How to Start and Build a Successful SaaS Company
In the last few years, the software as a service (SaaS) business model has gained popularity taking over the world by storm. A SaaS company is a business that entirely uses software to provide services to its customers where the customers can use and access the software remotely through the internet.
The cloud-based software market is expected to reach a total market value of $700 billion approximately by 2028. This is a growth record of 27.5 % per year. Are you thinking of venturing into this industry and making a fortune as you build a successful startup? Creating a functional and practical SaaS application will require you to be familiar with the client company’s evolving needs and trends. Below is a quick guide to help you as you build your SaaS from scratch into a successful business:
Create a Solution for a Problem
It is crucial to ensure you have a straightforward solution to address a specific customer problem you have identified before diving into branding, building a team, or even pricing. Whether digital or physical, good products always solve a problem.
It is important to undertake proper market research. For example, you could explore forums like Quora, Reddit, and Facebook for ideas. You could also draw inspiration from your struggles and experiences to help you discover existing problems you can solve.
It doesn’t have to be a unique solution. You can also look into the existing solutions to find business ideas. Can you do them faster, better, and cheaper than your competitors? More importantly, focus on solving a specific problem since trying to solve many issues simultaneously can make your software challenging and too complex.
Once you identify the problem to be solved, go ahead and brainstorm a solution.
Validate your Idea
Developing a product that no one would be willing to pay for would be useless. It is, therefore, vital to validate your SaaS idea. This can be achieved by performing a competitive analysis by exploring similar products in the market while taking note of the gaps. Additionally, validate your ideas by gathering user feedback to build your design around their needs. Also, develop your minimum viable product (MVP), a robust testing method that can save you money and time.
Create a High-Quality Software Application
Once your idea is validated, create a high-quality application that involves developing and designing your software to meet your customers’ needs. A well-designed, user-friendly application will give your customer a top-notch experience. You are bound to attract new customers. Remember to do proper tests before rolling out your SaaS product. If you are creating a native android app, you can use a mobile testing platform that is solely built to test and deliver faster release cycles centered on exceptional user experiences. You want to build a good app that works on many devices to avoid user experience challenges.
Create a Lean Business Plan
You also need a proper business plan to cover what you will do, which is your strategy for solving the problems for your customers, describing your market niche and competitors. Your plan should also explain how you will do it, and by this, it’s about the tactics you will employ to sell your product to drive more sales.
You should also list the resources you will need, key partners, and your team. Additionally, your plan should capture how you will make money by creating a business schedule that captures all the sales, cash flow, and expenses.
Last but not least, your business plan should outline roles and responsibilities for your team, that is, who is doing what and when. This is more suitable for SaaS businesses that are repeatedly testing new ideas.
Final remarks
Many factors contribute to your SaaS startup’s success, such as the market demand, the complexity, and the software size. While creating and maintaining a SaaS company comes with many challenges, take your time to create the right products, test them and perfect your platform. It will pay off with the right plan right from the start of business.
