Don't Learn the Hard Way: A Survival Guide to Working with Software Development Agencies
It’s a common story: a business owner wants to build a new product or radically improve their operations with software. They can clearly see the value and they have the vision, but they don’t have an internal technical team, so they turn to a software development agency. Cut to six months later, and the business owner has dumped in countless hours and is left with a huge bill and a “solution” that doesn’t solve the problem. In the worst case, they’re left with nothing at all. They completely give up on the idea and go back to doing things the old way.
This happens all the time, but it doesn’t have to be this way. There are several common pitfalls to avoid when working with software development agencies. Avoid them and you’ll be able to see the transformative growth that custom software can unlock for your business.
1. Vague or incomplete requirements
This is the number one reason why projects fail. Often, the business owner or team has a compelling vision of what they want to do, but they don’t have a clear set of requirements for the functionality that they need in order to fulfill that vision. For example, a business owner might have a vision for a fully automated process for managing their relationships with their customers, allowing them to massively increase retention by regularly connecting with their customers. This is a great and viable vision, but it needs a set of clear features and workflows (for example, “prompt a manager to send a personalized thank you email drafted by AI to every customer after their first visit”) that can be built to make it a reality. Without clear requirements, the agency, who doesn’t understand the business nearly as well as the owner, will build something that doesn’t solve the problem. Additionally, it will be very difficult to know when the project is complete.
Turning a vision into a set of requirements is challenging, but with the right agency, it’s a lot easier. We spend a lot of time with our clients before a contract is even signed to understand their vision and their business, and work with them to define clear requirements for the project that are guaranteed to solve their problem. You should expect your agency, who are experts in building software, to help you translate your vision into a set of requirements that will solve your problem.
2. Poor communication about progress
Even with clear requirements, projects can go off track when there isn’t transparent communication about progress. Many agencies will send vague weekly updates like “making good progress on the customer dashboard” or “working through some technical challenges”, leaving you in the dark about what’s actually being accomplished. This uncertainty can stretch on for months until you realize you’re way behind schedule and over budget. You need specific updates that tie back to your requirements, business objectives, and agreed-upon project milestones.
What you should expect is regular demos of working features, not just status reports. Your agency should be showing you actual progress every week or two, letting you test new functionality and provide feedback. They should also be upfront about challenges they’re encountering and present clear plans for addressing them. If they can’t show you working software on a regular basis, that’s a red flag. The best agencies will also proactively flag potential issues or delays before they become major problems, giving you the opportunity to make informed decisions about priorities and tradeoffs. We schedule weekly demos with every client and track progress against milestones in a shared project dashboard, ensuring everyone stays aligned on both the details and the big picture.
3. Development team roadblocks
One of the most common ways projects fall behind schedule is when the development team gets blocked waiting for essential information or access. This might be waiting for approval to use certain systems, getting access to existing databases, or simply needing clarification on how a specific business process works. These delays can quickly add up, turning what should be a six-month project into a nine-month ordeal, with lots of headaches in between.
Your agency needs to be crystal clear from the start about everything they’ll need from you to keep the project moving forward. This includes technical requirements like hosting credentials and API access, but also business knowledge like detailed workflows and edge cases. When they do need something from you, whether it’s a quick answer about how refunds are processed or access to a critical system, being responsive is crucial. The best agencies will identify these needs early and help you prepare, but it’s a two-way street – they need your active participation to deliver the best results.
4. No plan for life after launch
The excitement of launching new software can overshadow a crucial reality: launch day is just the beginning. Many business owners view software development as a one-time project with a clear endpoint, but the truth is that all software needs ongoing attention. Even the most thoroughly tested applications will have bugs that only surface with real-world usage, and as your business grows, you’ll discover new requirements and opportunities for improvement.
This is why having a clear post-launch plan is essential. You need to know who will handle bug fixes, make necessary updates, and implement small improvements as your business evolves. Your agency should help you develop this plan well before launch day arrives. They should either prepare to train your internal team or offer ongoing support themselves. Without this continuity, you risk watching your significant investment slowly become less effective over time. At our agency, we provide an ongoing support package that gives our clients access to our development team for bug fixes and minor improvements – a small but crucial investment to protect the value of your software long-term.
The Path to Success
Building custom software is a significant investment, but when done right, it can revolutionize your business. The key is finding an agency that not only understands these common pitfalls but actively works to prevent them. Look for an agency that:
- Takes the time to truly understand your business and helps translate your vision into clear requirements
- Shows regular progress with working software, not just status reports
- Proactively identifies what they need from you to succeed
- Has a clear plan for supporting your software after launch
With the right partner and approach, custom software can be the catalyst that takes your business to the next level. Don’t let fear of these pitfalls hold you back – just make sure you’re working with an agency that knows how to avoid them.
Want to learn more about how we help businesses succeed with custom software? Get in touch for a free consultation about your project.