Having a strong business plan for a SaaS business is critical for success. Every business needs a strategy and plan that when implemented delivers a strong foundation, and this holds true for a software as a service startup as well.

According to a report published in The Gartner CRM Guide, more than 50 percent of CRM is deployed as SaaS, and the number continues to grow at a rapid rate.

While Saas as a business delivers high value to customers with high ROI, a startup in this domain needs to be executed right from the very beginning, and only a well-written saas business plan can help you get started, as well as sustain in this competitive market.

If you are tempted to jump in and develop your own SaaS business, the below tips on how to write a business plan for a SaaS startup will help you achieve your goals.

Clear Goals, Clear Vision

Without a clear vision how would you write a business plan, and without a business plan how would you know whether you are on the right path? Do you know your target audience? Are you meeting the customer needs? Are you taking full advantage of your USP?

All of these questions and many much more can be answered in a detailed saas business plan. With Saas business, research and development have to be done up-front and then iterated to be able to create a solution that is going to appeal to the target audience.

Start with a Lean Plan

You don’t really have to start with a 40-page long business plan. As a startup, still trying to get validation for your idea, you can start with a one-page pitch. This is the fastest way to get your pitch onto paper. One page format is also considered to be the best fit for Saas businesses that are constantly developing new ideas.

All you need is to write a couple of lines describing your saas business, and a short description of how your product is a compelling solution to your customers’ problems. If you want to write a business plan on your own, you can also use our free SaaS business plan example to build your pitch.

Show a path of Profitability

SaaS businesses often struggle to justify their investment in regards to profitability. At the very beginning, most SaaS products are incomplete, loaded with bugs and hard to use. But when it comes to writing a business plan, it is important to prove that the business model has the potential to make money in the long run and that the growth is inevitable. Or at least demonstrate how and when you plan to hit profitability.

The easiest way to achieve this goal is to demonstrate interesting and innovative ways of monetization using the incredible power of the web. What strategies you’re betting on to acquire customers at a low cost? What will be the lifetime value of those customers? Can you find a scalable way to acquire customers?

So, if you are launching a SaaS startup, having a compelling business plan is going to be crucial to the success of your business. You can get a free business plan template that will help you forecast and track the SaaS business model.

SaaS Business Plan Outline

This sample CRM Software business plan includes the following sections:

• Executive Summary
  • The Product
  • The Competition and Panda CRM’ Competitive Edge
  • The Market Opportunity
  • The Sales and Distribution Strategy
  • Sales Growth and Revenue Projections
  • The Management Team
  • Funding Request and Use of Funds
  • The Exit Strategy
• Mission & Vision
  • Mission Statement
  • Core Purpose
  • Core Values
• Product & Service Description
  • Overview of Products & Services
  • Problems, Causes, Solutions & Benefits
    • Problems
    • Solution: Panda CRM
• Industry Analysis
  • Industry Overview
    • Cloud Computing Industry
    • SaaS Industry
    • CRM Industry
  • SAAS And CRM Industry Size and Trends
    • Industry Size
    • Industry Trends and Key Factors
• Competitive Analysis
  • Competitive Overview
    • Direct Competitors
    • Indirect Competitors
  • Competitive Advantages
  • Market Share Analysis
  • Barrier to Entry
    • Market Saturation
    • Beta and Usability Testing
    • Patents & Copyrights
• Market Analysis
  • Market Snapshot
  • Addressable Market
    • Small Businesses – Market Size
    • Wage and Salary Sales Workers – Market Size
  • B2B Market Segmentation
  • Ideal Customer Profile
• Sales & Marketing Plan
  • Sales & Marketing Goals
    • Online Traffic
    • New Demos (Units) -­ Online
    • Active Businesses (Units) -­ Online Traffic
    • Sales Representatives
    • Active Businesses -­ Sales Representative
    • Resellers
    • Active Businesses (Units) -­ Resellers
  • SWOT Analysis
  • Pricing Strategy
  • Branding
    • Branding Strategy
  • Marketing Strategy
    • Online Marketing
• Operations Plan
  • Location
  • Staffing And Training
  • Personnel Plan
  • Customer Service
  • Purchasing Procedure
  • Quality Control Measures
• Management Team
  • Key Management
  • Board Of Directors & Board Of Advisors
• Financial Plan
  • Financial Summary
    • Profit and Loss
    • Profit Margin
  • Marketing And Personnel Expenses
    • Marketing Budget
    • Marketing to Revenue Ratio
  • Projected Profit & Loss
  • Projected Cash Flow
  • Projected Balance Sheet
  • Current Ownership Summary
  • Funding Request & Terms Of Investment
    • Current Milestones
    • Seed Capital
    • Series A Capital
  • Exit Strategy
• Appendices
  • Product Comparison

After getting started with upmetrics, you can copy this SaaS business plan example into your business plan and modify the required information and download your business plan pdf. It's the fastest and easiest way to start writing your business plan.