The main 7 Obstacles While Starting a SaaS Business

A SaaS or software development business has the same rules and obstacles like any other enterprise, but there are some features specific only for IT business. The SaaS development model of business means hosting a client’s application on the provider’s server and giving access to the client on a subscription basis. In other words, Sass does not require installation and your clients can use a product directly from a browser or mobile app. That’s why SaaS is becoming a perfect solution for a variety of startup projects. 

SaaS software projects are a popular way of handling business. You can find many SaaS business models, like:

  • ERP software
  • CRMs
  • Project Management suites
  • Email Marketing tools
  • Vertical applications
  • Collaboration software

Of course, you can’t handle these business projects alone. You will need a team of professionals to get everything up and running. When the team of developers is established, you will require automation testing services to ensure the quality and stability of your software product. Of course, like any other business, SaaS development also has some challenges to overcome.

The 7 Obstacles to face and be ready

We have tried to mix different types of obstacles that you can face when creating a SaaS or software development business. Some of them you can find when creating any type of business. Others are specific only for software development.

Generating an idea

Ok, let’s imagine that you are determined to start a SaaS software developing business. What will it be? Thousands of ideas may come into your mind, but you must pick one. According to Backstage Income, if you need to pick one idea, you must choose the one that can solve a global problem. For instance, a lot of great business ideas come from people who want to solve world problems. Mark Zuckerberg wants to unite the world in one network, Jeff Bezos wants to find an effective way to sell goods to everyone, and Elon Musk wants to settle Mars.

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Building a team

The first real problem that you may face is building a team of professionals. It’s okay if you have friends who are good at developing, but what if you don’t? It’s essential to acquire a team of developers to deliver a product and find an automation testing company to make sure that your product works fine.

Finding funding

No matter how good your idea can be, it’s worthless without proper financing. If you don’t have money, then you need to find sponsors and investors for your product. To do that, you will need to create a business plan that will clearly show how you will generate income.

Creating a product

If you have an idea, a team and some money, then you are ready to start a product. Still, you will need to decide whether you want to stick with a minimum viable product or a full-scale product model. The first option will help you to access the market early and see the potential of your business. The second option will give you more time to prepare and better tools to adapt to market trends. 

Attracting customers

A lot of people can’t find the right words to attract their customers, and that’s a significant problem! How can you generate income without clients? You will need to find a solution to this problem. Try to hire professional marketers and business analysts to find clients for you. Create a promo campaign to attract customers. You can use social media platforms as well as google analytics to generate leads and “transform” them into customers.

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Setting up third party systems

The Software development world is intertwined. You don’t do software business alone. You do it in collaboration with thousands of partners. That’s why it’s a good idea to find a startup partner who can help you set up at least some software process. Do not forget that you will also need to set up a well-defined database, third-party payment services, manage SaaS subscription lifecycle and customize your SaaS systems.

Testing SaaS products

Automated software testing is the most effective way to check if your product works fine. You will need to think about testing in the early stages of your product. The market is cruel, and every mistake may cost you the whole company. That’s why you need automated software testing services that will guarantee that your product will enter the market as “bugless” as possible.


Creating your software developing business might be hard from the start, but all your efforts will pay off eventually. Remember, you need to start small to become big. Focus on the idea that will become a product. Hire a developer to create a product, an automation testing company to check it, a marketer to deliver it to the market, and your business will be successful. Remember, determination is crucial when you want to start something great and profitable.

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