How to Sustainably Improve Profit Margin at Your Software Development Agency
Improving your margin is an exercise in balancing costs against the tactics you are using to generate revenue while continually working to make your team more efficient.
The B2B SaaS market size crossed the $150 Bn mark in 2022 and is expected to double by 2028. This means there are plenty of opportunities, in the foreseeable future, for new ideas, projects, and businesses - especially in the B2B market.
One of the most critical factors for any new project is the ability to develop and publish ideas quickly to reduce time to market as much as possible. Fast development also lets you generate your ideas rapidly based on customer feedback. And this all leads to accelerated innovation.
Technology that allows you higher development speed and is perfect for developing B2B SaaS projects is low-code. This is not a new approach for building SaaS solutions, but only recently has it started picking up speed due to technological advancements.
It is expected that low-code development will become an industry standard when it comes to SaaS development. So if you already know what to build, check out tools like App Builder that will make your development process much faster and easier - and your scaling automatic.
In case you were wondering how to find SaaS ideas, the best way to start is to take note of everything you're already familiar with:
All these questions can lead you to the discovery of potential opportunities, tools, and projects you can start. Just make sure you're not building a nice-to-have product and instead focus on solving real problems.
In the end, whatever you decide, you'll want to build it:
And to get all these benefits, you will have to look into low-code technology that can allow you to be more competitive as a new project in a big market.
Another (almost guaranteed) way to find an idea is to niche down into a specific market. You may often find that your specific solution is better than the more general software the big players offer.
A simple example is CRM software, a very saturated industry by any metric. However, if you're familiar with an industry that has:
…that is not covered by the most popular tools - you have an opportunity. Because, chances are, the users of this software are struggling to fit this general solution for their specific needs. And they would be very grateful if they could just get what they need out of the box.
Check out the B2B SaaS examples page to see some real-world projects.
Every industry is specific and has its unique needs and quirks. So having a planner app that has specifics of your niche implemented into its core is a great way to increase your customers' productivity.
From a technical perspective, you don't have to do anything fancy. For example, if having an extra field means your users won't have to improvise and create workarounds in their workflow - your app could be a success.
Alongside general information, maybe your employees have some specific health check-ups they need to go to because they work in high-risk jobs. And it is really important for the business not to miss those. In that case, you can implement alerts to generate niche-specific documents, etc.
Some industries have a large inventory of equipment they use. It is not hard to imagine that this equipment needs regular servicing or some other updates that could be easily tracked by your SaaS app.
Many small businesses start their journey without a website. And they need a way to link their social media profiles to their offers. Otherwise, their business is unable to generate revenue efficiently.
A simple landing page service with extra features specifically built for a niche you're familiar with could be enough to sway people away from using generic solutions like Linktree. Again, this solution doesn't have to be very complex. But, if you offer it to business owners with limited technical experience, it could improve their business significantly.
It is not uncommon to frequently see new developers joining your team. And onboarding usually takes a lot of time for the new team member and existing members.
Usually, the onboarding process is rarely well documented, and something is always missing. And having an app specifically designed for onboarding where you can list every step of the way will save a lot of time and energy for an entire team.
Launching a new SaaS platform can be an anxious time. It's not uncommon to second-guess yourself, from simple day-to-day decisions to your overall strategy.
It's times like these that you need a trusted advisor who can help you work through those hard questions. Introducing Archie, 8Base's AI solutions architect.
Using 8Base's powerful Backend-as-a-Service as its backbone and the vast data reservoir of GPT-4, we fine-tuned Archie to give insightful and actionable advice to help you think through questions like backability and value propositions. All you have to do is tell it a little about the project that you're working on.
But that's just the beginning — Archie's capabilities really shine as a technical solutions architect. In addition to business insights, Archie can provide a complete technical blueprint, requirements, architecture and implementation plan based on the details you give it.
Archie is free to use, and you can try it here.
Good B2B SaaS ideas can usually be found in your unique experience. You know things about some specific industry that very few outsiders do. As such, you can use this info to your advantage.
The fastest way to develop a stable and scalable SaaS solution is by using low-code technology. Since it's on its way to becoming an industry standard for development, it is expected that early adopters will be rewarded with a competitive advantage in terms of the following: