Failure is a part of growth in the form of an obstacle. SaaS startups are mushrooming around the globe, but a very few of them are able to sustain for more than five years.
As cloud computing began to evolve business operations, a number of startups raised providing various services. Whether it be accounting, business intelligence, or collaboration, whether it be internal communication or marketing automation, the newbies came up with the solutions for all the aspects of business. However, some common mistakes led them to fall, and only one out of every ten startups succeed to stand out from others.
The failures of SaaS startups are big because the adoptions of new technology are critical for the evolution of businesses. Did they fail to meet market demands? If they did not, then what made them fall behind the competitors? The takeaways are of course momentous for every business owner to know.
1. Identify the target market
Startups who took the strategies to build the product before identifying the market needs, made themselves flow away. They thought of the solutions and created it regardless of the target audience or customers. They could not generate revenue with their product. Target the market, get feedback from the early users, and hone your product accordingly. Your solutions should meet the customers’ problems or requirements.
2. Save resources
It is a hard way to save something especially when you start working on a project and using resources without knowing how much you will need. As a startup, you should wisely use the resources rather than wasting in the unnecessary program. Time and money are not infinite, and you need to track them before they run dry.
3. Build a brilliant team
The best products reflect the best teamwork behind. Hiring the right people can lead you to nowhere if they are not able to work together. Once you get a team that can collaborate well on projects, you can expect some good products from them. You need to work on building the team environment by encouraging internal communication.
4. Keep an eye on competitors
Business is fair game, don’t forget your rivals. That does not mean you obsess over them; you at all times should keep in mind that you are on the right track. With competitors, you can get to know the level of user experience needed and the right timing to roll out new features.
5. Justify the pricing model
The product should justify the cost. For some customers, it may be too high and too low for others. Make your pricing model scalable that increases with the usability of the product. Most of the SaaS companies provide different versions based on the size of the customers’ business. A free trial with fewer features than the legitimate one may disappoint the users.
6. Be user-friendly
Let the users decide how superior your product is. Startups assume that their ideas should work, but the real picture is different. You should listen to the users to know what they want and what they would love to see. Ask them about your ideas before implementation and take their advice on the most priority. Engage them with friendly messages or conversation
7. Create a concrete business plan
If you think your product only is good enough for making business, think again. In order to get success, you must associate it with a sound business model. Planning paves the way to growth and builds trust in investors and customers. You should scale your business plan appropriately to enhance product usability.
8. Put efforts to market
Startups make mistakes of relying only on the product. You need to market the product to ensure that audience is aware of your brand. Customers have pain points you should know about and utilize the information to grab their attention. Make sure your marketing efforts are leading you to the right path.
9. Incorporate feedbacks with the vision
A clear vision defines the pathway of growth. When you accelerate towards the goals, do not forget the existing customers. Take their feedbacks and incorporate in the strategies to achieve success. Customers’ feedbacks encourage you to reach out for new and to take the right approach.
10. Release at the right time
Startups often make mistakes while choosing the timing for the product to hit the market. Some debut too early, while some wait too long. The right timing provides a competitive advantage and captures a market segment of the target audience. The release timing creates the first impression and is a significant factor in success.
Startups build SaaS products that amaze the audience, but often face failures in making business. With the above takeaways, you can avoid these mistakes and improve your business strategies and model.