How to Build a SaaS Application: 5 Essential Steps

The Software-as-a-Service model has taken over the world, and more and more people are interested in the basics of SaaS development every day. Every day, we use such applications as Spotify, Netflix, Slack, Trello, Dropbox, Hubspot, or Zoom, often without even thinking that all of them are subscription-based and distributed via the cloud. The SaaS market is on the rise, and if you want to enter this niche, now is the best time for building a SaaS product. In this guide, we will talk about how to build a SaaS website, tool, or platform even if you have no experience in custom software development and are unfamiliar with the Software-as-a-Service model. 

About SaaS software development

Software-as-a-Service (SaaS) is a software distribution model in which applications are hosted by SaaS providers and made available to users over the Internet. With the SaaS model, people don’t need to install anything on their devices, and apps can be accessed remotely via the cloud. Users typically pay a monthly or annual subscription, with some providers offering different pricing options. 

SaaS software development is the process of building cloud-based Software-as-a-Service solutions. Today, numerous businesses prefer building SaaS applications to traditional software due to significant advantages, such as lower initial costs, flexible monetization model, increased accessibility, enhanced scalability, and quick deployment. 

Now, let’s talk about how to build a cloud-based SaaS application in 5 easy steps. 

Essential steps to build SaaS application

So, how to build a SaaS application? Let’s take a look at key stages of the Software-as-a-Service product lifecycle. Here are the five essential steps for building a SaaS platform. 

Step 1: Planning and roadmapping

Before you start the actual development process, it is crucial to conduct thorough market research and analyze your potential competitors. The SaaS market is on the rise, and it means that dozens of companies decide to develop their own cloud-based software every day. By analyzing the market, you can determine your main competitors and how you can meet the target audience’s needs more efficiently than existing solutions in your niche. If you lack resources and expertise for this stage, consider hiring a SaaS development company for the product discovery phase. 

After you finish market and competitor analysis, you can create a blueprint for your SaaS product. Compose a list of features and decide which are essential and which can be added after launch. Decide on the monetization model and business strategy. The most popular monetization options include a freemium model, one-time payment, subscription tiers, and a pay-as-you-go approach. Based on the type of SaaS solution you want to build and the list of core features, you can start assembling a development team or looking for experienced SaaS development companies. 

Step 2: Architecture and tech stack

Choosing the most suitable software architecture is one of the key aspects of developing SaaS applications. Cloud-based SaaS applications can easily suffer from scalability issues when too many users are used at once, which might lead to poor performance and downtime. Single-tenant architecture tends to be less expensive and great for a quick product launch, but multi-tenant architecture allows SaaS applications to scale back and forth easily. 

You also need to choose suitable technologies for your SaaS platform's front-end and back-end development, database management, and other key components. Consult with your internal tech team or the SaaS application development company you partner up with. Remember that building a SaaS product differs from developing native or web applications. You need to pay close attention to planning third-party integrations up front and choosing a cloud service that will host your app. You can choose from the most well-known cloud provider options, such as Google Cloud, AWS, and Microsoft Azure, or look for more niche solutions. 

Step 3: UX/UI design

During the software development process, you need to ask yourself how to create a SaaS application that will be competitive and generate revenue. One of the most crucial aspects of attracting a target audience is user-friendly and appealing UI/UX design. Collaborate closely with designers to establish a visual identity, create appealing UI, and, most importantly, ensure that your app is responsive and layout is compatible with different screen sizes and OS. Remember that cloud-based Software-as-a-Service products can be used on any device and need to be accessible so you won’t lose any potential customers. 

Create basic wireframes featuring basic page layout and overall app structure. Emphasize simplicity and usability. Map out the user journey and visualize the Ui design. Later, create more detailed wireframes with more elements that will look exactly like a future product but without any interactive features. These mockups and wireframes will help your team realize how to build a SaaS app that aligns with your vision. You can also create clickable prototypes at this stage to receive feedback after usability testing and iterate before SaaS platform development is at its final stages. 

Step 4: SaaS application development and testing

Now, the SaaS development process can start. During this stage, a team of tech specialists with SaaS development expertise brings all your plans to life. In addition to coding, this step includes the implementation of security measures and regulatory compliance. Many SaaS application development services providers recommend starting with MVP (minimum viable product), which is a basic version of your Software-as-a-Service product with only core features and crucial functionalities. With this approach, you can validate your idea, reach your target audience, and generate additional revenue for future iterations. 

During the SaaS platform development, the tech team should conduct comprehensive tests to ensure great performance, usability, and a high level of cyber security. It includes checking code for errors and bugs, integration compatibility, cloud infrastructure security evaluations, and gathering feedback from selected users on UI/UX and the app’s functionality. Many SaaS developers today use automation tools to make testing more efficient and reduce the probability of human error. When you and your QA team are sure that you built a SaaS application that is secure and can perform without bugs and downtime, your product is ready for launch. 

Step 5: Deployment and maintenance

To achieve success in the saturated Software-as-a-Service market, it is often not enough to know how to develop SaaS applications. You need to create a strong marketing strategy that includes SEO, social media activities, email campaigns, and content marketing. After this stage is over, you can deploy your platform. 

The post-launch phase is as important as app development. Your team needs to constantly monitor the product’s performance and stability, gather user feedback, and collect user behavior data for future improvements. Based on these insights, you can fine-tune your application and start working on new iterations. The Software-as-a-Service market is constantly evolving, and cloud computing is also moving forward, so ongoing maintenance and adding new features is crucial for developing SaaS platforms that can be competitive and generate revenue. 

This is the basic step-by-step guide on how to create a SaaS application. However, building a SaaS product is a complex task, and you can encounter many challenges on your way to success. Let’s talk about potential issues and setbacks you should be aware of in order to create a SaaS application successfully. 

SaaS app development challenges

Developing SaaS applications is not easy and you can encounter certain setbacks during this process. Let’s talk about the most common SaaS application development challenges so you will be ready and can quickly overcome them. 

• Ensuring scalability. Your Software-as-a-Service platform should be able to easily handle an increasing number of users, transactions, and data without any performance issues. Even short downtime can cause your customers to cancel subscriptions and look for more stable tools. But how to build SaaS applications with a great level of scalability? Consider microservices architecture, database sharding, vertical or horizontal scaling approaches, and content delivery network. Also, invest in load and stress testing. 

• Data security. Cloud computing has its own pros and cons. Cloud providers usually handle security issues, but you still need to ensure that user data is protected. Implement encryption protocols, data tokenization, and access control mechanisms. Use secure development practices, put emphasis on regulatory compliance, and invest in continuous monitoring and testing. 

• Third-party integrations. It is almost impossible to develop SaaS applications without using third-party integrations, as programming each functionality from scratch is incredibly time-consuming and expensive. To ensure that integrations don’t lead to performance issues, you need to conduct integration testing, pay attention to data consistency, and make sure that third-party tools can scale with the growing demands of your SaaS app. 

• Competitive market. The Software-as-a-Service market is growing rapidly, and there is a seemingly new cloud-based app for every task users may need help with. So, how do you create a SaaS product that can stand out in this competitive landscape? You need to articulate a unique selling proposition, invest in marketing, implement referral programs, and form strategic partnerships with other companies. Also, you need to build SaaS products using Agile methodologies so you can quickly respond to changing customer demands, industry trends, and technological advancements to gain a competitive advantage. 

Conclusion

Software-as-a-Service took the world by storm, and now, it is impossible to imagine our everyday lives without cloud-based tools and platforms. If you want to develop a SaaS application, this guide can give you a basic understanding of what steps it will require and what challenges may await you during this journey. With a team of experts in Software-as-a-Service development or a reliable tech partner, you will be able to build a SaaS app that will align with your vision and can stay competitive in today’s market.

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