If you’re thinking about starting a SaaS startup, it’s important to have a comprehensive plan that takes into account the needs of your customers as well as your short- and long-term goals. Knowing what your customers need from the moment they begin using your software will help you create a strategy for attracting them and retaining them. Some factors that should be considered when outlining the steps for a SaaS startup include the elements of your value proposition, target audience and positioning.

Software as a service business ideas have always been trending, but what if you just don’t have the wherewithal to start from scratch? There are countless SaaS companies looking for talented professionals to lend a hand in the development of their next big product. One of the most critical aspects of a successful SaaS start-up launch is having a well-supported product. Years ago, before the advent of cloud computing, software was installed and maintained by local firms. Traditional marketing channels relied solely on sales and cold calling. Prospects could become leads and be pitched with sales campaigns, but other than that there wasn’t much in the way of automation. That has changed significantly thanks to advances in technology.


SaaS stands for Software as a Service. The SaaS model provides users with software over the Internet via cloud technology which allows companies to stay flexible and agile. The process of launching a SaaS is a lengthy one and can’t be completed by only one or two people. Before you even think about hiring employees, or making revenue, or approaching investors and eventually releasing your product, your team must be on the same page about what needs to be done and when.


Do you want to know what it takes to launch a successful SaaS start up? Of course, you do. But first let’s understand what a SaaS company means.


SaaS is an acronym for “software as a service.” It’s just another way of describing a software product that is hosted online rather than installed on individual computers. This contrasts with enterprise software products, also known as “on premise solutions” or even “hosted solutions,” where the software sits on your computers and is operated by a local system administrator.


A software as a service company is often called a SaaS company. It’s usually used to describe a business that sells computer software over the internet for regular monthly payments. It’s a term used to describe a type of software business that offers hosted solutions to customers over the internet. In fact, it is the fastest-growing category of software companies today. In our digital economy, products are increasingly offered as services rather than physical goods.


It isn’t easy to start a software as a service business if you have no technical knowledge. While the barriers to building software have never been lower, if you don’t understand how to build an app, how do you expect to hire someone else to do it for you? And even once you understand enough about the technical skills required to get your app off the ground, what about maintenance? What about making necessary and useful updates?


If you’ve ever started a business, you know that it takes know-how in a number of areas. You need to know how to market your products and services, how to sell them, and how to legally operate as a company in your state and industry.


That being said, check out below to know more about launching a successful SaaS startup:

Finding Solution For A Problem:

Start by identifying real problems your clients or customers have, or problems you have experienced yourself, then come up with solutions. You don’t have to be a developer to build a solution for a problem and sell it as a product. You might decide to start a business because you had problems of your own and tried to find a Software Solution for it. Before diving into anything else, you need to fully understand the problem that you are trying to solve. And this does not mean the obvious task of identifying a problem before building a solution — instead, you need to know how to dig right into the core reasons why customers and users have these problems and what they are looking for when they encounter them. When it comes to starting a SaaS company, you need to start by making sure you have a problem to solve. It’s very easy in the startup world to get caught up in everything else that needs to be done like branding, etc. — but before this you need to make sure you have a problem to solve which isn’t being solved by anyone else on the market.

Backing Up Your SaaS Idea:

The first step to validate your SaaS idea is to talk to current or potential customers. Unsolicited direct questions from customers are the best way to validate your SaaS idea. Their responses will help you uncover whether or not there is a real need for your product. The best way to do this is by finding and contacting them yourself – don’t rely on social media or any kind of mass communication, as you’ll be less able to filter out the noise. You can also use tools like surveys, and you can use social media monitoring tools like Social Mention and Moz’s Alerts platform. These non-interactive conversation platforms let you know what people are saying about your product, industry, or keywords that may be related to your business. 

Building Your Brand:

Getting a business off the ground often requires a lot of effort, especially in an increasingly crowded market. Figuring out how to brand your idea and become a differentiator in the market is key. What do you stand for and how will your brand communicate that meaning to prospective customers? Your brand can go a long way in clarifying your vision, differentiating your business in the marketplace, and establishing trust with customers. To start this process, you’ll want to put some serious thought into your brand name. It’s an important decision that can help define your company in the long run.


Your brand should be recognizable and unique for your company. The goal of branding is to construct an impression that is different from your competitors and establishes you as a trendsetter in your niche. You also want to make sure to project your company’s core values, who you are and what you offer prospective clients.

Backing Up Your SaaS Idea Financially:

Finding the capital to start a SaaS business is much easier said than done. There are many different ways you can approach the whole aspect funding for your idea and where it will come from. From the get-go, you have multiple paths to choose from: 1) bootstrapping (financing your business on your own), 2) investor funding, or 3) taking money from friends and family.


In the end, that decision depends on what your goals are and what type of investor you can find (or have already found) to provide a substantial amount to your business. The way you go about raising your funds can make a huge impact to the future growth of your business.

Building the Product and Releasing MVPs:

As a SaaS startup, you have to plan what are the most important features that you’ll need to launch. Once you’ve launched your app, continue to develop your app through internal and user testing. When a product is in an early stage of development, it’s usually better to focus on core features for the launch. There will always be more great ideas than resources to accomplish them, but don’t get too sidetracked—it’s really easy to end up with so many feature ideas that you get distracted from what you set out to build.


Also, SaaS start-ups and apps aren’t successful without a minimum viable product. There’s most often way too much work on the table, tasks to be completed, and features to be developed. The best advice is to launch fast via MVP and learn from metrics before your team gets bogged down in endless development cycles. As a new start-up, it’s critical to validate your idea before you dedicate your resources including people, time, and money. All start-ups should be lean and agile in order to stay cost-effective. One of the best ways to do this – the use of minimum viable products (MVPs).

Having a Marketing Strategy and Success Metrics in Place:

It’s never too early to begin marketing for your SaaS product. Take some of the most important goals you have for your product, such as growth and retention, or return on investment, and work on increasing those numbers each month.


As your startup grows, you will come up with a lot of ideas on how to make it better. But implementing every single idea right away is not exactly the best path to take – especially when you have limited resources. You’ll probably get overwhelmed or burnt out or lose sight of what’s important. Just like when deciding which features to build, you need to prioritize which ideas are most crucial to the health and survival of your business.


Numbers are essential–there’s just no way around it. Whether you choose to focus on the numbers your business generates, or the numbers that reflect your company’s performance, as a small business owner, you need to be looking at numbers. And the bigger your business gets, the more important it is for you to track key metrics at all times.

Regardless of what you do (or what kinds of services you offer), it’s important to pay attention to your numbers. Because at the end of the day, they’re going to give you a good idea of how things are going. And if things aren’t going so well, your metrics are going to tell you that too.


Starting a SaaS business takes time. And it doesn’t happen overnight — unlike most web startups. A SaaS business is a long term fit or die model that can take years to become profitable, if ever. So, you want your SaaS startup to be as successful as possible right off the bat. To do this, you need to begin with planning, building your product and testing your demand. You then need to go through the dry spell of building up your startup. Finally, once you’ve created a successful platform and user base, you should execute monetization strategies using a variety of revenue generation tactics like freemium plans, premium membership charges, and data warehousing services.