Building a product that has no demand:
Founders of software startups may indulge a little too much in their thoughts and develop a product they think the world wants without any market research. They might find the product useful, but not necessarily the world needs it. One needs to have an optimistic approach, but seeking validation from the market is inevitable. What if no one really cares about what you’ve created?
Under-pricing your products:
At times, budding SaaS founders undervalue their product as well as the time they have invested, and more often than not, entrepreneurs end up losing the competitive edge by lowering their prices to get new customers. In SaaS models, recurring revenue is the cheat code, and the price is just one of the many factors in the business, among others.
No Marketing Plan:
While it's great to trust your innovation and have an optimistic approach, employing the right marketing tactics is just as crucial. Founders are, at times, living in a bubble where they expect their product to sell itself. That won't happen. The best and biggest companies also market their tools to create visibility and drive sales. With SaaS-based startups, it’s even more difficult to do branding. Hence, SaaS-specific promotional strategies should be used to lay the groundwork for your business.
It's easy when you're starting off to run massive hiring programs and recruit, but not every employee you bring on board shares your vision. Therefore, it's imperative to keep an open mind and search for individuals who are passionate about what you're presenting. Because SaaS products are generally challenging to grasp, extra vigilance is advised.
Fundraising too early:
Entrepreneurs who are just getting started want to raise money as soon as the product is ready, if not earlier. Raising funds too soon will only cause you to waste them unless you have a concrete plan, sales, and many more to drive your pitch. People nowadays are simply rushing towards seed investment without knowing anything. The idea should be to bootstrap for as long as you can to prevent wasting your resources.