How to Build SaaS from Scratch in 8 Simplified Steps

Summary

In this insightful video, Rob Walling outlines eight simplified steps to build a successful SaaS from scratch, emphasizing the importance of an unfair advantage, such as a strong network or early market entry. He advises starting with a problem, exploring various solutions, validating ideas with potential customers, and launching with an MVP. Walling also introduces a phased launch strategy post-development and shares his upcoming book, 'SaaS Playbook,' as a valuable resource for entrepreneurs.

Takeaways

• 😀 Building a SaaS from scratch involves eight simplified steps, though they may be simple, not necessarily easy.
• 🔑 The most important unfair advantage in SaaS is having a strong network, which is more valuable than an audience.
• 💼 Attending in-person events and participating in social media are key to building a powerful network over time.
• 📈 An audience is less critical than a network for SaaS success, and having a large audience before launch is rare.
• 🚀 Being early to a market space can be advantageous, but it's often a matter of luck and timing.
• 🔍 Start with identifying a problem, not an idea, as this is crucial for developing a successful SaaS product.
• 📝 Keep a notebook of problems and potential solutions to refer back to when starting a new software product.
• 🛠 Consider various solutions to a problem, not just software, and avoid getting too attached to one idea too soon.
• 📊 Use the 5 PM framework to evaluate your solution, which includes problem, purchaser, pricing model, market, product, and founder fit.
• 💬 Engage in conversations with potential customers to validate the problem and solution, avoiding the 'curse of the audience'.
• 🚀 Start marketing before coding by setting up a landing page to capture email addresses of interested individuals.
• 🏗️ Build an MVP (Minimum Viable Product) to validate the problem-solving capability and the willingness of customers to pay.
• 📈 After launching the MVP, consider a phased launch to gradually introduce the product to your audience and gather feedback.
• 💰 Charge for your product during the phased launch to test the market's willingness to pay and avoid giving away too much for free.

Q & A

What is the main topic of the video by Rob Walling?

The video by Rob Walling is about how to build a SaaS (Software as a Service) from scratch in eight simplified steps and what to do after building the SaaS.

What does Rob Walling consider the most important unfair advantage in SaaS?

Rob Walling considers a network of influential people or founders the most important unfair advantage in SaaS, as it can be more powerful than having a large audience.

According to the video, why is having an audience less important than a network in SaaS?

Having an audience is less important because less than five percent of the companies Rob has backed had an audience before launching, and a network provides more benefits such as investment, advice, and promotion.

What is the 'curse of the audience' mentioned by Rob Walling?

The 'curse of the audience' refers to the situation where people tell you they would pay for your proposed product to be polite or because they like you, but when you launch an MVP that doesn't solve the problem, you lose their trust and future business.

What is the second step in building a SaaS according to Rob Walling?

The second step is to start with a problem or multiple problems that the SaaS will solve, rather than jumping straight to the solution or idea.

What is the 5 PM framework that Rob Walling suggests for evaluating a SaaS solution?

The 5 PM framework is a method to evaluate a SaaS solution, which includes six elements: the problem being solved, the purchaser, the pricing model, the market, the product, and the founder fit.

Why is it important to consider how your solution is different from existing ones?

It's important to differentiate your solution because if you build a commodity, you risk being in a race to the bottom with competitors, and growth will be slow.

What does Rob Walling recommend doing before starting to code for your SaaS?

Rob Walling recommends starting marketing before coding by setting up a landing page and capturing email addresses of interested people to build a launch list.

What is the purpose of building an MVP (Minimum Viable Product)?

The purpose of building an MVP is to provide the smallest amount of value to the customer to solve some or all of the problem, in order to validate if the problem can be solved and if people are willing to pay for it.

What is a phased launch and why is it beneficial for a new SaaS product?

A phased launch is a strategy where the product is rolled out to a small group of users at a time, allowing for feedback and iteration before scaling up. It helps manage the influx of feedback and ensures the product is refined before a wider release.

What advice does Rob Walling give regarding charging for a SaaS product during its early access phase?

Rob Walling advises to charge for the SaaS product during early access if it provides enough value that users are willing to pay for it. He also suggests avoiding huge discounts or lifetime comps to validate that users are willing to pay for the product.