You could be enthusiastic about starting SaaS app Development as a business venture. Still, you have no idea what it takes to launch a product or what entrepreneurs in the industry are doing. Here’s a compilation of the distilled wisdom of the world’s most successful entrepreneurs on planning, launching, and growing a SaaS company.
What Does A SaaS Company Do?
SaaS products are called “hosted,” “web-based,” or “cloud-based” solutions because the maker of the software hosts the product on a server so that users can access the software through their web browsers or applications.
Users don’t download anything to their desktops or install expensive hardware – they subscribe to your service and pay as they use the service. You’ll be explaining the benefit to potential customers and showcasing the value addition gained by adopting your software solution.
Is Technical Expertise A Must For Building A SaaS Company?
You can build a successful SaaS company without the technical expertise to code an app yourself. It’s enough if you’re aware of the technical aspects of the business to remove the roadblocks on the way and make good hires.
Remember that the code is your intellectual property whether you handle the technicalities yourself or avail the benefits of custom SaaS application development through outsourcing.
The Seven-Step Journey To Starting A SaaS Company
Find The Problem Worth Solving
You won’t have a business unless there’s a problem worth solving, and you have the solution that alleviates the consumer’s pain point. You have made a solid beginning if you can show that your solution is quicker, cheaper, or better than the competition. Your industry knowledge should come in handy when you set out to prove that your app solves the problem in ways the competition can’t.
Do The One-Page-Pitch
Chuck the project report, and do a one-page pitch to get your thoughts organized. You’ll be spelling out what you have to do (Strategy), how you’re going to go about it (Tactics), how you’re going to mint money and pay the bills (Business model), and how you’re going to roll out the workforce and resources (The Schedule).
At the planning stage, collaborating with top-notch SaaS development companies could help you size up various options you might consider.
Ideation And Its Validation
There’s no point pushing a great product that can’t ensure a viable business. Ask yourself – Will my idea make money?
Do the primary market research by talking to consumers face-to-face and judge whether the idea has traction. How well does your idea solve the problem? Are people willing to pay for the solution?
Judging the consumer’s mood is important. Knowing your competition is critical. The presence of competition indicates a problem and a market for solutions. The trick is to find out what the competition is not fulfilling and figure out what you can do better. The more pain points you remove, the better the solution.
Pricing Model And Customer Acquisition Cost
You’re not asking consumers to buy the product; you’re merely licensing it as a subscription-based pricing model. You charge a fixed amount for as long as the consumer uses the service, and the longer they use the product, the bigger the user’s lifetime value.
Then there’s the issue of reconciling the pricing you have in mind and what the consumer is willing to pay. The way out is to identify the lowest and highest price set by competitors and determine the reasonable pricing.
The way to strategize a customer acquisition funnel and validate the pricing would be to offer free trials, discounts, freemium services, and upgrade plans.
Differentiating Yourselves From The Competition
Setting some time aside for branding helps you position yourself for maximum visibility. The workshop design, colorful logos, the message you want to convey, and the tone you emphasize send out a clear statement that you own your vision and have a plan to execute.
The core of your identity has to be your domain name; keep the .com short, hummable, and memorable, and pitch for credibility over the competition.
Structuring And Registering Your Business
Structuring the company makes sense because the legal framework keeps your business compliant with local and international law. If you need serious venture capital, the C-Corp model could be the option giving you maximum flexibility besides making you more visible to investors. While you’re at it, choose a business name that strongly reinforces your product and what people do with it.
Financing And Pitching Angel Investors
You need a detailed financial forecast before pitching the angel investor or venture capitalist. You have ideated the product, explored the market demand, and validated the pricing. You have arrived at the most critical crossroads in your SaaS journey – the financial forecast sets the tone for projecting the health of the concern, the milestones you will be developing, and guide all future decisions.
As your business is based on a subscription model, you have to constantly monitor the market, understand customers’ behavior and judge their response to your pricing moves. You have an idea of your earnings and what you’ll need for funding growth.
Seven steps down the road to starting a SaaS company, you’ll focus on building your product, onboarding an agile development methodology, and creating a hands-on go-to-market strategy that gets you good traction in the first year. If you have a solid working plan, the willingness to innovate, and the metrics to track your success, you can outlast the competition.