How to start a SaaS company: a simple step by step guide to help you start your SaaS business fast.
According to statista report, the software as a service (SaaS) market was estimated to be 94.8 billion u.s dollar in 2019 and it is expected to grow to 143.2 billion u.s dollar by 2022.
SaaS is one of a high earning potential online business. but how can you start your SaaS business? this blog post cover in the simple terms.
How to start a SaaS company.
Here is a step by step guide to help you start your Saas business.
- Step 0: generate a SaaS idea
- Step 1: Start your SaaS with a simple plan
- Step 2: Test your SaaS idea
- Step 3: Create a minimum viable product
- Step 4: legalize your SaaS business
- Step 5: Get financed to start your SaaS company
- Step 6: Build your product
- Step 7: market and launch your SaaS company
- Step 8: Start tracking your metrics and keep your financial record
Step 0: generate a SaaS idea
To find a SaaS idea. Look for problems that need to be solved. you can look at your personal problems. your personal problems can be a great place to generate a SaaS solution.
looking at your own problems critically may help you generate a high potential idea to start a SaaS business that solves your personal and other peoples problem, who may have a similar problem like you.
Buffer, a platform to manage social media account and schedule posts was created this way. the founder of buffer Joel Gascoigne found the idea while using Twitter to share links and quotes manually,he figured it would be better to automate and that is how he got the idea for buffer.
Look for problems other people are suffering online and figure out how you can solve that problem using a SaaS solution.
Step 1: Start your SaaS with a simple plan
Having a very detailed plan could be a wonderful start but at first, there will be so many unknown and it will consume lots of time. Jumping without a plan is also not the right way to start your business. So, start with a simple plan.
Start with a very simple plan, your plan is expected to answer what you are going to do, how you are going to do it, and your schedule that cover who is going to do what and when. Planning tools like live plan can help you a lot. You can also plan without any tools.
Your plan should include.
- Strategy (what you are going to do)
- Description of the business
- Description of the problem that your business is going to solve
- Description of your target market
- Description of the competition and how you are going to win.
- Tactics (how you are going to do it)
- How you market your business.
- Who will be your partner and source of resource?
- How you sell your products
- The business model
- Your budget
- Your expense
- You revenue stream
- Action plan for testing
- Action plan for execution period
Step 2: Test your SaaS idea
In this stage, you are expected to talk to your potential customer directly. You have to check your assumption and adjust it to reality.
At the end of this stage make sure you answered the following question?
- Have I identified the right customers’ to target?
- Have I identified my potential customers’ problem?
- Do I have the solution to solve my customers’ problem?
- What is the best way to market to them what is the worst way to market to them?
- What price is the right price for my product?
- What products do they currently use to solve their problem?
- Can I provide better value to win the competition?
Step 3: Create a minimum viable product
Create a prototype using rapid application development (rad) tools or any other tool that can help you develop your prototype or minimum viable product to test the water. Rapid application development tool will help you build your prototype faster.
- In this stage, you are going to create
- Explainer videos
- Landing pages etc.
After you build your minimum viable product you may need to:-
- Forecast Your Sales
- Validate your idea based on the sales forecast.
- Conduct a SWOT Analysis and understand your competitors
- Price Your Products and Services.
Then, start building your brand. You can start this by buying a good domain name that fits your business vision.
Step 4: legalize your SaaS business
Pick a name for your business. You should pick a name that is not already taken. You may have to research business registry databases and search engines.
Incorporate your business in the right country with the right company structure. You can consult a lawyer to get the best fit solution for your business.
Step 5: Get financed to start your SaaS company
There are multiple ways you can get financed. You can pitch an angel investor or a venture capitalist for funding, you can fund it yourself or borrow from friends and family, based on the type of your business you can run a crowdfunding campaign using kick-starter, Indiegogo or any other platform.
Step 6: Build your product
Now you have tested the water.it is time to build your real product. while you build your product set up a landing page and collect contact information of your prospects.
It is better to start small and start as soon as possible. Launch your product as soon as possible and reach out to as many targeted potential customers’ as you can.
Start small with a targeted audience and scale from there. Start collecting feedback and accumulate ideas to make your product better.
Step 7: market and launch your SaaS company
Launch your beta testing
Launching a beta version of your product is another great way to start marketing early. You don’t need to wait until your product is fully developed to launch. Release beta version of your product when it is usable and get feedback from the users and shape the futures of the software.
Market your product
You can use multiple ways to market your product like paid advertising, affiliate marketing, content marketing and a combination of this.
Reach out to writers and journalists that could be interested in your product.do public relation seriously by planning and building a list of writers and journalist that you can work with.
Step 8: Start tracking your metrics and keep your financial record
Keeping an eye on your metrics and the financial record will help you.
- To improve your current and future performance.
- To prevent problems before it happiness
- Checking your goal and milestones against your performance
- To make a decision with confidence
starting a SaaS company may require lots of resource and investment.that is why it is important to start simple and as soon as possible. then build your business using feedback from your customers.