Picking Tech You Won't Outgrow
How to evaluate software so you're not switching every twelve months.
Notes from Randall Harper. Thirty years working alongside owner-operators, executives and boards — companies of all types and sizes — across entertainment & media, hospitality, service based business, lifestyle businesses, financial services, retail and not-for-profit, in Australia, Asia, the United Kingdom and the United States. What follows is the thinking I keep returning to.
Switching costs are usually invisible
Owners often pick the cheapest or shiniest tool, then discover within a year that they need to switch because it can't handle a slightly larger version of the business. The data migration, the team retraining, the customer disruption, the lost reporting history — the real cost of switching is usually multiples of what the new tool's price suggests. Picking carefully the first time saves disproportionately.
The questions to ask before subscribing
- What size of business does this tool serve well? Am I at the lower or upper edge?
- Where does the tool break down? Read negative reviews carefully.
- How clean is the data export? Can I leave when I want to?
- What does the tool cost at 2x my current size? Pricing curves matter.
- How is the customer support? Try contacting them before you sign up.
- Is the company financially stable, or might the tool disappear?
Buy for where you'll be in two years
The right tool is rarely the one that perfectly fits today; it is the one that fits today and still fits when the business is twice the size. Slightly over-buying — a tool that feels a little big at the start — is almost always cheaper than under-buying and switching twelve months later.
Avoid the bleeding edge
New tools with novel features and aggressive pricing are often genuinely innovative — and often disappear within two years, get acquired and broken, or pivot in ways that no longer fit your needs. For mission-critical operations, the boring, established choice is almost always the right one. Save the experimentation for marginal tools where switching cost is low.
Plan for inheritance
The best test of a tool is whether a new team member could become productive in it within a week. If the answer is no, the tool is too custom, too complex, or too poorly documented. Tools that depend on specific team members understanding them quietly become single points of failure. Pick tools your future self, or your future employee, could pick up cold.
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The contents of this paper are the opinion of Clear Point Advisory only. Readers should rely on their own judgement and obtain professional advice appropriate to their circumstances.