Someone once said, “If a small business makes a mistake in buying software, it could be their last mistake.” Actually, there are five common mistakes, and any one of them can be a killer.

1. Not being sure of what you need. This mistake usually starts out with someone saying, “Let’s see what’s out there and decide if we like it.”  Like smart house hunters and car buyers, smart system buyers will make a list of their needs as a prerequisite to looking for a system.

2. Being in a hurry to choose a system. Firms that are in a rush tend to make the mistake of not looking at enough vendors. In that typical scenario, the buyer will compare two products and make a choice. That’s not nearly enough. Experts recommend looking at several vendors and whittling the list down from there. If that seems like too many and too much work, consider what’s at risk. Looking at a larger group will give you more options and give you a better idea of available features.

3. Looking at unqualified vendors. This is the cousin to #1 — not being sure of what you need.  If you have your needs set up early, you can rule out the vendors who can’t meet those needs or deliver within your budget (see next).

4. Being vague about budget. Know how much you have to spend — just like the  smart car buyers and home buyers. If you’re tempted to exceed that number, there better be a darn good reason — and payoff.

5. Being vague about scope. When you get a quote, make sure everything you need in the implementation is outlined.This calls for you to be specific about custom reports you need, interfaces with other system, and so on. Being vague about scope is the No. 1 reason for going over budget and suffering with under-performance.

(Courtesy of compareHRIS. com.)