Why Small Businesses Should Hire an Independent Developer (Not a Software Agency)

If you’ve searched for “custom database software” or “custom software development,” you’ve probably seen some pricing that made you close the browser tab.

$150,000 for a database system. $300,000 for a “digital transformation.” Half a million dollars for what sounds a lot like “we’ll replace your spreadsheets with something better.”

Those numbers are real. They’re what software agencies charge. For enterprise companies with hundreds of employees and complex integrations across dozens of systems, those prices can be justified.

For a small business with 5-20 employees that needs to stop managing everything in Excel? Those prices are absurd.

There is another option worth considering: hiring an independent developer. The same kind of project that an agency quotes at $150,000 can often be built by a solo developer for $10,000-$30,000.

Let me explain why the gap is so large.

Why Agencies Cost So Much

Software agencies aren’t trying to rip you off. They genuinely cost a lot to run. The problem is that their cost structure doesn’t match what small businesses actually need.

The overhead:

When you hire an agency, you’re not just paying for the person writing your code. You’re paying for:

• A project manager to coordinate your project
• A business analyst to gather requirements
• A UX designer to create wireframes
• Frontend and backend developers (often different people)
• A QA team to test everything
• An account manager to be your point of contact
• Office space, benefits, and corporate infrastructure for all of the above

Each person touches your project for a portion of their time, and you’re billed for all of it. A task that takes one experienced developer a day might take an agency a week once it passes through three people and two meetings.

The minimum project size:

Agencies have minimum project sizes because small projects aren’t worth their coordination overhead. Many won’t take on anything under $50,000-$100,000. That’s not because the work requires that budget - it’s because their business model doesn’t work at smaller scales.

The enterprise mindset:

Agencies typically serve mid-size to large companies. Their processes, tools, and solutions reflect that. When a small business walks in, they get the same enterprise treatment: lengthy discovery phases, elaborate documentation, architecture designed for thousands of users, and features built for scenarios that will never apply to a 10-person team.

You end up paying for complexity you don’t need.

How an Independent Developer Is Different

An independent developer - someone who works directly with you, without layers of management - operates fundamentally differently.

The overhead is minimal:

There’s no project manager because you talk directly to the person building your software. There’s no account manager because the developer is your point of contact. There’s no office lease, no corporate retreat budget, no middle management.

The person you talk to on the first call is the same person who designs your database, writes your code, migrates your data, and answers your questions six months after launch.

Right-sized solutions:

An independent developer builds what you need. Not what looks impressive in a proposal, not what justifies a six-figure budget, not what requires a team of eight to maintain.

A small business that needs to track clients, projects, and invoices doesn’t need microservices architecture, a Kubernetes cluster, and a dedicated DevOps pipeline. It needs a well-built web application with a solid database behind it.

Direct communication:

There’s no telephone game. You explain what you need. The developer asks clarifying questions. They build it. You review it. If something’s off, you tell them directly and they fix it.

No tickets submitted to a project manager who relays it to a team lead who assigns it to a developer who has questions that go back through the same chain.

The Cost Comparison

Let’s look at what a typical small business database project costs from each source.

The project: A custom system to replace Excel spreadsheets for tracking clients, projects, and basic reporting. Five to ten users. Web-based. Nothing exotic.

	Software Agency	Independent Developer
Discovery/requirements	$15,000-$30,000	Included in project
Design	$10,000-$25,000	Included in project
Development	$75,000-$200,000	$8,000-$20,000
Testing/QA	$15,000-$40,000	Included in project
Project management	$20,000-$50,000	N/A (direct communication)
Total	$135,000-$345,000	$8,000-$20,000
Monthly maintenance	$2,000-$10,000	$200-$500

Those agency numbers aren’t inflated for effect. Search for “custom database development” and look at the companies bidding on those keywords. Their case studies and pricing pages show exactly these ranges.

The gap exists because agencies are billing for process and people, not just product. An independent developer is billing primarily for product.

“How Can One Person Do the Same Work as a Team?”

This is the obvious question, and it deserves an honest answer.

They can’t always. There are projects where a single developer isn’t the right choice. More on that below.

For small business database projects, though, one experienced developer can handle the full scope because:

The scope is manageable. A system with straightforward data tracking and reporting - whether it’s used by 5 people or 50 - is well within what one experienced developer can design, build, and maintain.

Modern tools are powerful. Frameworks and cloud infrastructure have matured to the point where one developer can build, deploy, and maintain systems that would have required a team ten years ago.

Fewer handoffs means fewer problems. When one person handles design, development, and deployment, nothing gets lost in translation between departments. Requirements don’t get misinterpreted as they pass through three people. Design decisions stay consistent with the implementation because the same person is making both.

The timeline is comparable. An agency might quote 16-24 weeks for a project that an independent developer finishes in 10-16 weeks. The agency isn’t working on it more - they’re coordinating more.

When Agencies Make Sense

An agency is the right call when:

• The project is genuinely large - Hundreds of users, complex integrations with multiple enterprise systems, regulatory compliance requirements across multiple jurisdictions.
• You need multiple specialties simultaneously - iOS and Android apps plus a web dashboard plus an API plus a machine learning component. One person can’t do all of that well.
• Ongoing development is continuous - You need multiple developers working full-time, indefinitely. A solo developer becomes a bottleneck.
• Corporate requirements demand it - Some organizations require vendors with specific certifications, insurance levels, or team sizes. An independent developer may not qualify.

If your project falls into any of these categories, an agency is probably worth the premium.

When Independent Developers Are Better

An independent developer is typically the better choice when:

• Your business is small - Under 50 employees, focused needs, straightforward workflows.
• The project is well-defined - Replace spreadsheets with a database, build a client portal, create a reporting system. Clear scope, clear deliverables.
• Budget matters - You have $10,000-$30,000 to invest, not $150,000-$300,000. That budget is realistic for what most small businesses need.
• You want a relationship, not a transaction - You’d rather work with someone who knows your business over the long term than be a ticket number at an agency.
• Speed matters - Less coordination means faster turnaround.

Most small businesses fall squarely into this category.

Red Flags in Agency Proposals

If you’re evaluating agency quotes, watch for:

Unnecessary complexity. If the proposal includes technology buzzwords that seem out of proportion to your needs (microservices, containerization, CI/CD pipelines for a 10-user app), you may be paying for architecture designed to justify the price tag.

Vague deliverables with specific prices. “Digital transformation consulting” for $40,000 should raise questions about what you’re actually getting.

Vendor lock-in. Some agencies build on proprietary platforms or retain ownership of key components. If you can’t take your software and leave, that’s a problem. You should own your code.

Per-user licensing on custom software. If someone builds you custom software and then charges you per user per month, you’re paying twice. Custom software should have a fixed maintenance cost regardless of how many people use it.

Minimum engagement terms. Multi-year contracts for maintenance on software that hasn’t been built yet should make you cautious.

What to Look for in an Independent Developer

Not all independent developers are equal. Here’s what matters:

Relevant experience. Have they built similar systems before? A developer who specializes in small business database applications is different from one whose background is primarily in e-commerce platforms or enterprise integrations. The skills overlap, but the context matters.

Clear pricing. Fixed-price quotes mean you know what you’re paying upfront. Hourly billing with vague estimates can spiral. Look for a developer who will commit to a specific price for a specific scope.

Communication style. Can they explain technical concepts in plain language? If they can’t describe what they’re building without jargon, they probably can’t understand what you need without jargon either.

Post-launch support. What happens after the project is done? Software needs ongoing maintenance - hosting, security updates, bug fixes. Make sure there’s a plan for that.

You own the code. This is non-negotiable. You’re paying for a product - you should own it outright. If you ever want to switch developers, bring someone in-house, or just part ways, you need to be able to take your software with you.

The “What If They Disappear?” Concern

This is the biggest legitimate risk of hiring an independent developer, and it’s worth addressing directly.

Agencies feel safer because they’re a company with multiple employees. If one person leaves, someone else picks it up. With an independent developer, you’re relying on one person.

Here’s how to mitigate that risk:

• You own the code and have full access to the server. If something happens, another developer can take over.
• The code should be well-documented. Not perfectly - no code is - but another competent developer should be able to understand it.
• The technology should be standard. If the developer builds with mainstream frameworks and languages, finding someone to maintain it isn’t hard. If they use something obscure, that’s a problem.
• Maintenance agreements help. A developer with ongoing maintenance clients has a financial incentive to stay available and responsive.

It’s also worth noting how most independent developers structure payments. A common arrangement is 50% deposit to start work, 50% on completion. You’re not paying the full amount upfront and hoping for the best - half of your investment is tied to receiving a finished product.

This risk is real, but it’s manageable. The cost savings typically outweigh it for small businesses.

The Bottom Line

For most small businesses looking to replace Excel with proper software, an independent developer offers:

• 5-10x lower cost for comparable results
• Direct communication with the person building your system
• Solutions sized for your actual needs
• Faster turnaround with less coordination overhead
• Fixed pricing without per-user licensing

The typical investment of $8,000-$20,000 for a custom system is a fraction of what agencies charge, and for small business needs, the end result is functionally the same: a system that works, that your team can use, and that scales with you.

If you’ve been researching custom software and feeling priced out by agency quotes, you have options. The solution you need probably costs a lot less than you think.