6 Mistakes Every SaaS Founder Should Avoid
Creating a successful business from scratch, just from an idea, is a challenging task.
Not everyone can accomplish this. Research shows that 90% of startups fail. Therefore, if you are building, launching, or scaling a SaaS project, you can only triumph with brilliance and perseverance. So, how can the remaining 10% of startups make a name for themselves?
The answer is simple – they simply plan well and avoid the common mistakes other founders ignore. Despite the changing nature of the SaaS business scene, a few problems have consistently plagued both new and experienced founders in the business. How you deal with these mistakes ultimately determines how far your SaaS startup goes.
This article has outlined these six mistakes and proffered practical tips for avoiding them. If you find these helpful, feel free to check out more beneficial tips and information on how to be a successful SaaS founder with a thriving startup at GetUpLead.
6 Mistakes You Should Avoid as A SaaS Founder
#1 – Not Seeking Legal Help
Legal conflicts are fatal to any SaaS startup. Besides negatively affecting your image and brand, a judicial battle is expensive and time-consuming.
Whether you are guilty or not, it will be challenging for your business to rise from a legal feud. This is especially true if you couldn’t do business for some time due to legal proceedings. Losing clients and the funds lost during the legal battle can force your startup out of business.
Because litigation can kill your SaaS business before you even launch, it is essential to avoid it at all costs. Therefore, it is best to seek legal help and keep all your startup’s assets in full legal compliance.
#2 – Overcharging or Undercharging
It is commonplace for SaaS products to hit the market as freebies initially. Nevertheless, most startups can only earn profits by selling their products.
But when setting a price, it is usually dicey. As a result, pricing can drive many startups out of business or even push them to a point where they struggle to get users.
Mistakes made when pricing a SaaS product is either being too cheap or too pricy. As a SaaS founder, avoid overcharging, as this can scare your customers. Also, undercharging can lead to losses and even force you out of business.
Consequently, it is best to set the right price for a successful money-making product. Your pricing determines if your SaaS project will incur profit or losses.
#3 – Not Knowing When to Launch
When you don’t have a solid strategy, it is easy to make the mistake of not knowing the right time to launch your product. A solid business strategy is necessary to understand your target market. Without this, it will be challenging to determine the right time to launch your SaaS product accurately.
Every startup needs a strong product launch. Otherwise, making enough revenue to surpass the initial startup phase will take a lot of work.
#4 – Unoriginality
Zebras are exotic animals. Yet they lose their uniqueness when they are in a herd. SaaS founders are similar. Presenting your project to the world, like other startups, is a mistake you should avoid.
Every startup is different. But launching your product the same way as others makes it difficult to differentiate yourself. And since no one truly knows your business, they may have no reason to opt for your product. Many startups use the same approach to create an enticing and innovative product, but this is just a way of blending into the background
#5 – Not Setting Up Conversion Goals Early
For every sales funnel, conversion is the goal. Consequently, setting up these goals quickly and monitoring them as your product changes is essential.
For instance, you will know when a user upgrades with a configured conversion goal. It is, therefore, best to set up Google Analytics as soon as possible. Then, you can handle your analytics alone or outsource to a digital marketing team that monitors and informs you on the conversion goals.
#6 – Not Reviewing Your Competition Respectfully
The final mistake this article discusses is not reviewing your competition calmly and respectfully. Your competitors must be miles ahead of you since they have a working product. However, not everything they have implemented has worked for them. In addition, not everything they do at that moment will yield the desired results.
Consequently, it is essential to review your competitors cool-headedly. Furthermore, analyzing their onboarding and marketing process is also ideal. Afterward, you can sign up to see their product in action. This way, you can notice where to make changes or offer alternatives to your users.
It is important to note that when analyzing and reviewing your competitors, you should do so calmly and respectfully. This is because you have the same target audience as your competition. Therefore, do not discard everything, as this can only lead to ruins.