Your mom might think your idea is excellent, but she's not your target market. Get out there and talk to the people who would actually use your product.
Nathan Gray, Co-Founder at Meshcomm Engineering, emphasizes the importance of listening: "Too often as founders we get too excited about how our idea will help. We really need to listen first. When you first start talking to people, you probably shouldn't even bring up your idea. But be prepared with questions to help refine the problem."
Gray suggests asking probing questions to understand the issue better: "Ask what a customer would pay for a solution to the problem (again, don't pitch a solution). Find out if they have already attempted to build a solution. What is this problem costing them today?"
It's easy to fall in love with your own idea. But make sure you're solving a real problem that people care about enough to pay for.
Paul Graham, co-founder of Y-Combinator, puts it perfectly: "What I tell founders is not to sweat the business model too much at first. The most important task at first is to build something people want. If you don't do that, it won't matter how clever your business model is."
With that in mind, ask yourself:
If you can't find people actively looking for a better way to do things, you might be trying to solve a problem that doesn't exist.
Hold off on building the complete product. Start with the bare minimum features that solve the core problem.
This approach lets you test your idea without overcommitting resources. Nathan Gray explains the purpose of this stage: "What you are really trying to do here is to prove two hypotheses. The first hypothesis is your product hypothesis - that your product actually solves the problem. The second hypothesis is that your product solves a problem that people actually want solved and are willing to pay for to be solved. They need to feel like they 'must have' this product."
Be Realistic About Your Timeline
Building a SaaS product takes time. Don't promise features you can't deliver.
Your idea needs to make business sense, not just solve a problem. This is where SaaS financial services can be invaluable.
Make sure the numbers add up before you dive in. Consider consulting with experts in financial management for SaaS companies to ensure you're on the right track.
Your initial idea might not be the winner, and that's okay. Be prepared to adjust based on feedback.
The most successful SaaS companies often look very different from their founders' first ideas.
Vetting your SaaS idea takes work, but it's worth it. By talking to real customers, validating the problem, starting small, being realistic about timelines, considering finances, and staying flexible, you'll dramatically increase your chances of building something people actually want and need.
Remember, it's better to vet your idea now than to spend months or years building a product nobody will use. Proper financial management for SaaS companies starts at the idea stage, ensuring you build a sustainable business from day one.
Gray offers a final piece of advice for finding your ideal early customers: "What you are looking for at this stage are early evangelist customers. These are customers that meet the following criteria:
Got a SaaS idea you're working on? We're here to help. Reach out to us if you need assistance thinking through the financial side of your startup journey. Our SaaS financial services can help you navigate the complexities of launching and growing your business. Let's work together to turn your idea into a thriving SaaS company.