What to consider before starting a SaaS business: A 2x2 matrix to guide you.

What to consider before starting a SaaS business: A 2x2 matrix to guide you.

RE: Is the problem you are trying to solve big and frequent enough that it is viable to build a SaaS around it? Let's use the 2x2 metric provided above to determine it.

Big & Infrequent - a massive pain when it occurs, but frequency is low. It is a pleasant location for a SaaS to be! Travel planning and financial reporting are two examples.

Small & Frequent - Not a major issue, but as it occurs too frequently, it becomes problematic. Examples - Expense tracking, data visualization (could be solved through SaaS).

(A short tip/observation: if organizations are still using Excel too often to solve a certain problem, but your SaaS offers a solution, you're probably on the right track.)

Large and frequent - the ideal location to be! Project Management (tool) is a great example for this one.

Small and infrequent - not worth attending.

Important points:

  • Some problems are not worth solving.
  • Dogfooding is one of the most effective techniques to shape your SaaS product. If not, consider getting some early-adopters/test users.

The next time you think of starting a SaaS business, consider taking a look into these types of metric systems. In this way, you’ll be able to “take decisions from a state of awareness, and not ignorance.”