Avoid These 4 Pitfalls When Building a SaaS-Type Business
It seems like more and more service providers are undergoing a conversion to the software-as-a-service business model.
This Everything-as-a-Service (XaaS) market is predicted to reach $1.6 trillion by 2028. Marketing-as-a-Service (MaaS), Law-as-a-Service (LaaS), Accounting-as-a- Service (AaaS), and Medicine-as-a-Service (MaaS) are just a few examples of how traditional service industries are adapting their offerings to an on-demand, cloud-based, client-facing solutions model with subscription or pay-as-you-go pricing.
As my latest Forbes article explains, jumping on the XaaS bandwagon might seem like a no-brainer, but there are four significant pitfalls:
- Getting in over your head on product development
- Falling short on your marketing spend
- Failing to invest in the right team
- Underestimating the capital needs of a XaaS startup
Unless would-be XaaS founders understand and overcome these pitfalls, they increase their chances of joining the majority of new tech companies that fail within their first few years.
To read more about these four pitfalls and how to avoid them, check out my article in Forbes.