What is SaaS?
SaaS stands for Software as a Service. A SaaS is a cloud-based service where instead of downloading software on your desktop PC or business network to run and update, you instead access an application via an internet browser.
Back in the old days, we used to make these things called floppy disks and we had to put them into computer stores and people would buy the box and put them on their computer, and then it was out in the wild. Now we just build the thing put it on the internet and it’s centralized.
The Benefits of SaaS (as the developer)
- Centralization. We don’t have to worry about sending out updates. We don’t have to worry about who’s running what version, supporting this and that operating system, and supporting old versions. We are the version. If you’re on the cloud and you’re on our site, you have the latest version we’ve got.
- It’s generic. By that, I don’t mean it’s boring and we’re doing the same as everybody else. What I mean is that everyone is using the same service. We’re not writing customized software. We may of course add features that a customer is asking for because we see that other customers will also want but it’s a generic service and everybody’s using the same thing
- Easy Subscription Model. Something I love so much about it is that you can easily run it as a subscription. You have people paying every month you don’t have to go and find new customers after one sale. It’s brilliant.
The Four Steps to Starting Your SaaS
I’ve pretty much boiled down the creating of a SaaS to four steps.
- Research
How do you find an idea? This goes back to things I’ve talked about many times in my YouTube videos. You have to kind of know the market. It has to be your sector. So it should be something that you’re doing. Maybe you look at software that you’re using already and you say ‘oh man, I wish it would do this and this’, so you’re going to change it. It could just be that. You develop new features building on existing ideas. But, it has to be an area that you have an understanding of. I don’t think there’s any way around that.
2. Validation
How do you get validation? Now we have access to these things called Facebook groups — and to a lesser extent Reddit. I find Reddit is a bit hard on the old ego. Find a Facebook group that is in your market. Of course, if you’re working on something that is you’re interested in any way you’re probably already in these Facebook groups. Go into these groups and say ‘hey guys you know I’ve been around in this community for a while I’m looking at building my own service this is what I think it would do. What do you think about it? What would you like it to do?’.
Also maybe try and figure out how much money they’re willing to pay, but you’re already in the market so you should know. You’re there as a customer so you should know what they’re paying already for other services.
A lot of people are afraid to do this. I think they’re afraid that their idea is going to get stolen. Let’s face it. Your idea is probably already being done. You’re making some modifications, so probably it’s not 100% unique. What is unique is your approach to it. Hopefully, it’s more than just the only unique thing about your service is your domain name! You should be having some insight into this marketplace. As I said, you know already! You’re using the software and you see ah you know if I only did it myself I’d do it differently. Well, now you can do it yourself.
It’s important to get this stranger validation and I don’t mean strangers as in weirdos I mean strangers as in not your friends or family.
Of course your friends and family are probably going to use the software or would say they would use the software if you ask them. Strangers are the ones who are going to say ‘look I don’t think I really need it’ or hopefully ‘I really do need it’. It’s super important to get that stranger validation.
2a. Create a public website and start marketing
What?! So soon?! Yes. ‘But we don’t have our software written’ I hear you cry.
Back in the old days, you used to call this vaporware. Now it seems to be called ‘pre-marketing’ which is not so negative.
Build a website, put some great copy on there tell people exactly what it is you’re going to make who’s going to use it. What the benefits are and ask for their email! Emails are gold! I’ll do some other video or article about the power of email marketing and the power of getting emails but for now, let’s just say sign those people up! You won’t regret it!
3. Build this puppy!
(I don’t literally mean a puppy I mean build this thing that could be in the form of a puppy!)
First, you need to decide who’s gonna build this. I’m a coder, so for me, I’m going to build it. Maybe I’ll get somebody to put some input or something like that but in general, I’m going to write the software. If that’s not your strong suit then you need to find somebody and you need to partner with them. And I mean partner! Give them 50 of the company. Writing software is hard and you are not going to succeed at all if your software isn’t working well.
And…how can I put this tactfully? Don’t hire your friend or partner with your friend just because they say they’re going to do it if you don’t have extreme confidence and their ability to be professional! And their ability to give you a professional piece of software. It’s better to kind of say… I don’t know what!
Lie if you have to but don’t wreck a friendship and a business because you’ve made the poor choice!
Now you’ve decided who’s going to write this thing, sit down, either with your partner or by yourself or whatever, and create a functional specification and a wireframe. There are so many great wireframe tools online.
Go through page by page for the important pages of your site and say this is the data I need to support this, and these are the choices that people are going to be able to make from this page, and what the impact of those choices — you know if they’re filtering or whatever it is they’re doing. You need to understand fully the functionality of that website! Don’t make another move without that!
Personally, I like to just do the mock-up and the functionality behind it. I don’t let myself say ‘you know, I can do this or this cool thing as a software developer’. Forget about that! You’re not a software developer right now, you’re building a product.
4. Release!
We’re down to step four and that’s releasing the puppy into the world! Never do that with a dog, by the way, always have your dog on a lead!
Let’s release this thing and start advertising. Of course a certain kind of
marketing you’ve been doing already. You started pre-marketing
up there in step two and you should have kept keeping on going with that. You should also have been writing blog posts becoming an authority in this area so that when people do a Google search you’re gonna come up. And when you are writing blog posts, that means. writing about the right thing with the right SEO tags and all the rest of that stuff.
But now that you’ve got the thing going and you’re scaling. You want to get
customers in! This is where you start to do advertising.
For me with Zonmaster….
Plug: and by the way if you’re selling on amazon why aren’t you using Zonmaster? If you are, thank you! At Zonmaster, we provide state-of-the-art autoresponder tools, financial breakdowns, statistics, and charts on everything you do on amazon.
Anyway, with Zonmaster the ads that we use are primarily Gmail ads, Facebook ads, and youtube ads. Those are the three that I understand the best
and that seem to work the best for us. There are probably loads of other
platforms too. It depends on what it is you’re doing and what your service is. Again, go to where your customers are going to be!
Wrap up
To repeat the four steps:
- Research
- Pre-market
- Build
- Release
I hope you’ve found this article useful! This is a transcription/adaptation of my original YouTube video. If you go over to that you can follow links to see more videos about writing software and being a tech entrepreneur!
Talk to me!
You can find me on Twitter where I share insights on Ruby on Rails, discuss my journey with Zonmaster, and explore various aspects of life. You can also check out my YouTube channel where I cover various topics related to web development, including Ruby on Rails.
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Drop me a note on Twitter or LinkedIn if you have any questions or need help with your Rails project. Happy coding! 😊🎉
