As we live in an ever more digitalized world there are only a few business ideas that have the potential to gain as much traction as Software as a Service business. After all the demands for these types of businesses shows no signs of slowing down in the next couple of years and, if you know what you are doing, you can make very good money from it. With that being said, opening and running a SaaS business can be a bit different and more challenging than running other traditional businesses So, to help you out, today we are going to take a look at a few things you should know before opening a SaaS business.
Have a good plan
A good plan is the foundation for any successful business endeavor, and that is even more true for a SaaS business. The first step you should take before starting to articulate a plan is to do thorough market research on your potential competitors and concrete ideas for your business. It’s important to remember that even though there is high demand for SaaS businesses there still may be others in your area who are offering the same services you planned and are already established as good and trustworthy businesses. On top of this, market research will allow you to communicate with potential customers which should give you a chance to test and pan out your ideas to see if they would work and be profitable in practice. With that information, you can start fleshing out a rough plan of how you want your business to be established and how you want it to grow. Remember that the key part of a business plan is to articulate your ultimate goals as a business and a vision that will help customers connect and stand behind what you are doing.
Figure out how you are going to fund your business
The question of funding is one of the most important ones every business has to face. In fact, not handling this question appropriately is one of the main reasons start-up businesses fail with around 30% being due to the business owner running out of cash. There are a few options you can go for such as standard business loans and angel investors but as a SaaS business, it’s not the smartest idea to overburden yourself with debt as it can seriously hinder your growth later down the line. Luckily, there are options such as short term business loans which can allow you to get quick funding for your business which you will be able to repay in full without too much-added interest in a short amount of time. They also have the added benefit of allowing you to deal with cash flow issues as well as to get quick funding for expansions or office renovations.
Make sure you follow the guidelines
Different countries and regions have different laws and guidelines that regulate how and what type of services you can offer. So it’s highly recommended to hire professionals to help you do thorough research in order to make sure you are in compliance with all of the regulations. It should also be noted that SaaS businesses are still a relatively new thing and the laws surrounding them are bound to constant change and improvement. Because of this, you should aim to always be up to date on the latest ruling and new laws regarding your business area in order to avoid any complications that can occur. In fact, hiring a dedicated team to deal with this matter is more often than not worth the cost as the potential technicality can really cause you a lot of trouble.
Focus on mobile
Pretty much everyone nowadays owns a smartphone, however, a large amount of SaaS businesses still only focus on providing services for computers. This is a huge waste of potential in general but it can be a great opportunity for you. Research has shown that as much as 43% of business owners use their mobile devices as a primary tool for running their business. As a result, it can be a very wise move to make mobile the sole focus of your SaaS business or, at the very least, focus on mobile with desktop services on the side.
Starting your own SaaS business can be a very rewarding experience, especially in today's world where there is plenty of demand for it. However, remember that just because there’s demand it doesn’t mean you are guaranteed to succeed. You will still have to put in a lot of hard work, time and energy in order to set yourself apart and really get your business out there. With that being said, now that you understand the basics there is no time like right now to get started.