More and more startups have the same goal: to build a platform as a service, also known as SaaS. And we completely get it, because it’s a beautiful product and business model. So we happily encourage them! But… we often see that many of these startups face the same challenges. And it’s not necessarily in the development of the software, but in several other crucial steps. We will explain what these are, so you as a startup are prepared.
The 4 biggest challenges
Entrepreneurs are often enthusiastic about their idea and want to start developing the software immediately. However, they forget a few essential steps. Or rather, they only think of it when the product is finished. And this is actually too late. These are the 4 steps you need to handle first.
- Target audience
The first crucial step in developing a platform as a service is to create a customer profile. You might have a beautiful idea, but the question is: who is the product for? Who is waiting for the product and what problem do you solve for them? It might sound very logical, but many entrepreneurs forget to make a comprehensive and explicit customer profile at the start of the process. Because they are so convinced of their product, they often think that ‘people’ will buy it. And sometimes it is, but often it’s not. So, create a comprehensive customer profile.
- Product market fit
Do you have a clear customer profile? Then you can determine how well the product fits your audience. You start by identifying the audience’s problem and defining your offering. What problem does your audience have and what do you promise to solve with your product? Then you determine if it’s a match. Does your platform meet the demands of the audience? We put audience identification at the top because the audience determines how you design your platform. For example, the audience determines which features are required and what the user experience should be. If they don’t match, the product most likely will not succeed. We often see, for example, that startups create a corporate product and accurately address the pain points. Then they distribute the product in a startup ecosystem, and they miss the mark. Startups, for example, do not have the financial resources to buy this product. Making a product market fit is therefore essential.
- Positioning
Next, you look at your positioning in the market. There is always competition, so it is important to map out how unique your product is. Who are your competitors and what sets you apart from them? This way you determine not only your USPs, but you prevent launching a product for which there is already enough supply.
- Communication
Finally, consider your communication to potential clients. In other words, create a marketing plan and think about where you’ll reach your ideal customer. What communication style and channels should you use? For example, a B2B product is much more likely to sell on LinkedIn than on TikTok.
First purpose, then software
Nothing is more disappointing than spending months on your product only to find out that it does not match. And unfortunately, we see this happen often. Thankfully, you can easily prevent this by thinking ahead about your positioning and marketing: Who is your audience? What problem do you solve? Is the solution urgent? Is there already a different or better solution?
All these questions have to do with purpose: what is the added value of your software? And if you ask us, then purpose is the starting point of software building. And we are not the only ones because we were able to give a flying start to the startups that believe in this too. Can’t you wait to get your platform off the ground? Then we would love to start this process with you!