Found a niche for a SaaS... never done a SaaS before

[tanjavdw]

Web dev here currently in a 10-6 pm work. Over 150+ side clients projects completed most in different businesses. This had helped me learn so much about so many types of businesses and how they work.

I know AWS, LAMP stack, internetwork engineer, Magento 2 ,Wordpress, HTML/CSS/js, graphic design, SEO, licensed notary etc. Everything I need to go from idea to business for my clients. But I been hesitant to start a "web designer business" always kept it on the side while work another job. because projecs take a long time, payment can take months/delayed, owners often change their mind mid project, marketing dept have no idea what a website is , etc etc

Last year as I worked with a large client and the staff kept complaining about this software they use, the moment I saw it I know it was made over 30 years ago. it crashes, is stored in the client servers, is slow, is ugly af, it hardly does what needs to do and is prone to a lot of human errors. This is what the users kept telling me. The program is so bad that it needs live support from the company just to update it...

I asked another client in a similar business and he told me that is how all of those softwares are he was literally just switching to a new one because all he had in the past are broken. that if I ever decide to make one that works he was in.

Note: these biz needs this software to function without it they can't and they all pay over $100k a year..

so am like... Ding! This is a great opportunity just sitting there, until someone shows up, the competition dont care because anual contracts keep them afloat and most clients after so much trouble training the staff in this disastrous softwares won't be willing to change specially knowing the others suck too.

But idk how to develop softwares or Saas.

I know exactly what it has to do. is not a simple software with a couple of features it needs to do many things and processes and they all have to work from day one. I can't make an MVP, if the client does not have all the features it won't work.

I have a list of features and APIs that will make it light years better than the current ones and they wont be able to even add them unless they redesign it from the ground up with the latest technology.

Steps am thinking I should start now myself:

creating the llc/corp?, setup a landing page, collecting emails, branding, try to reach more clients for survey about their current experience, make a Adobe XD prototype.

As the competition renews their licenses yearly it would be great if I can have some clients lined up before December 2022.

What I don't know:

1. Should I look for a SBA loan?
2. I heard about R&D SBA grants?
3. A developer with enough experience could make this but it might cost $110K+/y just his one salary and it might take him/her around 10 months to do coding by himself.
4. If I get the funds just pay a company to do it?
5. After the saas is done, how does it deploy for each client? idk if manually or automatically how much human intervention would it need (to know how much staff will be needed)
6. Should I find a dev partner and an investor for shares?
7. I don't know what I don't know, what am not seeing?

 

[ohlord]

@tanjavdw As @hetherington said, get a couple of them to fund and pilot it for you.

I will warn that if they are all using software that's 30 years old to perform whatever business function it does, then the barrier to entry is in all likelihood, very high. Be absolutely certain you understand the problem that it solves inside and out in its entirety. I've seen founders trying to launch in heavily regulated or technically challenging industries crash and burn because of the complexity that's required to actually get a working product to market.

 

[hetherington]

@tanjavdw If it would cost you $100k to make and you have multiple potential clients... I'd just go ahead and ask them to invest. Worst case scenario is they know you're coming in with a competing product that they have some ability to dictate features/solutions.

All the other details? Well. That's all up to you. How many companies are currently using the current software? SBA loans are highly competitive and take quite awhile. Probably not the best route as you have indirect experience and a limited plan as is.

I'd potentially look for an advisor in the industry (another great ask if they turn down an investment). That could help you find investment elsewhere.

Only you know how it deploys with each client. Is it a cloud service, or does it need high-level integration?

I'd spend less time with landing pages and the like and go straight to the source of a $100k/year.

 

[porven]

@tanjavdw I know you said you can't go with an MVP, but I would never, ever develop an app for 10 months in a silo either. Even if you need the entire package, you can scope this down into phases and plan costs according to those phases.

SaaS is more like a self serve gas station. If you need to be hands-on with your clients your are more of a turnkey solution and will need account reps and support staff.

You are currently in the homework phase, not the execution phase. Having a niche is already a big win, but there are still a ton of questions you need answering.

I get the desire to jump into design and coding, I've done that dozens of times and it's never ever worked for me.

Define your assumptions, test them, the business side of software has its own steep learning curves.

My only core advice, don't outsource your main competency. If you hire a dev with no experience in your field to build your app, they'll likely not deliver on those key insights you have. There's a tremendous balancing act here, so I encourage you to get as hands on as you can get.

 

[mariiah]

@porven This guy gets it. I’ve been through this rodeo a few times. I was originally a software developer but am now a systems architect and technical product manager, and sometime entrepreneur. A few other pieces of advice:

1. Don’t forget about the other parts of the business. Even if you manage to make the product…there’s probably sales/marketing, finance, and HR responsibilities. Not to mention the design/product strategy, which should be sound before you code. Like building a house, it’s way cheaper to change the blueprints than move the walls.
2. Can you code the whole thing yourself? Outsourcing dev work is a dicey proposition if you yourself aren’t intimately familiar with how to communicate what developers need from you in order to deliver on your vision. About 80% of the time I’ve seen (at minimum) major gaps — or worse — in the deliverables when someone outsources dev work because they don’t know how to manage developers.
3. Iterate, iterate, iterate. Don’t go into a black hole, as others have said, and dump a ton of time and money into a software product without getting it front of customers in some way. I’ve seen several software companies sink because they invested millions of dollars or tens of thousands of man-hours before ever putting it in front of a customer. It will never be done. It will never be perfect. So don’t try to be everything right away — find one aspect of the potential solution and try to get customers on that, and wedge your way in gradually. This is the main thing I spend my time convincing founders — you have to be able to have an MVP.

 

[tanjavdw]

@porven Ok! Then will try to break it down by parts! Thanks bro

 

[lmms]

@tanjavdw I'm a software engineer and have worked for many companies in the last 20 years. I had my own startups as well. I would love to collaborate with you on this. Can sign an NDA

 

[613jono]

@lmms Same.