SaaS Ideas: How to Build a SaaS Startup with a Limited Budget, 6 Powerful Ways

By: | September 10, 2021 | Tags: , , , , , |
SaaS ideas

Are you here for SaaS ideas that will save you money?

When you create a SaaS (Software as a Service) startup with a limited budget,  you need to realize that the development process is one of the most considerable expenses.

You need to consider numerous factors that influence the software lifecycle and increase a SaaS startup budget. SaaS software is relatively inexpensive to develop and easy to kick off. 

Many businesses wonder how to develop a SaaS on a tight budget because they are afraid to risk their investments.

However, difficult doesn’t mean impossible, and many examples prove that creating such a mobile app can be successful and profitable. So, don’t let your software idea dust on the shelf.

In this article, we will provide the most effective tips on cutting a SaaS company budget and improving the development process.

Let’s dive in and explore powerful SaaS ideas you can implement on a budget.

What are SaaS Ideas?

“SaaS” stands for software as a service. SaaS refers to internet tools. Therefore, SaaS ideas refer to ideas you need the internet to pursue.

6 Tips to build a SaaS business on a limited budget

#1 Create an MVP

Our first piece of advice to help you remain within your custom development budget is building a minimum viable product. It is a software version that includes only essential features. Cutting the business expenses is one of the benefits of MVP for software development.

Besides this, it ensures your concept is suitable for the market and draws the attention of early software users. If you choose to create an MVP, you save costs on the development itself and significantly reduce your SaaS marketing budget.

A minimum viable product is a very beneficial stage that saves you much effort and validates your SaaS business idea on a shoestring budget. The process of building an MVP software can seem too demanding because you have to present an actual version of a product to the target audience. However, this basic version can play a crucial role in your product’s success. 

#2 Clarify your goals

Thorough planning is essential while working on a SaaS startup on a small budget. Before you start developing your custom mobile app or website, your team should do some careful planning.

For instance, one of the great Saas startups that did a lot of planning beforehand is Buildern, a project management software specifically designed for construction industries. They researched the industry to understand the most common issues of construction companies. Only after that, they designed their software that gave an efficient solution to all project management-related concerns.

Some may say that this stage has minor importance and takes too much time. However, if you decide on the most important aspects beforehand, you save significantly more resources later. 

Your goals and values are essential when developing and marketing your product. The earlier you determine them, the more apparent the path to success will be. A definite set of goals and aims will play an important role and guide your employees. In addition, it will help you choose the optimal technological stack and analyze the user experience more effectively. 

#3 Test and receive feedback

Introducing a new product will not lead to a successful outcome right away. Thus, receiving feedback from your target audience should be done as early as possible. Use customer feedback software. Encourage your users to share their opinion by offering discounts or access to Premium accounts.

One important note though…

Pay attention to these crucial questions:

  • What problem do you want to solve with this product?
  • Have you tried any similar products in the past?
  • How do you use this product?
  • Does this product cope with its functions?
  • What are your suggestions for improving this product?

One of the most effective ways to receive valuable reviews from early users is by creating and launching an MVP. We would also like to stress that cutting the testing budget is not an optimal strategy for SaaS budgeting. Don’t underestimate the importance of SaaS spend management.

Don’t underestimate the significance of QA and most importantly don’t underestimate software testing services, as these steps ensure that you won’t spend resources on fixing errors. The earlier you solve all the issues and bugs with your product, the more cost-effective it will be. 

Let’s examine more SaaS ideas.

#4 Focus on project management

This is a universal piece of advice to develop a SaaS business with a low budget. It is very suitable for your business projects of any size. You need to ensure that the development company you chose knows the basics of effective agency project management.

If you decide to hire in-house specialists, you will have to manage them by yourself. The project success highly relies on the way you organize all the processes. It saves you valuable time and effort and, therefore, reduces the development cost. 

Even if you have a small team, it is essential to measure the progress of your project and avoid demanding and unnecessary processes or ideas. You can utilize a special system to monitor the progress, measure results, set the right priorities, and assign tasks to your team members. Transforming an idea into reality is not a piece-of-cake process, but everything is real if you take it seriously and have everything under control. 

#5 Choose an optimal tech stack

This piece of advice relates to the first one. After you made a final decision on the aims, desired functionality of your software, and the issues it is going to solve, it’s time to opt for the most suitable technologies. Make sure the developer team has enough expertise in similar projects and can offer the most suitable solutions. You also need to realize that the development time considerably influences the final software cost.

What is more, the price for developers you hire depends directly on the technologies to be used in your project. Therefore, you need to take this point seriously and decide on technologies that will help you boost the development process. You may also consider ready-made components for some features, as building them from scratch will increase the time-to-market and project budget.

#6 Take into account maintenance expenses

The project lifecycle is not over when the product is launched into the market. Support and maintenance should also be a part of your budget. Don’t focus only on the development phase, and keep in mind that improvements are essential in any development life cycle.

Especially when it comes to startups, post-launch improvements are necessary. Discuss the maintenance cost considering all the specifics of your product with your provider and save some money beforehand. 

SaaS Ideas: FAQ

What are some SaaS ideas?

There are powerful Saas ideas. For instance, you can create a mobile app. Make a plan that includes a timeline and a budget explaining how you will pay for your new business. Use project management software. In addition, after launch, you can make post-launch improvements.

SaaS Ideas: The Bottom Line

Going low-budget for SaaS startups is a risk for your business. However, it doesn’t mean that you should give up your software idea.

Hopefully, this article explaining the main rules for SaaS budgeting will help you optimize your costs and receive a high-quality startup product even on a restricted budget. 

Readers, please share so SaaS developers discover these SaaS ideas.

I look forward to your views in the comments section. Do you have additional effective SaaS ideas?

This post was contributed and made possible by the support of our readers.

  1. John Ravi

    Janice, this is an extremely helpful article that covers the entire cycle of developing a SaaS product. We are in the middle of creating a SaaS product for WordPress users. Especially, this sentence is an eye-opener for me: “Don’t underestimate the significance of QA and testing, as these steps ensure that you won’t spend resources on fixing errors.” – We just spent a fortune because we underestimated the significance of QA. It seems continuous testing is important for any SaaS product, else we may have to pay the price at the end. Thanks for sharing these tips. I want to share it with my team as well.

    • Janice Wald

      Hi John,
      I want to thank you for these detailed and thoughtful comments. Regarding the sentence that resonated with you, the part about the importance of testing, I am discovering the ins and outs of TubeBuddy for YouTube. My favorite feature is the A/B Split testing of YouTube thumbnails. Clearly, I agree with you about the importance of testing.
      Thanks as well for sharing it with your team.

  2. Tiaara

    Hey Janice,
    Thankyou for sharing this information. This is very informative..

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