If you’re running a business on legacy software, you’ve probably felt the pain:

• Simple changes take weeks instead of days.

• Bugs creep in whenever your devs touch the code.

• Adding new features feels like duct-taping a leaky roof.

At some point, every owner/operator faces the same question: do we fix (refactor) what we’ve got, or tear it down and rebuild from scratch?

The answer depends on your customers, your cash, and your tolerance for risk. Let’s break it down.

What Refactoring Really Means (in Plain English)

Refactoring is improving your existing codebase while it’s still running. Think of it like a home remodel:

• You don’t bring in a wrecking ball.

• You replace the floors, open up the kitchen, fix the wiring one piece at a time.

• You keep living there while the work happens.

In software, it means cleaning up the mess so devs can ship faster, bugs stop piling up, and customers actually see progress instead of excuses.

The “do it bit by bit” approach has a name: the Strangler Fig pattern. Like a tree wrapping around the old one, you replace your system piece by piece until one day the old thing is gone and nobody noticed the lights flicker.

What a Full Software Rebuild Looks Like

A rebuild is a tear-down-and-start-over approach:

• You collect requirements.

• You design everything fresh.

• You rebuild the system from the ground up.

It’s like bulldozing your house to the foundation and constructing a brand-new one.

The upside:

• No legacy baggage.

• Clean, modern tech stack.

• Potentially more scalable in the long run.

The downside:

• More expensive.

• Takes more time.

• Zero customer value until the rebuild is complete.

If you disappear into a rebuild for 12 months, can your business still grow and keep customers happy? For most business owners, the answer is no.

Refactor vs. Rebuild: Pros and Cons

Here’s a side-by-side look:

How to Know Whether to Refactor or Rebuild Your Legacy Code

Here are some “gut checks” Scott Johnson (our Director of Technology) uses with clients:

1. Can you vanish for 6–12 months without losing customers?

   • Yes → Rebuild might be viable.

   • No → Refactor piece by piece.

2. Are customers blocked, or just annoyed?

   • Blocked, churn is spiking → Rebuild.

   • Annoyed but still using → Refactor.

3. Does every big new customer break your system?

   • If big deals blow things up → Rebuild.

   • If it creaks but holds → Refactor.

4. Are competitors shipping laps around you?

   • Losing deals because you can’t deliver → Rebuild.

   • Still keeping pace (even messily) → Refactor.

5. Do you have the cash and runway?

   • Room to breathe → Rebuild could be possible.

   • Living deal-to-deal → Refactor, grab incremental wins.

6. How delayed are your new features?

   • Everything is 2–3x longer than it should be → Rebuild.

   • You can still deliver (messily but steadily) → Refactor.
     
     

Hybrid Approaches to Updating Your Legacy Software (The Reality for Most Businesses)

The truth is, many companies end up doing both at once. For example:

• You might refactor the web platform your employees use every day to remove pain points now.

• Meanwhile, you rebuild outdated mobile apps running on unsupported versions of iOS/Android.
  
  

This “dual track” keeps your business moving forward while you prepare for the future.

Practical Next Steps to Updating Your Old Code

If you’re not sure which path to take, here’s what we recommend:

1. Get a code audit (X-Ray). An experienced engineer can pinpoint high-risk areas, show where your devs are losing time, and highlight security or stability red flags.

2. Decide on your risk tolerance. Can you afford to “go dark” for 6–12 months? If not, you’re in refactor territory.

3. Prioritize by value. Start with the systems customers touch most often or the ones slowing your developers the most.

4. Plan for incremental wins. Even if you eventually rebuild, you’ll likely need interim refactors to keep your business running.

The Bottom Line: Whether a Refactor or a Rebuild is Right for Your Business

Rebuilding may sound cleaner, but for most businesses, refactoring is the smarter, safer move. It’s cheaper, less risky, and delivers customer value along the way.

Rebuilds only make sense when your system is truly unsalvageable, your customers are walking away, and you have the cash to fund a long downtime.

For everyone else, the “remodel” (refactor) path with selective rebuilds where necessary is how you keep the lights on while building a stronger foundation for the future.

Want to know which option makes sense for your business?

Start with an X-Ray audit of your system. We’ll show you exactly where you’re bleeding time and money and whether a refactor or rebuild is right for you.