The development of SaaS product services is the next best option to increase the size of your business. But developing software is not an easy task since it requires thorough study. It is essential to understand the advantages and the negatives that can go from developing SaaS software. You must make informed choices when hiring the right team of dedicated developers, making decisions about the development cost, and promoting the software.
Because of the ease SaaS solutions provide, they have become the most popular software delivery method. Most SaaS services include web or mobile apps that don't require installation, and users can access them by paying per month for the service.
What is SaaS Software?
In simple terms, a SaaS service is a cloud-based application accessible via the internet. It provides software services to users but is cheaper than the usual price for traditional licensing. Additionally, it allows users to create and deploy an application.
Companies of all sizes have begun to reap the benefits of SaaS services in their workplace by using cloud computing. There is no longer a need to buy expensive hardware or maintain, deploy, or upgrade the internal IT infrastructure.
Creating a SaaS solution demands funds, time, resources, and extensive research like any other project in business. Establishing a clear understanding of the outcome-oriented cloud-based service and its execution is a bit complicated.
What are the steps to develop a SaaS solution? As an expert in custom software development, we are here to help you develop a solid SaaS solution by starting from scratch. Read on to learn more about creating a SaaS application, the cost, and why the SaaS solution is advantageous for companies.
Types of SaaS Applications
Cloud computing has been a hot topic and is now an advantage for SaaS models used by businesses in numerous nations. Here are some examples of services that could be based on SaaS techniques:
SaaS ecommerce platforms
This kind of software allows companies to create cloud-based eCommerce solutions that provide SaaS-based eCommerce services with features like the integration of payments and inventory management and an easy-to-use checkout process.
The most well-known SaaS eCommerce services include Shopify, BigCommerce, and Volusion.
Vertical SaaS
Vertical SaaS products are cloud software solutions designed specifically for a particular market segment. Simply put, SaaS applications are designed to meet the needs of specific clients within a particular sector.
The most well-known vertical SaaS companies include HotSchedules (restaurant administration), Veeva (life sciences research), and ClearCare (home care management).
SaaS Collaboration Tools
The most widely used SaaS collaboration software is Slack, Zoom (it has an online cloud-based web version), and Trello.
Through these tools, businesses can boost productivity and sales, enhance team members' communication, and improve the company's culture.
CRM SaaS Software
Management of customer relationships SaaS software helps businesses monitor the flow of leads, maintain and keep relationships with customers, increase sales, and automate them when needed.
Indeed, some of the most popular SaaS-based CRM solutions include ZenDesk, HubSpot, and Salesforce.
ERP SaaS Software
ERP cloud-based software provides sophisticated features for companies, allowing them to handle all their processes and business operations in real time.
Oracle ERP Cloud, Scoro, and Odoo are some of the most popular ERP SaaS software.
SaaS Billing Software
Cloud-based billing software can be combined to provide beneficial features to companies, including Merchant Accounts, Payment Gateway, and a subscription management system, which includes sophisticated analytics features.
A few of the top SaaS billing softwares include Stripe, Braintree, and Recurly.
Increasing Business Revenue with SaaS Solution!
Making the switch to cloud computing can bring a wealth of advantages. So let's look at the benefits SaaS solutions have for you.
Reduced Upfront Costs
With the development of a custom SaaS solution, you can save your business substantially. The initial costs associated with the purchase of licenses and the installation process can be eliminated using the SaaS solution. In addition, companies can reduce the costs associated with regular maintenance and updates.
There are various other methods to save money for businesses. For instance, they do not need to purchase hardware because SaaS solutions are maintenance-free and can be downloaded. The pay-as-you-go services offered by Software-as-a-Service (SaaS) products ensure that users only pay for their services.
Flexible
SaaS software is highly adaptable to customers since they pay only for the service or product. You can provide custom payment plans to your SaaS services to users as a company. Once users sign up for the services, they can terminate the subscription anytime they want or decide to start or stop using the service according to their preferences. Additionally, they can change or upgrade the service at any time. A SaaS solution is flexible for users to alter the required service.
Better Global Access
You'll have better access to information from any connected device to the internet. In addition, you will also enjoy additional privileges, such as monitoring data usage and making sure that the same information is available to all users. Because all users are using identical software versions, this can make collaboration easier.
Since SaaS solutions can be accessed anytime, Users are not limited to a specific area. They don't need to install the software on their chosen device. If you have an internet-connected device and an internet connection, the SaaS application is accessible effortlessly.
Rapid Deployment
Implementing a software solution for business is a significant job. It takes a team of people who previously required in-depth training in managing or navigating the complex requirements of sophisticated software. With the introduction of cloud-based solutions, everything has changed dramatically. Nowadays, companies do not have to worry about their IT software department.
If the users have internet access, they can quickly access cloud-based solutions. However, the initial integration of access to the system is not easy. However, it can be adapted quickly and easily after the system is in place. This can save money in terms of both hardware and human resources.
Upgradability
You may have to invest money to maintain and update the software and apply minor updates if operating on-premise software. It's the IT department's responsibility to monitor the status of the software to ensure that the program is working well and always up-to-date.
However, the entire SaaS model is a centralized service. The IT department won't need to be concerned about updating your software. Furthermore, you don't require an expert to install or manage everything since the entire software is in the cloud. The hosting service provider regularly updates the software, lowering company costs.
Read More: What is Enterprise SaaS? What is Enterprise Experience?
From Ideation to Launch! Building a SaaS Application from Scratch
As you know the benefits you could reap by creating a SaaS service for your company, it is time to understand how to build a SaaS application.
Step 1: Research the Market
For starters, you should begin by conducting extensive market research to eliminate any confusion regarding the following issues:
- What are the problems my SaaS solution addresses?
- What will be my primary public?
- Which SaaS services are my competition?
- What are the distinctive features that my competitors do not offer?
- Do I have the ability to create an even application that is unique and distinctive using powerful features?
- How do I know which business strategies are used by my rivals?
Suppose you can answer each of these questions. In that case, you'll see your top-level target market, market requirements, and your competition.
One crucial factor to consider is why your customers are likely to choose your SaaS product over your competition.
Step 2: Develop a business plan
A business plan is a roadmap for your software-as-a-service product development. Let's discuss the key elements you need to include in your business plan to determine how to create the perfect SaaS product.
- What distinguishes your product from other products? Your company's identity and the value you wish to impart to your clients. Try to summarize your product in a short phrase and make it memorable.
- What are the significant issues that could be causing problems for your potential customers? How will your product address them? Determine the topics you'd like to solve using your product.
- How do you reach your intended public? Choose a marketing method to promote your business-content marketing, social media, advertising, partnerships, etc. There are many choices here.
- How can you earn profit from the SaaS solution? Define your monetization strategy. Look at various subscription plans, advanced support, and multiple upgrades. Freemium is a good option: flat-rate pricing, usage-based, tiered, or per-feature pricing.
- Which area do you wish to obtain financial protection, and how do you plan to use it? Estimate your direct expenses and then divide them into various categories. You should also identify the sources of funding for your business. You may choose to use your budget, investments, or crowdfunding.
Step 3: Decide on a Cloud Infrastructure Provider
And finally, develop a list of essential goals for the first months of your business.
The plans will probably be modified. However, it is essential to decide on the best way to create a SaaS product with success.
Step 3: Decide on a Cloud Infrastructure Provider
You must choose an appropriate cloud infrastructure company to provide multiple users with the same service while protecting their data. Choose the most reliable and trusted vendors capable of sustaining the most effective secure encryption and data center security standards. Your SaaS platform is running on cloud infrastructure. Therefore, choose a cloud-based service that can provide a high quality of scalability, reliability, and performance, as well as the capability of supporting integrations with third-party providers.
Step 4: Make prototypes
To ensure you and your team members see your SaaS platform in the same way, Designers will design a variety of prototypes:
- Concepts of navigation - the foundation for the UX.
- Prototypes with low-fidelity - very first UI concepts.
- High-quality prototypes in fully - colored and sometimes interactive prototypes.
Testing an initial prototype for each design phase is essential to know how the platform works and refine it for the most enjoyable user experience.
Step 5: Build an MVP
A minimum viable product (MVP) is an item with minimum features that you can make available to the public. An MVP can serve a variety of objectives:
- It allows you better to assess the level of interest in your audience.
- It lets developers test their products on users who could provide honest feedback.
- It will enable you to determine the most critical features for development shortly.
- It offers opportunities to build brand recognition as well as gain your first customers who are loyal to you.
- In some cases, an MVP can help you to make a profit.
The extent to which you can use MVP development will depend on the type of SaaS software you're developing. An MVP typically requires basic features plus your unique value proposition, and the structure may be straightforward.
An alternative to the MVP is an MLP, a product that's least loved. An MLP also comes with essential functions and a distinctive value proposition. However, it typically features a more sophisticated UX/UI design to establish an emotional connection and recognition among the users.
Step 6: Decide the Pricing Model
The most crucial element in increasing your market presence is to set up the SaaS solution with a well-studied pricing structure.
Create price rates that you can use for your SaaS application following your buyer profile to provide the best value to each of your customers based on their current needs. There are a variety of pricing options to choose from.
A free version with more features that can be accessed through premium subscriptions is the best option for most SaaS products. This allows users to assess how beneficial the effect is for them. When they're happy with the product, they'll be more likely to buy an upgrade to the paid version.
Step 7: Hire Development Team
After settling on your needs and budget, the work can begin.
It's not an exaggeration to declare that the stage of development is one of the most critical and vulnerable parts of making the most successful SaaS product.
Select the developers you want to develop your SaaS application the same way you choose your business partners to ensure that you get the top SaaS developer services.
Hire a dedicated SaaS development company with an experienced team of experts in their particular technologies based on the technical stack involved in creating your SaaS project.
How Much Does It Cost to Build a SaaS Project from Scratch?
Generally speaking, the price of developing a SaaS application depends on various aspects like the development experience and the degree of complexity, and many more.
It isn't possible to establish the software's exact price. The estimated cost of developing a web-built SaaS solution is between $80,000 and $90,000. This is version 1.0, i.e., MVP. The price of a complete SaaS solution will include the business analysis, UI/UX design, and quality guarantee costs. The cloud version with all features is between $200,000 and $250,000.
We want to emphasize that these are only ballpark estimates. What will the final price of SaaS application development depend on your specific project requirements?
The Key Takeaway
With lower subscription costs, access and accessibility and 24-hour tech support, and the ability to scale on-demand, SaaS apps have a variety of unique advantages that are not present in traditional software. But, how you create a SaaS application isn't an easy decision. Aside from deciding on an appropriate cloud service provider and the best technology stack and app architecture, the cost and availability of tech talent are significant obstacles.
Assembling a team of experts with extensive SaaS development expertise could take months, risking losing the competitive advantage. In this case, choosing a pre-vetted development company with a track record of success in developing SaaS apps is a feasible alternative to establishing an in-house team to handle SaaS development.
