How to Start a SaaS Company in 2025 (Step-by-Step Guide)

From Coffee Shop Daydream to SaaS Empire: The Naked Truth About Building Your First Software Venture

Let’s rewind to 2018. I was sitting in a Seattle café, scribbling SaaS ideas on a napkin while my latte went cold. One of those scribbles became a 2MARRtoolforfreelancewriters—andanotherbecameaspectacularflopthatcostme2MARRtoolforfreelancewriters—andanotherbecameaspectacularflopthatcostme27k. The difference between the two? Knowing how to start a SaaS company without getting lost in the tech weeds. Whether you’re a coder, a marketer, or a total newbie, here’s my unfiltered playbook for turning your SaaS development company dream into reality (and avoiding the mistakes that still haunt me).

Step 1: Ditch the “If You Build It, They Will Come” Delusion

My first failed SaaS? A project management tool for dog groomers. Cute niche, right? Too bad I didn’t ask a single groomer what they actually needed.

Ideas for SaaS companies only work if they solve specific pains. Here’s how to find yours:

Stalk Reddit/Indie Hackers: Communities like r/SaaS or Indie Hackers spill the tea on unmet needs.
Interview 10 potential users (not your mom).
Steal smart: Tools like G2 show gaps in competitor reviews.

Step 2: Build the MVP That Doesn’t Make Engineers Cry

You don’t need a 100kdevteamtostartaSaaScompany.MyfreelancewritertoollaunchedasaGoogleSheetsadd−onwitha100kdevteamtostartaSaaScompany.MyfreelancewritertoollaunchedasaGoogleSheetsadd−onwitha14/month Stripe link. Ugly? Yes. Profitable? Also yes.

Your MVP checklist:

Solve one problem painfully well (e.g., Calendly nailed scheduling, not CRM)
Use no-code tools like Bubble or Softr to test fast
Price it before coding (if strangers won’t pay, rethink)

Case in point: Canva started as a drag-and-drop design tool for non-designers. No AI, no brand kits—just simplicity. Read how they did it.

Step 3: Partner with a SaaS Development Company That Gets It (Or Go Rogue)

Here’s where most founders face the fork in the road:

DIY: Learn to code (my CTO friend swears by Codecademy for SaaS basics)
Hire a dev shop: But vet them like a paranoid investor. Ask for client references and their take on scalability.

We partnered with a SaaS development company in year two, and it was like swapping a bicycle for a Tesla. They helped us migrate from Firebase to AWS without downtime—something my “YouTube-taught” backend skills couldn’t handle.

Step 4: Launch Like You’re Selling Tickets to a Secret Party

Your first 100 users are gold—treat them like VIPs. When we soft-launched:

Sent personalized Loom demos to early signups
Created a “Founder’s Circle” Slack group for feedback
Gave lifetime discounts to beta testers

Result? 80% of those early users stuck around for 3+ years.

Growth hacks that won’t make you cringe:

Cold outreach with value (e.g., “Here’s a free audit of your [pain point]”)
Piggyback on communities (e.g., Webflow’s forum-driven growth)
Partner with micro-influencers in your niche

Step 5: Survive the Trough of Sorrow (Because It’s Coming)

Month 6 is when reality hits. Churn spikes. Bugs multiply. That’s when most SaaS startups die.

How we pushed through:

Doubled down on existing users (improved onboarding = 30% fewer cancellations)
Pivoted features based on usage data (killed our “AI blog writer” after 0.2% engagement)
Hired a fractional CMO (worth every penny)

For more on weathering early storms, our SaaS survival guide has battle-tested tactics.

Your Turn: What’s Stopping You?

Starting a SaaS company in 2024 isn’t about having the slickest code or the biggest budget. It’s about spotting a real problem, building the simplest solution, and hustling like you’re selling water in the desert.

Still stuck on ideas? Here are 3 untapped SaaS company ideas I’d bet on today:

AI-powered grant writing for nonprofits
Compliance automation for solopreneurs
“Canva for Podcasters” (thumbnails + show notes + transcripts)