Last Updated on: 2nd April 2021, 04:34 pm
In the current age of entrepreneurs, the number of startups is increasing at a higher rate. In fact, according to Statista, 2020 let alone had more than 800,000 startups only in the US.
The numbers are growing day by day. Still, the question remains, how many of them succeed?
SaaS Application Development is holding a crucial portion of cloud-based marketing in the recent growth of the economy.
SaaS is predicted to acquire 45% of the software spending by 2021, according to Customer Think. And in the industry where the startups face huge expenditure issues, SaaS Application Development has opened up a huge opportunity to reduce operational costs significantly.
What is Considered a Startup Company?
A startup is a company incorporated by one or two or even more entrepreneurs to offer a distinctive product or service that they believe has a certain amount of demand in the market.
Suppose we notice the nature of a startup. In that case, we will observe it is situated in the introductory phase of a business model where the costs are relatively higher. The generation of cash is very low, even in some cases zero.
A startup’s initial boundaries are the company’s cost to incur to offer their services. Financing for this cost can be quite challenging, and in most cases, the entrepreneurs either finance them by themselves or with the help of their family and friends.
What is SaaS model?
Software as a Service (SaaS) is a system where the users will access the software from their browser, surely over the internet, and use it. Neither there is a need for any software installation, nor your device needs to be compatible.
All you need is an internet connection and a web browser. Just sign in to the software over your web browser, and you’ll have full access to the software, which is very fast and reliable.
5 Ways How SaaS Application can Reduce Customer Acquisition Cost of Your Startup
Initial Period Cost:
In this increasing demand for financial resources, mostly in the startup community, it is highly noticeable that the companies rely on the SaaS Application Development companies to reduce the sheer amount of initial cost when they start their startups.
In most cases, for a startup, a huge chunk of the financial resources is allocated for the product or the service development.
While bearing such high production cost, spending for the operational functionalities becomes quite tough.
And therefore, a startup can complete their operational activities via the SaaS, where they will get much better performance while spending a minimum subscription cost.
No Need for Compatible Resources:
A lot of software needs powerful hardware to perform effectively.
However, the amount that needs to be spent on acquiring those quality hardware compartments can take quite a toll on a startup’s financial resources. Simple trick, just move to a SaaS application, and you’re sorted.
Here all you need to have a decent internet connection and a browser, and you are good to use all the services over the internet.
And the most convenient part is, these services are greatly reliable and have a very low percentage of functional failure issues.
In most cases, your hardware may fail to perform a task, whereas a SaaS application rarely does that. However, yes, if you’re internet connection is poor, you may face several complications.
Free Applications:
Several SaaS applications are free. Although you can use them without a cost, they are very reliable. Just take google drive as an example.
You can store the first 15 GB for free. After that, you do have to pay for additional storage options on a subscription basis.
Additionally, several other SaaS tools will help your startup business in the most optimum way, and of course, they are free.
- Slack: Great for business communication and integration
- Zapier: For your seamless integration of all your applications via one platform.
- Canva: Best for your professional-looking graphical content. This is also a great alternative to Adobe Photoshop while being much easier.
- Asana: It’s excellent for task management as well as task collaboration.
- FreshDesk: An amazing customer support system.
Less Human Resource Required:
Any startup’s issue is the lack of human resources as the entrepreneurs themselves are mostly covering all the tasks altogether.
Maintaining that volume of tasks can be very daunting, and due to that, additional human support arises. But, there is an issue, and that is, it needs money.
Employing employees to run the business more accurately will increase the cost of the business extravagantly.
Relying on the SaaS applications can reduce the need for additional employees within the business, reducing the cost.
Lowering Opportunity Cost:
Another obstacle that a startup faces is the lack of efficiency. Due to the lack of efficiency, the business experiences a significant opportunity cost, which indirectly impacts the overall expenditure.
If a startup uses SaaS tools, operational efficiency will enhance greatly as these are highly efficient and greatly reliable.
Not only that, most of these services come with additional features that can benefit a business differently.
To Recapitulate
One of the main reasons for a startup failure is the increasing cost that businesses fail to meet.
And therefore, startups always look for ways to cut the cost to survive in a very dynamic market.
In Conclusion
A good way to reduce cost can be lowering the production cost. However, that can hamper the product quality in a very significant way which can cause customer reduction.
So, it’s highly recommended for the business to focus on lessening the operational cost, and for which using SaaS applications can be highly beneficial.
Over the years, SaaS applications helped thousands of businesses in the most optimum and efficient way.
You can reach your desired goal within a short period by using these services in a startup context.
