4 Proven Ways to Fail With Your SaaS Product
Tags: Startup, Startup Lessons, Founders, SaaS, Software Development

1. Building the wrong product

Scratch your own itch — probably one of the most common tips for finding out what to build. And while I think this is perfectly good advice, you need to validate your idea before pursuing it.

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What if the problem is rare? Or, even worse, you’re the only one thinking this is a problem? Sure, there might be a long tail market for your concept, but is it worth your development efforts?

Some years back, when I had just released an invoicing and time-tracking application, a potential customer replied to my pitch with this line:

“This is not a problem I am having.”

That hurt. And it hurt even more the second time, not to mention the third.

Make sure that there is a market for what you are building. Ask around and survey the market. Try to find a way of just dipping your toes into the water before committing.

One way to circumvent this problem is to break into an existing market.

“If others have succeeded in selling to this market niche, it should be possible for me as well.”

These are my words, and while I still stand by them, there is (at least) one big caveat: what if that market is on the verge of disruption?

My first product offering was a CMS, and while it wasn’t spectacular in any way, it did what it was supposed to do. And it exceeded the competition well enough to carve out a tiny market share.

Then came WordPress and a host of other free CMS systems. And during the following year, the demand plummeted.

Don’t invest all your savings in building the equivalent of American Quarter Horse 2.0 when a Henry Ford is lurking around behind the scenes.