Hidden Costs in SaaS Development: How to Develop a Successful Startup

The global SaaS market is expected to surpass an impressive $702 billion by 2030. Considering the number, it becomes unsurprising that many entrepreneurs wish to ride the wave of launching a successful SaaS startup. However, it can entail a number of challenges that funders have to be prepared for. 

In this article, I will explore the important factors that executives have to consider when opening a SaaS business.

What to know before launching your SaaS startup?

To fully appreciate the benefits of SaaS and understand how to develop it, first, it’s essential to delve into the fundamentals of the technology. At its core, SaaS is a software solution accessible through web browsers and any device with an internet connection. 

After the field is studied, a founder has to understand the audience. The development process typically begins with thorough research, followed by crafting a well-thought-out UI/UX design. Who will use your product, and what problem are you solving for them? 

Research their needs and make sure your idea is something they truly want and are willing to pay for. 

Next, make sure your product fits the market. Start with MVP to test your idea. Let real users try it, get their feedback, and improve it before you fully launch. This will save time and money and help you build a product people actually need.

What to focus on most when running a SaaS startup?

When the startup is already launched, it is important not to forget about the issues that can come along with its development. Below are some of the most important aspects that, in my opinion, are critical to focus on when managing a SaaS business effectively.

Unforeseen expenses

First of all, a particularly pressing issue that I see a lot is the underestimation of DevOps and cloud infrastructure costs. Skilled DevOps engineers are in short supply, making it difficult for startups to build and maintain a stable system. Without proper DevOps expertise, projects may struggle with inefficient workflows. As for cloud costs, they tend to grow rapidly, often catching founders off guard because founders often fail to account for their growing expenses. 

Scalability and security issues

Then, SaaS startup founders should be aware of scalability issues. When customer numbers go up, project teams, infrastructure, and even the product itself can easily find themselves unable to handle the growing load. It is not unusual for unforeseen expenses to arise, and since they aren’t always covered by the sales, this leads to unpleasant surprises that the project then has to solve. 

Along with scalability comes security. Without advanced safety measures, growth is impossible. However, from my experience, security is an aspect that often gets pushed to the back seat. This is a misleading strategy—it is critical from start to finish and should be treated as such. 

Target audience

Regarding building your customer base, it’s often wiser to target fellow startups or small businesses rather than chasing larger enterprise clients. The problem with large clients is that they have slow decision-making processes. Due to their size, it often takes a lot of time and effort to switch products and retrain staff. 

In contrast, smaller companies can make decisions quickly without the layers of bureaucracy. And while they may not offer big payouts, they can act as beta testers for you which makes for a considerable advantage. The cost of making mistakes with them is lower, allowing you more freedom to experiment with your product and develop it further.

How to ensure growth in future?

If your startup seems to be solid at the current moment, it’s time to think about ensuring future growth. Competition never sleeps, and there is always a risk that your customers may choose to switch to some other platform. The need to stand out of the crowd is particularly acute if your startup is not that big, meaning it cannot afford to lag behind. Therefore, prioritize continuous product development—keep up with the market and do your best to offer something unique.

Also, focus on keeping your customers happy. They are more likely to stick around longer and recommend your product to others. Listen to user feedback and monitor market trends to ensure your product stays relevant and valuable to your customers. Good customer support and easy onboarding should not be underestimated, as they can make a big difference. 

Of course, there are many other points to cover when speaking about startup development. However, paying closer attention to the issues mentioned earlier can already make a significant difference in a SaaS startup’s success.