StartUps can build a SaaS based business for a fraction of the cost an established organization would develop the same in-house application for. This is because they are not constrained by existing governance or politics, so they can make decisions quickly and use low and no cost tools to develop their solution.
Having access to free and low-cost development tools and resources is a huge advantage over traditional software development project methods and one of the key reasons that start-ups can move so quickly towards a minimum viable product and ultimate proof of market fit.
There are so many seemingly free tools available that it can be hard to decide which ones to use and each startup will have different requirements depending on how your product is designed.
A good place to start is to apply for either for Microsoft’s Founders hub (https://www.microsoft.com/en-us/startups), or Google’s Startups Cloud (https://cloud.google.com/startup) program’s. These are the two biggest players in the startup industry and being accepted into either program will provide you with limited free access to an ecosystem of software sales and development tools, and most importantly cloud server processing. Effectively both Google and Microsoft are offering to become your first investor, with their programs starting at $1k up to $150k and beyond depending on your level of success.
Their goal is to ensure your company becomes ingrained in their products and ecosystem and it is a long-term high-risk investment on their part to attract your business, without these programs a lot of successful startups would not exist today.
Choose carefully which program you want to apply for based on a combination of your unique background and target market needs, but keep in mind that while the tools you get access to are free today, you will need to allow and plan for these costs at a future point should you wish to continue using them. Building a strong relationship with whichever partner(s) you choose is highly recommended as it is in their interest to help you succeed and they genuinely want to help you reach your goals. We recommend choosing only one program at the beginning and not spreading yourself too thinly, more isn’t always better.
Don’t get too caught up in what tools you use initially as the focus needs to be on product development and attaining product market fit which will require multiple iterations, key decision points and pivots.
In parallel to core product development decisions, you will need to consider sales, onboarding, support, finance, and ongoing funding challenges along with the tools and processes you will use to manage these. Keep it simple at the beginning and try not to wed yourself to any particular tool where possible, you will likely find better solutions later on as your product becomes more focused on solving a particular problem and new solutions appear on the market.
Choosing the right set of tools to enhance your business is an ongoing journey and there is no right or wrong answer. The balance between saving time and growing costs before reaching market fit is difficult to manage when starting up. Talk to us about how we can help your business make the right decisions to set you firmly on the path towards SaaS success.