The speedy growth of brands like Salesforce and Dropbox in terms of success has made several aspiring entrepreneurs take a dive into the SaaS world. This promises a great future for the SaaS market.
Last year the revenue generated according to a survey was approximately 73 billion dollars.
The domain is predicted to get a total revenue summing up to 113 billion dollars by 2021.
So if you are a budding entrepreneur who wants to taste success by developing your own SaaS startup, here is the ultimate guide for you.
So let’s get started.
Phase 1: Developing Traction
After all the needs of the user are collected and once you have analyzed what needs to be provided in your SaaS product, you have to check how accurate your idea is. With this, you can, in addition, get the primary attention of all your probable clients. Below listed are the steps for gaining a lot of early traction.
1. Posting and Branding Your Idea with the help of ProductHunt
Speaking of ProductHunt it proves invaluable for entrepreneurs who want to validate their idea. It features several entrepreneurs, investors, and potential users as well. Thereby share your Saas idea on that platform and everyone will look into it and will ask any queries should they arise.
2. Creating and Branding Your Landing Pages
The landing page of yours will have details related to your SaaS vision, and this will prove very effective to share your ideas with the prospective user base and can help in developing an email list.
Your landing page allows you to showcase your product/service and you can send emails containing regular SaaS related updates to the users who are now attentive towards your services/products.
3. Being very much active in all the Business and Technology Communities
The internet features several communities where the members could discuss a lot about the latest software offerings that are developed to streamline the processes and also to give guidance on how you can brand your SaaS enterprise.
There are a number of communities present on the internet which discusses and dissects new software offerings which are developed and launched with the intent to making processes smoother and answer how to promote SaaS business.
Phase 2: Designing the Prototype
Here you will get the idea related to what exactly the userbase wants from your product. You are providing a solution to the world for a problem it is facing.
As you have now provided the user base with the enlightenment of what you are going to give, you have to now provide them something with which they can interact. This is the phase related to designing prototypes. You can get the design work done by using a lot of tools and software.
After your idea transforms into a prototype, you have to start the branding related work. Although social media can get things done, you can go for an alternate route where you give the prototype to the users who were captivated with your product by using eMailers. You will receive the feedback from the interested users then.
Another way can be to organize a meeting regarding the prototype with all the interested people. You can also welcome investors if you need the funding for your prototype.
Phase 3: Creating a SaaS MVP
This is the next phase where a Minimum Viable Product is developed. Your SaaS working model must feature the mandatory and special features which make your product to surpass all the contenders in terms of being the best.
It is the features of an MVP that play a major role in the entire development process, and it is the deciding factor for the future of your SaaS business. You will join hands with the development team to get the working model developed from the idea. In addition focus on the technological stack along with the way in which the product is developed by the development team. Here Agile Development can do very well by getting the maximum efficiency at a reduced cost and time. It is also possible for changing anything quickly as based on the demand.
Next focus on the Technology Stack which can provide a good experience and satiation for the end-users and the investors as well.
It is important to focus on technical frameworks when it comes to SaaS development and especially those not limited to Firebase.
You can look at the tech stack which some of the pioneers in the SaaS domain are doing for better understanding.
Phase 4: Making the MVP go Live and Researching the Feedback
Now comes the launch of the SaaS MVP where the users can experiment/use with it. The development team will finish all the MVP related testing and will make it Live.
The first goal after the SaaS product is launched is to get in touch with the business personnel for whom the software was created. This action must be done by the Sales team, and this must be done on a daily basis.
The next goal is to get feedback regarding how happy they were with the product. To attain success here both the engineering team and the testing team will have to sit together to work on the software product. Thereby all the issues are sorted out on a quick basis. The SaaS churn rate will be several points behind the actual industrial statistics and metrics.
According to a survey last year, the average churn rate for SaaS brands was 13.2%. The acceptable churn rate is recognized to be between 5 -7%
Phase 5: Funding
After the MVP is validated there is the updation stage related to which there is work in the backstage and here we have to focus simultaneously on Funding
While the engineers deal with the technical aspects, your team must focus on the business aspect of the software which includes Scalability, the features that are provided for free, Feasibility and the such.
However, one aspect that needs a great deal of focus is the Freemium model where you have to allow the user base to use the product’s features before they have to pay for it.
Despite it being difficult you have to decide on a pricing model which is very important for your SaaS business to prosper successfully.
The main factors why SaaS enterprises don’t succeed is due to poor market, greater churn and of course neglecting the aspect of Pricing Models.
Now when it comes to the next major work, you have to attract investors or spend your own money for funding provided you are a millionaire. Despite being important, funding is indeed a very hard task. There are several equations that need to be addressed where these equations depend on how the target market associated with the app.
Pay key attention to the business model and ascertain that it gives you more income than expenses. Once the userbase has started giving good feedback and if the profits are also good, the investors will definitely reach you out.
Next comes the process of continuous up dating, where you have to ensure that the SaaS software provides the best user experience always.
Now that you got to know what is required, you can now start your SaaS startup and proceed towards attaining great success.