5 Steps to Build a Successful SaaS Product

The SaaS business is now price over $145B globally, and forecasts state that it’s going to develop to round $171B this yr. 

And it’s a pattern we see right here at Altar.io. We assist entrepreneurs and enterprise leaders convey new tech merchandise to market – and increasingly more of these merchandise are some type of SaaS. 

However what does it take to construct a profitable enterprise within the SaaS business? 

On this article, I’ve boiled down my expertise constructing SaaS merchandise right into a 5 step plan to extend your possibilities of success. 

Step #1: Craft Your Worth Proposition

Step one in constructing a profitable SaaS product is to outline the way it will present worth to your customers. 

This all begins with the issue you’re making an attempt to resolve, the folks you’re fixing it for, the competitors in your market, and the way your resolution is best than that competitors. 

Right here’s how to do this step-by-step: 

  1. First, outline the issue you are attempting to resolve.
  2. Then, how will your SaaS product resolve that drawback?
  3. Who’re your goal customers? Right here I like to recommend creating UX personas utilizing demographics, psychology, and behaviors
  4. How do your goal customers cope with the issue at present? Know what your rivals are doing to serve your market. 
  5. Why is your product higher than the present resolution? What are you able to provide that the present resolution doesn’t?
  6. Craft an Elevator Pitch – utilizing the entire info you’ve decided, create a easy, crystal clear pitch that sums all the pieces up succinctly and precisely. 

Right here’s a template you should use on your pitch:

[Name of your SaaS product] has been created for [your target stakeholders] who [state the problem they face]. [Name of your SaaS product] is a [statement of its vital value]. Not like present options, we [explain what differentiates you from the alternatives].

Step #2: Set Your Essential Assumptions

Your worth proposition, at this stage, has some assumptions surrounding it. 

You’re assuming that folks have a particular drawback and that yours is the answer they want. 

Write an inventory of the assumptions you’ve surrounding your product. 

The best method to validate assumptions is thru analysis. Begin by your competitors to see if they’ve already confirmed the assumptions in your listing. 

For the remainder, you’ll need to validate them by constructing your product – sometimes utilizing the MVP, POC, or waterfall mannequin.  

Step#3: Validate your Assumptions

Now you want to validate the assumptions you set within the earlier step by constructing the primary iteration of your SaaS product. Once more, I might personally suggest the MVP mannequin to do that. 

Utilizing your listing of assumptions, outline which options you need to construct to make sure you validate them within the shortest time doable. 

When you’ve a concise listing of options, you’ll be prepared to maneuver on to the primary stage of improvement, selecting your tech stack. 

If you happen to select to construct an MVP, don’t simply give attention to the “minimal.”

Step #4: Selecting the Tech Stack for Your SaaS Product

If you happen to’re a non-technical entrepreneur, I like to recommend speaking to a technical stakeholder earlier than committing to any tech selections regarding your SaaS product. 

Listed below are the most well-liked applied sciences utilized in a  SaaS product tech stack that will help you get began. 

  • Frontend Javascript frameworks reminiscent of React, Angular or Vue.js
  • Backend improvement: Node.js or Django
  • Database: PostgreSQL, MySQL, MongoDB 
  • A SaaS internet hosting supplier: Amazon Internet Providers (AWS), Google Cloud, Microsoft Azure

Step #5: Onboard a Improvement Group

If you happen to’re a technical founder or have already constructed your improvement staff, congratulations, you’ve all the pieces you want to construct the primary iteration of your SaaS product. 

For my fellow non-technical founders on the market, you’ve three choices for locating software program improvement on your SaaS product. 

You’ll be able to both discover a CTO/Technical co-founder, rent a staff of builders (who you’ll need to handle) or work with a software program improvement firm. 

I gained’t go too depth into this matter right here. Nonetheless, my co-founder, Rui Lourenço, has written a whole article How To Construct a Profitable Minimal Viable Product on [https://altar.io], and it covers this matter in additional element. 

If you could find the suitable CTO or tech co-founder, onboard them as quickly as doable. 

It’s higher to herald that senior technical stakeholder in your staff as early as doable. 

That being mentioned, discovering that individual typically takes quite a lot of effort and time. The opposite choices may also help you preserve a shorter time to market. Simply make sure you herald professionals who comply with one of the best working practices.

Picture Credit score: Pavel Pavel Danilyuk; Pexels; Thanks!

Paolo Dotta

Paolo Dotta is a Co-Founder at Altar.io, a product & Software program Improvement Company primarily based in Lisbon, London & Milan.

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