Starting your own business is a bold move reserved for the bravest. With a million-dollar idea and readiness for both success and failure, swimming through those tides is a risk that might pay off big time. SaaS is not like every other business model since it’s an image of the future that everyone will embrace, and in a short notice, which is more than enough to give you a burst of motivation to get things cooking up at high heat.
A study showed that 73% of organizations would convert all of their apps to SaaS by as soon as 2021. In addition, 85% of small businesses will build their success around SaaS solutions. SaaS’s revenues are skyrocketing, private companies are founded on a daily basis, almost every business uses at least one SaaS application… it’s simply a place to be right now, and if you know how to capitalize, your success reaching doors are nearly wide open.
But like any other respective field, it does have a chance of failure, which is heavily supported by many companies that tried to excel in what they do best but still didn’t reach even a chunk of their potential. You might think that the crowdedness of the field and ruthless competition took its toll, but it’s not really the case. Having an idea and a general strategy is a good start, but nowhere nearly enough to make a breakthrough on the market, and if you are not careful enough, it will convert into a waste of time and resources.
To prevent that from happening and to ensure you make a strong stance to build it up to the stars, there are a few factors to watch out for – the top 4 startup mistakes you must avoid at all costs:
1. Know your worth
One of the most common mistakes and decisive factors in SaaS startups is setting the wrong price for your product. Beginners tend to undervalue to attract more customers, and by doing that, spend more resources on building than they can afford, and with no real profit to cover the expenses, it will inevitably start going downhill.
On the other hand, overpricing will not attract the consumers, especially considering that your product still isn’t safe and of proven quality. The key to avoiding this mistake is by conducting a thorough market analysis and compare your prices to the ones of your competition. You shouldn’t mimic them, but get a good view on what are the regular prices so you can adjust yours for an advantage on the market. And if you truly have the quality in your product that is superior to your competition, don’t be afraid to raise the price at a moderate volume.
Overvaluation of a mediocre product is a sin, but charging for quality is what makes your business grow.
2. The customers will tell you if you listen
Creating a bond and maintaining a good relationship with your customers is of vital importance for your SaaS to improve. No matter how many times you tested every conceivable aspect, there will always be a bug or two that you overlooked. The fact that you didn’t notice them doesn’t mean your customers didn’t as well.
Before you know it, you receive an email from a consumer that has issues with your product that need to be solved ASAP. That’s the feedback you desperately need – if something doesn’t work right, I need to know. A lot of people start panicking in that scenario, but there’s nothing to be worried about. Remain calm and cheerful, resolve the problem, thank the customer for their feedback and understanding, and trust me – not a single eyebrow will be raised in your direction.
By maintaining a good relationship with your customers, not only will you ensure their satisfaction, but pile up numerous recommendations for ultimate speed in your progress. Never hesitate to run a survey and always listen to your users; you are the expert in theory, but they are the experts in practice.
3. Not utilizing marketing
A decently low cost for a huge reach, a presence among your current and new users, bonding with your consumers, gaining precious insights…there are numerous factors that prove the enormous impact of social media on your business. Every successful brand has a story wrapped around its product, which is being advertised through all social media channels. And that’s for a good reason – it delivers.
A study conducted by Statista shows that 49% of users prefer receiving emails from their favorite brands. Furthermore, 72% of marketers agree that a good content strategy has majorly influenced their success. Blogging, Email, Facebook, Instagram, Twitter, LinkedIn, Google Ads…all of them represent a space designed for your uprise, and with a small amount of money invested, the results could potentially be huge.
4. Timing is everything
Before launching your product, a vital factor that could decide if it will be top or flop is the timing. I know that when you come to those last few modifications and finesses, the only thing stuck inside your head is the moment you release it. But if you rush into it without a real demand on the market for your product, you might not be able to attract enough users, which will be your downfall.
On the other hand, waiting for too long could dry up your resources and give an opportunity to your competition to grow and snatch users in front of your eyes. Scan the market before making a decision, watch your competition and what they have to offer, make proper preparations, and wait for the right opportunity to get to work!
Establishing your product in the SaaS field is a challenging task that many can’t carry out, but it has way too much potential to not give it a shot. We are embedded in the digital era, and this particular field is guaranteed to grow at a rapid state. Having a good product that will amaze the market is the number one priority, but the little things are the ones that will make a difference. Avoid these common mistakes at all costs, and with your ideas and their implementation, success is only a few steps away.