15 Deadly Mistakes That Will Destroy Your SaaS Start-up

15 Deadly Mistakes That Will Destroy Your SaaS Start-up

Let’s get you through 15 deadly mistakes that will destroy your SaaS Start-up. The categories of deadly mistakes that will destroy your SaaS startup are divided into the common mistakes you must avoid and the financial and marketing mistakes that could plummet sales and ROI

Growing from desktop coding to completing the development phase for your Software as a service startup is a huge challenge. However, this is not the biggest challenge you are about to face. SaaS is in its most volatile state in the early phase of the launch of the business. 

The market value of your SaaS business is on ground level zero after launch. Trying to develop marketing strategies to boost your business and plow in sales that will lead to profit is where the major obstacle lies.

Therefore, like most businesses, SaaS start-ups are at a high risk of plummeting within the first five years due to many mistakes that lead to a low market value. 

But there are no businesses without risk. Every business including SaaS carries some form of potential risk attached to the technicalities and management of the business progression.  Where victory lies, is by analyzing the potential losses and mistakes that could be made from the developmental cycle of the business to the marketing strategies and management scope, in place. This is why you are here.

Consider each step carefully without missing one. Your SaaS value chain might just depend on your response level to avoiding all mistakes.  

Common Deadly Mistakes Unique To SaaS Startups

There are unique mistakes common to certain types of business. The technology sector as a whole has exclusive errors which cause a lag in company finances and growth. The following are quite common mistakes seen within the SaaS business niche.

  1. Poor Planning and Development

The first step in building a Software as a Service company is by creating a plan. Your plan must have details of every single process that is to be taken from the market analysis to the post-release phase.

There are very stringent meticulous steps that must be completed before deciding to release your software service product to the market. But usually what we have is software developers being pressured into an early release by investors who are in a rush to push the product out without completing the vital steps.

Take testing, for instance, quality assurance is nothing but a top priority in the developmental cycle for SaaS. However, if testing is rushed and the presence of bugs and irregularities on the application are not fixed, it will be difficult to maintain a high yield for a system and product that promises a service that doesn’t work.

Do not rush your SaaS product release! Pressure from investors will do nothing but slow down the sales and cause regular shutdowns. Poor planning and development will kill your SaaS startup and bring about losses and if not reconciled early debt.

  2. The Free Trial Period

Mistakes That Will Destroy Your SaaS Start-up

The free trial period is necessary when you begin. No one will want to willingly subscribe to a service with no reputation or customer testimonies. But having the free trial period for a long period will plummet sales.

Most people subscribing will only use your product for as long as the free trial period runs. Therefore, it is key to keep that period as short as possible.  The shorter the period and the more restrictions are given, the better for you.

The mistake of elongating this period and giving access is one mistake most services make that reduces the quality and stability of engagement and sales.

  3. Extensive Focus on Paid Acquisition

The paid acquisition involves using digital ads placed on social media and top search engines and sales sites like Amazon. This will boost your presence, no doubt.

You’ll become a familiar face on the internet and familiarity converts. True. But the biggest mistake made by SaaS is focusing its marketing on these paid acquisitions. One marketing strategy doesn’t utilize your market value to the culminating point.

It’s lazy work and will affect the stability and most of continually advertising. Do not also forget that the engagement is dependent on the algorithm the platform in question uses. Focusing on just one form of advertisement is not only unwise but detrimental to the growth of your SaaS business.

  4. Ignoring App Development

It is very easy to get caught up in the making money aspect of your business without considering the app development and continuous improvements necessary to make your service formidable.

When all profit is poured into maintenance and advertisement, it is easy for continual development to take a back seat. But improving your product MUST be a part of your marketing strategy. The difference between Bing, Yahoo in comparison to Google is the continual change and development that goes into developing google. No customer wants to subscribe to the same thing that does not change.

It gets boring and stale. Competitors can sweep off your startup into nothing if you do not improve your product.

  5. No Website Content

Website content-Saas mistakes

Building a service web software without considering the creation of good quality convertible content is like building a house without furnishing. Without content, there is no context to your service and software product.

SEO is practically impossible and your SaaS startup will become a backyard service without customers. The importance of newsletter, emails, blogs, and a good web copy cannot be overstated!

  6. Unclear KPI

In the developmental cycle of applications, clearly defining the key performance indicators included. This is so it is possible to track shortcomings and the areas to target if such shortcomings should occur.

Unclear KPIs will make running your SaaS company difficult. Hardly would you have an idea about the working parameters. There will be absolutely no measure that defines the key features or instruments within your business and the working parameters.

Increasing sales is not only the only indication of a working system. Other several factors within your organization must be defined to measure the rate of success and the extent to which key deliverables are being met. 

  7. Poor Customer Support

Mistakes That Will Destroy Your SaaS Start-up

The difference between a software business with good customer service and bad customer service is the customer retention rate. Poor customer support may not affect your daily import of new customers but it will highly damage your reputation and cause a huge problem regarding your market value.

Build up great customer support. When a customer tags your service as competent, referrals become a huge hit to add more people to your value chain.

  8. Ambiguous Service Content 

Nothing is more irritating than a business with I defined purpose. The minute you hear Canva, you think graphic designing in comfort and style, easy for anyone to understand. The same thing when you think of CoScheduler, one prominent SEO online platform.

These SaaS businesses are built on the foundation of good branding. This good branding increases your popularity. Ambiguous and unclear messages on your home page on the measure of your services would reduce your SaaS software relevance.   

  9. Low-Quality Design and UI

As much superficial beauty might not mean much and functionality is the main thing, AliExpress still has more worldwide engagement than Wish. This is not just attributed to the shipping fees but because of the user interface and flexibility of the AliExpress design.

The design has been developed to engage customers and games are even present where coins can be gained on a daily. This flexible and more appealing user interface has pushed AliExpress to a credible state more than Wish.

Low-quality design destroys users’ appeal. Users do not connect well to the system and get disinterested in the activities. The low-quality design will reduce organic visitation and conversions. 

Avoidable Finance and Marketing Mistakes That Destroys SaaS Start-ups

Deadly Mistakes That Will Destroy Your SaaS Start-up

SaaS startups are quite vulnerable financially. The investors are always on the necks of developers and without proper management, it will cause deadly mistakes to the growth of the SaaS startup.

There are marketing strategies that require trial and error before the right niche of customers is found. But then, some mistakes will cost your business and impede sales.

These mistakes are as thus;  

  10. Explicit Focus on Front Sales

Conversions from paid acquisition subscriptions, affiliate marketing, and other marketing strategies are a sign of good sales and healthy business. But when upfront sales are your major focus and there are no plans put in place to retain already converted customers, this will cause a stagnancy and might even decline sales.

When the subscribers and users are not being engaged through different outlets like emails, custom messages, explicit plans, and so many other strategic ways, it is going to be very difficult to retain them. You will have a hard time boosting your performance and popularizing your reputation when the main focus is on front sales.

Monitor the rate at which your conversions return. These trends in the activity of users you understand the progress and weaknesses of your SaaS start-up and provides insight into the necessary changes that are needed. Consequently, avoiding this and focusing on front sales is detrimental and will run your business down.

  11. Excessive Pricing and Plans

Prices are usually synonymous with value. So, it is understandable why high pricing on your SaaS services might be warranted. Everyone quickly wants to realize expenditure and break even with an immediate profit.

But overpricing will not be effective when low users are accessing your service due to the high price. You will financially run our businesses down with high pricing. No one wants to pay in excess for a service no matter how good. 

  12. Poor Marketing Strategy

Saas Marketing strategy

Without a clear marketing strategy, it is quite hard to keep up with the demands and revenue targets. An absence of a concise marketing process reduces the ability to monitor how well things are working.

Software as a service business requires close watch in how users respond and what channels of marketing work best. If your marketing strategy is not built to see these trends and develop plans around which improvements can be made, you are looking to run down your SaaS start-up.

  13. Inflexible subscription plans

No one wants a rigid system that will require me to pay a huge sum of money for the long term without a choice as to how they can manage their restriction.

It is going to be difficult selling a SaaS service product and building up your SaaS startup without having a flexible subscription plan. More flexible services get more attention. So, without flexible plans, appealing to the general public would be difficult.

  14. Hidden Prices

Hidden prices are just an indication of a lack of transparency. It is quite infuriating to potential customers and you’ll only frequently get clicks that never lead to conversions. Engagement without context is pointless! When the news about your service spreads through reviews, it will run your business down.

  15. Copying Competitors Price

Here is a fact, just because you price your services at the same level as your competitors do not mean you’ll get the sales. Pricing should be developed in a meticulous strategic manner.

Not everything goes. Some businesses undercharge subscription plans to open a flexible market for additional features, while others offer high pricing for the maximum service. The state of your finances should also influence your pricing. If you do not consider debts, overheads, expenditure, amongst other major financial necessities, you are looking to destroy your SaaS startup.


Building a SaaS startup is not an easy task. These mistakes reflect a clear picture of situations that can be effectively avoided. The lessons in each mistake are one step to developing a software service product that will take over its target market.

It is very important for your SaaS business that you plan effectively, maintain a good marketing strategy, keep interacting with your customers to get information on your strengths and weaknesses, and also monitor trends that will guide you.

Take heed to these 15 deadly mistakes that will destroy your SaaS start-up and wok towards growth, not bankruptcy. 

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