Is it prudent to consider SAAS platforms for startups?

SAAS or Software As A Service platforms like MartJack, Shopify, etc. provide a quicker and far less expensive way to test your concept. However, many of the SAAS platforms may not be appropriate as your business scales up. The most common reason for not using SAAS platforms is because by its very nature platforms are ‘generic’ and not ‘custom designed’ for your needs. I.e. you may have to live with some of the limitations, or forgo some of the features that you needed.

As always, your decision should be a well-thought out with pros and cons debated thoroughly, and the final decision should be taken purely on the business needs.

In the 2011 and 2012 time period, we have seen a number of e-commerce players using the SAAS platform to launch quickly, get traction, build the foundations of their business – indlcuing customers, and then raise the next round of funding to build a more robust and customized product.

This startegy also allows the startup to test the concept, understand better their tech needs as well as gather the resources to build the most appropriate tech platform. Of course, it allows them to launch faster.

However, if the tech platform is going to be the core of your business, obviously a SAAS solution may not work.

 

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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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