Table of Contents

Part I — Stakeholder Input

Chapter 9

Startup SaaS Business Model

There are essentially four types of SaaS roadmaps: Startup, Legacy, Service, and Transition. There is certainly overlap in how you approach the planning process for each, but every type carries its own set of nuances when preparing an action plan.

Startup is by far the most common. I have been part of several successful ones — GalleryWatch.com, NewspaperClips.com — and an honest assortment of failures, including DinnerConnect.com, Ukumi, and others I've mercifully blocked from memory.

Startups are the hardest to map and the most demanding to execute. The reason is simple: most of the initial inputs are, to use the technical term, Wild Ass Guesses. What do we sell? Who will buy it? How do we reach them? How do we price it without losing our shirts on development and support costs?

Saaspreneur (noun, pl. saas·pre·neurs)

The perfect blend of arrogance and ignorance. The arrogance to think you can design and sell software online, and the ignorance of not yet grasping how difficult it truly is.

If that definition dissuaded you, consider yourself fortunate — you're not a Saaspreneur. For the rest of you knuckleheads: welcome to the tribe. I pray you learn from the mistakes scattered throughout these pages before you make your own variations of them.

Startup Survival Principles

◆ Narrowly define your target market before writing a single line of code. "Everyone" is not a market. ◆ Design what the customer wants, not what impresses your development team. ◆ Price high and discount when necessary — it is always easier to come down than to go up. ◆ Fanatical customer service starts at the top. If the CEO doesn't model it, no one below them will sustain it.