To build a SaaS platform means creating software that customers use in the browser and pay a subscription for. SaaS stands for software as a service: you manage the software centrally, your customers log in and pay per month or per year.
That sounds simple, but a SaaS has parts that an ordinary website or internal tool doesn't. Think of accounts per company, subscriptions, payments and an environment that can handle dozens or hundreds of customers at once. In this article you'll read what's involved, where you can save on costs and how to start smart.
What makes a SaaS different from an ordinary web application?
A web application for your own business has one customer: you. A SaaS has many. That changes how it's built. Every customer must see their own data and never anyone else's. This is called multi-tenant: one application, many tenants, strictly separated data.
On top of that, a SaaS has to largely run itself. A new customer signs up, chooses a plan, pays and can get going straight away. If you have to do something yourself for every sign-up, your workload grows just as fast as your customer base. If you'd first like to get the difference between types of online software clear, read website or web application.
The standard parts of a SaaS platform
Almost every SaaS needs the same foundation, regardless of what your product actually does. It helps to know that list in advance, so you're not caught out by work you didn't expect.
- Sign-up, login and forgotten password, ideally with two-factor authentication.
- Company accounts with multiple users and roles, such as admin and employee.
- Subscriptions and payments, through a payment provider that handles recurring payments.
- Invoices that are created and sent automatically.
- An admin area for you: view customers, change subscriptions, solve problems.
- Emails at key moments, such as welcome, trial nearly over or payment failed.
- Logging and backups, so you know what's happening and nothing gets lost.
Only then comes the core: the feature customers pay for. Many people only estimate that core and forget the rest. Yet that foundation often takes more time than you'd think.
How to approach SaaS development
The biggest mistake when starting your own SaaS is building too much before you know whether anyone will pay. So work in small, testable steps.
- Describe the problem. Who are you solving what for, and what do they do now instead?
- Talk to ten potential customers. Don't ask whether they like the idea, but how they solve the problem now and what it costs them.
- Choose the smallest version that delivers value. One core feature that really works beats ten half-finished ones.
- Build that first version with the standard foundation, but keep everything lean.
- Have your first customers pay, even if it's not much. Paying is the most honest signal.
- Improve based on usage, not assumptions.
That first small version is called an MVP, a minimum viable product. How to scope it is covered in having an MVP built.
Technical choices that matter a lot later
You don't need to be a programmer to ask good questions. Some choices are hard to reverse, so discuss them up front with whoever builds your SaaS application.
- How is data separated per customer? In one database with a customer ID, or a separate database per customer? The first is cheaper, the second gives more separation.
- Where is the data stored? For European customers, storage within the EU is often a requirement, partly because of the GDPR (AVG in Dutch).
- Who owns the code? Put in writing that you get the source code and can switch suppliers.
- How does it scale? You don't need to build for a million users, but the setup mustn't block growth.
- Which integrations will customers expect? Think accounting, calendars or an API customers can use to pull data themselves.
About the GDPR: if your customers put personal data into your SaaS, you're often the processor and need a data processing agreement. Get advice from a lawyer or check with the Dutch Data Protection Authority (Autoriteit Persoonsgegevens).
What does it cost to build a SaaS platform?
Nobody can honestly give you a fixed price without a plan. The costs depend on the number of features, roles, integrations and how far the first version needs to go. A small first version with one core feature and the standard foundation is quite manageable. A full platform with many roles, reports and integrations is a bigger project.
Besides the build, budget for ongoing costs too:
- Hosting and database, which grow with the number of customers.
- Transaction fees from your payment provider.
- Email sending, monitoring and backups.
- Maintenance: updates, security and small changes.
In what a web application costs you can read more about what drives the price. A good rule of thumb: start small, have customers pay and then invest in what they really use.
Common mistakes when starting your own SaaS
- Wanting everything in the first version. It then takes months longer and you only learn late whether it works.
- No trial period or a sign-up that's too complicated. People drop off before they see the value.
- Setting prices too low to attract customers. Raising them later is much harder than lowering them.
- No plan for support. Even with few customers you'll get questions, and you need to answer them quickly.
- Putting off security. A breach in a SaaS hits all your customers at once.
Having your SaaS built by Violexa
At Violexa we build custom web applications and software, including for founders who want to start their own SaaS. Violexa is a small studio with founder Hisham, based in Amsterdam, working for businesses across the Netherlands. You talk directly to the person who builds it.
A custom web application starts from €1,799 excl. VAT (€2,177 incl. VAT) per project. That's the entry level for a small, clearly scoped product. A SaaS with subscriptions, roles and integrations is bigger. You then get a fixed price in writing up front, so you know where you stand. For management after launch there are maintenance plans; you'll find them on the pricing page.
Not sure yet whether your idea is ready to build? Book a free quickscan. In 30 minutes, online or on site, we look at your idea together. Afterwards you get short written advice with a price indication. No obligation.
Frequently asked questions
How long does it take to build a SaaS platform?
That depends on the size of the first version. A small first version with one core feature and the standard foundation is usually ready in a few weeks to a few months. A full platform with many roles and integrations takes longer. Start small and you'll go live sooner.
What is multi-tenant software?
Multi-tenant means one application serves many customers, while each only sees their own data. It's the standard structure for a SaaS. It saves admin work, because you only have to maintain one version.
Should I build an MVP first for my SaaS?
Almost always, yes. With an MVP you test with real customers whether they'll pay, before you spend a lot of money. Then you build on what customers actually use.
Do I own the code of my SaaS?
That depends on your agreements. Put in writing up front that you get the source code and the data. That way you can always carry on yourself or move to another developer later.
