5 Signs Your Business Has Outgrown SaaS

SaaS is brilliant for getting started. Twelve dollars a month and you have a CRM, ten dollars a month and you have a help desk, fifteen and you have project management. For the first hundred employees, it's almost always the right call.

Then something shifts. The bill climbs faster than headcount, your team is spending more time stitching tools together than using them, and the dashboards that would actually help leadership make decisions don't exist on any of the platforms you pay for.

Most companies cross this line gradually and don't notice for a year or two. Here are the five signals that say you have — and what the cost math looks like for moving past it.

1. Your SaaS bill is growing faster than headcount

If you tracked your per-seat SaaS spend monthly for the last two years and headcount over the same window, the lines should rise together. When the SaaS line pulls ahead — because tools are tier-up-ing you, adding "AI features" with price hikes, or your team is buying more tools — that's the first sign.

The compounding is brutal. An $80/seat tool with 8% annual increases and growing headcount goes from $24k/year at 25 seats to $165k/year at 35 seats over five years. A custom build of the same workflow runs roughly $55k upfront with light maintenance after. Breakeven typically lands around month 30.

2. You're stitching four or more tools together

Count the places your team copies data manually from one tool to another. Or the Zapier flows you've built that broke last quarter. Or the spreadsheets that act as middleware. Every stitch is a tax — on accuracy, on speed, on hire-onboarding time.

Custom software fundamentally collapses these stitches. Instead of CRM + ticketing + invoicing + email all knowing different versions of "the customer," there's one source of truth, designed for your actual workflow.

3. The reports leadership needs don't exist

You'd love to know which marketing channels drive customers with the highest lifetime value. Or which support tickets correlate with churn risk. Or which products are sold disproportionately by which reps in which regions.

SaaS gives you the reports the vendor decided their average customer needs. Custom software gives you the reports your business actually needs. The difference shows up in how fast leadership can make decisions.

4. Workarounds have become full-time jobs

Someone on the ops team probably has a calendar block called "Tuesday reconciliation." Or there's a Notion page documenting the seven steps someone has to take every time a customer onboards because no single tool covers it. Or the support team has a private Slack channel just for sharing the workarounds.

These are signs the SaaS isn't fitting your workflow — you're fitting your workflow to the SaaS. At small scale that's fine. Past a certain headcount it becomes expensive, and the people doing the workarounds are the ones who quietly burn out.

5. You've stopped using 40%+ of features you pay for

Open any of your SaaS admin panels. Count the modules, features, and integrations you're paying for. Then honestly count what your team actually uses.

If the answer is "we use about half," you're either paying for a tier you don't need, or — more often — the SaaS is shaped wrong for your business and you're paying for the parts that solve other people's problems.

What to do once you've crossed the line

Don't rip and replace everything. The right move usually looks like this:

Identify the one or two workflows that are actually differentiating to your business — the ones where being like everyone else is a disadvantage.

Build custom for those workflows. Leave SaaS for commodity stuff (email, accounting, comms).

Migrate gradually. Run new alongside old for 6–8 weeks, then cut over.

Build with ownership — your code, your data, your servers. Don't trade one lock-in for another.

If you want to ballpark the cost for your specific situation, our cost calculator gives a transparent range in 60 seconds. Or if you want the longer comparison, see Custom Software vs SaaS.