Today, there are around 7,000 SaaS companies alone in the marketing field. Considering the SaaS industry is forecasted to generate $157 billion by 2022, it’s no surprise why everyone’s flocking to this type of business.
Maybe you’ve heard of such success with SaaS companies and you’re interested in starting your own. However, you have no idea where to start!
In that case, you’re in luck. In this article, we’ll give you a guide to starting your own SaaS company.
Identify a Problem That Can Be Fixed With SaaS
This first step to creating any business is finding a problem that consumers have. Without this vital first step, you might be investing time into a product that won’t speak to any type of consumer.
A good place to start is to evaluate your own life. In which areas do you struggle and what do you wish were available to help you out?
If you already have experience in the tech industry, then looking at your prior employers’ pain points is also great to do. You can set out to even make them your future clients!
Delve Deeper Into That Problem
In the previous step, you might identify one or two problems you could solve with SaaS. Don’t come up with too many, or else you’ll spend too much time in the research phase.
Once you’re happy with the one or two you’ve come up with, it’s time to delve deeper into them. You might feel like you’ve come up with a fantastic problem to solve.
But the reality is, it’s very likely you’re not the first person to think of solving this issue. And there’s a chance it’s not a problem many people need taken care of.
So you’ll need to do some research and see if other SaaS companies have already set out to address this pain point. If there aren’t any, that can be a good sign, but you’re not in the clear just yet. This is because the issue might not be important enough for any company to bother with.
The next thing you’ll need to do is conduct some consumer research. This can be as simple as asking friends, family, and colleagues for their opinions. Or it can be as sophisticated as putting together a survey and sending it out through multiple online platforms.
Either way, you need to make sure there’s a decent demographic willing to use your product before you create it.
Fill a Niche
Just because a particular area you’re interested in is saturated doesn’t necessarily mean you shouldn’t try your hand at it. In fact, this might mean there’s a good customer base to build on.
To do so, you need to fill a niche within that area. It can be risky to focus on a particular niche, but if you choose the right one, it can really pay off. For instance, you might be able to share or even convert customers from other SaaS companies in the industry because you’re able to address issues in a more targeted manner.
A great way to get an idea of what niche to fill is to check out your competition. Download their software and explore it to see what’s missing and what you can fill.
Determine Your Company Name and Buy the Domain
First impressions are very important for any business, and a big part of that is your company name. So tackle this first and snatch up the domain name before anyone else can.
Once you’ve bought your URL, then you can start building upon that page to get your first clients. Of course, this won’t be possible without first taking care of some other points.
Hire Developers and Designers
Now that you know what you want to do for your SaaS company, it’s time to bring it to life. To build proof of concept, you need to hire the right team of developers and designers.
You don’t necessarily have to hire big-shot employees, especially if you have a very limited budget. Instead, you can easily find quality freelancers at affordable prices on online hiring platforms.
Market Your Product
You can start marketing your product, even if it’s not quite finished yet. So long as you have proof of concept, you can start hunting down those key initial customers.
Those with limited budgets shouldn’t focus on paid ads. Instead, take advantage of free and cheap marketing methods, such as social media and content marketing. Consider hiring a social media manager and/or content manager if you can afford to do so.
Find a Good Billing System
You might not realize it, but billing can take up a good chunk of your employees’ time. This is especially true when it comes to people who are heavily involved in the development of your product, such as your developers.
Their time is better spent on doing what they’re best at: developing. So eliminate the lengthy process of billing and find yourself a good billing system.
It can really help to find the best billing system for SaaS business purposes. In fact, there are pieces of software that are designed specifically for this. They’ll help you speed up your time to market and also take away the worry of changes to rules and regulations, as they’ll automatically update for you.
Not only that, but some are so sophisticated that they can help you prevent and reduce churn. This in itself can make it worth investing in good billing software, as it’ll pay for itself in no time.
Create Your Own SaaS Company Today
Now you know the basics of starting your own SaaS company.
The steps to creating your own business can be difficult. However, when you’re doing something you truly love and have success to show for it, then the road to entrepreneurship can be incredibly rewarding. This is especially true when you get to set your own hours and be your own boss.
So take the first step in creating your own SaaS company. With our guide to help you, you’ll have an easier time navigating this process!
Would you like more advice on becoming an entrepreneur? Then make sure to check out the rest of our blog section!