Software as a service (SaaS) is a software licensing and distribution model where software is hosted centrally by a third-party and made accessible to customers over the internet. The availability is usually based on a subscription model. It is one of three main categories of cloud computing in addition to IaaS and PaaS.
Ever since the idea of SaaS was initiated, it has experienced rapid adoption by several businesses. This is attributed to the fact that SaaS provides the necessary tools that businesses need at a highly effective cost. Putting it in perspective, the SaaS industry is expected to hit over $80 billion by 2020.
In order to benefit from this industry, now is the best time to get involved in the SaaS market and this post shows you how to accomplish this.
Step 1: Create a Lean Plan
Ever since the concept of Lean Startup was popularized by Eric Ries, it has been widely adopted in diverse industries, but especially in the technology sphere. It breaks away from the conventional 40-page sales pitch by focusing on what truly works.
To start an SaaS development company, you want to ensure that your business model and assumptions are right before executing your idea. This helps you to save time and resources that would have been focused on the irrelevant.
A lean plan for your SaaS development company will contain your strategy which focuses on your unique value proposition, your sales tactics, revenue model, and your schedule for reaching milestones.
Step 2: Test your Idea
Before you invest lush resources into your SaaS application development company, you have to go out into the field and meet with actual customers to see if your value proposition is solving a dire need. The purpose of this is to answer the question: Can I monetize my idea?
Under the lean approach, testing is carried out by using a minimum viable product (MVP). The MVP is the version of your product that is built with the least amount of resources. This allows you to obtain maximum information about your product from real customers.
The MVP also enables you to meet with customers in the SaaS developmental cycle. This way, you obtain useful information which is then used to refine your idea until it’s viable.
Step 3: Be Unique
In the world of SaaS application development, competition is fierce. Chances are pretty high that there are other companies offering similar services already. You want to make sure that you stand out as a strong brand. Creating a strong brand is achieved by turning the weaknesses of your competitors into your strong points.
In addition, the importance of a good domain name cannot be over-emphasized. One of the keys to creating a strong brand is in creating a unique domain name. You want to stick with one that is short, easy to spell, and memorable. In essence, the right domain name can make a substantial difference in the long run.
Related Article: Chose an Effective Pricing Strategy for Your SaaS Application
Step 4: Use the Appropriate Legal Structure.
Unlike most industries, you don’t require any formal qualification before you start your SaaS web application development company. However, you have to comply with the industry’s rules and regulations.
Before you register your SaaS development company, you need a name. Ensure you use a name that resonates with your customers and constantly reinforces what you’re all about to them.
The legal structure you should choose is dependent on your need. For example, if you’re considering to secure funds from venture capitalists, it’s best to operate as a C-Corp in Delaware. This is because Delaware C-Corp offers numerous benefits that are attractive to investors.
Step 5: Secure Funds
There are different ways of getting funds. You can bootstrap. Also, you can get larger sums form angel investors, venture capitalists, and Friends, Families, and Fools (FFFs).
Try to validate your ideas before trying to obtain external funding. In so doing, you reduce the risk associated with your idea. Therefore, it becomes easier to secure funds and you also get to keep a considerable amount of equity after funding.
Step 6: Product Development
It’s advisable to start working on your SaaS web application development as soon as possible. You want to make this process in-house because no one knows your product better than you. As this stage, you will want to focus on releasing the most important features before launch and then release other features in subsequent updates. This will help speed up the development cycle.
Also, this is the time to start approaching prospective customers. Get important information about them and also do some advertising.
Related Article: How to Build a Cloud-Based SaaS Application
Step 7: Launch and Market
There are numerous ways to market your business, from paid ads to tailored content marketing.
As a startup, make sure you keep a good PR. You should constantly keep strong contact with your customers. Local communities can also help you to get endorsements from influential people, thereby boosting word-of-mouth referrals. Creating an online community can also be a great way to spread the word about your business.
Content marketing is also a good way to create valuable information for your target audience. By sharing your expertise through blogs, you help your customers solve their problem. This can help you to attract and eventually secure new customers to your SaaS development company.
Step 8: Track your Key Metrics
Your metrics must be objective. For example, they must be insightful in assessing how your SaaS web application development company is faring. Tracking metrics enables you to track your growth. This information can be used to help you make better decisions and eventually improve your performance.
In the early stages of running your SaaS development company, having regular meetings to review your performance is a must. You get to examine your current performance and deliberate on how to improve the relevant numbers.
Starting your SaaS application development company is a fun and exciting adventure. Ensuring success starts by solving a pressing problem for your customers. By having an open mind towards continual validated learning, you get to refine your idea to a point where the success of your SaaS development company is guaranteed. When you’re ready to start creating your SaaS project, Dedicated Developers can work with you to develop the best SaaS solution to meet your company’s unique needs.
To know more about modern technologies such as SaaS App Development reach us at +1(770)212-3889 or Visit our Website Dedicated Developers. Reach us at inquiry@DedicatedDevelopers.com