SaaS companies are getting more popular and successful every year. Why? SaaS (software as a service) offers small and large companies high-end software at scale with affordable pricing plans.
As a result, many people are starting SaaS startups to sell software services online. However, it is not only software companies getting into the SaaS business. Thanks to development services, successful SaaS startups don’t have to build or maintain the SaaS product on their own.
SaaS startups can utilize development services like any company that has an app or software product to sell SaaS solutions as their own SaaS product. However, just because a SaaS startup doesn’t have to manage the technical aspects of the product doesn’t mean there is no work for them to do.
App developers won’t generate an idea for you or build a successful business model for your company. Instead, this post will explore how you can build a SaaS business and break into the highly competitive SaaS industry.
Creating a SaaS Startup
The top SaaS startups understand that software development is not the only aspect of creating a successful SaaS platform. So don’t be discouraged from starting a SaaS company if you don’t have the technical expertise to build a SaaS application.
Many top SaaS companies hire skilled developers to build their SaaS products and handle project management. SaaS startups can take the following steps to start their own business and break into the SaaS space:
- Develop an idea
- Validate your idea
- Determine success metrics
- Build your brand
- Hire development partner
Develop an Idea
SaaS startups don’t need technical development skills to identify market opportunities and develop an idea to solve a problem. Instead, the top SaaS startups began with a good idea that solved a real-world problem or inefficiency.
You can find a problem worth solving with your potential SaaS product in several ways. Many SaaS startups simply improve an existing SaaS tool. If your business can identify a problem that it can solve faster and cheaper than the competition, you have found a good idea.
SaaS ideas don’t have to focus on what’s been done. Another way to generate a good idea is to work to solve a problem that you deal with. For example, if your business is seeking a helpful tool to make operations easier and more efficient, chances are other companies are looking for this too.
Finally, you can use industry-specific knowledge to fill voids you know exist. For example, if you know small businesses in your industry struggle with managing social media posts and could benefit from marketing automation, you have found a good idea for a centralized tool.
Validate Your Idea
Just because you have an idea doesn’t mean it is good. The top SaaS startups validate their ideas before beginning development.
SaaS startups need to validate their assumptions when developing their idea to determine if they can make money. Validation ensures that SaaS startups don’t rush into an idea that can’t be turned into a viable business.
The top SaaS startups validate their ideas in a few different ways:
- Talk to people – Whether you talk to key market segments online or in person, gathering feedback from the people you think will benefit most from your SaaS platform is essential. You can run customer surveys, speak with people at conventions, etc. The important thing is that you get feedback from target users. Eventually, you’ll be able to use software like pulseM to gather and analyze customer reviews. You can use those testimonials to further improve your business.
- Analyze competitors – The best SaaS startups know that they need to know their competition and their customers. Identifying competition can be a good thing for SaaS products. It means that there is a valid problem in the market that users want to solve. Review all the features and other services the competition provides. How can it be improved? How can your SaaS model stand out?
- Develop an MVP – Whether you are building productivity tools or a data integration platform, building a Minimum Viable Product (MVP) is the most effective way to measure potential user engagement and interest. MVPs enable your startup to get its services online with all its key features. An MVP allows your startup to collect the most valuable data with the least effort.
- To ensure a solid foundation for your SaaS startup, it’s important to consider incorporating it as an LLC or other business structure early on. This step includes choosing a registered agent, a critical ally in maintaining legal compliance and managing official correspondence. Integrating this consideration naturally complements the process of validating your idea, focusing on brand building, and establishing key success metrics.
Determine Success Metrics
The best SaaS startups define what metrics indicate success. If you don’t know what metrics are indicators of your success, it will be difficult to make improvements and grow your business from a startup.
Key metrics will take the guesswork out of decision-making and help your startup charts its path to greater success. Don’t underestimate the power of analytics. The advanced features of Google Analytics and other tools can be used for more than marketing purposes.
Build Your Brand
The best SaaS startups build a strong brand identity. A strong brand identity makes the job of your sales teams easier. Strong brands essentially sell themselves.
The software as a service industry is crowded with a lot of competition. Strong branding will help your startup differentiate itself from the competition. Focus on being memorable and delivering a strong product, and you will build a strong brand identity. Additionally, it is important to register an LLC to safeguard your personal assets, enjoy tax advantages, and establish credibility and limited liability protection for your business.
Hire Development Partner
You need to hire a world-class development partner to succeed as a SaaS company. Most SaaS providers are not building and maintaining their own software. As a result, it is vital to find an app development partner who understands your startup’s vision and can deliver an incredible product.
Any development team your company works with should have experience building SaaS. Therefore, you should be able to review samples of the team’s SaaS work. If a developer cannot provide samples of their work, the chances are good they have never built anything like SaaS before.
It is important to hire a development partner with SaaS experience. Your startup will have its hands full working on every other aspect of the product and business. As a result, you need to trust that the development partner you hired is an expert.
Final Thoughts
SaaS startups are common, but if you want to succeed, it is critical to find a development partner with SaaS experience who will take the time to get to know your industry, competitors, and target audience. If you want to learn more about SaaS, reach out to an experienced development partner.
