SaaS Development From Scratch: Steps and Tips

Written By
Rakhi Sethi
Last updated at April 23, 2022
SaaS Development From Scratch: Steps and Tips

When it comes to software, the SaaS software development model is undeniably the best for both users and business owners. Whether you want to fix a bug or optimize your team's efficiency, SaaS enables people from all around the world to collaborate on a project from any place in the world.


Launching a SaaS product takes time, money, and research. However, that doesn't mean there's no room for bright ideas. Understanding your target audience and designing the perfect product is a good start


As a design agency for SaaS, we know that this process is about much more than just launching a good-looking website. We also create things from scratch so that our customers can use them from the very start.


In this article, we'll discuss how to make the most of each stage of SaaS development tips to produce a uniquely efficient solution for your users.


How to develop a SaaS product?


We're going to guide you through the SaaS product development process step-by-step and let you know about all of the important points as you build a cloud business from scratch.


Idea Validation


The first thing you have to do when building your product is to validate the idea by asking potential users if they will pay money for it.


The overall goal of cloud software is to make one's life easier. To come close to this potential one needs to analyze the audience & define the problem their SaaS will solve 


SaaS products usually optimize your workflow and provide space for more storage on your computer. They also let you use designated software without a specific location, like your laptop or mobile phone.


Market Research


The first step in SaaS development is to do deep research on your competitors.


The analysis of your competitors includes evaluating the following features:


UI/UX design






Pricing strategy


Customers think it's useful to pay attention to the feedback that your competitors get. This will help you see what kind of content is most compelling and which customers react best to certain types of offers.


In order to get exposure to new ideas, it is important to take a look at the companies that are successful at what you are trying to do. Look for companies that offer a similar product and figure out what makes them stand out. Using their knowledge can help you grow your company's success.


There are many ways to deal with competition. The most common thing is to choose a niche and stick with it while varying the factors like pricing or features.


This is the most important step of developing any type of Cloud-based software. Your company needs to figure out how to make money with your product and then adjust your product based on the pricing model when you get ready for later stages.


1. Free(With Ads)


One way is to give your customers access to everything for free. You make money with the help of ads, which is where you put video adverts, posters, etc.


A free plan makes a product available to as many people as possible, which can be good for a test. On the other hand, it also creates worse UX.


2. Freemium


Freemium pricing is the model where you offer a basic pack of features for free, but then don't let people upgrade unless they pay for it.


3. Flat fee


The beauty of this model is that it's effortless to implement and sell. Users buy a subscription (monthly or yearly) and they get access to the whole set of benefits. Pay once and you’re good to go.


4. Use based pricing


Depending on how your customers are going to use the product they are purchasing, they can get different prices. They will be charged based on their usage, like the amount of data used, calls made, transactions are done.



A UX designer is focused on providing a good customer experience. Their goal is to create a smooth, functional, and accessible app, website, or product that takes on the user's needs and priorities. A good UX designer would involve the customers in all of their processes for maximum user satisfaction.

Tech Stack


There are various technologies of choice and development tools for SaaS. The tools can help build a perfect application. The selection of professional tools is also essential to understand how a product is created. A mix of libraries, languages, and also frameworks is necessary. It relies upon a particular type of SaaS. It is still crucial to make note of the tech stack that the team uses to leverage SaaS platform founders' needs. Based on experience, the current stack is the best fit for developing a SaaS application reliably. You can build your application with these technologies.


Read Also: How to Choose a Tech Stack? 


It's very important that your clients understand the process of bringing their idea to life. It helps them know when to expect fulfillment and enables them to visualize all of the steps it takes to get there.



Detailed Estimate


 Till now, you will have the documentation, features of UX design, and the tech stack. Now you can ask for an estimate from the team of SaaS developers. This should take into account several aspects. Here is a detailed list of work (SOW) that summarizes all the elements required in the project development and each one's cost. Hiring a virtual team to develop your idea is a rational decision. It means that you don't have to worry about issues with non-compliance with deadlines and costs overruns.


 When outsourcing software development, you must know what it takes to develop your product. For success, it is crucial to know the time and effort required to create the project timeline. It would be best if you planned on many things--for example, frontend and backend technologies, for which it's essential to have a complete list of all tasks. This way, you will have a better idea of what the SaaS development team must do to create your product successfully.


 The last essential aspect of this exercise is development.


 Software development 


Our mission is to simplify outsourcing for entrepreneurs and SMBs by helping them find the right vendors. It’s always better to enter the market with an MVP. An MVP provides the perfect balance of cost and time for entrepreneurs to launch their startups. Once your product is up and running, you can scale it while adding features.


 It is essential to know what an ideal SaaS and outsourcing development company must do while developing the product?


 Agile management:


 Outsourcing is transforming the IT market. "Agile" project management is transforming the construction industry. But, done right, it helps build efficient software. But the most innovative service providers are beginning to realize that this approach shouldn't be applied blindly in every case. Most importantly, as we have said in the detailed estimate;


Agile project management offers enormous flexibility for your business. A subsequent update can be added at any time. Adding a new module will also not interrupt the current system.


 Constant communication with the customer:


 Businesses should not outsource SaaS development work to an outsourcing vendor that lacks enthusiasm for communicating and discourages customer involvement.


 Market fluctuations and technological advances have catapulted outsourcing SaaS development to become the most significant revenue source for enterprises all over the globe. This has also placed a responsibility on the more prominent organizations to outsource their ideas rather than executing them in-house, which is an expensive affair.


 Constant demos:


 The development and documentation team must be available to address concerns as they arise. We recommend weekly updates to the development team so that you may receive updates on timeframes and project status.


Use only the most experienced and responsible team of designers, developers, and marketing professionals for your project.




Development and marketing should co-occur to identify an effective strategy.


The outsourcing industry must take a proactive approach to market its product. They should be advertising the benefits of their software rather than the technology behind it. They need to isolate the pain points people face when dealing with software and focus on resolving them.



Software-as-a-Service (SaaS) companies need to be constantly improving their product. That way, your service will function seamlessly throughout its life cycle with no glitches. That's why it is vital to stay competitive and attentive to what your target audience wants. You'll have to monitor their needs, research their interests and social media, track the latest innovations and make sure you're optimizing your product in a way that will get them interested.



At Noetic IT Service, we strive to be a full-service software development outsourcing company. We provide end-to-end mobile and web development services at affordable packages. Also, our team is well-versed in the best software development technologies.


Outsource SaaS development is our core value, and we do it well. Coding and design are our expertise and are done by an experienced team of senior developers. Our team is also capable of reskinning a framework, and we would gladly help you with your project.

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