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Things to consider when building your SaaS business

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SaaS start-ups are becoming ever-popular. With low overheads, recurring revenue and the prospect of a big possible exit, it’s no wonder that this business model is attractive for many entrepreneurs globally.

If you’re dreaming of building your own SaaS business, or if you’ve already put the wheels in motion, there’s a few important things that you should consider before getting stuck in to ensure that you have every chance of success.

Things to consider when building a SaaS business

Define your perfect customer

Have you put enough time into testing the waters with your product? Before you invest your money and efforts getting it off the ground, it’s worth building a quick, low-cost minimal viable product. The purpose of this is to gain an understanding about your customers’ interest in your product without having to fully develop it.

Driving this minimal viable product should be your ideal target customer segment. You need to know exactly who it is that you’ll be selling to so that you can tackle their basic wants and needs. The sooner you can find out whether your product will appeal to this customer, the less effort and expense you’ll spend on a product that will not succeed in the market. Once you do find the right market fit, you will be flying.

Gather lots of feedback

Similarly to this, gather as much feedback as possible in the early stages of your SaaS product. It’s unlikely that you’re going to get it perfect the first time round. The chances are that you’ll have created a prototype product or launched a beta version and if so, this is the ideal time to gather lots of feedback from the people testing it.

When gathering this feedback, it is best to collect quantitative data as this will make it much easier to measure the progress of your business as you gather responses over time. For instance, instead of asking ‘is our software easy to use?’ you are better to ask ‘on a scale of 1 to 10, how easy is our software to use?’ Eventually, you’d hope to see your average ‘score’ increasing. This will serve as a visual of the direction your SaaS business is going in.

Put user experience first

Something that is likely to play into your initial feedback is the user experience – something that is never to be underestimated. You could create the most useful SaaS product in the world, but if it’s difficult to use and clunky, it’s probably going to put people off. A simple interface really can be the difference between securing and losing a customer.

Invest in a strong designer to help you with your SaaS product – it won’t be money wasted. A good user experience will pay for itself in the long-run. Think clean, simple layouts, clear call to actions, easy page navigation and good page speeds.

Never stop adapting

Your SaaS product should never be ‘finished’ and should always be a work in progress – even when you’ve finished coding and testing and you’ve launched it to paying customers. It’s almost inevitable that the all-important feedback will continue to trickle in the more people are using it, leading to more tweaks and changes. You’re bound to experience bugs and issues regularly and that’s okay – it’s all part of running a SaaS product.

When pushing out a new feature, use a test automation tool in order to put your new feature through several stages. Pushing it straight out to your customers and potentially facing problems or causing the entire system to go down is a huge risk when you have people paying for a service. Try and ensure that new features don’t disrupt the existing system too much.

Keep it secure

When creating a SaaS product, you’re putting your trust into your software provider to provide you with access. What if the provider goes out of business? How would you then access your online services and continue to deliver your SaaS product? When you’ve put all that time and effort into creating the perfect SaaS product, you don’t want to potentially lose it to factors out of your control.

You should consider implementing SaaS escrow into your business plan – something that we can help you with. AccessAssure independently monitors your software provider’s financial position and any anomalies that arise. It ensures that your cloud-based software is accessible for at least three months of business continuity. If you’d like to know more, give us a call today on 0800 456 1115.

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