The technology and software landscape has changed dramatically over the last two decades. The most significant change has been the rise and domination of the Software as a Service (SaaS) business model. As a result, SaaS startups have a lot of potential for growth in today’s digitally driven world.
Consequently, it is always a great idea to buy a SaaS business. This way, you are not just getting software but also years’ worth of market data. Still, regardless of whether you have a baseline from which you can work or an early-stage company, it is necessary to incorporate appropriate strategies to skyrocket your business to success.
Here are our 6 tips for accelerating growth for your SaaS startup.
#1 Have a superb business and financial plan
Having a solid business plan is essential for any entrepreneur. But, in the SaaS business, this document plays an outsized role because the money required to feed your company’s growth can be much more than you would guess.
So, besides the standard components like executive and company summary, market analysis, and management team, your SaaS business plan must have a particular focus on customer acquisition and a detailed financial plan.
Writing these strategic documents is a challenging task since it requires strategic thinking and creativity. So, if you find it difficult to write them all by yourself, do not hesitate to turn to professional business plan writers.
In order to find the best service, it is advisable to do some research and read reviews online. For example, you can check out this Growthink review page where they publish clients’ testimonials to see if they will be a good fit for you.
#2 Focus on selling the problem
There is an abundance of SaaS startups that offer various products. However, not all of them succeed, many drop out because they are unable to sell their solution. For this reason, when looking for potential clients, you need to focus on selling the problem.
To stand out amongst competitors, identify and display pain points for customers, and offer them a solution. Once they know they have an issue that needs to be solved, they will be able to look at your product from a completely different perspective.
#3 Establish a SaaS knowledge base
A SaaS knowledge base is a centralized content repository, including tutorials on setting up the product and reference material for its crucial features. It is self-service and allows users to access information about your product quickly.
One great example is written or video tutorials, how-tos, and demo videos on product features. A knowledge base has multiple advantages:
- It highlights your software’s distinguishing features that set it apart from other similar products on the market;
- It reduces customer support time and decreases customer support staff;
- It improves customer service;
- It boosts your SEO and increases your brand equity.
#4 Your customer’s needs are your priority
Before establishing your SaaS business, it is vital to do market research and see whether there is an appetite for the product or service you are offering. Then, assuming there is a need for your product, start working immediately to provide the best possible customer experience.
As today’s customers have many options at their disposal, remember to provide personalized and flexible options that fit their needs. Users do not like paying for features and resources they do not need or will not use. For your SaaS business to grow, you need to maintain long-term relationships with your clients by keeping them happy.
#5 Decide on your pricing strategy
A significant aspect of early-stage SaaS business is deciding on your pricing strategy. To quickly create a customer base, many entrepreneurs are opting for the lowest price, but that is not always the most sustainable option in the long run.
Therefore, when selecting your pricing strategy, your goal should be to attain a balance between value and revenue. That is the only way you can achieve your planned growth targets.
To give you an idea, some traditional pricing models for SaaS businesses include monthly or annual subscription-based models. Others have a tiered pricing strategy and choose a plan (a Basic plan, Pro Plan, and Premium plan) depending on your access features. Keep in mind that your pricing model will be influenced by the type of product and service you offer.
#6 It is all about how your managers lead their teams
A company’s success is based on your team working as a united organism. However, many SaaS businesses fail because managers fail to convince teams that they are crucial in delivering the product on the market. So, for your company to grow, your management should be intelligent, efficient, creative, and persistent to drive your team through change and product implementation.
Furthermore, managers need to excel in their skills to understand and operate the target market, execute strategies to acquire more customers, and find ways to ensure its growth. The bottom line is that if you have a good management team, they will hire great employees. And good employees mean good business.
As more and more companies rely on SaaS to effectively execute their everyday business functions, entering the SaaS market is a great time. Equipping yourself with the strategies mentioned above will help you ensure that you are on the right track to achieving stellar success.