Ideas are important, yes, they are, what’s more, important is to execute them well. Almost everyone who makes their own SaaS application tries to make it the next big thing. No one wants to fail, and yet 90% of startups shut down. A study by Statistic Brain reveals that the most common reason for startup failure is incompetence, which accounts for 46% of all failed businesses. Academic qualifications alone are not a sign of competence, what matters is if you can do some planning and avoid a few common mistakes when launching your SaaS product.
Launching too early
So, you have a unique idea and want to get it out before anyone else? Well, hold on, because being the first one doesn’t always mean being the best. What matters is having a usable product, which will add value to the actual users. A buggy product can kill market prospects faster than anything else. Take your time, no need to put in too many features, whatever you develop make sure they solve a problem and the end-user feels comfortable using them. And yeah, invest significantly in your QA process.
Doing too little market research
What you consider useful, might not be that good for others. It is advisable to do some market research before launching a product. Identify a list of potential customers, who will pay for your tool. If possible then talk to them, share the app’s prototype and figure out if they’re going to find it useful in the long run. It’s important to have people paying for your product, so a revenue model must be in place. If you can have a certain number of assured paying customers, and that means profit for your business, then you must go ahead.
Not paying enough attention to initial customers
Your initial customers might not be too different from later ones. Always listen to them, the inputs they’ll share are going to be valuable. Take criticism in your stride and find ways to improve your app that will be as per their expectation. Even if you don’t have the kind of “big customers” initially, that you ideally want, then just keep going at it. Consider every customer as important and listen to their feedback with all your attention. Small insights in the beginning, can pave way for bigger things in the future.
Giving less importance to MSP
MSP means Minimum Saleable Product. MVP means Minimum Viable Product. There’s a difference between the two. MVP is something that you get developed, as per the least number of features required for a quick launch in the market, later on, more features can be added as per user demand. MSP is something that doesn’t have too many features, yet it sells because it gives customers what they want. Go for MSP because that’s where your revenues are going to come from. Develop a practical solution, which is going to benefit your customers, and naturally your business.
Making it complex
More doesn’t always mean better. Quite a few brilliant people, cannot simplify a complex problem. It’s simple to decomplexify something – break down a problem into small steps and repeat until it can’t get simpler. Focus on simplifying, and not on complexifying a problem.
One of the hottest trends of 2020 is going to be Micro SaaS, which is about taking an app with too many features and making smaller apps out of it with just the essential features. Simply said, simple apps are here to rule.
Not planning for long time
Don’t just think about launching an application, think about how it’ll be in the future. Think deep enough, in terms of 1 year, 2 years, 5 years, 10 years. What if your application succeeds and your users have too many expectations, then how are you going to fulfill them all? How will you sustain among the competition? How are you going to keep your loyal customers satisfied? Think on these terms because you’ll have to make a secure architecture that can scale with an increasing number of users while battling competitors copying your features and reducing their costs. When VCs see that you’ve done long-term planning, then chances of funding increase.
Pre-Seed Venture Fund in Atlanta –Vertical404
Providing funding to SaaS applications in the health, education, home, and finance sectors; we are committed to helping founders of color. If you’re a Black or Latinx entrepreneur, having developed an application, and are looking to get funded with expert mentoring and guidance, then look no further. Our team will do all that it can to make your application a success in the market. To know more about us, check out our website or drop in your message in the comments box below.