Well, SaaS (Software as a Service) is a platform based on cloud services. To make use of them the clients just have to download and login. Most SaaS are based on a per monthly payment model. The main aim of such platforms is to enrich the sales team. They play an important role in the product development, delivery, and even pricing.

SaaS continues to become the world’s most popular technology among companies and organizations. It happens due to a great number of advantages  SaaS can boast of. First of all, such apps are cost efficient, since they presuppose paying on a monthly or annual basis. Moreover, you are not expected to buy expensive hardware, because you gain access to the features and resources your app offers. Secondly, cloud services secure the information shared on their platforms. Furthermore, isn’t it a good idea to have access to the information or files you need at any time, place, and even country? This fact makes SaaS apps appealing to millions of users.

The latest statistics show that SaaS revenue in 2020 has reached $ 160 million. Furthermore, in 2024 it is expected to reach $ 166.8 billion. This fact proves that Software-as-a-Service products are extremely popular among entrepreneurs due to the quality and price of the services they provide.

Well, after reading all this information you may wonder how to build a SaaS application. Luckily, our team is here to help you answer this question. So, let’s get down to business!

How to build a SaaS: 5 main steps

1. In-depth market analysis

The success of your product is determined by your understanding of the market. You should take the preparatory stage seriously and focus on all details. The first thing you should do is to decide on the target audience. It may sound obvious, although a lot of people forget to take into account the customers’ age, gender, geography and preferences. Only by understanding the clients’ needs and demands you will be capable of building a value-added and useful product.

Another crucial point is to analyze your rivals and competitors. Try to find information about their products and client’s feedbacks. Focus on the vulnerabilities of their services and benefit from them.

Make sure your SaaS app will be valuable in terms of solving some challenges and know which additional features it will include. Only after deciding on all these issues you will be capable of developing a great SaaS product.

2. Business plan matters

All business projects require detailed calculations and plans. Before launching your SaaS product it is essential to opt for a monetization strategy. It will determine how exactly you will gain profit from your application. The monetization strategy will influence the way you will create a SaaS product. That is why it is pivotal to settle this issue as quickly as possible.

You may charge your clients for additional services or ask for a fixed payment for all set of functions your app provides. There are multiple options to gain real profit, just analyze this issue deeply.

3. Make up the inventory of functions

Well, the more useful and beneficial your product will be, the more people will download it. You may add any functions you want to make your app special, although there are a few key points which should be taken into account. First of all, make sure your SaaS cloud product is a safe place to store personal data of any kind. Security should be among your priorities. Otherwise you can lose not only money, but a reputation. Secondly, try to avoid complicated and sophisticated systems. Make sure your customers can easily understand how to use your SaaS application.

To tell you the truth, the best way to define the main features of your future product is to look at your competitors. Make sure your list of features not only has something in common with all other products from this market, but is also unique in some way.

4. Define a minimum viable product

This step is a crucial one! The main objectives of MVP include collecting the clients’ feedback, verifying your business idea, and analyzing a particular market. All in all, MVP means creating a feature-limited version of your SaaS product to get the customers’ feedback.

5. The SaaS product development team

This stage is the most challenging in terms of hiring professionals and showing a good performance. Now you are supposed to build the platform technically. A good way to build a great SaaS app is to create your own in-house team. However, it can be possible only if you have a great deal of time and money. On the other hand, you are capable of  hiring freelance software engineers to save your money without sacrificing quality. The problem is that it may be difficult to control these workers and even communicate due to language, and different time zones. But if you are ready to devote your time and energy to hiring such professionals, you may gain some invaluable benefits. Another great option for a SaaS product development is to hire a software development company. Such teams can boast of vast experience and high expertise. It is also important to mention the software development outsourcing. It presupposes hiring specific professionals from the 3d side for covering a particular area of work. Such teams are flexible and experienced enough to build a good SaaS application.

Drawing conclusions

Nowadays SaaS applications continue to become more sophisticated and beloved among users. And since they are so popular they can be entirely beneficial for their creators. We hope that our tips will help you create and launch your own SaaS app successfully thanks to the understanding of basic principles and stages of the development.