Why do SaaS start-ups fail?
Since the Software as a Service (SaaS) business is extremely dependent on the software; in case the software fails, the business would fail too. Many start-ups reach out to software development companies requesting a SaaS Web and/or Mobile Application. Most of these start-ups’ CEOs do not have a detailed scope and they depend on the development firm to help them create the scope of work based on their experience. On the other hand, most software firms need a documented and detailed requirement to estimate the efforts and develop the application.
Due to this conflict in both parties’ expectations, the software firms generate a quick estimate to close the deal and they do not fully understand the exact scope of work. That will lead to extended timelines due to many change orders or the CEO may have to change the software firm in the middle of the project, and both options are extremely costly. Many times, to avoid going over budget and losing the investors’ trust; the CEOs accept the application that does not match the business idea, and therefore it will not be aligned with the business’s value proposition, business model, or meet the business goals and objectives.
Choosing a software firm that can analyze the business case and develop the requirements with the start-up CEO is key. These software firms must have strong business and technical teams working together and both teams must have experience in the SaaS business and software industry.
Haya Solutions Inc. is one of these companies since they combine their MBA Business Consultants efforts with Certified Business and Technical Analysts, Project Managers, and Developers to ensure the success of the SaaS start-up. Haya’s successful rate of the SaaS projects is 100% accomplished for 100% successful SaaS business models.
If you think to start a SaaS business, contact us to discuss your idea today.