How to Start a SaaS Business?

When a software product is delivered through the internet, it is referred to as SaaS (Software as A Service). For example, you may be familiar with SAAS business solutions like Uber and DocuSign because of their well-known names and widespread use.

It used to be that purchasing software for organizations and individuals was a time-consuming and frustrating procedure before the advent of high-speed internet access. Initially, you had to buy floppy discs and then CDs, and then set up the software on each computer that would be using it afterward.

Because of browser-based software, new programs can be accessed in a matter of seconds with little more than a mouse click. SaaS (Software as a Service) is a very large industry. Some of the most successful SaaS developers are multi-millionaires, with revenues expected to reach $113 billion by 2021.

To compete with the huge SaaS companies, you need a lot of money, which isn’t what we’re recommending in this article.

As an alternative, we will concentrate on the other end of the market, where there are thousands of successful entrepreneurs that make a good livelihood by developing niche apps for certain markets.

Starting a SAAS Business

It is necessary to determine the type of software service you intend to sell before proceeding any further.

Without being a software developer, the only reason you’re here is that you’ve already got an idea and want to know how to make it a reality.

While there are those non-techies who just decide to make some program out of nothing one day, we doubt there are very many of them.

As long as you’re still undecided about which program to sell, it should be your first concern.

This post on choosing your business and specialization can help you narrow your search.

Ideas for Your SAAS Business

A SaaS application must meet a specific demand of its consumers before it can be considered successful. Making money, losing weight, or finding love are all examples of things that will make their lives easier and help them reach their goals.

With your SaaS software, don’t try to create something entirely new from scratch. Nobody will be interested in your Gmail competition. However, a CRM designed exclusively for restaurants, for example, might spark their interest. and can help you obtain a sense of the applications that are about to hit the market.

They all have a selection of SaaS businesses, so you can see what’s new and what’s hot in the sector right now by visiting one of them.

There are a number of questions you’ll need to address while searching for your big idea like:

  • Is my app social or task-oriented?

Due to the high number of users needed to achieve the tipping point of viral growth, social apps are far more difficult to make successful.

  • Does the same thing already have a number of well-funded apps?

Discard your idea and start over if there are already established, well-funded apps.

  • How many users are there who want my app and have the money to pay me on a monthly basis?

Keep the process as simple as possible. Choose a market segment where there are people who have money and who have a requirement.

How to Build a SaaS App?

Make an App Plan on Paper

Begin with a client story. Create a detailed description of how a customer will interact with your SaaS application. Spend some time thinking about the issues your app will address and how it will help them. Write about how they would use your software if you could see it. This helps you organize your thoughts.

Afterward, map out your application completely on paper before investing any money in its development. Even the tiniest detail was considered. Individual buttons and links should be listed along with what each one does when push or clicked.

Next, show people in your target market how your paper-based method works to validate your concept. Make sure they understand what your program can accomplish for them by showing them the images and walking them through the process step by step.

Useful feedback can be collected at this stage, which can then be included in your final design.  You should not, however, feel obligated to follow through on every piece of advice. Creating an MVP (Minimum Viable Product) is your primary goal early on in the process.

You’ll utilize an MVP to test your idea with a small group of people to find any faults or flaws. Start a feature list for future developments using input from the paper walk-through.

Identifying a UX Designer

Make sure to engage specialists to help you put your ideas into reality once you’ve finished drafting them out. Hire a skilled UX Designer as soon as possible to help you with your project. The ‘appearance’ of your SaaS application will be created by the user experience (UX) designer.

Appearance and feel are critical factors in customer retention in SaaS applications. Having a good presentation is critical since no one wants to utilize a product they don’t like because of its appearance.

A large number of high-end UX designers may be found on, albeit you should expect to pay a premium for their services. Even if you’re on a tight budget, you may hire UX designers on platforms like Upwork and Fiverr.

The display parts of your SaaS software will be formed using the Wireframes, CSS style sheets, and HTML created by your UX designers after their job is complete.

After that, it’s time to bring on a back-end coder/developer.

Finding a Developer to Work with You

It’s not easy to hire a developer. The proper answer will lead to financial success; the wrong answer will reveal why hundreds of software initiatives fail each year.

There are basically two ways to go about hiring a developer. You have the option of hiring an expensive one from Europe or the US, or a less expensive one from areas like India or the Philippines that is no less talented.

Because of cultural differences, contact with people from India and the Philippines may be more challenging despite the fact that you speak the same language.

If you’re looking to hire top-notch software developers, don’t be afraid to deal with freelancers in India or the Philippines. The majority of my part-time contractors are based in India and the Philippines.

Your SAAS Application’s Beta Testing

Always keep in mind that the first goal is to produce an MVP as quickly as possible in order to get the product to market. You’ll need to test your program with real-world consumers before it goes live to ensure that everything is functioning properly.

This stage is referred to as ‘Beta-Testing,’ and it’s where you recruit customers from your target market to try out your product for yourself. While paying for Beta testers is an option, it isn’t absolutely necessary, especially if you provide the testers free or heavily discounted access to the first release.

Finding Beta testers is easy because there are numerous resources available to you. It’s possible that you already have access to a community through a Facebook group or a website like Reddit.

Additionally, there are places where you can freely promote your need for Beta testers for no charge (some people love Beta testing, and are always on the lookout for new apps to play with).

Now that the bugs found in Beta testing are resolved and the initial release is complete, it’s time to start thinking about getting your app on the market.

Bringing Your SaaS App to Market

It’s not just the expense of hiring experts to design and develop your SaaS software that you’ll have to factor in. Additionally, you’ll have to account for hosting and marketing expenses.


A successful SaaS app relies on reliable web hosting. Dissatisfied clients will abandon you, demand refunds, and spread rumors about you if your software goes offline or performs poorly.

The same shared hosting that you use for your WordPress blog is not appropriate for app hosting. If you plan on adding more users, your hosting has to be more resilient and scalable.

For starters, you will need to set aside approximately $50 each month for your web hosting. With enough success, the potential income from your app might reach tens of thousands of dollars every month. As a result, picking the correct web hosting business is critical from the beginning.

When it comes to selecting a web host, it can be a difficult process. No matter which hoster you choose, you will find someone who has had a poor experience with them somewhere. Maintain your focus on the major players.

Amazon AWS, Google Cloud, and Microsoft Azure are three of the most well-known options for scalable hosting.

How to Promote Your SAAS Business

Due to the global selling possibility and rivalry that comes with SaaS companies, they are in a global market. Consequently, bringing customers to your app requires firing up every marketing brain cell.

Building an email list and creating a YouTube channel are simply the first steps in Facebook advertising. How involved you need to be in marketing is illustrated by an anecdote on Reddit of a bootstrapped SaaS firm getting their first 720 paying clients for their services.

To begin with, they recorded individual welcome films for each of the site’s initial few hundred visitors. There’s an app called Loom that makes it simple to do this.

Is this a severe case? It’s possible, but it shows how dedicated you must be while promoting your SaaS company at the start.

As a further option, team up with people and organizations who are currently successful in your market. Getting a mention from an influencer in your niche might go a long way toward attracting your first set of consumers. Affiliate programs can also be used to assist boost sales.

SAAS App Pricing

Setting the proper price for your SaaS product is yet another important consideration. You can take one of the following general routes:  Features-based, Features and Users-based, and Freemium.


It’s possible to launch a SaaS business in just a few stages, but each step will necessitate testing, iteration, and improvement. Steps that have you complete specific elements in a different order than the order in which you found them may nonetheless have consistent overlap. It’s possible that your startup will not seek funding until years after it has debuted, and that building your business plan will be a process that you will revisit on a regular basis throughout the course of your company’s life cycle.

Getting your SaaS startup’s product out there is the most critical thing you can learn from this tutorial. With a strategy in place and the willingness to iterate to make improvements, you have a better chance of staying in business and competing successfully.

We at Aelius Venture can put together a team of SaaS operations and engineering specialists for your business. We have a team of project managers and software developers who have experience designing, constructing, and managing sophisticated SaaS infrastructures.

How to Start a SaaS Business?

Stay Connected!

Are you looking for Business Plans Solutions?

Book your FREE call with our technical consultant now.
Let's Build Your App

Book your FREE call with our technical consultant now.

Totally enjoyed working with Karan and his team on this project. They brought my project to life from just an idea. Already working with them on a second app development project.

They come highly recommended by me.

Owner, Digital Babies