Do you plan to start your own SaaS company? It’s important for you to do your homework. As a new way of distributing and selling software, SaaS stands for Software as a Service. Due to its cloud-based nature, there is no need for physical distribution.
If you want to start it as a service business, you should first outline the needs. The launch process becomes hassle-free and smooth when you know what you need to launch and the information related to that. Follow this quick guide on starting a SaaS company and easily start up your own business.
1. Solve a problem by developing a solution: Prior to diving into pricing, branding, or building a team, it is important to make sure that you have a clear understanding of what the problem is and a solution that alleviates it before you get too deep into any of these aspects. In the end, if your business doesn’t solve a problem, then it does not exist.
2. Develop a business plan: Business plans are a necessity; there’s no way around them. Rather than writing a 40-page business plan, start with a one-page pitch. The lean planning process is much easier and more iterative than traditional methods of planning, and it is the fastest way to get your idea on paper. Furthermore, it’s more suitable for SaaS businesses that test new ideas constantly. Your pitch will cover your strategy (how you intend to achieve your goals), your tactics (how you intend to achieve them), your business model (how you plan to make money), and your schedule (when and who you plan to do what).
3. Strategies: You are going to list your sales channels in the tactics section as well as describe how you will be selling your products through those channels. In addition, you will also want to list out the marketing activities that you plan to use to drive customers to your store. Make a list of the partners and resources that you will need, and then list your core team members and their roles as well. You should list the roles for which you need to hire if you do not yet have a team.
4. Your SaaS idea needs to be validated: Assume you have spent some time creating your lean plan, which is essentially a list of assumptions. You will determine whether those assumptions are true or false in this step. After that, adjust your plan to reflect what you’ve learned. This will be accomplished by answering the question – Can my idea be profitable? You can use this step as a check instead of leaping headlong into your favorite idea. This will enable you to determine whether your idea is viable and can be turned into a business.
5. Analyze the competition: Knowing your customers is important, but knowing your competitors is also crucial. It is actually a good thing to have competitors in your market. As a result, there has been an identification of a problem. It’s then a matter of identifying what is inadequate about your competitors’ solutions. What do customers want that they don’t currently have access to? It is important to remember that your competitors may not be immediately apparent. There may be very disparate companies currently providing services in the field you’re entering. You should explore how customers and competitors solve the problem you’re addressing and look for a way in.
6. Build your brand: It is important to understand how to brand and differentiate yourself in order to stand out in an already crowded industry or to simply be a memorable company for customers to remember. You might want to use the competitor research you did above in order to help position yourself in the market. You do not have to outsource this process to a brand agency – you can begin this process in-house if you wish to do so.
7. Identify success metrics: No matter whether you’re a fan of numbers or not, if you run a business, you’re going to have to get used to looking at them. Many people find tracking metrics to be boring, time-consuming, or scary. But the truth is, these numbers will become your best friends. You’ll be able to make informed decisions, which will alleviate a lot of guesswork on your part.
It is possible to condense this guide to starting a SaaS company down to these 7 steps, but each component will require time, testing, and refinement. There may even be overlapping between steps that require you to complete specific elements in a completely different order.