NSBA PARTNER - Software Advice | The High Cost of Regretful Software Purchases for Small Businesses

NSBA is privileged to partner with Software Advice as a supporter of small business and their evolving software and digital needs.

Regretful software purchases are a common and costly problem for businesses of all sizes, but the consequences vary significantly depending on the size of the organization. According to Capterra’s 2024 Tech Trends Survey, small businesses (defined as those with 5 to 249 employees) are particularly vulnerable to the financial impact of these decisions.

That’s where new NSBA-Partner Software Advice comes in. They help small businesses cut through the noise by offering free consultations to help identify software options that align with your unique needs and budget

For small businesses, every dollar counts. Operating on tight budgets and thin margins, they cannot afford to make expensive mistakes when it comes to investing in new technology. The survey highlights that the leading cause of regret among small business software buyers is a higher-than-expected total cost of ownership. When a software purchase fails to deliver value or comes with hidden costs, the financial strain can be significant, sometimes even threatening the viability of the business itself.

This acute sensitivity to cost shapes how small businesses approach the software buying process. Unlike larger organizations, small business buyers are less likely to stick with their initial list of vendors once they begin to factor in pricing. Only 28% report that they almost always buy from their initial vendor list, suggesting that affordability often trumps initial preferences. Additionally, small businesses are less likely to attend software demos, with only 28% doing so to gather product information. This may indicate that many options are eliminated early in the process due to cost concerns, limiting the opportunity to fully evaluate potential solutions.

Despite the high stakes, small businesses are also the least likely to take remedial action after a regretful purchase, such as canceling contracts or requesting refunds. This reluctance could stem from a lack of resources, time, or knowledge about how to navigate such processes, leaving small businesses to absorb the financial loss.

The findings from Capterra’s report underscore the importance of a careful, informed approach to software selection, especially for small businesses. By prioritizing budget and thoroughly vetting options, small business owners can avoid costly mistakes and ensure that their technology investments support, rather than hinder, their growth.

If you’d like expert guidance in finding software that truly fits your business, both in functionality and cost, schedule a free 10-minute consultation with Software Advice. They’ll help you quickly identify the best options for your needs, cutting through the clutter and eliminating solutions that won’t benefit your business. Let them save you time, money, and frustration by making your software search simple and effective.