How to create a successful business plan for your SaaS business

Having a strong business plan for a SaaS startup is critical for success. Every business needs a strategy and plan that when implemented delivers a strong foundation, and this holds true for software as a service startup as well.

According to a report published in The Gartner CRM Guide, more than 50 percent of CRM is deployed as SaaS, and the number continues to grow at a rapid rate.

While Saas as a business delivers high value to customers with high ROI, a startup in this domain needs to be executed right from the very beginning, and only a well-written business plan can help you get started, as well as sustain in this competitive market.

If you are tempted to jump in and develop your own Software as a Service business, the below tips on how to write a business plan for a SaaS startup will help you achieve your goals.

Clear Goals, Clear Vision

Without a clear vision how would you write a business plan, and without a business plan how would you know whether you are on the right path? Do you know your target audience? Are you meeting the customer needs? Are you taking full advantage of your USP?

All of these questions and many more can be answered in a detailed business plan. With Saas business, research and development have to be done up-front and then iterated to be able to create a solution that is going to appeal to the target audience.

Start with a Lean Plan

You don’t really have to start with a 40-page long business plan. As a startup, still trying to get validation for your idea, you can start with a one-page pitch. This is the fastest way to get your pitch onto paper. One page format is also considered to be the best fit for Saas Startups that are constantly developing new ideas.

All you need is to write a couple of lines describing your business, and a short description of how your product is a compelling solution to your customers’ problems. If you want to write a business plan on your own, you can also use a free SaaS business plan template to build your pitch.

Show a path of Profitability

SaaS startups often struggle to justify their investment in regard to profitability. At the very beginning, most SaaS products are incomplete, loaded with bugs, and hard to use. But when it comes to writing a business plan, it is important to prove that the business model has the potential to make money in the long run and that the growth is inevitable. Or at least demonstrate how and when you plan to hit profitability.

The easiest way to achieve this goal is to demonstrate interesting and innovative ways of monetization using the incredible power of the web. What strategies you’re betting on to acquire customers at a low cost? What will be the lifetime value of those customers? Can you find a scalable way to acquire customers?

So, if you are launching a SaaS startup, having a compelling business plan is going to be crucial to the success of your business. You can get a free business plan template that will help you forecast and track the SaaS business model. Download free SaaS Business Plan Template here

Do you have your own tips to share? Put it in the comments sections below.