0:02 the SAS industry is booming with
0:04 revenues projected to hit over $200
0:07 billion by 2025 the future it's in
0:09 businesses with reoccurring revenue and
0:13 scalable potential AKA SAS companies SAS
0:15 stands for software as a service it's a
0:17 cloud-based model where users access
0:19 software over the internet without
0:21 needing to download it the best part
0:22 about creating a SAS company is that you
0:24 can build the product once and you can
0:27 sell it forever it's a very attractive
0:28 model for entrepreneurs plus it can be
0:31 run remotely you can even run your
0:32 business from the Bahamas if you want to
0:34 I know that I have way too many
0:36 subscriptions to SAS companies because
0:38 it's so easy to sign up that I almost
0:39 forgot that I did by the end of this
0:41 video you will know the steps that you
0:43 need to take to launch your own SAS
0:45 company and create a reoccurring and
0:47 consistent income stream I'm not just
0:48 going to show you how to build a
0:50 business but also how to validate it
0:58 it SAS companies have a unique advantage
1:00 in the marketplace with reoccurring
1:03 Revenue scalability Global reach so how
1:04 do you make sure that there are people
1:06 out there willing to spend money on your
1:09 product first you need to do market
1:11 research the most important part of any
1:13 business is making sure that there is a
1:15 market for it which means that people
1:17 are already spending their money on this
1:19 thing the first two questions you must
1:21 answer before any other question what
1:23 problem is your SAS product solving for
1:26 people and who are you solving it for go
1:28 on Google and start researching your
1:30 competition the market size and gather
1:32 all the data that you can about your
1:34 industry such as market growth who
1:36 spends the most money on your kind of
1:38 SAS software and what are the emerging
1:40 Trends in the industry you can also use
1:42 a really great software called Frederick
1:44 AI for this rather than wasting
1:46 thousands of dollars building out a
1:47 product before you even have a customer
1:50 base first build a prototype an easy way
1:52 to do this is by building a wireframe
1:55 you can draw one with pen and pencil or
1:57 you can use programs like balsamic or
1:59 figma to make one it is really important
2:01 to know what kind of interface design
2:02 you want when you start working with
2:05 developers so a wireframe is essential
2:07 guys this is where your creative genius
2:10 gets to come out that's it Patrick your
2:13 Genius is showing where now this tip is
2:15 going to save you from pouring money
2:17 down the drain it is the number one
2:20 thing that most businesses get wrong you
2:22 need to validate your business idea the
2:23 moment someone pays you is the moment
2:25 you officially have a business method
2:27 one you can start a wait list to get
2:29 users to sign up before you build the
2:31 app you can incentivize people to share
2:34 the weight list by giving them points or
2:35 discounts to your software so how can
2:37 you create a weight list you can
2:39 actually create a weight list with apps
2:41 such as weight. Le viral loops and
2:43 Shopify forms or you can even use Google
2:46 forms if it's easier for you but here's
2:48 the best way to validate your idea
2:50 create an early adopter program offer
2:52 participants a chance to invest in your
2:54 software by purchasing a license at a
2:57 discount for the first year if done
2:59 successfully this will prove that people
3:00 don't just like your product they're
3:03 willing to pay for it name the program
3:05 and provide exclusive benefits such as a
3:07 verified status on the platform or
3:10 involvement in feature creation remember
3:12 even if people say they like the idea if
3:14 people don't pay they're unlikely to
3:16 spend their money when it's launched I
3:17 recently listened to an interview with
3:20 Daniel Priestley who at the age of 21
3:22 launched his first company it reached
3:26 $10 million in Revenue within 3 years he
3:28 says the most important part of starting
3:30 any company is validating the idea
3:32 before spending a lot of money plus this
3:34 looks great to investors or future
3:36 Partners okay what do you do once your
3:38 idea has been validated you can create
3:41 something called an MVP what is an MVP
3:43 an MVP is a minimum viable product you
3:45 can create an MVP with minimal features
3:47 to show what your app or software will
3:48 be like you can create this using
3:53 programs like figma bubble Shopify or
3:55 Glide here are a few examples of nvps
3:58 that big Brands started with buffer the
3:59 social media toolkit for small
4:01 businesses first launched with a simple
4:04 landing page just explaining the concept
4:07 of scheduling social media posts zappier
4:09 the tool that integrates all of your web
4:11 apps began is a manual process where the
4:14 founder literally manually connected
4:17 apps behind the scenes crazy I know the
4:19 founders of Airbnb listed their own
4:22 apartment on a simple website to test if
4:23 someone would be willing to pay to stay
4:25 in someone else's home so if you're
4:27 looking to make a website for your nvp
4:28 I've actually linked a free Shopify
4:31 trial down below now the much asked
4:33 question how should you price your
4:35 product here are some potential pricing
4:37 models to consider for your SAS product
4:39 before you think of your model I would
4:41 research what other SAS products in your
4:42 space are charging this way you can get
4:45 an idea of the market value you also
4:47 want to consider if you have any monthly
4:49 cost to run your business make sure your
4:51 price reflects what you would need in
4:53 order to pay off your initial investment
4:55 within the next few years or months and
4:58 to cover your monthly costs now let's
4:59 talk about the different pricing models
5:01 first is subscription based pricing this
5:03 is where customers pay a reoccurring
5:05 monthly or annual fee to get access to
5:07 the product companies such as Netflix
5:09 Shopify and Spotify all do this very
5:12 well the premium model offer a basic
5:14 version of the product for free and then
5:16 charge for premium features cap cut and
5:19 Dropbox both use this model usage based
5:20 pricing this is where customers pay
5:22 based on how much they actually use the
5:25 product stripe uses this model flat rate
5:27 pricing customers pay one price to get
5:30 access to all of the features notion and
5:33 Adobe Express do this per user pricing
5:34 you can charge customers based on how
5:36 many users there are in their account
5:39 slack and zoom use this model there are
5:41 many more options but these are all
5:44 great as Patrick Campell the founder of
5:45 profit well says a great pricing
5:47 strategy doesn't just maximize Revenue
5:50 it maximizes your customers success the
5:52 big question how will your potential
5:55 customers find you or even know that you
5:57 exist and how are you going to make
6:00 money well marketing will will be your
6:02 best friend in this process here are my
6:03 biggest recommendations when it comes to
6:05 marketing and selling your products the
6:07 nicest thing about SAS products is that
6:09 there is no shipping involved so anybody
6:11 in the world can access your products
6:13 immediately at any time first partner
6:15 with any key people of influence in your
6:18 field influencers thought leaders
6:20 businesses and groups and give them free
6:22 access to your platform in exchange for
6:24 them to share it if they like it you can
6:25 also use affiliate marketing and give
6:27 influencers a percent of each referral
6:30 that signs up you want people to
6:31 associate your brand with people they
6:33 trust and respect plus you're going to
6:35 reach a whole new audience this way you
6:38 can use chat GPT or Google Gemini to
6:39 help you find these people and you can
6:41 also use softwares such as LinkedIn
6:43 sales Navigator or other email finder
6:45 tools like Apollo that help you get the
6:48 contact of the exact people you want
6:50 lastly Shopify collabs is also a great
6:53 place to find Affiliates next run paid
6:55 ads chances are a lot of people who need
6:57 your product are hanging out on social
6:59 media and you could Target them to sell
7:02 your product through cgc ugc or just ad
7:04 creatives in general to learn more I
7:06 actually have a video in the description
7:09 about Tik Tok ads and Facebook ads so go
7:10 watch those if you need a little extra
7:13 help next offer a free trial for new
7:15 users so that they can test out your app
7:17 and once they love it give you their
7:19 money create educational content on
7:21 social media focused on your product and
7:23 build a community around it make sure to
7:26 give as much value as you can next put
7:28 good reviews and customer success
7:31 stories all over your front page people
7:34 Trust reviews you can also add your app
7:36 or software to the Shopify app store if
7:39 your SAS software serves businesses now
7:41 what will you need to create a SAS
7:42 product you will need to find a
7:44 developer to build out the software and
7:47 a UI or ux designer for your interface
7:49 you may potentially need a devops
7:52 engineer product managers and customer
7:54 service Representatives you can actually
7:56 find the right people for this on
7:58 platforms such as topt who actually have
8:01 the top 3% of talent wellfound which is
8:05 made for startups or gun.io specifically
8:07 made to find software talent for sales
8:09 you can hire a sales team on a
8:11 percentage basis or you can just do
8:13 sales on your own you honestly do not
8:15 need a big team to start you may need to
8:16 do everything on your own in the
8:18 beginning the biggest thing you need is
8:20 to Outsource product development you can
8:22 also partner with developers to get up
8:24 and running but be careful who you give
8:27 your Equity to believe it or not you can
8:29 actually build SAS softwares with no no
8:33 code apps such as bubble Glide or adalo
8:35 so go give those ones a try the downside
8:37 is that you don't fully own the software
8:40 because it is run on their platform so
8:42 if something happens to them you may not
8:44 have a software anymore here are a few
8:46 more AI tools to help you you can build
8:49 an app on Firebase you can use maxio for
8:51 billing and lastly you can use full
8:54 story for Behavioral data what is the
8:56 best way to keep customers happy make
8:59 sure to provide ongoing customer support
9:00 always always keep your software up to
9:03 date and iron out any bugs in the system
9:04 you want to make sure your product is
9:06 actually solving your customer's problem
9:07 you will also want to Monitor and
9:10 respond to customer feedback the goal is
9:12 to keep people on the platform for as
9:14 long as you can we always want to be
9:15 thinking about the future of our
9:17 business you want to make sure that your
9:19 processes are scalable so here are some
9:21 ways you can scale your business the
9:24 whole point of scaling is doing more of
9:25 what is working so use something called
9:28 the 8020 rule the 8020 rule states that
9:31 80% of your results come from 20% of
9:34 what you do and 20% of your results come
9:37 from 80% of what you do so narrow down
9:39 what's actually working for you and do
9:40 more of it for example if you're getting
9:43 most of your customers from ads put more
9:45 money into pushing ads if most of your
9:47 revenue is coming from Paid feature
9:48 upgrades build more of those for
9:51 customers to buy you get the gist here
9:52 are a few standard things you can do to
9:56 scale once you have customer data refine
9:58 your Target customer and retarget them
10:00 with ads you can also upsell your
10:02 customers solve the problems they face
10:04 before during and after using your
10:06 products and then charge them for it you
10:08 want to expand your market and start
10:11 selling to new locations or even adapt
10:12 your product to meet the needs of
10:14 adjacent Industries you can also build a
10:17 sales team around your product or even
10:19 automate your current processes another
10:21 thing you can do is raise additional
10:24 funding to pour into your business but
10:26 most importantly pour your money into
10:28 the places where money is already
10:30 pouring out for you now I want to hear
10:32 from you guys what SAS products are you
10:34 currently excited about comment them
10:36 down below look no one is going to
10:38 become an entrepreneur without facing
10:40 some challenges these are the common
10:42 challenges you will likely face in the
10:44 SAS industry but you've got this guys
10:47 Rome was not built in a day okay first
10:49 is churn rates a churn rate is the
10:51 percentage of customers that stop using
10:54 your services within a given time frame
10:55 turn rate percent equals the total
10:57 number of customers lost during a period
11:00 of time divided by total number of
11:02 customers at the start of the period and
11:04 then you times it by 100 you now have
11:06 your turn rate percent for example if a
11:08 company starts with a th000 customers at
11:10 the beginning of the month and loses 50
11:13 their turn rate is 5% just so you know
11:16 the typical SAS turn rate is 5% so if
11:18 customers are running away a little too
11:20 fast and you have a higher turn rate
11:22 make sure to check in on what might be
11:25 causing it and improve those areas you
11:27 can also run a survey to ask people why
11:30 they left competition there will always
11:32 be competitors in the ring but that's
11:33 kind of what makes life fun it's a
11:36 challenge other competitors May lower
11:38 their prices steal your features and
11:40 improve on them or even steal your
11:42 customers so pay attention to what your
11:44 customers are asking for and always keep
11:46 your features up to date this way you
11:48 can stand out in a saturated Market
11:50 let's talk about the future of SAS there
11:53 are a lot of new trends in the SAS space
11:55 the biggest one we all know of is AI but
11:57 there's a lot of other cool products
11:59 like data as a service platform as a
12:02 service and Market consolidation big
12:04 companies are actually acquiring smaller
12:06 companies in their space so it could be
12:08 a good strategy to build a SAS company
12:10 and then sell it to a bigger player
12:13 another trend is micro SAS companies
12:15 these are operating on a much smaller
12:17 scale the last one I will mention is
12:19 white label SAS this is where you can
12:21 purchase unbranded SAS software and just
12:23 put your brand on it anybody can become
12:26 a successful entrepreneur it is not the
12:27 smartest people in the room who do it
12:29 but just the ones who believe even
12:31 themselves enough are willing to learn
12:34 and take action you now know how to
12:36 start a SAS company a little Pro tip
12:38 before you go the biggest thing you can
12:40 work on as an entrepreneur is your
12:43 mindset everything you do stems from
12:44 your belief system so make sure you're
12:46 feeding your brain with thought food
12:49 that fuels your entrepreneurial Journey
12:51 it will not be easy you're probably
12:53 going to be challenged more than you
12:55 ever have been but there's a quote that
12:57 I really resonate with being an
12:59 entrepreneur means doing the known work
13:01 for the unknown outcome you don't know
13:03 what your results will be until you try
13:05 but the best thing you can do is take
13:07 action and do the work you know what you
13:09 need to do the other most important
13:11 thing is speed make sure you're taking
13:14 action quickly ideas can ruminate in our
13:16 heads for years and never make it out of
13:18 our minds so go get out there and build
13:20 a killer sass product I cannot wait to
13:22 see what you guys create I'm Chris
13:24 mccollins thank you so much for watching
13:26 this video if you found this helpful
13:27 please let me know in the comments down
13:29 below and give this video a like and if
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13:38 videos bye guys [Music]
