5 Steps to Start a Software as a Service Company

The software as a service business model became extremely popular in the last decade and is still a profitable niche for those who can come up with an idea to solve the yet unsolved problems. The SaaS industry is expected to explode by 2025 by almost doubling its worth from 2022, so this is definitely the best time to invest in a SaaS platform.

But can you do it if you don’t have enough technical expertise? And where to start when it feels that all the good ideas are already taken? We’ve seen many of our customers asking themselves the same questions, so we decided to give you some tips to put you on the right track if you decided to create a SaaS application.

What Is a Software as a ServiceCompany?

A SaaS company is a type of business based on an application. It makes the application available to users who register and pay a subscription for the service. The company maintains the software, servers, and databases whilst the customers use its services without dealing with the technical stuff. Some of the most popular SaaS applications available today are:

·       Customer Relationship Management (CRM) systems

·       Enterprise Resource Planning (ERP) systems

·       Ecommerce applications

·       Data management

·       Accounting and Invoicing

·       Project management

How much does it cost to start a SaaS company?

Many factors can influence the costs of SaaS software development, like the complexity of the system, specific third-party integrations, or extra functions and features. Typically, for a medium-complexity bespoke software you can use to create a SaaS company, you will pay between £30,000 to £60,000. If you want to invest in a larger project, the costs can reach £80,000 and higher.

If you are not sure into what category your project falls, contact CodePixi Solutions and speak with a bespoke software development expert who can analyse your idea and give you an estimate.

Steps to Start a Software as a Service Company

You have a long journey ahead of you from the moment you decide you want to venture into the SaaS business world and the day you start making money. But here you are, and here are the steps to follow for a good start.

Find a Problem to Solve

This was an easy task 10 years ago when the business world was all problems and no solutions. Today, you need to dig deeper to find a need that hasn’t yet been addressed. The simplest way to come up with an idea is to take a look at something you are familiar with, like your profession or a hobby. What could work to make things easier for you? What do software products that already address this niche fail to do? Sometimes the breakthrough stands in details, so look closer or speak to your friends and coworkers to see what could help them at their jobs.

Write a Business Plan

Now that you have your idea, it’s time to write everything down. Creating a business plan for your SaaS company will help you determine the next steps. You will also need it if you plan on convincing people to invest in your software as a service business.

One of the most important aspects you need to take into account is monetisation. This means you need to think about how you are going to charge your customers for your services.

Consider these options:

·       Flat rate pricing – your customers pay once for a set of features

·       Freemium – offer a limited set of features for free

·       Per-storage model – charge for the amount of storage space your customers need

·       Per-user model – charge per number of users. The more people use the app, the more favourable pricing they get.

·       Pay-as-you-go – the charge increases with the number of users.

Identify the SaaS Requirements of Your Niche

You are close to talk to a software developer specialise in bespoke SaaS solution, so it’s time to think about the features your app should offer. The core elements have to do with security(your customers must be convinced their data is safe with you) and user-friendliness. You will also need a bespoke software service provider that can offer support for your app when you launch it to make sure it isn’t rendered unusable due to a bug.

With these out of the way, think about the functions your app should have and write down all the details you think your developer may ask you about.

Create a Minimum Viable Product

Here is good news.You don’t need to spend £100,000 on your app just to find out no one wants to pay to use it. One of the services our bespoke software company in London offers is MVP development. We can create a minimum viable product or a feature-limited version of your SaaS application. Use it to see how your potential customers would react to it, gather feedback, and estimate your income based on it. If the MVP proves a success, we can then start developing the final product.

Build Your SaaS Product

To build your bespoke SaaS platform, you need to find a reliable developer. This decision is probably the most important you can make after choosing your business idea.

You have two options: to go for a cheaper freelancer from around the world, who mayor may not follow the highest quality standards when building your product or choose a well-established bespoke software developer in the UK. The second option comes with lots of advantages we have already discussed here.

Prepare for a long process that will involve several meetings with the developer, testing phases, and feedback from you. Patience is king when it comes to obtaining a well-designed custom SaaS system that won’t become obsolete in a few years.