When you are thinking of how to start a SaaS company, the two most important factors to consider are the product and the customer.
A good product will keep customers coming back, but a bad product will not make them stay for long.
Thus, it is essential to have a good understanding of what your customers want and how they want it delivered to them.
Software as a service, or SaaS for short, is a software delivery model in which the software provider delivers the application as a service.
The SaaS model of delivering software is popular because it provides customers with access to new updates and upgrades. It saves a lot of time and cost that the client would have invested in building the software from scratch.
For example, Adobe, Dropbox, Grammarly, Zoom, OTT Platforms (Netflix, Zee5) etc.
Step 1. Identify your potential customers
Step 2. Find out what market you want to penetrate
Step 3. Build a prototype or MVP
Step 4. Register your Company
Step 5. Figure out your pricing strategy
Step 6. Find investors or partners
Step 7. Create a marketing plan for your product
Step 8. Launch your product
SaaS companies target a broad range of customers. They can be categorized into three groups:
For your SaaS product to be successful, you need to know who your target market is.
This will help you find out what kind of features you need to offer and what marketing strategy you should use.
There are many things that go into determining who your target market is, such as the location, industry, skillset and other demographics.
For example, if you specialize in financial services for small businesses and startups, then you would want to find people who are interested in that niche.
Try to know more about
This is what is known as building a Client Persona.
You can also start with a general demographic like gender or age group and then narrow it down from there.
You can never be all things to all people.
Accordingly, you have to choose which group of people you want to work with and then focus on them exclusively.
A Minimum Viable Product or MVP is a prototype or a demo of your SaaS product. It can be the most basic version of your product that you can show to potential customers or investors.
It is important to build an MVP before launching your SaaS product because it will help you understand the customer’s needs and expectations.
The idea behind an MVP is to provide just enough features for a customer to use it and give feedback on what they like, what they don't like, and what they want from the product.
To build an MVP, you need to have a clear idea of what it is going to do and how it will work.
You should also have some idea about its features and how much time you will need for the development process.
Hence, the prototype or MVP should be developed to answer questions about:
Before launching the final SaaS product, it is important to protect its legal ownership rights.
For this purpose, register your business with MCA (Ministry of Corporate Affairs).
You can register your SaaS Company as:-
After that, apply for the following certificates:
For any business that is operating from India, it is compulsory to register their business with the government to operate legally.
Moreover, there are multiple benefits of being a registered company, such as customer reliability, access to government platforms and the marketplace, and more and more growth opportunities.
The next step to starting a SaaS company is to find a way to monetize your product.
You can do this by either charging customers for access or by selling services.
There are many ways you can charge your customers for access. For example, you could charge a monthly fee, offer a free trial, or have the customer pay per use.
There are also many ways you can sell services. For example, you could offer consulting services and charge by the hour or project.
You could also offer subscription-based services and charge monthly fees for access to your software.
While making your pricing strategy, consider how the following potential customers pay:
Investors or partners are the ones who can help you to grow your business.
They can provide you with funding, mentorship, and connections that will help you reach new heights.
The best way to find investors or partners is to look for them in your social circle.
You can also contact VCs and angel investors who have invested in companies like yours in the past.
If these options don't work out for you, then online platforms such as AngelList and Crunchbase are great places to start looking.
In fact, the government has been supportive of entrepreneurship and has taken steps to make it easier for startups to raise funds.
Marketing is not just about promoting your product.
It is about understanding your customer's needs and giving them what they want.
It is also about knowing how to communicate with them in a way that they will understand and respond to.
The success of your company depends on how you market it.
A good marketing plan will help you identify what are the goals of the business and what are the steps that need to be taken to achieve those goals.
It will also help you identify which mediums will be most effective in reaching out to your target audience and which channels should be used for promotions.
With a lot of competition, it is hard to get noticed. But there are some ways that you can use to help you launch your product successfully.
First and foremost, it is important to invest in marketing and sales.
You need to do a lot of research on the market and understand what your customers want before you launch anything.
Once you have this information, go ahead and start investing in marketing campaigns that will help make people aware of your product.
Online advertising is a great way for this as well as word-of-mouth campaigns where people talk about your product to their friends and family members.
You also need to have a strong customer service team in place before launching anything so that when people do buy from you, they know the next step will be taken care of.