If you’re anything like me, you’re always looking for new business ideas related to technology. But sometimes it’s hard to know where to start. What industry should you be in? What problem should you be solving? And how do you even come up with a good idea in the first place?
If you’re struggling to develop a good business idea, I have some good news for you: one industry is booming right now, and that industry is software as a service (SaaS). The SaaS industry is expected to grow from $85 billion in 2019 to $155 billion by 2024. That’s an annual growth rate of 12.3%, which is incredible.
Even more incredible is that there are still plenty of opportunities for new businesses in this space. Sure, there are some big players like Adobe, Google, Microsoft, and Zoom, but there are also thousands of smaller businesses doing very well. The average SaaS company has just over 200 customers. So if you can get just a few hundred people to pay for your software, then you’re well on your way to having a successful business.
What is Saas?
You’ve probably heard the term “SaaS” thrown around a lot lately. But what is Saas? In short, Saas is software as a service. This software is delivered over the internet and typically accessed through a web browser. Saas is becoming increasingly popular because it is subscription-based, which means that you can usually get started with it without having to make a large upfront investment.
Why SaaS is such a great opportunity?
One of the things that I love about the SaaS industry is that it’s relatively easy to start. Unlike other industries where you need to build up inventory or create a physical product, all you need to do to launch a SaaS business is create the software itself. And thanks to today’s technology, it’s easier than ever to create and launch your software products.
Another reason why I think SaaS is such a great opportunity because it’s a recurring revenue model. This means that once you’ve acquired a customer, they’ll keep paying you monthly (or year after year) as long as they continue using your software. This predictability makes it much easier to forecast your revenues and expenses, which is important when trying to run a successful business.
How to get inspired to make your own SaaS?
You must have a halfway decent idea. Notice you don’t have to have a great idea. You don’t even have to have an original idea. It might be better if you don’t. To get inspired, you must look at Growth list. They have a B2B SaaS list, and they also have like a weekly startup report that you could subscribe to if you wanted to. But they do have this massive free list of a thousand companies. And then also SaaS Mag has another list. This list is two thousand different companies. You can go through these lists of, you know, three thousand. However, I’m sure there’s some overlap here. Thousands of other companies already exist that are already, you know, bringing in a bunch of money, have a bunch of customers, and have a core feature set that’s probably actually desirable by people. And find something interesting to you and then find a feature of that larger company that you think you could maybe do an implementation that might be slightly better or at a cheaper price point.
Pictures are taken from Growth List and SaaS Mag websites of the fastest-growing SaaS companies today.
This video from the Millionaire Millennial YouTube channel explains this idea in more detail.
Finally, I think the SaaS industry is attractive because there are many ways to make money. As explained in this video, you can take inspiration from one of these top SaaS companies, develop some improvements to one or two key features, and sell for a lower price. You can also get in touch with the customers of these companies and offer them a better service proposal.
Conclusion: The SaaS industry is booming, and there are still plenty of opportunities for new businesses to succeed. If you’re looking for inspiration for your next business idea, I highly recommend considering the world of SaaS. Thanks to today’s technology, it’s easier to create and launch your software products, and there are many ways to make money with this type of business. So what are you waiting for? Get out there and start building something great!