Are you about starting a Saas startup company? If YES, here is a detailed sample Saas startup business plan template & FREE feasibility report.
A software as a service (or SaaS) company is one of the businesses that is bound to become highly successful in this age and time. This is because processes and systems in our daily lives are becoming automated and this can only be achieved with the help of software apps.
Software as a service (or SaaS) is an emerging paradigm business model or concept that enables software to be delivered as a service to customers. This is an arrangement that enables companies to expand their network capacity, and run applications directly on a vendor’s network, offers a host of advantages with the most primary being radically lower IT costs.
The lower budgetary requirements and commitments allow even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems. It is important to state that, due to the technical nature of this business and the need to understand what you will be getting into from the business aspect, it would be wise to consult with a business consultant before starting the business.
This is to enable the business consultant go through your business concept and advise you on whether to proceed with the business or not. Below is a sample software as a service (or SaaS) business plan template that can help you successfully write your own with little or no stress.
A Sample SaaS Startup Business Plan Template
- Industry Overview
Software as a service (or SaaS) is part of the Business Analytics and Enterprise Software Publishing industry and players in this industry consist of companies that are into ERP software, bi software, crm software, scm software and other software development and they may decide to strictly adopt the Software as a services (SaaS) business model.
A recent report published by IBISWorld shows that the Business Analytics and Enterprise Software Publishing industry has grown steadily due to favourable demand conditions caused by high corporate profit and investment. Over the five years to 2018, industry revenue rose at an annualized rate of 7.1 percent, driven by businesses’ increased technological complexity and eagerness to adopt efficiency-enhancing software.
The report also shows that many industry products, such as customer relationship management and enterprise resource planning software systems, have become basic tools in the management of large companies. In 2018, industry revenue is expected to rise 2.6 percent to $55.4 billion. The world’s largest software companies have spent the past five years acquiring high-performing enterprise software vendors, cloud companies and data.
The report further states that over the past five years, the Business Analytics & Enterprise Software Publishing in the US industry has grown by 7.1 percent to reach revenue of $55bn in 2018. In the same timeframe, the number of businesses has grown by 10.0 percent and the number of employees has grown by 10.2 percent.
The Business Analytics and Enterprise Software Publishing industry is indeed a growing industry and is gaining grounds around the world. Statistics has it that in the United States of America alone, there are about 2,869 registered and licensed business analytics and enterprise software publishing companies (Software as a services (SaaS) business model inclusive) responsible for employing about 139,347 people and the industry rakes in over $55 billion annually.
The industry is projected to grow at 7.1 percent annual growth within 2013 and 2018. The companies holding the largest market share in the US industry include SAP SE, International Business Machines Corporation, Salesforce.com Inc. and Oracle Corporation.
Some of the factors that encourage entrepreneurs to start their own Software as a services (SaaS) business could be the growing recognition of economic and operational benefits and the efficiency of this business model. As companies ease out gradually from the economic uncertainties and financial shackles, widespread adoption of
Software as a services (SaaS) services is in the offing. The pragmatic and successful adoption of this technology concept will pave the way for mass enterprise adoption of Software as a services (SaaS) in the upcoming years.
The transition of enterprises from virtual machines to the cloud will additionally extend the impetus required for strong growth of Software as a services (SaaS). Poised to score the maximum gains will be end-to end cloud-computing solutions that offer complete functionalities ranging from integration of internal and external clouds, automation of business-critical tasks, and streamlining of business processes and workflow, among others.
The bottom line is that starting a Software as a service (SaaS) company requires professionalism and good grasp of the ICT industry. Besides, you would need to get the required certifications and license and also meet the standard security expected for players in the industry.
Table of Content
- 1 SaaS Startup Business Plan – Executive Summary
- 2 SaaS Startup Business Plan – SWOT Analysis
- 3 SaaS Startup Business Plan – MARKET ANALYSIS
- 4 SaaS Startup Business Plan – SALES AND MARKETING STRATEGY
- 5 SaaS Startup Business Plan – Publicity and Advertising Strategy
- 6 SAAS STARTUP BUSINESS GROWTH: Sustainability and Expansion Strategy
SaaS Startup Business Plan – Executive Summary
Rex Boston™ Software as a Services (SaaS) Company, Inc. is a player in the Business Analytics and Enterprise Software Publishing industry that will specialize in offering software as a service (SaaS) for a wide range of clients all across the United States of America and the globe.
The business will be based in San Diego – California and we were able to secure a well – positioned and standard office facility. We are aware that to run a standard Software as a service (SaaS) company can be demanding which is why we are well trained, certified and equipped to perform excellently in our chosen line of business.
Rex Boston™ Software as a Services (SaaS) Company, Inc. is a client – focused and result driven Software as a service (SaaS) company that is into ERP software, bi software, crm software, scm software and other software development. We will provide broad – based software development and business support services at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer standard and professional services to all to our clients at local, state, national, and international levels. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they buy our products (software) or hire our services.
At Rex Boston™ Software as a Services (SaaS) Company, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in the business analytics and enterprise software publishing industry in general.
Rex Boston™ Software as a Services (SaaS) Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position the business to become the leading brand in software as a service (SaaS) business in the whole of San Diego – California, and also to be amongst the top 10 SaaS companies in the United States of America within the first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that San Diego is the right place to launch our SaaS business.
Rex Boston™ Software as a Services (SaaS) Company, Inc. will be owned and managed by Rex Boston. Rex Boston has a Bachelor of Technology. He is a certified SOC 2 – Trust (SOC 2 is designed specifically for SaaS operations) and has over 10 years’ experience working in related industry as a senior software engineer prior to starting Rex Boston™ Software as a Services (SaaS) Company, Inc.
- Our Product and Services Offering
Rex Boston™ Software as a Service (SaaS) Company, Inc. is going to offer varieties of services within the scope of the business analytics and enterprise software publishing industry in the United States of America. Our intention of starting our SaaS company is to work with a wide range of clients.
We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;
- ERP software development
- BI software development
- CRM software development
- SCM software development
- Other software development
- Back – end business support
Our Vision Statement
Our vision is to build a Software as a services (SaaS) company that will be listed among the Fortune 500 companies in the United States.
- Our Mission Statement
Our mission is as a software as a services (SaaS) is to help a wide range of clients develop customized software that will help them simplify their businesses and operations and also give businesses the needed back – end support.
- Our Business Structure
We would have settled for two or three staff members, but as part of our plan to build a standard SaaS company in San Diego – California, we have perfected plans to get it right from the beginning which is why we are going to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.
The kind of Software as a service (SaaS) company we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around San Diego – California as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build Rex Boston™ Software as a Services (SaaS) Company, Inc. on;
- Chief Executive Officer
- Programmers and Software Developers
- Admin and HR Manager
- Digital Marketers (Marketing and Sales Executive)
- Customer Care Executive/Front Desk Officer
Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Programmers and Software Developer
- Responsible for designing, installing, testing and maintenance of software systems for the organization
- Researching, designing, implementing and managing software programs
- Testing and evaluating new programs
- Identifying areas for modification in existing programs and subsequently developing these modifications
- Writing and implementing efficient code
- Determining operational practicality
- Developing quality assurance procedures
- Deploying software tools, processes and metrics
- Training users
- Working closely with other developers, UX designers, business and systems analysts
- Reviewing current systems
- Presenting ideas for system improvements, including cost proposals
- Working closely with analysts, designers and staff
- Producing detailed specifications and writing the programme codes
- Testing the product in controlled, real situations before going live
- Maintaining and upgrading existing systems once they are up and running
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing and Sales Executive
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Prepare the income statement and balance sheet using the trial balance and ledgers
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Technical Help Desk Officer
- Responsible for providing technical assistance and support for incoming queries and issues related to our software
- Identifies problems and issues by performing relevant research using the appropriate tools and by following established procedures.
- Utilizes custom and standard software programs and applications as well as manual review to analyze transactional and customer record for fraud.
- Maintains control of an inbound call while following proper procedures in order to resolve open fraud cases.
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s services and products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
SaaS Startup Business Plan – SWOT Analysis
Rex Boston™ Software as a Services (SaaS) Company, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured SaaS company that can favorably compete in the industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Rex Boston™ Software as a Services (SaaS) Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rex Boston™ Software as a Services (SaaS) Company, Inc.;
Rex Boston™ Software as a Services (SaaS) Company, Inc. can boast of a competent technically sound team that has analytical and critical thinking skills that can help them find creative solutions for clients when they request for customized software apps. Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence are and we are well positioned to attract loads of clients from the first day we open our doors for business.
A major presumed weakness that is apparent to us is the inability to compete with big players in the industry especially as it relates to leveraging on economy of scales.
The opportunities in the business analytics and enterprise software publishing industry is massive considering the fact that the world is going the way of technology and software as a services (SaaS) is indispensable in the value chain of the info tech industry.
Some of the threats that we are likely going to face as a Software as a services (SaaS) business operating in the United States are hosting issues, installation or upkeep troubles, piracy, unfavorable government policies, and global economic downturn which usually affects purchasing/spending power.
SaaS Startup Business Plan – MARKET ANALYSIS
- Market Trends
Beyond every reasonable doubt, the advancement we are enjoying in our world today can be attributed to the advancement of technology. Technology has indeed given leverage to all aspects of the human endeavor. To start with, it is the advancement of technology that landed man in the moon.
It is the advancement of technology that made transportation faster and perhaps cheaper. It is the advancement of technology that made the manufacturing of goods faster and cheaper. It is the advancement of technology that made it possible to treat terminal diseases like cancer, kidney failure et al and we can go on.
Interestingly, loads of businesses have started adopting automatization of their business processes and this is where SaaS business providers come in. There is no limit to what a software as a service (SaaS) company can do if they are creative and competent because their business model is all about proffering easy ways of doing things by creating software apps to simplify the process. Going forward, no business can survive if they don’t optimize their system with the needed software.
- Our Target Market
We are aware that the nature of our business is geared towards serving B2B clients. Hence Rex Boston™ Software as a Services (SaaS) Company, Inc. will initially serve small to medium sized businesses, from new ventures to well established businesses and individual clients, but that does not in any way stop us from competing with the leading SaaS companies in the United States.
Will develop software apps for the following clients;
- Financial services providers
- Insurance companies
- Businesses in the health sector
- Supply chain businesses
- Other related businesses that may need SaaS technology
Our Competitive Advantage
The level of competition in the business analytics and enterprise software publishing industry does not in any way depend on the location of the business since most companies that offer software as a services (SaaS) can operate from any part of the world and still effectively compete in the industry.
Rex Boston™ Software as a Services (SaaS) Company, Inc. might be a new entrant into the business analytics and enterprise software publishing industry in the United States of America, but the management staff and owner are licensed and highly qualified software programmers and developers in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
SaaS Startup Business Plan – SALES AND MARKETING STRATEGY
We are mindful of the fact that there is fast – growing competition amongst Software as a services (SaaS) companies and other players in the business analytics and enterprise software publishing industry in the United States of America and around the globe; hence we have been able to hire some of the best business developers cum digital marketers to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization. Rex Boston™ Software as a Services (SaaS) Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to all companies, institutions, and internet – business oriented people and organizations within and outside the United States
- Promptness in bidding for SaaS contracts from companies, and internet – business oriented people and organizations within and outside the United States
- Advertise our business in relevant programming magazines, radio and TV stations
- List our business on local directories / yellow pages
- Attend international software as a services (SaaS) developers related, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets
- Leverage on the internet to promote our business
- Join related associations around us with the aim of networking and marketing our services; we are likely going to get referrals from such networks.
Sources of Income
Rex Boston™ Software as a Services (SaaS) Company, Inc. is established with the aim of maximizing profits in the business analytics and enterprise software publishing industry and we are going to ensure that we do all it takes to attract clients on a regular basis and to get referrals from our clients.
Rex Boston™ Software as a Services (SaaS) Company, Inc. will generate income by offering the following services and products
- ERP software development
- BI software development
- CRM software development
- SCM software development
- Other software development
- Back – end business support
Rex Boston™ Software as a Services (SaaS) Company, Inc. is well positioned to take on the available market in San Diego – California and in the cyberspace and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond San Diego to other cities in the United States of America and in the cyberspace.
We have been able to examine the business analytics and enterprise software publishing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Rex Boston™ Software as a Services (SaaS) Company, Inc., it is based on the location of our business and the services and products that we will be offering;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $1.5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and internet shutdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
At Rex Boston™ Software as a Services (SaaS) Company, Inc. we will keep our product and service fees a little bit below the average market rate for all of our clients by keeping our overhead low. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises who want to develop software apps for their business.
- Payment Options
The payment policy adopted by Rex Boston™ Software as a Services (SaaS) Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Rex Boston™ Software as a Services (SaaS) Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment without any stress on their part.
SaaS Startup Business Plan – Publicity and Advertising Strategy
Rex Boston™ Software as a Services (SaaS) Company, Inc. have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to take the software as a services (SaaS)/business analytics and enterprise software publishing industry by storm which is why we have made provisions for effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote and advertise Rex Boston™ Software as a Services (SaaS) Company, Inc.;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around San Diego
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
Financial Projections and Costing
Essentially, these are the areas we are looking towards spending our startup capital on;
- The total fee for incorporating the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services P.O.S machines – $3,300.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The amount needed to acquire a suitable Office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $40,000.
- Marketing promotion expenses for the grand opening of Rex Boston™ Software as a Services (SaaS) Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500
- The cost for equipping the office (computers, software apps and hardware such as Application-specific integrated circuit (ASIC) machines, internet server, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $25,000
- The cost of launching our official website – $800
- Budget for paying at least two employees for 3 months and utility bills – $75,000
- Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $10,000
Going by the report from our research and feasibility studies, we will need about Two Hundred and Fifty Thousand US Dollars ($250,000) to set up a small scale but standard Software as a services (SaaS) company in the United States of America.
Generating Funds/Startup Capital for Rex Boston™ Software as a Services (SaaS) Company, Inc.
Rex Boston™ Software as a Services (SaaS) Company, Inc. is owned and managed by Rex Boston. He is the financier of the company, but may likely welcome partners later which is why he has decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
SAAS STARTUP BUSINESS GROWTH: Sustainability and Expansion Strategy
The future or better put, the sustainability and expansion of a business lies in the number of loyal customers that they have per time, the capacity and competence of their employees, their investment strategy and the business structure as it relates to succession plan. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Rex Boston™ Software as a Services (SaaS) Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our SaaS services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while. Rex Boston™ Software as a Services (SaaS) Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing a standard and well positioned office facility in the heart of San Diego – California: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed software applications, internet server, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industry: In Progress
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