Start with the customer. If you can get them excited & keep them that way, you solved most of the problem. If you are building something with hopes that "they will come" you are burning cash for fun and no one is going to care when it runs out.
The other piece of advice I would add is that, even though SaaS starts with "Software", you should NEVER start with the software. You should be starting with on-site meetings with your customers. Consulting about the processes the software might be able to help with. You should only start talking about things like clouds, containers and code once you have a schema that the customer can look at and go "aha! That's our business!".
Both pieces of my advice deeply involve the customer in some way. It's incredible to me how many "entrepreneurs" are blind to the fact that someone is eventually going to have to want their product, and for profitability to occur that prospect probably can't be their family member, SO or best friend.
In fact, I would reverse SaaS entirely: make it Service as a Software instead. That is to say, provide the service you want manually for the customer (as much as is possible, as it is not always possible), then build software to automate that process.
When DoorDash first started, they manually took orders and delivered them to people, over the phone. They'd get an order from their customer, then they'd order it from the restaurant, then drive over to pick up and deliver them. Then, they built the driver network software, mobile app, and all that.
Very insightful comment. Most customers just want the problem solving. If you can’t find anyone to discuss and possibly pay for it being solved in a clunky way then software isn’t suddenly going to change that.
This is very similar to how the EatThisMuch (? I'm not sure it was this app) app launched. I think I heard the founders talking to someone on a podcast. The three guys had one customer at the start and they started by talking to this woman, figuring out her eating goals, and then doing grocery shopping, and delivering the food for her. Then they added a second customer and started to scale.
No, just start a service business first. For example, I'm running Google ads for some local lawyers, I'm working on some software to automate that process.
As a long-time (old) engineer, historically my mindset was to rush into problem-solving mode by thinking about software-based solutions to everything. After learning from a failure or two, I recognize how that might work for me but doesn't necessarily contribute to solving a problem for a customer.
I understand how to solve problems with software, but my key to successes has been to really understand and define the problem to be solved. This generally takes so much more effort than surface-level assessments.
Can you give a specific example of how you would start with a customer? Do you make a post in fb/twitter/linkedin like "I have some freetime as programmer, anyone have pain points or annoyances in your work that I might be able to help?" . Or do you come up with an idea (i.e i wanna build AI chatbots for real estate professionals) and start cold emailing agents that you dont know about and ask if they would find it useful?
In my specific case, we were already doing business with a client for unrelated matters and they brought a new problem to us asking if we might be able to address it. Turned out the broader market had a similar problem so it took off. Once we had 1 client, we could convince the 2nd and so on.
I think much of this is chicken-egg at the end of the day. Trust & networking is a hell of a challenge. There is no reality in which we could have walked into a client totally cold and proposed what we are selling today.
I think "hunting for problems" is part of the mission, but you also need people to be willing to work with you once you identify one. One element of successful professional networking should be a constant stream of "hmm maybe an opportunity?".
Building reputation in your target market seems to be the most difficult aspect of B2B SaaS.
Start with the customer. If you can get them excited & keep them that way, you solved most of the problem. If you are building something with hopes that "they will come" you are burning cash for fun and no one is going to care when it runs out.
The other piece of advice I would add is that, even though SaaS starts with "Software", you should NEVER start with the software. You should be starting with on-site meetings with your customers. Consulting about the processes the software might be able to help with. You should only start talking about things like clouds, containers and code once you have a schema that the customer can look at and go "aha! That's our business!".
Both pieces of my advice deeply involve the customer in some way. It's incredible to me how many "entrepreneurs" are blind to the fact that someone is eventually going to have to want their product, and for profitability to occur that prospect probably can't be their family member, SO or best friend.