Do you want to build a successful software-as-a-service (SaaS) business? SaaS is one of the fastest growing sectors, research shows the sector grew from $31.5 billion in 2015 to $171.9 billion in 2022. SaaS companies range from eCommerce giants like BigCommerce to workspaces like Asana to entertainment platforms like Netflix.
Starting a successful SaaS company is not easy. You will face challenges like building and maintaining the software, pricing it, and raising capital. But you can do it with the right skills and resources. Here’s how to build a successful Saas company from scratch:
Research the Market
The sole reason for starting a company is to sell your product. Research your target market, consumers’ pain points, and the competition to decide if your product will do well in the market. Testing the waters saves you time and prevents you from launching a product that will fail.
Here are a few things to research before starting your SaaS company:
- Your competition. What extra thing does your product provide that’s not offered by them?
- Which consumer needs are most pressing? Does your product meet the needs?
- The pricing models of the available products.
- The sector overview, requirements, licenses, registration, and other legal processes.
Once you attain valuable market research data, you are ready to establish your company.
Create the Prototype
You need to create a prototype of the product to show investors and business partners. A prototype also helps your customers understand the design and features of your product. If you don’t have the skills to create a prototype, hire a software developer.
You can share the prototype with your partners and stakeholders to get their feedback. Additionally, hire beta testers to test the product and offer feedback. Then use the feedback to build the perfect solution for your customers.
Acquire Funding
Building a successful business requires money. There are products to buy, experts to hire, licenses to pay for, registration fees, and other miscellaneous expenses. If you have enough savings, then you’re set.
However, if you don’t have enough money, it can be tough to secure financing. If your prototype is awesome, you can get funding from venture capitalists. Bank and credit unions are also an option, but these need collateral and security.
If no venture capitalists are willing to support you and you have no collateral to give banks, consider getting a car title loan. You only need to own a vehicle to secure this short-term loan, and most lenders don’t check your credit score. Open your favorite browser and search for “online title loans” to get started.
Develop the Product
You need a team of experts to build a great SaaS product. Bring your product development team together and plan how to create the product. Your team should comprise:
- Product manager
- Business planner
- Product designer
- App developers
- Marketing specialists
Ensure each expert plays their part well, reporting to you or the product manager. And even if you are not part of the technical team, research a thing or two about product development to understand what your team is doing and any hindrances they face.
Market Your Product
Once the product is complete and ready to launch, market it like there’s no tomorrow. There are various forms of marketing that offer a good return on investment:
- Email marketing
- Social media marketing
- Paid advertising
- Influencer marketing
- Video marketing
- Offering free trials
Remember to track the success of your marketing campaigns to know if customers like your product.