Here’s A Step-By-Step Guide To Help You Build a SaaS Product From Scratch

SaaS Product From Scratch

SaaS (Software-as-a-Service) cloud computing design. The developing company delivers ready software via the Internet on a subscription basis. Therefore, the customer can access the software on any device using a web browser anywhere around the world.

SaaS provides a marvellous opportunity to save on expensive hardware because it stores the data and applications on remote data centres. Therefore, SaaS users are not required to deal with maintenance, compliance, or security issues.

Step-By-Step Guide To Develop A SaaS Product

Modern SaaS technology helps build platforms that can connect apps, integrate Internet of things (IoT) solutions, and evaluate big data. Thus, developing a SaaS product is immensely profitable.

If you wish to develop a SaaS product but are new to this expertise, follow these steps –

Step 1. Perform A Market Analysis

Your first step should be to analyse the market segment you wish to approach. Before developing your SaaS app, you must understand the situation on the market. Get answers to questions such as –

  • Who is your target client base?
  • Who are your competitors?
  • What essential features do they provide?
  • What business models do they support?
  • What are their fundamental requests?

This step will let you define the high-level market conditions. Then create a target market description that should be fair and appealing to entice the users to pick your SaaS application among the competition.

Step 2. Formulate A Business Strategy

Be it learning about how to create fintech apps or making an eCommerce application: you need a business plan. It acts as a guideline for your SaaS product development.

Here are the critical points that you must include in your strategy to develop a SaaS product.

  1. Advertise such that it distinguishes your product from the others by revealing your company’s identity and the value you intend to share with your clients.
  2. Understand the primary pain points of your potential clients and how your project will solve them. Evaluate the issues you want to solve with your product.
  3. Devise ways to approach your target audience. Pick a marketing strategy for your promotion, such as content marketing, social media, partnerships, and more.
  4. Determine your source to gain financial coverage and realise how you will spend it. It is imperative to determine your primary expenses and divide them into individual areas.

Step 3. Define The Requirements For SaaS 

There exists the core functionality that you must implement in each SaaS product. Here are some essential requirements –


Each customer shares the application instance as well as a single database. It is cost-efficient as it requires lower maintenance expenses and offers larger computing capacity.

Self-Service Operation

It implies that service delivery gets provided via automated processes. Therefore, it revs up the entire procedure and makes it more steady and scalable.

Security Insurance

SaaS holds users’ data encryption and application security, which offers protection against several security vulnerabilities. Security measures comprise identity management, multi-factor, access control and step-up authentication. 

User Activity Evaluation

Audit logs enable tracking changes and forbidding intrusion. It plays a pivotal role in data protection and handling integrity and access issues.

Step 4. Pick The Technical Stack

The technology stack is primarily a list of the programming languages, tools, and frameworks employed in software development. 

With a variety of options available, it can baffle you when determining a solution stack for your SaaS product. Since each business has unique demands, there is no fixed answer to what frameworks and tools you must choose to develop your SaaS product.

Check out these required SaaS app development aspects to help you filter out choices and make the right decision for your business –


Front-end development handles everything seen by the users on their screens. Therefore, you will require modern JavaScript frameworks that comply with SaaS requirements, such as React, Angular, or Vue.js.


Back-end development deals with the server-side. It builds the foundation of your SaaS product and creates its responsiveness. Consider using a dependable framework, such as Ruby on Rails, Node.js, or Django.


The database stores the vital information for your applications. For this aspect, consider implementing PostgreSQL, NoSQL, or MySQL.

SaaS Hosting Provider

To cater to SaaS requirements, you can pick any reliable cloud provider such as Amazon (AWS), Microsoft, Google, or Heroku. Consider an option that is reliable, flexible, and secure.

Step 5. Create A Team

To breathe life into a SaaS-based product, you must recruit a team that comprises –

  • Business analyst
  • Software developers
  • Designer
  • Project manager
  • Quality assurance engineer

Here are the three options that you can rely on if you are finding it hard to find the right professionals –

In-House Team

This option is great for firms that have already acquired success and have a stable current workload. This approach offers you complete control of the development process.


This might be the most economical option as freelancers charge significantly less, and they might even possess substantial expertise in your desired field.

Custom Software Development Firm

This approach will suit companies of various sizes with distinct project scopes. You receive a remote team that provides high-quality services which do not need managing, and you pay only for the work done.

Step 6. Develop An MVP

An MVP is not a polished and complete product, but it provides enough features to attract users and corroborate an idea. MVP is market-ready and can be scaled and amended as per requirements.

An MVP must entice your target clients and make them feel the need to try your product. The primary reasons for introducing an MVP before developing a fully-functional SaaS product are –

Feedback Gathering

It provides precious knowledge on usability as well as user experience. It dictates what functionality you should add, modify, or remove.

Test The Waters

It enables you to verify whether your application will be suitable for the rapidly progressing SaaS market. You will also know whether customers will purchase your services.

Trying Unique Concepts

MVP lets you measure the performance of business hypotheses. Emphasise the impact of your SaaS application and not only its features. 

Final Words

The SaaS model has created several business opportunities, and to make the most of it, adhere to this step-by-step guide on how to build a saas product. Be sure to customise your software-as-a-service product to outshine the competition.

On top of it all, be sure to gather customer feedback to constantly improve your services and keep up with the latest trends to ensure customer loyalty and allure more clients.