How To Build A SaaS Product? Step by Step Guide in 2022 -
  • Home
  • Blogs
  • How To Build A SaaS Product? Step by Step Guide in 2022

How To Build A SaaS Product? Step by Step Guide in 2022

Software-as-a-Service (SaaS) is a type of cloud computing service. SaaS allows users to access data from any computer or mobile device having an internet connection and a web browser.

Software-as-a-Service (SaaS) is a type of cloud computing service. SaaS allows users to access data from any computer or mobile device having an internet connection and a web browser. The servers, databases, and code that make up an application are hosted and maintained by the software provider under this form of a web-based application.

SaaS has experienced tremendous growth and rapid innovation during the past few years. Small and medium-sized businesses (SMBs) in particular have realized the benefits of SaaS in terms of cost, security, and usability.

SaaS: An Overview

The simplicity of SaaS has made it a popular software delivery model. It was estimated that the global SaaS market would reach $157 million by 2020, according to Statista. SaaS is ready-to-use, subscription-based software delivered via the Internet. For most SaaS products, consumers pay a monthly or yearly subscription price to use the service. In a nutshell, because the data and applications are housed in remote data centers, SaaS allows for significant cost savings on expensive hardware. As a result, SaaS users are relieved of the burden of dealing with concerns such as maintenance, compliance, and security.

There are a wide variety of ways to implement modern SaaS technology. A platform can be built to connect apps and solutions and analyze large amounts of data. The Internet of Things (IoT) and big data are the most popular technological trends nowadays. According to Gartner’s study, Enterprise Software will grow faster than any other primary IT market, with a compound annual growth rate (CAGR) of 10.5%. In his podcast with Gaper, John Anderson of DataDog further offered valuable insights on SaaS product development.

This shows that SaaS implementations are driving all software industry categories. So, understanding how to create a SaaS product is well worth the time and effort it takes to get started.

Advantages of SaaS

There is no need for specialized equipment with SaaS solutions, their primary and most obvious advantage. Aside from that, cloud-based web apps have the following benefits:

  • Security – your data is kept in a secure place
  • Reliability – If one server goes down, the others will continue to function.
  • Scalability – upgrading or downgrading, is simple
  • SaaS reduces development expenses because no expensive hardware needs to be purchased and maintained.
  • Developers get a regular stream of income
  • The possibility of a broader customer base due to decreased costs and trial periods.

Useful Steps To Build a SaaS Product

To help you better understand how a SaaS product is built and launched, we’ve put together this guide to walk you through the significant steps involved in creating one.

1. Market analysis

Before anything else, you need to determine your intended audience, identify their problems or needs, and then offer a solution that directly solves those issues.

For starters, we advise you to conduct a market analysis. Once you’ve done your research, you’ll have a good idea of who your target market is, who your main competitors are, and future potential demands for your product or service.

Understanding whether or not buyers intend to choose your SaaS solution is critical throughout the market analysis stage. You can use the following strategies to assist you to generate more relevant and meaningful data on your prospective SaaS product:

  • Interviews using social media.
  • Focus groups should be arranged.
  • Put your assumptions to the test.

2. Create a business plan

A business plan is a systematic and thorough set of financial and operational objectives you plan to attain during your SaaS product release.

You’ll need to know the answers to several essential questions and strategies to entirely grasp the concept of building a SaaS app.

Pricing model

It represents how you plan to earn from the services your SaaS app offers.

Determining the price strategy upfront is critical since it has a significant impact on creating a SaaS solution.

This is a list of widely used tactics for monetization.


Because of this revenue model, your SaaS product only offers a small number of functions for free. If users want extra features, they can upgrade to a pro plan.

Flat Rate Pricing

With this pricing model, you offer a single set of features and charge a set price for all of them.

Pay As You Go Model

This concept suggests that you charge clients proportionately with their platform utilization. Pay as you go model gives significant flexibility for users according to their requirements and financial limitations, which delivers you a huge CLTV (customer lifetime value).

3. SaaS Requirements

The functionality of your SaaS product mainly depends on the niche and pricing approach you adopt but should incorporate the must-have features to be competitive by default.

For a successful product, your SaaS software must have the following features:

Multi-Tenant Infrastructure

Multi-tenancy is one of the basic principles that drive cloud computing. It refers to a system with multiple firms or tenants that share a single SaaS installation platform.


Find a way to make your Saas model as simple to use as possible focused on homepage and pricing pages.

High security

SaaS cloud computing indicates that you keep end-users data in the cloud, which necessitates a high level of security against multiple hack attempts and risks.

4. Build an MVP for your SaaS product

MVP stands for “Minimum Viable Product.” In the SaaS development lifecycle, MVP development should be your coachfellow. Unlike a fully functional product, an MVP is merely a mockup with a few basic features to see if clients will use your product. You can gain valuable insight into your potential clients and the core features of your SaaS product by building an MVP.

Building an MVP for your SaaS app has the following primary goals:

  • Do some market research and verify your business concept.
  • Find out what’s going on in the market.
  • Different approaches to be tested out.

5. Developing and designing the user experience (UX)

How long it takes to create a SaaS product is dependent on several factors. In most cases, it should take no more than six months for SaaS MVPs to get their product ready for market. On average, designers develop MVPs in three months.

Getting your product to market sooner not only saves money on development expenditures but also allows you to reach beta users and subsequently pay customers much more quickly. The sooner you reach MRR, the better.

Regular check-ins with your development agency are critical during the development and UX design phases. You should have a product manager that checks in with your clients and provides them with updates. If something takes longer than planned, clients need to be informed as soon as possible so they can make adjustments to their feature set to their budget and runway amount.

6. Quality assurance testing

Quality assurance testing is the next step in developing a SaaS product. Automated and manual quality assurance testing are the two most common methods for testing.

  • Manual testing: QA testers hammer on the software in search of errors. They may conduct exploratory testing and utilize it as a real user would, or they may go through a list of manual tests, executing each function and variation in order. After that, they log the problems in a system like Jira or Github so that developers can fix them quickly.
  • Automated testing: Quality assurance engineers use scripts or a low-code test automation platform to create procedures that run around the clock and generate reports identifying errors.

A separate QA stage has been added to our process because of the extensive testing before a product can be released. On the other hand, the most refined development teams test every feature and user flow as it is being developed.

7. Build an in-house development team or outsource

The technological development of the platform is a critical stage in SaaS products. There are several alternatives available to help you develop value-added SaaS software:

Build a team within your own company

You must hire specific individuals as a team to build a successful SaaS product.

  • Designer
  • A Project Manager
  • Managerial And Financial Analyst
  • Quality Assurance Engineer (QA)
  • Software Developers

This strategy can be risky because you can’t control remote developers as effectively compared to an in-house team. The SaaS product development process and the final product quality can be strongly affected by time zones, cultural differences, and other factors.

Platforms like Gaper, Upwork, Freelancer, Fiverr, etc., might help you find remote software developers. They provide access to a global talent pool of workers and team lead developers with broad skills and experience in most IT fields.

An internal ranking system, case studies, and reviews are available on these job sites, so it’s easy to see whether candidates are a good fit for your company.

Outsource to an IT agency

SaaS application development might also benefit from hiring a software development company with a great deal of experience.

Because they are familiar with most complexities and issues from the initial stage, a reliable and experienced IT company gives you a significant advantage. In addition to technical services, a software development company can provide consulting services to help you improve your overall strategy before you even begin working on the technical aspects.

Lastly, outsourcing SaaS development allows you to avoid any direct engagement in the process, allowing you to focus on other aspects of your company’s business. Using this method, you can delegate software development and concentrate on different aspects of your business, such as developing a marketing strategy or seeking investors for your project.

Prominent Examples

You’ve heard of the most popular Saas applications. Probably the most well-known example is Google Docs. It’s a cloud-based office suite under the Google Drive service. Salesforce, Slack, and Shopify are three other notable cloud-based businesses. Other examples include:

  • Canva
  • Dropbox
  • Amazon Web Services
  • Hubspot
  • Salesforce


a) What is SaaS?

There are several ways of providing applications over the Internet, but one of the most used is software as a service (SaaS). You don’t have to worry about installing and maintaining a software because you can access it online.

Web-based software, on-demand software, and hosted software are all terms that refer to SaaS applications. SaaS apps, by any name, are hosted on the servers of the SaaS provider. Access to the application is controlled by the service provider, who is also in charge of its security, availability, and performance.

b) Is SaaS a safe option?

Software companies know that their clients always prefer cloud security. Therefore they work hard to demonstrate how secure their data is on their servers. It is common practice for many SaaS businesses to store their software and store data in highly secure public cloud services.

Comparatively, data is more at risk in-house for most firms, where IT security budgets are less allocated, and employees or others could accidentally leak data or cause security gaps.


SaaS has undoubtedly spawned an array of new business opportunities. This guide to launching a SaaS product is intended to aid you in developing and launching a successful software product. Customize your software-as-a-service solution to make a strong impression on your target market.

Hire Top 1%
Engineers for your
startup in 24 hours

Top quality ensured or we work for free

Developer Team @2023 All rights reserved.

Leading Marketplace for Software Engineers

Subscribe to receive latest news, discount codes & more

Stay updated with all that’s happening at Gaper