SaaS Development From Scratch: Steps and Tips
SaaS Development From Scratch: Steps and Tips

The SaaS (Software as a Service) business model has gained significant popularity across various industries. It offers a powerful solution for users and presents a profitable venture for business owners. However, the journey from conceptualization to launching a fully functional SaaS application involves a complex development process. In this article, we’ll explore the steps and tips for creating a successful SaaS product from scratch.

Starting with MVP (Minimal Viable Product)

When embarking on the development of a SaaS application, it’s wise to begin with an MVP. The MVP is the initial version of your software that incorporates only the most essential features. Starting with an MVP saves both time and money, as it allows you to introduce your product to the public quickly, gather feedback, and make necessary improvements. The primary goal of an MVP is to determine if customers are willing to pay for your product.

An MVP helps identify which features are effective and which require enhancement. This iterative approach enables you to refine your solution, aligning it more closely with your customers’ needs.

For example, Haven Diagnostics initially focused on creating agent-based models for specific clients. When they decided to expand, they opted for an MVP to minimize the risk of investing in features that their target audience wouldn’t find valuable. Their process involved defining the value proposition, understanding customer problems, competitive analysis, and more.

The Steps of SaaS Development

Let’s delve into the comprehensive steps involved in SaaS development:

1. Discover a Problem Worth Solving

Defining a clear concept is the initial and indispensable step in SaaS development. The primary aim of any cloud-based software is to simplify users’ lives. To achieve this, you must research your target audience and pinpoint the problem your SaaS solution will address. SaaS products often streamline work processes, save storage space, or facilitate mobile access to applications.

For example, consider Prift, a financial app that addresses the gap between personal finance apps and pension platforms. Prift combines the capabilities of a personal finance app with long-term financial goal management, solving a specific customer issue.

The key takeaway is that successful SaaS ideas revolve around solving specific problems, and defining this issue is paramount to creating a clear concept.

2. Find Your Competitive Advantage

Thorough competitor research is essential in SaaS product development. Analyze your competitors’ user interface, functionality, marketing strategies, and pricing models. Pay attention to customer feedback to understand your target audience’s preferences and expectations.

Successful market leaders like Shopify, Salesforce, Jira, and Trello can provide valuable insights. Learn from their experiences to gain a competitive edge. Strategies for overcoming competition may include niche specialization, innovative pricing, or delivering a superior solution.

3. Set Clear Goals and Desired Outcomes

Establish clear goals and desired outcomes for your product, such as acquiring a specific number of users or referrals within a defined timeframe. These milestones serve as indicators of product-market fit and provide a tangible measure of success. Well-defined objectives guide your development process, ensuring that it aligns with your long-term vision.

4. Build a Prototype

A prototype showcases your product’s functionality and allows users to test and provide feedback. It should closely resemble the final product in terms of visuals, user flow, and layout. Prototyping tools and low-code platforms can expedite this stage and facilitate user feedback collection. Involving product designers can enhance the prototype’s quality.

5. Develop a Monetization Strategy

Determine how your SaaS solution will generate revenue. Several pricing models are available, including free with ads, freemium, subscription-based, usage-based, and blended models. Your choice may evolve as your business grows, so remain flexible in your monetization strategy.

6. Design the Product

User interface and user experience design play a pivotal role in SaaS success. An intuitive, engaging design can make your product irresistible to users. Ensure a seamless sign-up process, straightforward onboarding, smooth navigation, and a user-friendly dashboard. These elements enhance the user experience and increase customer retention.

7. Develop the Product

The core of SaaS development involves various technical aspects, such as choosing the right programming languages, establishing a secure and scalable database architecture, integrating APIs, and more. Consider starting with an MVP to validate your idea before committing extensive resources to development.

8. Improve, Test, Get Feedback, and Iterate

SaaS development is a continuous cycle of improvement. Monitor user needs, market trends, and innovations. Regularly optimize your product to maintain its competitive edge. User feedback is invaluable for identifying areas of improvement and ensuring a seamless user experience.


Building a successful SaaS application from scratch involves clear concept definition, thorough competitor analysis, a well-defined pricing model, excellent design, and robust development. Continuous improvement and adaptation to customer needs are vital for long-term success in the SaaS industry.

For additional insights on building a successful SaaS product, check out our other article. If you’re looking to create a new product or enhance an existing one, consider working with a professional design team experienced in SaaS. At Eleken, we specialize in SaaS design and can be a valuable asset at any stage of your journey.

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