Starting your own software as a service (SaaS) business is an appealing way to become an entrepreneur.
Just come up with your software solution, deploy it, and become indispensable to fellow business owners everywhere—right?
With that in mind, once they finalize their business concept, SaaS founders need to immediately turn their attention to their business’s finances. Building a solvent business model depends on you figuring out the numbers early.
Not sure where to start? Here are six financial tips every SaaS should keep in mind when building out their business.
Validate your idea before committing real funds
Lots of articles on the web will convince you that all you need to start your SaaS or other ecommerce business is an MVP—minimum viable product—that you can start selling. You can always tweak your MVP later as you garner feedback and experience.
Even spending that much of your resources and time, however, can be wasteful. If you build an MVP without a real understanding of whether people will pay for it, you’re essentially throwing money away unless you’re lucky enough to strike gold on your first pass.
You don’t need to build your software until you can demonstrate interest from potential customers. To measure that interest, use landing pages to gauge whether people want to learn more about your idea. – Read more