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How to create your own SaaS product: A step-by-step guide

The saas industry is widely booming, and we highlighted the complete guide about building saas products for recurring revenue generation.

Remember when we had to buy software discs to install on our PCs? Good old days, right? Today, such is far gone. A new generation of products has emerged. Change is constant.

Enough with the history talk. Let's get to business. How can you make your own SaaS product? In this article, you will get a first-hand step-by-step guide that you can use to create your product.

Before we go into it, I need to tell you this. Cloud computing is growing fast and changing the tech landscape, Or maybe it already has. Now that your data can be saved in the cloud, you don't have to fear that you'll lose it. SaaS products are solving daily issues, with each having a distinctive look.

What is Saas?

You might have been seeing this world quite often. Maybe in some blogs or on tv. Generally, SaaS stands for ‘software as a service.’

Knowledge gained, more to come. Just hold on tight.

The cool thing about this product is that you can access its features on any internet network. You only need a paid subscription plan to get started. Amazing!!!!

You should also know that using this software doesn't require you to carry out maintenance and security problems.Simply update it when a new version is available.

Another thing about this software is how it comes in different versions. What does this mean? SaaS has features that allow you to connect with other apps, integrate the internet of things, and analyze big data.

The internet of things is what's in trend currently. You can share data among your devices as long as it is connected to the same cloud or network. A good example is your apple gadgets.

To make you fully understand the concept of the SaaS. Here are examples of famous SaaS products: Netflix, Salesforce, Grammarly, slack, etc. You might even know about them already. You might even be using some of this software on your devices.

To end this, SaaS businesses face intense competition, as there are many other alternatives to it.

Now that you have a bit of an idea of what SaaS is, it is time to know why they are essential.

The SaaS perks

The following are the benefit of using a SaaS product:

These benefits will give you a broader understanding of the concept of SaaS products. Especially now that it has gone on to become a big thing in the tech market.

Quick setup

It doesn't take much time for you to create an account with SaaS products. You can create an account using your email with a password. You will then have complete rights to the service features . Zero stress!!!


You will have to pay for a subscription package to use these products. This fee could be paid monthly or yearly, depending on how convenient it is for you. For example, to use Apple Music, you will have to pay a monthly subscription to allow you access to their music.

Unlike previous software that requires you to pay for a license to use it. But SaaS prices are reasonable and easy to afford. You have to look for one that is close to your budget.


SaaS is constantly releasing updates. Generally, these are created to improve the user experience or to increase security. These updates could either be weekly or monthly.

Do you know another thing that is cool about SaaS products? You don't have to pay for these updates as it is free.


Everybody can use the software. There is a special price that suits your budget, especially for businesses that have a tight budget. There is something for them to pick and use.

Well, it is time for the step-by-step guide that can be used to build your SaaS product from scratch. Are you ready? Let's have it.

How to create your own SaaS product: A step-by-step guide

  • Market Analysis

Before you create a SaaS product, you have to understand the market. You need to ask yourself what issues you are planning to solve. There are tons of issues that need solutions in every niche. Or you can try to improve on what is already in the market, which is a good idea.

Again, you have to study the market situation. You wouldn't want to build software that nobody will use. Understanding your target audience is another plus. These are the people that will use the app. So how does your software improve their daily lives? These are the types of questions you must consider when creating a solution.

You will want to make sales too, Don't you? That's why you need to create software with a bit of an edge over your competition.

Take Semrush for example. The SEO company created a couple of SEO-based SaaS products that solved numerous issues in the industry. Today, they’re one of the biggest names in the Search Engine Marketing space.

That’s the power of market analysis.

Another important thing to consider while doing your market analysis is the competition.  Knowing your direct competition will give you a proper insight into what you need to do right.

What functionality are you planning to add to this software to entice the public? These features have to be unique and different from what is in the market.

Finally, try to evaluate the successes and failures of your competitors. It can assist you in developing crucial plans for your software development.

  • Build a business plan.

It is more like a blueprint of how you want to run your business. It serves as a guide to what you need to do to achieve your goal. There are a lot of things that you need to include in your business plans.

First, you must create an identity that stands out from others. What does this mean? It means that whatever you are planning should be unique and different from what others are doing.

Secondly, what problems are we trying to solve? Before you create your SaaS products, you need to know the issues faced by the public. After which you make a solution.

Again, the people are the end users of your software. So what marketing strategy do you need to take to get their attention?

What pricing system do you want to adopt for your SaaS product? Are you going to offer subscription plans to the customers? Or do you have another way you can make money from SaaS?

Also, you will need proper funding to create your SaaS product. This funding is what you will use to run the business. Understand where your funding is going to come from. Do you have investors? Or is your budget coming from crowdfunding? You need to know all these things.

However, what are the goals you plan to achieve? You can list these goals during your first months of business. It serves as a guide.

Finally, plans will change. Things might go as planned, but you need to make these plans to create a successful SaaS product.

  • Define your SaaS specifications

You will need to include certain features during your SaaS development. It is because the software performs several tasks requiring many features.

The following are the essential requirements that are needed during your SaaS development:


Every user on the SaaS products is under a single database. It saves a lot of costs and doesn't require much maintenance.

Self-service provisioning

SaaS products make use of automated procedures to establish service delivery. As a result, it accelerates the process and improves its consistency, stability, and scalability.


Your SaaS product must provide the necessary security for your users. The security measures may include identity management, access control, two-step verification, etc.

Observation of user behavior.

Audit logs make it possible to monitor changes and stop the intrusion. It is crucial for protecting data and addressing concerns about access and integrity.

Establish a distinction between essential and optional features that solve customers' problems. It is advisable that you also look at your competitors' products. It will help you understand the kind of features that are required for your software.

  • Working out the technical aspect

Now, you have gotten to the development stage of your SaaS product. It would help if you decided on your software's language, frameworks, and tools.

So, what are the required stacks for your SaaS development?


This particular area is responsible for the face of your SaaS. Everything you see on your screen is from this aspect of development. You will require a JavaScript framework to meet your SaaS requirements like React, Angular, or vue.js.


This area deals with the server side of operations. It is used to develop the core functionality of your software. It also determines your software's responsiveness. You will need to use frameworks like Ruby on Rails, Node.js, or Django.


The data needed by your applications are stored in databases. You will need to use MySQL, PostgreSQL, or NoSQL to store all your data.

Hosting service for SaaS

Any reputable cloud provider, such as Amazon (AWS), Google, Microsoft, or Heroku, can handle SaaS requirements.

  • Create your team

To fully actualize your idea, you must set up a team. These team members will see to the success of your SaaS product.

The following are the set of people that you will need to have on your team:

  • Business analyst;
  • Designer;
  • Software developers;
  • Quality assurance engineer, or QA;
  • Project manager.

Although, you might face some challenges in getting the right set of professionals. You can always get substitutes for these individuals. The following three options you can go for:


It seems like the right idea to get your team of workers. However, it is most suitable for businesses that have gained success. But, using this idea gives you complete control of the software development.


Using a freelancer is relatively cheap, especially for those with a strict budget. Also, they might be highly knowledgeable in various disciplines and technologies.

However, there is a good chance they won't be dependable, so you need to manage their work and keep an eye on them constantly.

Third-party company that specializes in developing custom SaaS products.

This strategy will work for businesses of all sizes and with various project scopes. It offers a practical compromise between the other options. You receive high-quality services from a remote team that you don't need to manage and only pay for the completed work.

Your main goal is to look for a highly skilled specialist that can deliver on time and fully understand what's at stake. Having an inexperienced team will lead to an unsuccessful software project.

  • Build an MVP

Although an MVP is not a finished product, it has sufficient features to draw early users and prove the viability of a concept. The MVP can be scaled and modified after it has been released to the market.

It addresses a crucial issue for your customers even though it is not an end product. Your MVP must captivate your target market and inspire adoration for your offering.

The following are the main reasons for launching an MVP:

Gather and evaluate feedback.

Getting feedback will help you understand the changes that need to be made. You can learn more about the user experience if your users enjoy your product's functionality.

To understand the market

You can use it to determine whether your application will work in the quickly expanding SaaS market. Additionally, you'll be able to gauge customer interest in your services. It helps you plan your marketing strategy, whether to improve or change it.

Try out various ideas.

MVP offers the ability to gauge how well business assumptions work. Please pay attention to your SaaS application's overall impact rather than its features.

However, the SaaS competition is very high. You must ensure that whatever you create will be acceptable to the public. You also can spot issues facing your business. To prevent your business from packing up.

The following are the factors that have led to the startup's closing:

  • No market need
  • A poor business strategy
  • Mediocre marketing
  • A poor product concept
  • lacking finances
  • Poor management
  • Product problems

Final Words

You also have a chance to create your own SaaS product. Who knows, it might be the next big thing in the tech space. What you have to do is go to your drawing board and think of ideas. Look for problems that need solutions. Come up with something unique.

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