Do you dream of launching your startup? It’s not so easy to make a dream come true and develop an application for a startup. First of all, you need to arm yourself with an innovative idea and the right business model. If everything is not so unambiguous with the idea – you need to explore the market, study competitors and look for investments, then everything is easier with business models. In this article we will talk about SaaS, one of the most popular business models.
What is SaaS?
SaaS (Software As a Service) is a model for granting a product license by subscription. Most often it is a cloud solution, i.e. located on servers on the Internet. Products that need to be installed on physical media are no longer in fashion – you can access the right software via the Internet.
Advantages of SaaS services
We made a list of reasons why cloud services and the SaaS model are cool.
No physical media needed
There is no need to spend money on hardware support for software, because there is no need to install, configure and run the application on physical media.
SaaS applications do not matter how much RAM is on the user’s computer and what operating system he uses. If you can access your browser from your device, it’s enough to use the cloud service.
Plus, you don’t need to store files on physical media, which means they will never get lost. Here’s how it works on the example of the Figma graphics editor: the user creates a file in the cloud and all changes are saved automatically.
In offline applications, progress has to be saved manually, otherwise – write is gone.
You do not need to develop several products for different platforms: the application will work on PCs, tablets and smartphones. Users can access the service from any device.
This is true for those who work remotely. In 2019, many companies came across this problem: workers were not able to use companies’ apps on their devices at home. If these companies used SaaS solutions, they would not have such a problem.
SaaS applications are almost impossible to steal. The final product does not fall into the hands of the user in its finished form, but is in the cloud. The user either pays for the use of the service or simply does not get access.
Previously, users often installed pirated software, because buying a license was very affordable. With the SaaS model, your service may be available to more users – because it is much easier to pay a small amount by subscription than to pay a large amount once.
SaaS application users always get the latest version of the product. The cloud service provider is responsible for updates, the user does not need to do anything. If there are any problems after the update, the supplier will be able to react quickly and fix everything.
The creators of local software receive the main profit from the initial sales of licenses, so support is paid less attention. In the long term, it is more profitable for the user to pay for the SaaS solution.
Basics of SaaS business
So, now you know the concept of the SaaS product model and their advantages – this is the basis for a good understanding of cloud systems. Now let’s talk about where to start to launch a SaaS startup.
Step 1. Study the target audience
The product should solve some user problems and simplify their lives. If you don’t know anything about the needs and desires of your audience, you won’t be able to satisfy them. No way. Not at all.
Let’s do this: start with the basic information of your future users. Determine their gender, age, place of residence, hobbies and habits – this will give you an understanding of the behavior pattern, and you will be able to develop a strategy and choose the functions that should be in your SaaS product.
Step 2. Find contractors
A team of professionals is always good. We talk about ways to find a contractor and how not to get upset later.
- Assemble your own team
- Hire freelancers
- Hire a saas development company
The first two options are not the best idea for a startup. If you want to get a quality product in the shortest possible time, it is better to look for an external development team. There are a lot of them to choose from.
At Digitalsuits, we always focus on customers and start by defining their goals and expectations. You do not need to learn the principles of the SaaS model or delve into the details of the development process. You can entrust the creation of the product to us and do other important things – for example, finding investors.
Step 3. Test your idea
Let’s say you learned everything you need about future users. But even if you write a whole book about them, you won’t know what they really think about your product. The best way to fix it is to ask them directly.
The development of MVP will help you with this. A minimally viable product is a solution that includes only the basic functions and features of your product. With the help of MVP you can collect user feedback, analyze it and understand how to improve the product.
Step 4. Find investments
MVP has another advantage that cannot be ignored. If you have an initial version of the product, you are already increasing your chances of getting financing.
It’s hard to impress when you have only beautiful words. Investors may not understand your idea and know nothing about the SaaS model. MVP can be seen, touched and tested – this will help convince them to invest in the development of your product.
For more information follow https://digitalsuits.co/blog/outsourcing-software-development-pros-and-cons/.