How to Build a SaaS Product: Your Comprehensive Roadmap

Is the SaaS market worth exploring today? To answer this question for you, we turned to research.

According to the SaaS Market Report by Paddle, April 2024 was a strong month for B2B SaaS, with a notable 22.6% monthly recurring revenue (MRR) growth. For the first time in two years, the B2C SaaS sector also showed stable growth for four consecutive months. The report predicts elevated growth for B2B SaaS before it stabilizes, while B2C growth is already shifting towards a more sustainable pace.

So, what’s driving the market? Firstly, there is a positive trend in venture capital investments, especially in European software companies, which signals investor confidence in the SaaS market. Secondly, despite economic uncertainties, businesses view SaaS applications as a way to become more efficient and scalable while also getting the flexibility and cost-efficiency so needed in the face of economic challenges.

It’s safe to say that the market looks promising. However, if you want to enter the market with your own product, you have to get it right. The Paddle experts warn that businesses must focus more on customer retention and work hard to enhance the customer experience. Brights also has quite a few insights to bring into this discussion. In this article, we will guide you through the SaaS development process, providing you with all the information needed to make your product thrive in a competitive landscape.

Key takeaways

  • The success of a SaaS project heavily depends on four growth pillars: sales and marketing, pricing, channels, and product development and engineering. As experts in the latter, we typically insist on following the lean startup concept for emerging SaaS businesses and starting with an MVP (a minimal viable product).
  • In the case of SaaS startups, it’s crucial not to skip the discovery phase. It allows you to validate the market before making any significant investments in product development. Moreover, it can help you shift the focus toward what your users truly need, thus improving the chances of your SaaS succeeding.
  • The SaaS development journey doesn’t end with an MVP. Afterward, you have to collect and address customer feedback, follow product metrics, reassess performance issues, and implement new features. You will also have to market your product and find a strategy to expand your customer base.
  • The cost of building a SaaS application can range anywhere between $20,000 and $500,000. For instance, a SaaS MVP with the most essential features might cost around $35,000, while a complex, full-fledged product with advanced features like AI will cost $150,000 or higher.
  • Among the top SaaS trends, Brights recommends paying extra attention to artificial intelligence, team collaboration features, and vertical SaaS.

What makes SaaS successful?

SaaS products have a huge potential to triumph — after all, that’s probably one of the reasons you are considering developing one. SaaS applications offer scalable solutions, which businesses can customize to their unique needs. And by switching to SaaS, companies can significantly save on costs related to infrastructure and maintenance. For businesses looking to improve their operations quickly, SaaS applications have been life-savers. Just look at how many users products like AWS, Slack, and Google Workspace have.

The question is, how can you build a SaaS product that makes it to the top and becomes a staple for businesses? The success of your project relies on four pillars for efficient growth.

  1. Sales and marketing. Strategies and activities aimed at promoting your SaaS product, generating leads, converting them into loyal customers, and securing revenue.
  2. Pricing. A strategy for setting the price of your SaaS product, including various models such as subscription-based, freemium, and tiered pricing.
  3. Channels. Platforms and methods through which your SaaS product is distributed and made available to users. These can include direct sales, partnerships, online marketplaces, and affiliate programs.
  4. Product development & engineering. Building a reliable and competitive SaaS product, focusing on user experience, performance, and scalability.

Since Brights is focused primarily on the tech side of software development, this article is dedicated to the product and engineering aspects of a SaaS product.

Building a SaaS startup

Life's too short to build something nobody wants.

― Ash Maurya, Running Lean: Iterate from Plan A to a Plan That Works

Before getting into the development process, we have to go back to the basics. If you’re considering starting a SaaS startup, the lean startup concept can be your foundation. The core of this approach is the build-measure-learn loop, which means creating and testing a product that your customers actually want. For that, you must start with building a minimal viable product (MVP) and measuring its performance and feedback. After getting the results, there are two ways to go: improve the product or shift directions.

As all startups do, your project will have to go through three stages of growth.

The three stages of startup growth
Problem-solution fit Product-market fit Scale
The discovery stage, during which you will identify and validate a real problem that your customers face, ensuring there is a solution worth pursuing MVP development, which allows you to test and refine the product so that it meets market needs and gains traction with early users The expansion and optimization stage, during which you will scale operations, optimize support, and extend the team to sustain growth

Throughout this article, we will get into the details of each stage.

Key considerations before developing a SaaS application

We know you’re eager to jump straight to SaaS product development. However, to establish a solid base for your project, there are a few crucial factors to consider.

First, the classic software development strategy “Concept → Product Development → Alpha/Beta Test → Launch” doesn’t really work for startups — unless it's a startup with a limitless pit of resources. This approach can work well for established companies with known markets and a loyal customer base. But for emerging businesses, it can lead to disaster. By jumping from a concept to full-fledged development and counting solely on the launch, you:

  • Assume that you know the market well without proper market validation;
  • Build a SaaS product with features without validating what the customers actually need;
  • Face late discovery of problems and difficulty pivoting in the other direction;
  • Take a risk of significant financial losses and wasted resources if you get the launch wrong.

Stepping into a highly competitive market by building a SaaS product without prior validation is like walking a tightrope blindfolded with no prior experience and hoping it will get you a win. Respectfully, winning in this case would be a sheer miracle.

So, what does the classic software development approach lack in the case of startups? The discovery phase.

Discovery phase

In the early stages of a startup, focusing on “execution” will put you out of business. Instead, you need a “learning and discovery” process so you can get the company to the point where you know what to execute.

― Steven Gary Blank, The Four Steps to the Epiphany: Successful Strategies for Startups That Win

The discovery phase is an unskippable step because it allows you to validate the market and customer needs before making considerable investments in product development. It also helps to focus on what truly matters to customers, not just the features you think your SaaS product should have.

Early negative feedback is an integral part of conducting a discovery phase and building an MVP. However, it shouldn’t discourage you. On the contrary, take it as an opportunity to make a timely pivot based on research findings and customer feedback and adapt your strategy to meet market demands better.

What the Brights experts say

From my experience, people who are building their first startup often have a very basic vision of what they want to build. The discovery phase helps them shape the vision, understand what they want, and determine the implementation strategy. For instance, recently, we conducted a discovery phase for our clients only to conclude that the idea wasn’t unique and viable. The clients won’t proceed with the project, but that’s also okay — at least they didn’t spend lots of money on a product that wasn’t going to work.

— Nata Shved, Chief Operating Officer at Brights

The discovery phase may sound complicated since it can determine the success of the project, but in reality, it’s one of the quickest stages in the software development process. Besides, you don’t have to do it alone. If Brights were to conduct your discovery phase, we would:

  • Conduct thorough market research
  • Define target audience
  • Establish a product vision
  • Decide on the development approach, which may involve building either a horizontal or a vertical SaaS application
  • Choose  a pricing strategy
  • Develop a Minimum Viable Product (MVP) roadmap

On average, the cost of the discovery phase at Brights rarely exceeds $5,000, meaning it makes 6-12% of the MVP development cost, depending on the project’s complexity. During this phase, our SaaS development company will put your idea through a stress test and determine whether it’s worth exploring further. Once the discovery phase is done, you can choose whether to continue working with Brights or brief other contractors.

By going through the discovery phase, you get a strategic foundation for your project, with all the necessary documentation and often even a prototype. Therefore, when you get to development, with our team or another vendor, this foundation will accelerate the cooperation of business analysts with the team, improve the development process, and save your resources.

— Nata Shved, Chief Operating Officer at Brights

An additional tip for validating your idea

The goal of any new product should be to solve a problem that prospective users face. Here is a simple formula for identifying the right problem to solve.

MVP development in a nutshell

Starting with an MVP in SaaS development can be a pivotal decision for startups since it often determines the future success of the product. Therefore, while it’s much shorter and cheaper than traditional software development, it’s no less complex. Here, we briefly cover the core aspects of this process, but you can go deeper into the topic and check out our article dedicated specifically to SaaS MVP development.

Assemble a skilled and reliable SaaS development team

First things first, to develop a SaaS MVP, you need people to do it. Whether you want to go with an in-house or outsourced team, a SaaS product requires the following set of specialists:

  • Business analyst to identify business needs, document requirements, and ensure that the final solution aligns with the business objectives;
  • Project manager to deal with timelines, resources, and team coordination so that the project stays on track;
  • UI/UX designer to create the user interface and experience that satisfies your target audience;
  • Software architects to design the system's structure and make high-level technology decisions;
  • Backend developers to build server-side logic, databases, and APIs;
  • Frontend developers to build the user interface using programming languages and frameworks;
  • DevOps engineers to manage software development, deployment, and maintenance processes;
  • QA engineers to test the software and ensure its quality and performance.

We recommend kickstarting your project with an outsourced team since it can be an easy way to save money while preserving the quality. For instance, Brights can provide each one of the experts on the list. Moreover, these would be people with experience developing SaaS applications, since this type of software is one of our company’s main focuses.

Choose the right tech stack

Typically, as a tech team, we choose the tech stack during the discovery phase when we are planning for project implementation. However, if you want to pick your own set of technologies, there are some things you should know.

Deciding on the technology stack involves determining which programming languages, frameworks, databases, and infrastructure tools you’ll use to build a SaaS application. Here are the most popular options for SaaS products:

  • Front-end: React, Angular, Vue.js, JavaScript, and TypeScript;
  • Back-end: Node.js, Nest.js, ASP.NET Core, PHP, Laravel, and C#;
  • Database management: PostgreSQL, Microsoft SQL Server (MSSQL), MongoDB, Snowflake, MySQL, Redis, and Elasticsearch;

You can learn more about the specifics of a technology stack for SaaS applications in our article on the matter.

Set up a reliable cloud infrastructure

Cloud services offer automatic scaling, load balancing, and security features, on top of being cost-efficient. Therefore, it makes sense for SaaS startups to use cloud platforms. With this option, your SaaS product will be able to handle varying user loads — as long as you choose the service wisely.

So, what should you consider when picking a cloud platform? We recommend going with a cloud provider that offers:

  • A cost-efficient pricing model with options that match your budget;
  • High availability with multiple data centers across different regions;
  • Scalable resources like auto-scaling, load-balancing, and serverless computing;
  • Strong data redundancy and disaster recovery options;
  • Advanced security measures and compliance certifications relevant to your industry (such as ISO 27001, SOC 2, HIPAA, etc.).

Popular cloud service providers include AWS, GCP, Microsoft Azure, and Heroku, so you can start by comparing these options.

Create UI/UX

UI/UX designs can define whether users like the product within the first few seconds. While with MVP in SaaS we focus on core functionalities, a well-designed MVP can still help you attract early adopters, gather valuable feedback, and increase user retention. We asked our UI and UX specialists what it takes to design an MVP for a SaaS product that can get it adopted by the target audience.

Designing the product’s UI

With an MVP, our main task is to check our hypotheses and gather user feedback. We must focus on our audience's most urgent problems, needs, or pain points. As for the design itself, the product has to be simple, intuitive, and functional at this point. That’s it. For a user interface, it means that the users can quickly and easily understand how to navigate through it without excessive instructions. Also, I recommend keeping it minimalistic so as not to weigh the product down with redundant information and visual elements.

— Alina Khaliavinska, UI specialist at Brights

Designing the product’s UX

During MVP development, UX is one of the most critical development aspects, so don’t hesitate to put a lot of resources into it. A good product is a useful product, and it’s impossible to make it without proper research and UX design.

Firstly, I recommend focusing on whom you’re building the product for. Communicate with your users as much as possible, ask them how they satisfy their needs now, and find ways to improve the process. That’s the key to building a SaaS product that will survive in the market.

Together with other specialists, a UX designer will help you create a convenient and valuable product and ensure that users make a habit out of using it as early as possible.

— Maryna Shevchenko, UX specialist at Brights

Develop and test

The development phase can roughly be divided into three parts:

  • Back-end development
  • Front-end development
  • Quality assurance

During back-end development, engineers write code to implement the back-end functionalities. To be more specific, back-end developers build the server-side logic and APIs, integrate databases, manage server configurations, ensure security measures, and optimize performance.

Meanwhile, front-end developers transform design files into functional interfaces. They create responsive layouts, implement interactive features, ensure cross-browser compatibility, and optimize the user experience.

Lastly, there are quality assurance engineers who conduct various tests to ensure the application's quality and stability. They identify and report bugs, collaborate with the software development team to resolve issues, and perform regression testing to be sure that fixed problems remain resolved.

Implement vigorous security measures

The majority of hacks happen due to internal vulnerabilities. The good news is that you can prepare your system and make it resilient in the face of security threats. The not-so-good news is that the bare minimum of security measures gets quite long. For Brights, these include:Access management to control user access with strong authentication and regular

  • Access management to control user access with strong authentication and regular permission reviews;
  • Virtual machine (VM) management to prevent unauthorized access;
  • Updating VMs to regularly patch security vulnerabilities and improve performance;
  • Network control to monitor and manage network traffic using firewalls and intrusion detection systems;
  • Perimeter network control to secure the network boundary, prevent unauthorized access, and mitigate external threats;
  • Data protection to safeguard data through encryption, secure backups, and strict access controls;
  • Incident management to quickly detect, respond to, and recover from security incidents;
  • Downtime minimization to implement strategies like redundancy and failover mechanisms to minimize downtime.Our article “SaaS Security: Common Risks, Challenges, and Best Practices” provides more on this aspect of development.

Deploy

The finish line of MVP development is deployment. At this stage, DevOps engineers configure servers and infrastructure to handle user demand with scaling and load balancing. They also monitor performance and collect user feedback for ongoing improvements. The Brights team also recommends continuous delivery for rapid updates and implementing disaster recovery and backup systems to ensure data remains secure and available.

Brights experience

One of the classic SaaS MVPs our team built is Guided, an app for 24/7 access to consultations from experts and licensed professionals through on-demand video calls, be a tutor, a hairdresser, or a plumber. We worked on this platform in 2020, when the need for this service in the US was especially relevant due to the pandemic. The Brights team was tasked with:

  • Creating the design of the application;
  • Developing an app MVP from scratch so the client could submit it for investor review.

Since it was an MVP and the deadline was tight, we fit the functionality for service users and specialists into one app, which helped us simplify the development process and make the app versatile. Though there was much more to the platform, all the extra features were postponed for full-fledged development.

It’s important to highlight that an MVP can be a well-functioning product; it just doesn’t offer anything “extra,” be it design elements or additional features. Therefore, we always recommend going further after the MVP launch, just because the users have gotten really used to flawless digital products.

— Nata Shved, Chief Operating Officer at Brights

What’s next after MVP?

Startups that succeed are those that manage to iterate enough times before running out of resources.

― Ash Maurya, Running Lean: Iterate from Plan A to a Plan That Works

First-time startups often make the mistake of thinking that after the MVP launch, the software development costs will go down, and the income will come right away. Unfortunately, that’s almost never the case. In fact, next comes even more work.

MVP is the first step in the evolution of your SaaS product. Next comes the transition from a minimum viable product (MVP) to a minimum loveable product (MLP). And here is how you can get there.

Step 1. Collect customer feedback

The first thing to do after launching an MVP is to gather feedback. This is your foundation for further refining and improving the product. How do users interact with your application? Which features are helpful? What does the product lack? Are there any issues to fix? By actively seeking answers to these questions, you ensure that your SaaS product will evolve into a version loved by users.

To collect and analyze customer feedback, you can employ methods like:

  • Surveys to gather quantitative data on user satisfaction and feature usage;
  • Interviews to gain deeper insights into user experiences and needs through one-on-one conversations;
  • A/B testing to try out different versions of your SaaS product and see which resonates more with users;
  • User feedback forms integrated within your app to capture immediate user feedback;
  • Focus groups of users to discuss and provide feedback on specific aspects of your product.

Step 2. Follow key SaaS product metrics

The main point of building an MVP is to test whether the product idea is viable and worthy of investment. This would be impossible without setting up performance indicators and measuring the MVP’s performance.

There are over a dozen metrics you can follow, from MRR (Monthly Recurring Revenue) and CLV (Customer Lifetime Value) to various product performance indicators. But to start with, we want to focus on three key metrics and the growth levers connected to them.

Churn ARPU (Average Revenue Per User) Number of customers
Metric The rate at which customers stop subscribing to your service within a given period. The average revenue generated per user or customer during a specific period, typically calculated monthly. The total count of users or customers subscribing to your service.
Strategy To reduce churn, you can improve customer support by offering more personalized service, enhancing product features based on user feedback, and offering incentives. To increase ARPU, you can upsell higher-tier plans with additional value, introduce new paid features or add-ons, or optimize your pricing strategy based on early user feedback and market research to better align with customer willingness to pay. To grow the number of customers, you can implement marketing campaigns, improve sales processes, leverage initial user feedback to refine the MVP, etc.

Brights provides data analytics services if you’re unsure how to collect the right data and what to do with it. We turn data into actionable insights using dashboards, charts, and other visual tools to help you improve business outcomes.

Step 3. Reassess the obstacles your clients are encountering

Based on the feedback you collected from initial users, you need to reexamine the issues your users are facing to refine your product. We suggest focusing on the following areas in this process:

  • Performance requirements to ensure your SaaS product is fast and responsive so you don’t lose users to better-performing alternatives;
  • Scalability requirements to prepare the infrastructure of your SaaS for growth and ensure it can handle the number of users you anticipate to have;
  • Product reliability to eliminate bugs, crashes, and downtime, providing users with a consistent SaaS product they expect.

Step 4. Understand early adopters vs. Wider customer base

Not all customers behave the same way. Consider the difference between how your parents use their smartphones and those waiting for the newest iPhone. Early adopters are enthusiastic about new products and are more forgiving of imperfections. However, as you present the SaaS product to a broader audience, user expectations rise significantly.

To explain this aspect better, we turned to the book “Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers.” The marketing theory, which laid the foundation for this book, explains how new products are adopted in stages by different types of users, represented by a bell curve. The "chasm" in this case is the gap between the early adopters, who are willing to take a risk on new technology, and the early majority, who require more proof of product viability.

The key to getting beyond the enthusiasts and winning over a visionary is to show that the new technology enables some strategic leap forward, something never before possible, which has an intrinsic value and appeal to the non-technologist.

— Geoffrey A. Moore, Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers

Each user group is unique, and adapting to them is essential if you want your SaaS product to grow. To transition from early adopters to the mainstream early majority, you might have to completely shift from a technology focus to a human-centric approach. And this often requires changing your value proposition, marketing, product focus, distribution, positioning, and communications.

Step 5. Prioritize and implement new features

Once you have fixed the existing functionality, you can take the next step and implement new features. Use the feedback you gathered earlier to select the most requested features and rank them based on their potential impact, as well as the effort required to implement them.

We suggest prioritizing features that enhance user experience and meet your customers’ most urgent needs. Also, be sure to implement new functionality iteratively, ensuring each update is well-tested before release. This approach will keep your SaaS product competitive and continually improving based on real user needs.

Step 6. Take care of marketing

Integrating marketing efforts throughout the entire development process, including during MVP, is essential. However, at this point, it’s especially important to use top marketing channels and develop a strategy to reach a broader audience. This will be much harder than attracting early adopters, so you will have to utilize whatever you can: social media, email campaigns, online ads, and encouraging your existing user base to spread the word. In Brights’ experience, overlooking this aspect can severely impact your SaaS product's success.

Challenges in SaaS development

We’ve already shared our approach to making SaaS products secure, but that’s not the only development challenge you might face. Here are three more issues to be aware of.

Scaling for growth

At the beginning of SaaS development, it might seem like product growth is way down the road, which prompts business owners to focus solely on essential functionality. However, you have to think ahead from the start.

We’ve had cases when the clients came to us with an existing MVP that didn’t have a proper architecture for scaling. And when the product starts growing, it simply can’t handle more users or new features. Even under these circumstances, we try to save as much of the existing work as possible and be mindful of our clients’ resources. But sometimes, there is no way around reworking the product’s architecture. Otherwise, the development of new features would take twice as long. Therefore, in the long run, it’s cheaper to prepare the product for future scaling right from the beginning.

— Nata Shved, Chief Operating Officer at Brights

Zero-downtime deployment

Zero-downtime deployment in SaaS development means updating the software without any interruptions for users. This involves complex strategies like blue/green deployments, where the team needs to create duplicate environments so that traffic can seamlessly switch between the old and new versions without any hiccups.

Cloud providers do offer tools to facilitate zero-downtime deployment, but they often come with additional costs. So, managing the process requires careful planning and setup, as well as additional resources, and you need to be aware of that.

Managing SaaS subscription lifecycle

One of the challenges you may face down the road is the churn rate caused by payment failures, which can lead to revenue and customer losses. To deal with this, you can re-engage customers after payment failures, implement retry mechanisms, and, above all, provide an easy payment update process.

Also, to handle SaaS plans and subscriptions, we typically recommend using ready-made solutions, like Stripe, which offers integrated payment services and well-documented APIs. This way, you can simplify the management process and reduce dependency on external providers. Another option is building a custom subscription and plan management system within your SaaS, so that all operations are consolidated in one place with no recurring costs.

Regardless of the path you choose, you must ensure proper management of the entire subscription lifecycle, from subscribing to upgrading, canceling, and resubscribing.

SaaS development costs

The cost to build a SaaS application can range anywhere from $20,000 to $500,000. There are lots of factors that influence the significance of the investment needed for the project. The most fundamental include:

  • SaaS product type and its complexity;
  • The composition of the software development team;
  • The cooperation type (in-house, outsourcing to a company, working with freelancers) and the location of your team.

In terms of selecting the team for the job, the optimal option with a good price-quality ratio is outsourcing SaaS development to a company with hourly rates that match your budget. For instance, with a team in Eastern Europe, the rate varies between $25 and $99 per hour. Therefore, with a partner like Brights, the SaaS development costs will look like this:

  • ≥ $15,000 for a micro SaaS with limited functionalities;
  • ≥ $35,000 for an MVP SaaS with the most essential features;
  • ≥ $60,000 for a SaaS with comprehensive functionality;
  • ≥ $150,000 for a complex SaaS with advanced functionalities.

You don’t have to invest all this amount of money into your software development project right away. Start with a discovery phase to see whether the idea is worth it. If it is, you can invest more yourself or go to the investors. At that point, you will have all the necessary documentation and a roadmap to convince them.

Learn more about what influences the cost of SaaS applications and how to reduce it in our article.

The most straightforward and precise way to see which SaaS products are trending is to check what’s selling best. The list below contains the top ten most frequently bought and renewed products on Vendr, a SaaS buying platform. The leaderboard is organized by leading categories based on transaction volume as of Q1 2024. Nine of ten categories remained the same as in The 2023 Year in Review report.

Many of the leaders on the list are well-established products. Yet, emerging SaaS startups can learn from their experience by analyzing the technologies these companies implement.

Based on the SaaS trends report by Vendr and our own experience with SaaS development, we chose three trends to highlight as especially promising.

Artificial intelligence

While AI didn’t make the list directly, many SaaS categories made the leaderboard thanks to AI innovation. Measuring AI's impact on SaaS spending can be difficult since the technology is often embedded into products from non-AI categories, specifically as co-pilot features. For instance, the content management and sales acceleration categories likely made the Vendr leaderboard due to increased AI-based features. One example is Linksquares, which tripled its quarter-on-quarter transaction volume in Q1 2024 after announcing new AI features in January. Therefore, if AI functionality can address the needs of your target users, that’s definitely something to consider.

Vertical SaaS

It’s safe to say vertical SaaS is booming. In fact, vertical industries, along with productivity, DevOps, and human resources, have the most consistent percentage of spend, regardless of company size.

Why? Well, firstly, digitization has increased the demand for specialized software tailored to niche industries. Secondly, vertical SaaS applications provide a tighter product-market fit, catering to very specific industry requirements, including regulatory and compliance issues.

The future of vertical SaaS looks even more promising with the integration of AI and machine learning, which will likely help solve industry-specific problems more efficiently. So, as long as your SaaS product meets target customers’ needs, you can maintain a competitive advantage.

Team collaboration functionality

In 2023, four new categories made to the top 25 of the Vendr SaaS leaderboard, and team collaboration was one of them.

The pandemic might be long gone, but the need for team collaboration tools it accelerated is here to stay. Among the most successful products on the list are Zoom, Atlassian, and Asana. The most in-demand functionalities for helping teams stay connected and productive include team messaging, video conferencing, document sharing, task management, and cloud storage.

To enter the SaaS market with your own collaboration tool, you can leverage AI to automate tasks and provide intelligent suggestions or explore virtual and augmented reality to create immersive work environments. Also, we recommend ensuring your tools are highly customizable and exploring niche markets with specialized tools for specific industries.For inspiration, check out our article about the brightest SaaS startups in 2024.

SaaS development with Brights

If you’re considering building a SaaS application — think twice. And I don’t mean that building a SaaS product isn’t worth it. I mean, you really have to take your time and think about why you want to do it. What problem do you aim to solve? What is the initial value of your future product? How do you plan to scale in the long run? The tech team will handle the design and development aspects; you don’t have to worry about that. But without the answers to the fundamental strategic questions of “Why” and “How,” you’re going nowhere.

— Nata Shved, Chief Operating Officer at Brights

The SaaS market is expected to grow at an annual rate of 19.28% between 2024 and 2029 and reach a market volume of $818.80 billion by then. Therefore, we can’t deny that getting into this market can be extremely promising as long as you do it right.

Naturally, rapidly growing markets also mean high competition. But the Brights team can help you minimize the risk of wasting resources and building a useless product. We start all our new projects with a product ownership approach, taking full responsibility for the tech side of the product. And after building multiple SaaS solutions, chances are, we will know how to deal with the challenges you’re facing.

FAQ

What are the main benefits of SaaS development?

Building a SaaS startup isn’t easy, yet there are many reasons you should consider it. SaaS products have the potential to bring you a steady stream of recurring revenue and scale as your user base grows. Moreover, SaaS products often require lower initial investments than traditional software. However, if you decide to leverage a SaaS business model, you must truly understand your target market, consistently act on customer feedback, and continue to innovate even after the launch.

What types of SaaS applications are there?

There are numerous types of SaaS applications — the Vendr leaderboard we mentioned in this article alone contains 25 categories. However, the most common types of SaaS products include:

  • Customer relationship management (CRM);
  • Enterprise resource planning (ERP);
  • Human resources (HR);
  • Collaboration and communication;
  • Project management;
  • Marketing automation;
  • Finance and accounting;
  • Customer support;
  • Content management systems (CMS).

How to reduce the cost of SaaS development?

From Brights’ experience, there are two suggestions that can help you develop a SaaS within your budget. The first is starting with an MVP so that you can test the core functionalities of your product without the risk of spending a fortune on an idea that’s not viable. The second is outsourcing software development to a budget-friendly vendor. This doesn’t mean you will compromise the quality of your product: there are lots of talented and experienced teams with reasonable hourly rates simply because the labor costs are lower in their regions.

How to choose a professional SaaS development company?

Before you hire a team to build a SaaS product for you, make sure they:

  • Offer in-depth knowledge of software development and SaaS development in particular;
  • Have a proven track record of successfully launching SaaS products;
  • Make a good match with your team in terms of fundamental and business values;
  • Can take full responsibility for the technical aspects of the project.

How long does the development of a SaaS application usually take?

The timeframe can vary significantly depending on your project’s complexity. However, on average, it takes between 6 and 12 months to build a SaaS product, if your development process includes the discovery phase, design, development, testing, and deployment. If you want to get a more accurate time estimate for your specific project, don’t hesitate to reach out to our team.

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