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Without further due, here are my 10 biggest lessons from starting a SaaS startup:
1) Validate first, build second
You can have the best product in the world but without the market need, you’re nothing.
Don’t spend months building something no one will use.
Validate your idea first.
I always advise using The Mom Test strategy. It helped me learn so much from my potential customers.
2) Solve your own problems
Build a product around the problem you stumbled upon yourself.
You would be surprised how many people share the same issue.
3) Distribution > Product
Having a great product is essential.
But without marketing & distributing it to the public, you won’t get far.
Always make sure you have a marketing plan from the beginning.
4) Use gamification
One of the best strategies that has proved to increase customer retention is gamification.
> Milestones
> Referrals
> Leveling
All essential features to maximize retention.
5) Choose your dev team wisely
Finding a good development team from the start is crucial.
It can make or break your product.
Be sure you enter a partnership with an agency with a proven track record.
6) Launching is easy, scaling is hard
Once you launch, it’s only the beginning.
Now the hard part begins.
You need to nurture & scale your product.
Make sure you’re staying up to date & utilizing the right growth strategies that fit your startup.
7) Don’t exit too early
1 SaaS exit can set you up for life.
Don’t settle on small amounts.
Think through every option before you sign the exit papers.
8) LTV > CAC
Easy to celebrate a new paying customer.
But be careful of churn.
Nurture your customers & make sure your platform is always up to their standards.
9) Freemium converts better than free trial
Freemium models are proven to convert 25% more often than free trial pricing models.
Adjust your pricing strategy accordingly.
10) Focus on stable industries
Trends come & go.
Crypto, Blockchain, AI,…
All hypetrains getting oversaturated with no-value startups.
Trends should be implemented as FEATURES in a stable industry SaaS.
Not be a core of it.
BONUS: B2B over B2C
Much easier to sell to companies & enterprises than to certain individuals.
> You get to charge more
> Lower churn rates
> Longer LTVs
More predictable revenue stream.