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How To Build A Successful SaaS Business

In recent years, Software as a Service (SaaS) has become a popular business model for start-ups and established companies alike. SaaS businesses offer software solutions that are delivered over the internet, eliminating the need for customers to install or maintain software on their own computers or servers. SaaS has several benefits over traditional software delivery methods, including lower costs, greater flexibility and scalability. In this article, we will discuss how to build a SaaS business, including considerations, tips, and things to avoid.

What is SaaS?

Before listing the details of building a SaaS business, it’s important to understand what SaaS is and how it works. SaaS is a model of software delivery where applications are hosted by a third-party provider and made available to customers over the internet. Customers typically pay a subscription fee for access to the software, which is accessed through a web browser or mobile app. The provider is responsible for maintaining the software, ensuring uptime and delivering updates.

What are the benefits of SaaS?

If you plan on building a SaaS business, it is important you understand what benefits SaaS has to offer. This will ensure you create a product that benefits your customers and has measurable results. Some of the top benefits of SaaS over traditional software delivery methods, include:

  • Lower Costs: SaaS eliminates the need for customers to purchase, install and maintain software on their own computers or servers, resulting in lower upfront and ongoing costs.
  • Greater Flexibility: SaaS solutions can be accessed from any device with an internet connection, allowing customers to work from anywhere. This helps to support hybrid and remote working models.
  • Scalability: SaaS solutions can be easily scaled up or down to accommodate changes in business needs or growth. This ensures SaaS can be beneficial to businesses of all sizes, including businesses going through rapid periods of growth.

What is an example of Saas?

NetSuite is a great example of Software-as-a-Service. It’s a suite of applications designed to help businesses manage all of their processes efficiently through advanced automation. It offers functionality like Enterprise Resource Planning (ERP), along with Customer Relationship Management (CRM) and much more.

NetSuite is a cloud-based business solution that is accessed on a SaaS basis. Organisations simply pay a subscription for the functionality they need, and the numbers of users they require. They can access the software from anywhere, on almost any device and at any time through a web browser or app. There is no need to install the software on-premise, eliminating the need for internal hardware like servers.

As the business grows, additional functionality and users can be added easily, making the solution extremely scalable. If you want to learn more about NetSuite, please read out article What is NetSuite and how does it work?

Key Considerations for Building a SaaS Business

Building a successful SaaS business requires careful planning, execution and ongoing management. Here are some key considerations to keep in mind.

Identify a Market Need

Before investing time and resources into building a SaaS product, it’s essential to identify a market need that the product will address. Conduct market research to understand customer pain points and identify gaps in existing solutions.

Choose the Right Business Model

There are several SaaS business models to choose from, including subscription-based and pay-per-use. Consider which model aligns with your product and target market. You may wish to offer multiple pricing models so your services can be suitable for a range of budgets.

Develop a Strong Product

A successful SaaS business requires a strong, reliable and user-friendly product. Invest in the development and testing of your product to ensure it meets customer needs and expectations.

Focus on Customer Acquisition and Retention

SaaS businesses rely on a recurring revenue model, making customer acquisition and retention essential. Develop a marketing and sales strategy that targets your ideal customer and includes ongoing customer support and engagement.

7 Tips for Building a SaaS Business

1. Create a Business Plan

A business plan is an essential component of any successful business, including SaaS. It should include a description of your product, target market, marketing and sales strategies, financial projections, and more. If you would like some tips on how to do this, please read our article How To Write a Business Plan.

2. Build a Strong Development Team

To create a successful SaaS application, you need a strong development team. Your team should include experienced developers, designers and project managers who can work together to create a high-quality product.

3. Build a Minimum Viable Product (MVP)

Develop an MVP to test your product idea and get feedback from early adopters. This will help you refine your product and prioritise features based on customer feedback.

4. Focus on User Experience

Design your product with a focus on user experience to make it intuitive, easy to use and visually appealing. This will help increase user adoption and retention.

5. Create a Strong Brand

Develop a strong brand identity that reflects your company’s values, mission and vision. This will help you stand out in a crowded market and attract customers.

6. Build a Scalable Infrastructure

Plan for scalability from the outset by building a scalable infrastructure that can support growth and handle increased traffic.

7. Focus on Customer Success

Build a customer-centric culture and focus on customer success to increase customer retention and loyalty. Provide excellent customer support, gather feedback and use it to improve your product.

Things to Avoid When Building a SaaS Business

1. Not Having a Plan

It is important to have a clear and detailed plan of action when starting a SaaS business. Without a plan, it is difficult to know what strategies to implement, how to measure success and where to allocate resources.

2. Not Understanding the Market

It is essential to have a comprehensive understanding of the SaaS market and the competition. Researching the competition and understanding the market helps to create a unique product that stands out.

3. Not Finding the Right Team

Building a strong team with the right skills and expertise is essential for success. Take the time to find the right team members who are passionate and have the skills necessary to help the business succeed.

4. Not Setting Realistic Goals

Setting realistic goals is essential for success. Unattainable goals can lead to frustration, which can hinder progress.

5. Not Creating a Memorable User Experience

Creating a memorable user experience is key to success. Make sure the product is easy to use, engaging and delivers value to the customer.

6. Not Utilising Social Media

Social media is a great way to connect with customers, build brand awareness and generate leads.


Founders that want to have a successful SaaS business need to understand their market and create a product with a clear USP. Even by following the above tips, success isn’t guaranteed. By following the above guidance, however, you put yourself in the strongest position possible.

If you would like to learn more about this topic, please read our article What is SaaS?

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