The SaaS revenue paradigm promises companies exponential growth. Large companies like Microsoft and Amazon have dipped their toes in the SaaS market and are earning billions of dollars. Newcomers are equally experiencing rapid growth. For instance, Canva is now valued at US$40 billion, with more than 60 million monthly active users worldwide.
If you’ve been toying with a SaaS business idea, your primary question might be: How do you tap into the market? Building a SaaS startup doesn’t stop with merely an idea. It involves careful planning, market analysis, and strategizing before you or a SaaS development company can transform the idea into a reality.
Building Your SaaS Startup
Below are some questions that can help you build your startup.
Does Your SaaS Idea Solve a Problem?
Make sure the product you’re planning to build can solve a real problem. Without a problem to solve, finding a user base may be challenging.
The goal of any business is not only to earn money but solve specific problems. For example, customer relationship management (CRM) solutions aim to help businesses keep track of customer behaviors and interactions. Google Workspace aims to enable companies to attain a more collaborative and productive virtual work environment.
What problem does your SaaS idea help address?
Can You Put Your Idea to Paper?
Once you’ve identified an apparent problem that your SaaS idea can solve, it’s time to write a business plan. If you find this difficult, you may have to rethink your SaaS product. The initial business plan doesn’t have to be very long. Some of the critical components it should have are:
- Value proposition: What is your product, and what problem does it solve?
- Target market description: What market segments will be interested in the product?
- Sales channels: How and where are you going to sell your product? What marketing activities can help augment your sales?
- Business model: What pricing strategy do you plan to implement? What are your revenue streams?
- Timeline: When are you going to accomplish certain business milestones?
Can Your Idea Make Money?
Now that you have a business plan, you need to see if it is viable. Is your target market likely to use your product? Is your sales strategy going to work? Will your pricing model be suitable for your target market?
Validating your idea and business plan requires you to reach out to your target customers, either digitally or physically. You can initiate an online survey asking the target market what they think of your SaaS product. You can even approach random people on the streets and ask them for their opinions.
Competitor analysis can also help validate your business idea. You can see their product pricing, positioning, and the strategies that work for them.
You would need to make several tweaks to your business plan after getting feedback and doing ample research.
Can You Get Funding for Your Idea?
Another critical part of building your own SaaS startup is getting enough funds to build the product and start the business. You can borrow from a bank if you don’t have the money required for your business. But these days, several funding sources exist, including crowdfunding, angel investors, and venture capitalists.
As such, getting funds is not that difficult. The challenge lies in convincing investors to fund the business. If you’re having trouble getting funding, you may have to redo your business plan and ensure it’s attractive to investors.
Can You Build the Product?
With a concrete business plan and enough funding, you’re ready to build your product. But you may not have the expertise to build it. In this case, you can hire designers and developers and oversee their work throughout the process.
You may also employ the services of SaaS development companies. Aside from managing the design, development, and release of the actual product, some companies also have in-house business analysts who help curate an effective business plan.
Tapping into the billion-dollar SaaS market requires hard work and meticulous planning. The five questions we tackled can guide you as you build your own SaaS startup.
- SaaS development involves intricate processes that require market intelligence and technical expertise.
- Building your SaaS startup may sound complicated but there are SaaS development companies that can help.
- You need a concrete business plan before you can get funding and build your product.