We recently did something every business owner needs to do, but often puts off: a software audit. It might not sound glamorous, but trust us, it can be a serious game-changer for your bottom line.
When we first started, we were trying everything to grow. That included signing up for a lot of software, often on annual plans (rookie mistake!). Over time, we ended up with a bloated tech stack, paying for tools we weren't fully using, and duplicating functionalities across different platforms.
The rising US dollar and talk of tariffs gave us the push we needed to finally tackle this. We realized we could free up some serious cash by streamlining our software subscriptions. So, we dove in headfirst, and the results were eye-opening.
This week, we're sharing our process, what we cut, what we kept, and the lessons we learned. Think of it as a guide to performing your own software audit and reclaiming those wasted dollars.
Here's a breakdown of our approach:
Inventory Everything:
This was the hardest part! We had to dig deep to remember all the software we'd signed up for. We even discovered some forgotten subscriptions. Be prepared for a little frustration here, and be thorough!
Define the Purpose:
For each piece of software, we asked: What does it do? We were surprised to discover that some tools (like Google Workspace) offered more functionality than we realized. This helped us identify redundancies.
Evaluate Usage and Seats:
We looked at how often we used each software and how many "seats" we were paying for. Were we paying for four seats when only two were actively used? Could one of us share a license? This uncovered significant cost savings.
Renewal Dates:
Knowing when each subscription renewed was crucial. We were able to cancel some subscriptions just before the next billing cycle. For others, we had to weigh the pros and cons of switching immediately versus finishing out the paid period.
Identify Overlap:
We found several tools that performed similar functions. For example, we realized our website platform could handle tasks we were paying another software for.
"Good Enough" vs. "Best of the Best":
This was a key question. Was a "good enough" solution within an existing platform sufficient, or did we truly need the "best of the best" for a specific task? Sometimes, the all-in-one solution is the best solution, even if it's not the absolute top performer in every single category. Our website platform and Notion are perfect examples of this.
Our "Must-Haves":
- Google Workspace: For email, storage, and general business operations. We believe it's the best all-in-one solution for the price.
- Notion: For organization, project management, and a whole lot more. Incredibly versatile and powerful.
- Flying Logic: (Jordan's personal must-have) For visual thinking and strategizing.
Our "On the Fence":
- We're evaluating several tools to see if the cost is justified, including AI writing tools and meeting recording software.
Our "Goodbyes":
- We cut several subscriptions that weren't providing enough value, including analytics tracking software (we realized basic analytics were sufficient for our needs) and a client management platform that had become too expensive.
The Results:
By performing this software audit, we freed up $2400 annually!
That's money we can reinvest in other areas of our business, like client services and automation tools.
Key Takeaways for Your Business:
- Don't put it off: A software audit is a valuable investment of your time. The sooner you do it, the sooner you'll start saving.
- Ask the tough questions: What value is each software providing? Is it truly necessary? Are there cheaper alternatives?
- Consider all-in-one solutions: Sometimes, a platform that does many things well is better than several specialized tools.
- Regularly review your tech stack: Don't let your software subscriptions become stagnant. Revisit your audit at least once a year (or even twice) to ensure you're getting the most value for your money.