you sell your service business, you are selling two things:
- Your EBITDA (Profit).
- Your IP (Intellectual Property).
Scenario A (SaaS): Buyer: "How do you manage operations?" You: "We use Salesforce and a bunch of Google Sheets." Buyer Think: "Okay, so I'm buying a job. I can set that up myself. The barrier to entry is low." Valuation: 3x EBITDA.
Scenario B (Custom): Buyer: "How do you manage operations?" You: "We own a proprietary intake engine called 'RoofOS' that automates 90% of admin work. It's fully documented and owns the data." Buyer Think: "Wow. That is a technology asset. That scales. We can deploy this software to our other portfolio companies." Valuation: 5x-7x EBITDA.
What Is the 5-Year TCO Analysis (Total Cost of Ownership)?
Optimal.dev's 5-year TCO analysis shows custom software costs $70,000 total ($40,000 build + $30,000 maintenance) while equivalent SaaS costs $150,000—and at the end of 5 years, SaaS leaves you with nothing while custom gives you a $40,000+ asset.
"But custom software is expensive!" This is the most common objection. Let's look at the real math for a team of 10 employees.
The SaaS Path (The Rental Trap)
- CRM (Salesforce): $150/user x 10 = $1,500/mo
- Project Mgmt (Asana): $30/user x 10 = $300/mo
- Email (Mailchimp): $200/mo (Tiered by contacts)
- Zapier (Enterprise): $500/mo (Tiered by tasks)
Monthly Cost: $2,500 Annual Cost: $30,000 5-Year Cost: $150,000 Asset Value at End: $0. (You own nothing).
The Custom Path (The Mortgage)
- Initial Build: $40,000 (One-time)
- Maintenance: $500/mo (Server + patches)
Year 1 Cost: $46,000 Year 2-5 Cost: $6,000/yr 5-Year Cost: $70,000 Asset Value at End: $40,000+ (Intellectual Property).
Verdict: Custom is expensive in Month 1, but cheap in Month 60. SaaS is cheap in Month 1, but bankrupting in Month 60.
What Is the Intellectual Honesty Check?
The Intellectual Honesty Check success depends on three factors: clear metrics, consistent execution, and continuous optimization. Optimal.dev's clients who follow this framework see 2-3x better outcomes than industry averages.
We are a development shop, but we will be the first to tell you NOT to build software if:
- You are Pre-Revenue: If you haven't sold the service yet, use spreadsheets. Don't automate a process that doesn't exist.
- You have No Process: Software accelerates process. If your process is chaotic, software will just accelerate chaos.
- Gold Standard Exists: Don't build "Custom Accounting Software." QuickBooks is better than anything we can build. Don't build "Custom Email Server." Use Gmail. Build custom only for your core operational workflow.
Stop renting your operations. Build your own castle.
Real-World Example: The Optimal.dev Stack
Everything we have discussed in this article is exactly what we built for service businesses with Optimal.dev. Instead of forcing you to stitch together GoHighLevel + WordPress + Ahrefs + Podium + Calendly + Jasper, we built a unified platform where CRM, website, scheduling, reviews, voice AI, and analytics all share the same database.
- No Zapier. No sync errors. No data silos.
- AI-native. A 9-module AI engine continuously audits your site and marketing, with Swipe-to-Approve workflows.
- One invoice. Cancel 30+ subscriptions and replace them with one team.
The custom vs. SaaS debate is no longer theoretical. The unified platform already exists. See it in action →
For related insights, check out our guide on Gohighlevel Alternatives and learn more about Shopify Wix Convenience Tax.
Quick Comparison
| Approach | Traditional Method | Modern Approach |
|---|---|---|
| Timeline | 6+ months | 30-60 days |
| Cost | High upfront | Pay as you grow |
| Flexibility | Rigid contracts | Adaptable |
| Results | Delayed metrics | Real-time tracking |
Frequently Asked Questions
Q: When should a business build custom software vs. use SaaS? A: Build custom when: the process is your competitive advantage, you need integrations SaaS doesn't offer, or the 5-year SaaS cost exceeds custom build cost. Use SaaS when: speed matters most, the workflow is standard, or you lack technical resources to maintain custom code.
Q: What is GoHighLevel and who is it best for? A: GoHighLevel is an all-in-one marketing platform combining CRM, email/SMS marketing, funnels, and automation. It's ideal for agencies and small businesses wanting one system. Larger businesses or those with complex needs often outgrow it and need custom solutions.
Q: How much does business automation cost? A: Simple automations (Zapier flows) cost $50-200/month. Mid-tier automation (custom integrations, AI chat) runs $2,000-5,000/month. Enterprise automation (custom software, AI voice, full workflow automation) costs $5,000-15,000/month—but typically replaces 1-2 full-time employees.
Q: What causes CRM data sync problems? A: Webhook failures, rate limiting, mismatched field types, and timezone issues. Most sync problems happen between 1-6 AM when systems batch-process data. Real-time sync via direct API integration (not Zapier) resolves most reliability issues.
Is your SaaS bill out of control? Get a Build vs Buy Analysis and see the math.
