Starting an SaaS Business? You Need to Know These 4 Tips
The SaaS market is growing exponentially. According to recent estimates, the global market is valued at around $3 trillion, and data from McKinsey suggest this could hit or exceed $10 trillion by 2030.
It's not just a thriving sector; it's a realm of boundless potential waiting to be tapped into. Let's delve into how you can carve your niche in this dynamic market and contribute to its ongoing success, filled with opportunities for growth and prosperity.
Find A Gap
With the market being so vast, it's crucial that you find a niche and an angle that isn't currently being served. You need a unique proposition that stands out and adds value to others. Even if something similar already exists, if you can find even the slightest adaptation that can prove to be needed by others, this will be your foot in the door. It's not enough to do what others are doing as you're in competition with established businesses, and prying their customers away for a like-for-like offering won't work well. This strategic approach will empower you to make a significant impact in the SaaS market.
Define Your Target Market
SaaS offerings can span both B2B and B2C sectors, and they can serve a wide part of the population. This means you need to pinpoint your target market and what you can offer them.
If you have no idea where to start, then you can look at similar companies to find their audiences to give you a base from which to start. As well as this, you can send out surveys, identify all your competition, analyze data, use market research tools, and talk to experts in the sector to get an idea of how well-received your idea might be or what you can implement to be more successful.
Learn About Your Target Market
Now you know your audience, you need to define them. You need a detailed idea and understanding of exactly who they are. If you are targeting the B2B sector, how big are the companies you are looking at? Who do they serve? What stage in their journey are they at currently? What are their job titles, what issues do they face, and what are the decision-makers within the business? What competency level do they possess for technology and the software you're creating, etc? The more you know, the more specific you can be in the creation process as well as marketing.
Compliance and Regulatory Requirements
A crucial step is to understand what your compliance needs are and what laws and regulations exist to protect both businesses and customers. This will be different for each company and sector, so it is important you pin down exactly what applies to you. Doing so will enable you to build all of these factors into your SaaS so nothing is overlooked or missing once it hits the market. The more you know, such as the differences between payfac vs iso (iso is often recommended for new SaaS startups), GDPR, cybersecurity control, HIPPA for medical SaaS, etc., the more secure and responsible your business will be, and the less risks you will encounter once you start to bring people onboard.
