SaaS startup

What is the cost to launch a SaaS startup in 2022?

SaaS startup entrepreneurs On the other hand can grow their businesses, and also grow and return their investment in software. In the case of SaaS software, your limitations are only those of the marketplace and your software’s technological capabilities.

Although the SaaS company does not need to invest in equipment or products as other companies do making a SaaS product is not affordable. But there are ways to reduce your costs without sacrificing quality, such as creating an MVP first and then working with an outsourcing firm.

In this post, I’ll be talking about the cost you could expect from outsourcing firms in Ukraine if similar applications in countries similar to the US might cost anywhere from at least three times or five times more costly.

Different types of SaaS startup platforms

Before discussing the expense of development, it is necessary to identify the different types of SaaS platforms, since they differ in their complexity in terms of size, complexity, and market.

These are the main kinds of SaaS businesses based on their size


All SaaS platforms are based on these guidelines:

  • They are accessible by subscription per user.
  • Users don’t have to download any application on their devices.
  • They are omnichannel and may be used from any device at any time.
  • They tend to be less expensive than conventional software.

Let’s discuss the distinctions. Every SaaS startup service can be classified by its size, function, and domain.

  • CRM systems help manage customer relationships. (CRM) systems assist to plan sales and marketing activities to boost revenue and make customer communication more personal, timely and effective.
  • ERP software (ERP) software assists businesses and large companies control their internal operations, such as managing risk, accounting budgeting, compliance and accounting.
  • Accounting software makes it easier and more efficient to automatize financial processes, such as invoicing and transaction processing, as well as billing and tax calculations.
  • Project management tools help teams work together through task tracking, document sharing and notifications, as well as customizable permissions, and more.
  • CMS, also known as Content Management System (CMS) and e-commerce platforms let users create their online stores as well as other websites without the need to invest in the development of a custom-made website.
  • Communication platforms let users communicate and exchange messages as well as files. They are typically used to facilitate corporate communication.
  • HR software aids in organizing recruitment and management of employees. The SaaS products let HR personnel schedule interviews, schedule employee reviews, keep track of employee performance and save details about employees in one spot.
  • Payment and billing systems assist users and businesses in securely transferring money between accounts. Contrary to other SaaS solutions that offer payment services, they typically earn revenues from transaction fees instead of offering subscriptions.

Problems with SaaS startup development

The difficulties of SaaS development pose risks that to be considered in calculating the cost of the development of your SaaS product. Making a cloud-based service is an intricate process, therefore, pitfalls are inevitable and you must be prepared to deal with these.

Find out which challenges can cause an increase in development costs, and then learn how to minimize them and improve your costs.


Poor execution

Many technical issues could come into play in a SaaS developing project. Inadequate architecture, inadequate storage, a large codebase which is hard to maintain over the long term as well as other problems can dramatically increase the cost of your project as well as the time needed to create it.

It’s also important to be aware of any problems with scalability or maintainability that could arise during the development process and to do this you will require an experienced development team who will be in a position to select the best technology solutions for you.

Cloud-based architecture differs from traditional architecture, therefore make sure that your team has experience in the development of cloud-based solutions.

Insufficient industry knowledge

Sometimes, the concept for a SaaS product is fantastic, however, the execution isn’t great due to the lack of particular industry knowledge. A quality SaaS product is intended to make the business’s work simpler, and to do that, it must reflect the way a specific company is run.

Your understanding of the particularities of the way businesses operate within your specific field will reflect the user experience of your product. If a company isn’t able to integrate your product into their routine, you’ll struggle to market it.

I suggest employing SWOT analysis to identify the strengths as well as weaknesses, threats and opportunities. If you are in need, engage an expert from your industry or expose your product or idea to an audience. The focus group will help you get an idea of what you can do to design the perfect SaaS product, and which B2B SaaS pricing models are most appropriate for your business.

Insufficient trust

The trust factor is the main aspect of the performance of the SaaS product. In contrast to other kinds of software, the majority of SaaS products have an immediate influence on the performance of a company and processes, which ultimately lead to revenues. Selecting the right SaaS product isn’t an option to take lightly, and your product will be tested and tested thoroughly by the end-user.

Additionally, SaaS products handle lots of sensitive information about companies and their customers So security must be top of the list. Security breaches can be the most serious and costly error your company makes and will not be accepted by your customers.

To secure your as well as your users’ information, you should use the best security methods like two-factor authentication encryption of data, and access levels. Also, make sure you audit your software regularly and ensure that you don’t keep any information that won’t impact how your SaaS product performs its duties.

Small-sized market

SaaS companies are extremely flexible. With the same investments and software, the earnings you earn can fluctuate significantly, and if your business has achieved everything you could want and got rid of the technological constraints, your only limitation to your profits will be the amount of the market you intend to target.

Concentrating on specific sectors is a popular trend in SaaS development because it is difficult for startups to compete against market players. The solution is to create an item that is targeted to an area of particular interest that is more personalized in comparison to what a giant SaaS product has to provide.

But, it’s very easy to slip up and pick a market that’s too small to sustain. In this instance regardless of how fantastic your product is, you’ll never have enough customers to make a profit on your investment.


Budget errors are caused by mistakes in the calculation

If you’re given a comprehensive estimation of the price for SaaS products, it’s crucial to be aware that this product requires constant adjustments, updates and brand-new features to remain current. Since SaaS is a subscription service, you must continually provide value to your clients.

Maintenance is more essential in SaaS products than in other products since security and user experience issues could cost you customers who purchase your product regularly. This makes the customers of SaaS products more dependent and susceptible to poor quality.

In addition, you must keep up with regular checks including code audits, code audits, and security testing to ensure your application runs smoothly. Some business owners overlook these ongoing expenses and fail to include these within their plans for the business.

Be sure to include the ongoing costs in your business plan, and consider future enhancements you’ll be able to make to your product to keep customers happy.


The main factors that affect the price of SaaS startup development

How much will it cost to establish a SaaS business? As with any development venture, the final price will depend on several variables:

The scope of the project

The scope of a SaaS project is determined during the stage of planning. it is determined by the type of platform you wish to develop, the target customers, as well as the goals that your SaaS product can achieve.

SaaS tools generally are less extensive than SaaS platforms such as CRMs. Although SaaS tools are designed to address a few problems, SaaS platforms comprise multiple tools, which expands the scope of their use.

It is possible to scale the tool to become an entire platform, so if you’re starting the first SaaS initiative, then I’d suggest creating a tool to serve as an MVP for later expansion.

Tech stack and functional

Certain technologies are more efficient to use than others, and your selection of technology can affect the price of your venture.

But, the functionality of the feature influences its cost more than the technology itself. Complex features don’t just require a longer time to design but also carry a greater chance of causing errors, which is why they must be checked carefully at every stage of development.

To save money To reduce costs, I suggest you prioritize features and then develop the most crucial ones first. The list of features you choose to include will be contingent on your product nature, your intended audience and the primary issue the software is supposed to address. The most common features for the majority of SaaS products include:

  • Permissions are based on roles to safeguard sensitive data.
  • Analytics and dashboards to assist businesses in monitoring their performance.
  • Omnichannel sign-in enables users to log in to their accounts on any device by using the same set of credentials.
  • Activity tracking of users to identify suspicious activities and protect the data.

Team structure

The structure of your team and the way you work with developers determine the final price of your project. In-house hiring is usually more costly for businesses since they must pay for all expenses such as taxes, office space equipment, sick leave holidays, sick leave and so on. In addition, it takes time to locate a professional and get them hired with a salary that is competitive to ensure they aren’t leaving within a few months to join another organization.

How much will it cost to develop a SaaS startup product?

The cost of building a SaaS product will be based on the location of your team and how difficult your project will be. This is a breakdown of the entire SaaS development process along with an estimate of the amount each phase will cost. In this estimation, I’ve used the average price for software development firms located in Eastern Europe.

saas- startup

The process of planning and discovery

In the discovery phase, an analyst from your business analyzes your requirements for business and converts them into a technical specification. This is when the vendor conducts market research and competitor research and develops a list of specifications needed to accomplish your goals in business.

In the course of planning and other research, you’ll have to pay for an analyst’s time and, in return, you’ll be able to:

  • A technical specification
  • Wireframes
  • A detailed plan for development
  • A strategy for creating an MVP
  • The process of planning typically takes 40-260 hours, depending on the complexity of the project.

UI/UX design

Your user interface (UI) and the user experience (UX) within your SaaS solution should be user-friendly and reflect the specifics of your industry. This means that you should utilize terms and symbols within the UI that are standard in the field, and you must also make the UX pipeline streamlined for the business processes of your customers.

Frontend development

Once you have determined the functions you require from your product, it’s now time to select the right tech stack. Your development team will assist you in this process and provide several options to satisfy your specific requirements.

The amount of time required to develop front-end applications is contingent on the scope of the project and hourly rates can vary from $20 to $60.

Remember that each phase of development needs quality assurance and management. You’ll also need to pay for these experts and their time.

Backend development

The server component of your program could take a variety of time based on the strategy you choose to use. You can either create the backend completely from scratch or utilize a backend as service (BaaS) product that will dramatically cut down on development time.

Customizing your backend allows you greater flexibility, and BaaS allows you to build your infrastructure but relies on the infrastructure of a service provider. If there is a problem at the provider’s end then there’s nothing to do.

But, it’s great for MVPs because it is possible to upgrade to a custom backend in the future. The development of the server part of your SaaS application typically takes between 800 to 800 hours, and it costs between $25 and $60 per hour, based on the service you use.


Post-release maintenance could cost as high as 50% of the initial budget for development each year just to keep your system components up-to-date perform regular security checks and tests, correct issues, and so on.

Final thoughts

As you will see, it is difficult to determine what a specific SaaS plan will be for you because SaaS products are different, and their price is dependent on many factors. Even the estimate that you get from the vendor after you’ve shared details of your business’s requirements is likely to be a bit rough.

To figure out the amount SaaS development costs precisely then you must begin a process of discovery and development of a technical specification that contains specific information regarding your project’s features, technology and services provided by third-party companies. Once you have this information, you’ll be able to get an accurate estimate of the SaaS development cost.

You can develop a technical specification using the assistance of any organization or yourself if you possess the technical know-how yourself. Once you have your technical specifications you can request estimates from various software development firms. Brisk Logic can assist you in SaaS startup creation at every point that you are working on, from drafting specifications to managing your software.


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