Blog/Who needs your SaaS business ideas? Validate against real user needs

3 years ago I had a pretty simple SaaS business idea for RightHello. With time and feedback coming from our growing client-base, it evolved into a lead generation service with a B2B infobase at its core.

The first idea wasn’t bad, but it wasn’t as valuable to our clients as the refined version. Want to know how to refine your SaaS business ideas as well? Keep reading.

>Emailing potential clients to validate your SaaS business idea and offer against their needs

The secret ingredient is good communication with clients. Their feedback validates all of our business ideas initially, and their payments are the biggest validation. Business has one main responsibility – to satisfy the client (each and every one). First-time business founders have a hard time transitioning from everyday communication to the level that you need to represent to succeed. But once you get the hang of it, extracting valuable information from your clients will come naturally. I know at least one good starting point to start communicating with your clients on the next level. Emailing.>

Don’t hesitate – communicate and validate!

What do? Try these 5 steps to validate your SaaS business ideas within weeks. Obviously without paying, calling, or doing too much legwork!

Step #1: Turn everything off and answer 4 crucial questions first

The first step is counterintuitive – sit back, turn off all notifications and noises and try to answer these questions (a whiteboard is a great place to write things like this):

  • What problem would my SaaS really solve?
  •  How would it work exactly?
  • >Are there people willing to pay to have that problem solve?
  • Who are those people exactly?

 

Step #2: Answer the last question with a simple definition, like this one:

Marketing Managers in software dev companies who are fed up with manual {{action}} that they are wasting time on everyday, and would prefer to do sth else in that time

Woop! Awesome definition.

Step #3: Linkedin – go to your connections and browse for potential clients

linkedin saas business ideas

Do any connections fit your definition?

I’d call this the first crucial validation point – it’s a huge red flag if you don’t even know any people that would potentially pay for a SaaS like yours. But it doesn’t mean that all is lost. Don’t back down yet. Try to find them on other social media – stalk out people on facebook, or start attending conferences if you have to! Can’t find anyone that fits? Go back to the drawing board to re-work your definition. Found at least 20 approachable people with easily accessible email addresses? Great! Put them in a spreadsheet and move on!

Step #4: Write interesting emails

business ideas for get saas companies

Re-visit the Linkedin connection page for a second:

Why does Linkedin tell you about all these events in other people’s lives?

No, they don’t expect you to be super-interested in what everyone else is doing.

It’s because these little nuggets of info are the best ice-breakers to start a conversation with those people. 

A good icebreaker is super important. But it’s only the first line of your first email, you also need:

  •  Honest subtitle – only one because you’ll send all your emails in one thread
  •  Full content of first email (introduction) – how to write one
  • At least 3 follow-up emails (sent in same thread, NOT separately!) – how to follow-up

 

Side note: 3 follow-ups sent every 2 business days (so 8 days for the campaign to finish and measure results) should be enough for validation, usually also work in sales. Especially if your offer is already refined and you’re writing to perfect potential customers.

Even though influencers in this area preach sending at least 10 follow-ups, I think that is too much for this particular process. You’re approaching mostly existing Linkedin connections, not new people. However when you send cold emails, more follow-ups are recommended (still wouldn’t send more than 10, that’s just pure insanity).

Step #5: rate and analyse the responses

That’s it! Does validating SaaS business ideas seem hard?

Validation is the easiest thing to do before betting everything on just one of your many good SaaS business ideas.

Don’t get stuck on ideas that aren’t getting traction and keep getting rejected – people will tell you all you need to know and push you onto the right track.

Sometimes you cause trouble by confusing your clients too much. Your business value might be good but poor communication will upset them regardless of that.

Whether it’s over email or in person, or you’re old-school and you do cold-calling to validate your business ideas, remember these two things:

  • Don’t be afraid to start conversations with people who have valuable information – like your potential clients, or other founders who could give you great advice based on real experience.
  • Always be transparent, honest, and direct when communicating.

Main takeaway? Communicating with your clients will enable you to sell a lot. Communicating with your team will enable you to maintain the level of quality you promise to your clients. Start talking!

Thanks for reading, what could you do next? Leave a comment below and…

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