Do you have software that you have built that you would like to turn into a SaaS app? Are you in an industry missing critical software solutions for your business’ needs? Maybe you have an idea for “The next” SaaS giant and a burning desire to break into the industry. So many SaaS software ideas could be the next big solution in cloud-based software.
Software-as-a-service (SaaS) applications have flooded the marketplace. This software model’s ease of use and cost-effective nature have made these applications vital in the business world. Pandemic shutdowns forced most companies to rethink their software models. In order to continue to conduct business, they needed to be able to work from anywhere. In addition, companies needed their workforce to be able to access critical data from remote locations. Continuing to use traditional on-premises software became problematic. Cloud-based software solved this problem and allowed businesses to continue conducting business despite geographical challenges.
We will take a look at the proper steps you need to take when building a SaaS application to ensure your product’s successful launch.
Why You Should Consider a SaaS Business
1. Scalability
The adaptability of the SaaS business model allows for updates to be made easily. After a product launch, updating product offerings and adding new features can be done quickly and efficiently, which will makes scalability a workable objective.
2. Global Access
Having software available on the cloud means it is accessible anywhere in the world. That means you as a business can now market to a much larger audience. Due to the impact of recent events, the demand for cloud-based solutions has boomed, leaving much room for entry into the market.
3. Low Entry Cost
What type of SaaS business you select can significantly affect the entry costs. A micro-niche product developed directly by the business owners is a cost-effective way to enter the market. While more complex software may require a development agency and design team, it is still more financially viable than traditional software businesses. In addition, you will not have to acquire the expensive hardware associated with traditional software companies.
4. Pre-Calculated Costs
With many traditional businesses, there are many costs that cannot be calculated upfront. Therefore, new business owners must maintain sufficient funds to cover unexpected expenses that can become rather costly. With the SaaS business model, once the development is established, you can rely on pre-calculated recurring costs.
>>More: SaaS vs. Hosted: Comprehending The Differences (Plus Benefits & Drawbacks)
Develop a Solution to a Problem
Behind every excellent corporation, there is not only a great product but a brilliant solution to a problem. By narrowing down your niche and addressing a specific need, you find the clarity needed to begin taking your SaaS idea and translating it into a usable product.
Many times the best solutions come to fill the gap in existing software. While the big SaaS companies seem to have a lock on the market, current products do not always address all of an enterprise’s technology needs. There are still many areas in the marketplace that need viable solutions.
SaaS Startup Ideas
- Team Collaboration
- Marketing Automation
- Content Planning
- Video Creating and Editing
- Appointment Management
- Health Check
- Telehealth
- Accounting
- Virtual Assisting
- E-Invoicing
- CRM for Freelancers
- Capital Management
- Auto Parking
While all of the above ideas already have existing solutions currently on the market, there is always room for improvement. Many existing products are missing vital components to their end-user experience. There is also a growing trend in the Micro-SaaS niche.
Small companies are forming to build industry-specific software for small businesses. These companies often are only made up of two or three owners/employees who execute all of the business functions.
>>More: SaaS Grid: Overview, Advantages, and Features
Market Research
Thoroughly researching the market is a crucial initial step in your business plans. Take a look at what the competitors offer. Is there something missing from their model? Is critical data not being translated to the end-user? You step in and create a product that presents the perfect +. In addition to competitor research, make sure you look at an overview of the market along with target market analysis to narrow down your target customer.
>>More: Definition, Types, & Leading Platforms of Ecommerce SaaS
Validate
It is essential to get feedback from potential customers to get an idea of whether or not to pursue the creation of your product. By having person-to-person communication about your project, you can gain perspective and see if they would actually purchase your product or not. If the answer is no, then it is time to go back to the drawing board and re-evaluate the idea. You would not want your SaaS idea to miss the mark and not meet your potential customer’s needs.
>>More: WordPress SaaS: Best Themes & Benefits of Using WP as Platform
Pricing
Once you have verified that your SaaS idea will have customers to support it once it is on the market, it is time to decide how to structure pricing. SaaS software solutions come with an array of pricing options. You will need to assess which is the best for your business. Some companies charge a flat rate for their product. While some others charge a tiered subscription fee that is based on which service options you have access to. These subscriptions can be paid on a monthly or yearly basis. Often, when the annual option is selected, a discount is offered. Others still provide a free service. These companies rely on in-application ads to create revenue.
>>More: The Fundamental Difference Between Salesforce SaaS, Paas and IaaS
Model Brand Development and Marketing Strategy
Equally important to the product itself is the marketing strategy and brand. Outstanding products are lost in the marketplace regularly because there is not enough exposure to the product. If you can not get your software to customers, then it will not succeed. In a market that is already saturated with options, it is vital to stand out from the crowd.
>>More: SaaS Content Marketing: Comprehensive Strategy Manual
Financing
Without sufficient financing in place, even the best company can falter. When planning your startup, it is vital to ensure that you have enough funds to last through the research, development and beyond, into the launch phase. It is very difficult for startups to obtain traditional business loans. Founders must rely on personal funds, borrowing from friends and family, and even credit cards for initial capital. Once the business is established, it may be beneficial to seek out venture capitalists or angel investors.
With any venture, it is best to assume that any budget will need to increase as a project progresses. More money may need to be spent on development or marketing. Keep a watchful eye on expenses to ensure the business has a firm foundation to start out on.
>>More: SaaS Platforms: Overview, Benefits, and Best Practices
Development Team & Action Plan
Once financing is secured, and you are ready to build your product, it is time to put together your development team and come up with your action plan. How you proceed will depend on whether you are an expert in the field and plan on building your SaaS application yourself, with a team, or hiring developers. If you are outsourcing the project, make sure you have a good working relationship with your development team, as it will be crucial to your success. A well-laid-out plan with timelines in place will help keep the project on track which can save a lot of money in the long run.
>>More: B2B SaaS: Definition, Marketing Strategies & Leading Companies
Minimum Viable Product
Many businesses get trapped in the idea that their product must be end-product perfect before they are able to launch. This school of thought wastes precious time and resources. Product launch should be planned for as soon as a minimum viable product is achieved (MVP). By getting it into the user’s hands, you will then be provided with invaluable feedback that you can use to tailor the final product. Any SaaS product will need to be responsive to customer needs, so the product will change over time. Who better to advise on areas for improvement than the end-user?
>>More: Definition, Best Practices, and Best Tools for SaaS Monitoring
Product Launch and Beyond
Congratulations on your product launch! Now is the time to reap the benefits of your hard work and determination, but the work is not done. Keep in mind how important it is to be responsive to your customers’ needs. Part of the allure and popularity of SaaS applications is the fact that they are updated often to keep up with changing business needs. By offering additions to existing features and upgrades to the software, revenue from recurring subscription customers can be increased. It is imperative to stay competitive in the SaaS market.
>>More: Reseller Partnership of Saas: Overview, Advantages, and Difficulties
Bottom Line
Turning a SaaS idea into a workable solution is still a viable business model. The ever-changing business environment leaves room for innovative, new products to meet changing business needs. The scalability and adaptive nature of SaaS products create a promising future for entrepreneurs. Cloud-based applications reach a worldwide audience of potential customers. With the proper market research and planning, a solid business base can be built. Recurring subscription payments in the SaaS business model mean recurring revenue that a company can rely upon in order to grow and gain traction in the market.