6 Steps to Planning for a SaaS Business for Creatives
As technology has grown in leaps and bounds, software as a service—also known as SaaS—has become a profitable corner of any marketplace. Today’s consumers across the board are increasingly tech-dependent and are eager to try new apps and platforms that will make their lives easier.
While software is heavily entrenched in the digital sphere of Silicon Valley, there's plenty of opportunities for SaaS outside of the tech world. In fact, creative professionals are unique in embracing software businesses due to their natural inclination to innovate fresh and modern ideas. The same part of your brain used to dream up new design concepts can also fuel your technological ambitions.
However, even the best ideas will struggle without a formidable business foundation in place. Here are the six steps to planning for a SaaS business while embracing the creative spark that makes you unique.
Yes, write that business plan.
For creatives, that are used to running with ideas and making spur of the moment decisions. It is important to stop and take the time to write a business plan. It is not glamorous and takes time, but this will become the foundation for your business. It is important to think and write down the key concepts of your business, even if they are not 100% there yet. Things to include in the plan:
Company description
Market analysis
Company structure
Description of the product
Marketing and sales effort
Financial projections
Firm up a vision for the end product.
Once your business plan has been outlined, the first step to bringing your idea to fruition is to visualize how you want the product to look and function. What is its purpose? How will it help your target market? You don’t need to concern yourself with aesthetic details—like colors, logos, and full functionality—just yet; instead, focus on the big picture and how it will fit into your ideal customers’ life.
Perform market research.
While you might see all of the benefits of your software concept, you need to be certain that the market will also see and appreciate the value it brings to the table. Before investing more energy or resources into development, now is the time to stop and spend time talking to your target market.
Draw up a survey to distribute to those who align with your ideal customer, read up on similar case studies, research any competition, schedule focus groups, or perform direct interviews within your target audience. As you're researching, listen for feedback that relates to market demand and any improvements that you can make to improve the product. You may uncover ideas that ultimately outweigh the business's initial intention, which is perfectly fine to run with.
Start fundraising.
Unless you plan to fund your new endeavor personally, you'll need to gather some investments to get development off the ground and running. There are many avenues for securing startup funds from crowdfunding to private investors and venture capital funding. The route you choose will greatly depend on your business plan, your existing network, and any existing companies you might also operate.
Regardless of the direction you choose, the number one piece of advice for all startups is to fundraise as early as possible. Start well before you even need it; it takes a considerable amount of time and energy. Plan to start at least six months before you need the cash.
Assemble your team.
With the above foundation in place, the next step will be to assemble your team. This does not always mean hiring internally, it is completely fine and can save a bit of money by looking into agencies that offer software engineering services.
In picking the right agency, be diligent about reading reviews, requesting referrals, and interviewing the team to determine who will be the best fit for your needs. Once hired, you'll start working together on building out a MVP (minimum viable product) that serves as a demo of what's to come. You might be an expert in weddings, photography, or design, but tech is a whole other discipline, so it's vital to bring some outside perspective from the industry.
Test for quality management.
When the MVP is completed, there should be a testing period before launch to ensure any big bugs are flushed out, and the interface is as user-friendly as possible. A great way to test usability is by bringing in your industry colleagues to test out the software for free. Using a screen recording application, film their computers while they're using your product (with permission, of course!). After testing is done, watch all the videos, find any stumbling points users may have experienced and compile any necessary changes.
Prepare to launch!
Once you’ve tested the software and made updates accordingly, it’s time to prepare for launch! You’ll want to have several weeks of marketing in place to build excitement in the marketplace and develop brand recognition with potential clients.
When the software launches, be prepared for a lot of questions and bugs at the start. Even if the program is easy to use, new customers will naturally discover questions or small defaults that hadn't arisen earlier. Assign a team member as account manager, who will serve as the point of contact to ensure customers are satisfied with their experience. Once the dust settles after the launch, take time to look ahead. Your MVP should be the barebones of your product, by shifting your energy to the future, you will be able to map out what’s to come.
You’ll do great.
Fortunately, the tech community is filled with other entrepreneurs ready to support and encourage their industry peers. Building a tech company can feel daunting, lonely at times, and is one heck of a rollercoaster. Rest assured many professionals have been in those shoes and happy to lend their own insights and advice.
In Jim Collin’s bestselling book, Good to Great, he shares a view that should resonate deeply with anyone who has launched a startup: “Look, I don’t really know where we should take this bus. But I know this much: If we get the right people on the bus, the right people in the right seats, and the wrong people off the bus, then we’ll figure out how to take it someplace great.”
Ultimately, there are so many directions you can take a company — the possibilities are truly endless. However, your team matters most when starting a business, particularly focusing on SaaS, where there are many moving pieces. Building a solid team around you is going to be key to your success!
