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How to develop SaaS product?

A SaaS (Software-as-a-Service) product is software that offers its functionality over the internet, rather than on a user's computer, and can be accessed from any location with an internet connection.

17 February, 2022
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It is becoming increasingly difficult for startups and small businesses to establish themselves in their respective markets in today's world. The reason is that there are too many companies that offer similar products or services. This makes it hard for new companies to stand out from the crowd. One way that these smaller companies can break through the noise and establish themselves as viable alternatives is by providing software as a service.

Developing software as a service (SaaS) products is an excellent way to build something that will be used by many people. And we'll walk you through the process of building your SaaS product.

What is a SaaS product?

A SaaS (Software-as-a-Service) product is software that offers its functionality over the internet, rather than on a user's computer, and can be accessed from any location with an internet connection. The customer only needs to subscribe to the software and pay monthly or annually. It means that customers never need to worry about installing updates and can access their data from any device with an internet connection.

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What are the benefits of developing a SaaS product?

The first and most important is that it helps you make money on autopilot. This means that if your product is successful, you will be making money while you sleep, which is time-saving and makes it easier to focus on other things in life. The other benefit of developing a SaaS product is that it becomes more scalable over time.

You can also quickly release new features by pushing out new updates quickly and easily without changing your codebase. It allows continuous, regular updates and upgrades to the product without requiring customer input or interaction. It also means there's no need for expensive upfront costs, which can be prohibitively high when launching a new product in the traditional retail space.

Which benefits do SaaS products bring?
Which benefits do SaaS products bring?

SaaS product development strategy

The stages in developing successful SaaS products is a question many business owners ask themselves, but it can be challenging to find the answer. Many factors come into play when trying to develop a successful SaaS product, from how long you intend to spend on development and what your goals are for the product. The product development process for SaaS products is a complex and challenging undertaking, and it can be broken down into four main phases.

Phase 1 - Discovery

Before anything else, you have to define what type of service you are going to offer and how it's going to work. It can be as simple as "I want to create a website that helps people find apartments" or as complex as "I want to build an app that connects drivers and riders for carpools." Your initial idea might change during the course of developing your software, but it's essential to have one before you start working on anything else.

Once you have a rough idea of what you want your software to do, it's time to do some research! The best way to do this is by developing a business plan or road map for your project. Make sure you consider:

  • timeline
  • size and scope of the project
  • budget
  • target audience
  • revenue mode
  • any potential risks involved in producing the project

You should also identify any potential problems they may have with your service. For example, if your target audience is small business owners who struggle with time management, you might want to consider using an application that helps them schedule their tasks.

So, the discovery phase is all about understanding what your customer needs and wants. This is done by talking to potential customers and researching industry trends. You will then use this information to create a set of requirements for your proposed solution.

Phase 2 - Design

Design is the second phase of the process where prototypes are created focusing on functionality, user experience, and usability. This stage aims to create something tangible that can be used as a guide for developers during the implementation stage. A successful SaaS product needs to be designed to meet customer needs and expectations. The design should be aesthetically pleasing and functional with features that make it easy to use.

A great place to start when designing a SaaS product is researching similar products or services in the market. Once the research has been completed, you can formulate an idea of how your product will look and what features it will have. The design phase includes creating wireframes or lockups which represent how your application should look.

Phase 3 - Development

In the development phase, you will implement these designs by writing code with one of today's many programming languages. In this stage, we start talking about building an MVP (minimum viable product) - this includes deciding on features that will be part of our first release to customers. This stage is about getting something out there as soon as possible that will work, but it's not perfect. It should have the basic features and functions needed for the service or product to be usable and enjoyable by your target market. The MVP can be anything from a simple wireframe to a fully-functioning application. The main idea is to get a working version out there and start collecting feedback from your target market.

Some people have a tendency to skip this step because they feel that they already know what their customers want, but this can end up being disastrous for both parties if it turns out that their assumptions were wrong. A lot of time and money can be saved by creating an MVP before developing a more advanced version; much less time and money are spent on designing a product that may not work or meet user expectations. This is a critical stage because it will help you understand what your customers really want, allowing you to make changes to improve your product.

Phase 4 - Implementation

This stage is where you'll put everything together, make it look pretty and scale your MVP to SaaS. You'll be using your findings from the MVP process and customer feedback to create a polished product that will hopefully generate sales while also being profitable for the company. If users react positively, you know that you're on the right track! This is the stage where you are able to test your idea and see if it's worth pursuing.

Measure how well your product performs from qualitative and quantitative perspectives so that you can make any necessary adjustments for future product versions. Finally, assuming you have successfully launched your SaaS product, the last stage is about maintaining it for its lifetime by making changes when needed and ensuring customer satisfaction.


It is no longer a surprise to see SaaS products becoming increasingly popular on the market. More and more startups are looking for an easy way to get their business off the ground without having to worry about upfront costs or maintenance. In terms of cost-effectiveness and efficiency, it's hard to beat the benefits of SaaS products. Rather than purchasing expensive hardware upfront, people can simply pay as they go with their monthly subscription fee. This allows startups of all sizes to enjoy the benefits of running a successful business. So now, more than ever is the time to build SaaS products!

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CEO and Founder of Merge

My mission is to help startups build software, experiment with new features, and bring their product vision to life.

My mission is to help startups build software, experiment with new features, and bring their product vision to life.

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