The Importance of SaaS in a Startup
It is a well-known fact that, when starting a new business from scratch, it is recommended to do so with the least amount of initial capital possible. This is traditionally performed by using credit cards or savings/investment money, making monthly payments for at least a year while still working another job and often not taking outside funding until you’re on your way to success. For many entrepreneurs, this can be a reality check on what kind of lifestyle they want to live going forward.
One of the biggest movements in technology over the past few years has been Software as a Service (SaaS). By definition, SaaS “is an application software delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software” or “hosted applications.”
With SaaS, much of the maintenance and hosting is automated and the customer only pays for what they use. This is much different from prior models where companies would pay a large upfront fee to own the license, upkeep and infrastructure necessary for their business needs.
SaaS has become so popular within startup businesses because it simplifies many areas such as:
No hardware cost (just access to the internet)
Minimal/no installation required
Manageable monthly costs
Automatic updates/maintenance
Improved collaboration tools
Furthermore, there are many types of SaaS that can be incorporated into any business plan, including:
Communication tools, such as Slack or Salesforce Chatter
File sharing platforms, such as Dropbox
Financial solutions, such as Intuit Quick Books
Office SaaS products like Microsoft Office 365
Project management tools, such as Basecamp.com
With all of these benefits available to startup businesses through SaaS solutions, it should be an easy decision to make for entrepreneurs who are looking to keep their initial costs down without sacrificing productivity. However, it has been shown that many business owners are still reluctant to switch away from traditional software products due to various reasons. This includes the possibility that the SaaS product may not have everything needed by the company or that they have existing infrastructure which cannot be integrated with the SaaS product. Fortunately, the SaaS sector is very competitive and finding a company to work with can often be as easy as doing a Google search for your specific requirements and choosing one based on the needs of your business.
It should also be noted that many startups already use or plan to use other technologies such as mobile apps or cloud storage services. All of these can be incorporated into a startup’s plan along with SaaS solutions to take advantage of everything they have to offer at little cost while keeping productivity high through improved collaboration tools between employees and clients/customers. In the end, it will save time and money which can all go towards growing your business instead of going towards infrastructure costs. And if you do need some assistance with this process, consulting services are available for startups.
Overall, utilizing SaaS technology in a startup business plan is highly recommended due to the obvious benefits it provides. By focusing on what your company needs instead of traditional software products you can save money while increasing productivity through an easier-to-use ecosystem of tools that work together seamlessly to keep your business running smoothly.
It is a well-known fact that, when starting a new business from scratch, it is recommended to do so with the least amount of initial capital possible. This is traditionally performed by using credit cards or savings/investment money, making monthly payments for at least a year while still working another job and often not taking…