The potential to earn passive income by building a Software as a Service (SaaS) system is very alluring, but what will you have to put in up front to get there? Determining your cost to build a SaaS can be more complicated than you might think. We’ve built a number of SaaS systems and want to share with you how to estimate your spend on each part of the project, avoid costly mistakes and get the most for your money.
There are a lot of elements involved in the ideation, validation, estimation, build, launch, and growth of a SaaS system. The estimating step is critical as it helps you understand if this project is "worth it," how to proceed with funding, and what features should and should not be added to the Minimum Viable Product (MVP).
These questions all seem like simple, straight-forward questions that anyone should ask before starting any business. But so often people jump into building software systems without clearly thinking through all of this.So, let's take a look through some of these questions and the lessons to be learned from them, starting with the big ones first.