SaaS Application Development – How to start your SaaS business?
Learn about SaaS Application Development for your business.
Challenges and consideration before you start your business.
Table of Contents
The Software-as-a-Service (SaaS) is a new approach to replacing traditional software development and purchase. Gartner expects that SaaS solutions will generate revenue close to $105 billion in 2020 alone, which is $20 billion more than what was the expectations for the year 2019.
The idea of SaaS is to allow companies to develop and maintain their products without having to build custom tech software from scratch. You can build SaaS-based applications with a small budget using cloud-based storage and technologies.
Saas has proven to be an extremely profitable area of business in 2020, it is important to crack the question as to how to build software as a product that can live up to the competition and stay relevant. This article will explain why Saas is famous for being cost-effective, agile, and affordable for startups and programmers.
SaaS application development: Few things to consider before you start
The idea behind a Saas-based business model is to optimize the resources. It allows startups to develop custom tech solutions with zero investment and capital. The SaaS vendors provide customers with a solution that you only have to purchase and will be ready to use. The vendor will provide the required technical assistance and upgrades.
The question then is: How to start a SaaS business?
It is no different than any other startup—you should have clarity around a few points before you start. These include:
- Target audience and their demands
- Advertisement and promotion strategy
- Monetization model
- Resources and budget
- Technology used
You should conduct thorough research around these before initiating the development phase, as these will determine the success or failure of your SaaS application development business.
Technical specifications of SaaS application development
SaaS application development has its technical specifications, which can greatly add to the considerations while you decide on a budget and the team requirements.
- The architecture of the application: Single or multi-tenancy (the Second one is comparatively less costly but the first one is more secure).
- Data security guarantee (If you want higher security to ensure scalability without any issues, then it will be costly).
- Features and their number.
- Service upgrades.
- API to offer integration with other services.
- Choosing the monetization model that fits your needs.
To get successful in the SaaS business, it is important to invest time and resources in knowing the needs of your targeted audiences and experiment with new technologies. You can also look into niche SaaS products that are working well in the market.
3 steps before you dive into the development of your SaaS application
Technologies evolve more than you think and if you’re looking to step into the technology market, you should do prior research. AR and VR technologies are evolving rapidly and you need to learn these in detail. SaaS is connected as well as dependent on the evolving tech trends as it serves businesses. If you aren’t sure of your skills to conduct market research and what’s trending, you should hire a niche specialist. This will save you from making some of the obvious mistakes that many failed businesses do.
SaaS is a highly competitive field, to begin with, and creating space for your product would demand some research and effort. It is pertinent to success that you research your targeted audience, what age groups they are, their geographical location, what product they need and will be inclined to buy, etc.
This is for a detailed discussion but you should define your product from a job to be done point of view and make it valuable for your targeted market. After niche selection and market research, you can move on the choosing a monetization model that suits you better.
How valuable is your SaaS product to the customers
If you have done prior market and audience research, you should come up with a product that proves to be more valuable to the customers than what’s already available in the market. Clearly outline how your product will better assist the customers.
Prepare a list of challenges and issues that can come along the way and inform your development team about it beforehand.
Challenges of SaaS application development
The SaaS business model is to sell digital services that can be regularly updated and used. Customers won’t buy a product that doesn’t offer utility and constant upgrading. The SaaS approach is a better alternative for both users and developers than the traditional model.
Customers use the commercially available services through subscriptions. The cloud services are one such example, where you will pay a subscription fee monthly or annually to use the service.
Following are some of the challenges of SaaS application development:
If your provided services don’t have the scalability option, they won’t grow and click with customers. This applies to both SaaS startups and SaaS businesses, as the startup will slow down if the number of clients increases and the business will face difficulty operating smoothly if it runs into issues due to overload.
If your SaaS product is niche-oriented, you might need to find enough clients to operate smoothly and target your audience better.
Security and privacy issues take up the center stage in today’s technology-centered world. If your services aren’t protected and customer’s data is exposed to leaks, your business will face difficulty in winning over customers. Fintech technology and services that involve financial and personal information should have to be protected with high levels of security measures.
Monetization challenges and concerns
As discussed earlier, people prefer SaaS services because they are cost-effective and affordable. Businesses as well as individual customers don’t want to spend resources on developing custom products from scratch. The provided services shouldn’t be too costly, as people won’t prefer it over other solutions then. This is where market research helps as it will give you an idea of the amount of money your targeted audience is willing to pay. Think about the monetization model in advance and how well it will work with your provided service.
If you’re looking to hire a company for custom software solutions, you can contact us at InvoZone.