Lean Startup Framework

Validate your SaaS product by building, testing, and learning iteratively. This framework emphasizes starting small, testing assumptions, and refining based on user feedback.

Using the Lean Startup Framework

Define Assumptions: Begin by identifying the core beliefs about your SaaS product, its target users, and the problems it aims to solve. For example, assume that mental health professionals need an automated psychometric evaluation tool to save time and reduce errors. These assumptions will guide your validation efforts.

Build an MVP: Create a Minimum Viable Product (MVP) that focuses on solving the most critical problem with minimal features. For instance, a healthcare SaaS MVP could include only pre-loaded psychometric tests and automated scoring, leaving advanced features like customization for later.

Test: Launch the MVP with a small group of target users to gather feedback. Use low-cost tools like Typeform for surveys or Carrd for building a simple landing page. Ensure your test group reflects the audience who will ultimately use the product.

Measure Outcomes: Analyze metrics such as user engagement, time saved, or cost efficiency improvements. For example, track the percentage of therapists using your tool to complete evaluations and the time taken compared to manual methods.

Iterate: Refine your product based on the feedback and data collected. If users request a feature like customizable test forms, prioritize that in your next version. Continue testing and iterating until you have strong validation.

TAM, SAM, SOM Analysis

Evaluate the financial viability of your SaaS product by estimating market size.

Learn the usage of the TAM, SAM, and SOM Analysis

Define TAM (Total Addressable Market): Research the total size of the market for your SaaS product. Use industry reports, surveys, or AI tools to estimate the potential market value. For instance, calculate the total market for psychometric evaluation tools across global mental health organizations.

Calculate SAM (Serviceable Available Market): Narrow down the TAM to the specific market segment your product can realistically target. For example, limit the market to clinics in North America that specialize in mental health care.

Estimate SOM (Serviceable Obtainable Market): Determine the short-term market share you can capture. If your SaaS product is affordable and easier to use than competitors, you might project capturing 10% of your SAM within the first year.

Validate Data: Use surveys or interviews to confirm your estimates. Engage with target users to understand their willingness to adopt and pay for the product.

Refine Assumptions: Based on your findings, adjust your market projections or redefine your target audience as needed. For example, focus on smaller clinics if larger organizations seem resistant to change.

Tabular Structure for more clarity

Jobs to Be Done (JTBD) Framework

Understand what specific “job” your SaaS product performs for users.

Steps to Develop Your JTBD Framework

Interview Target Users: Talk to potential users and ask about their pain points, workflows, and challenges. For a utility SaaS product, you might ask, “What difficulties do you face in tracking energy consumption and costs?”

Define the Job: Pinpoint the “job” your SaaS product is hired to perform. For instance, in a real-time energy monitoring SaaS product, the job might be to provide users with actionable insights to reduce their energy bills.

Map the Customer Journey: Understand the steps users take to solve their problems and where your SaaS product fits into their process. For example, does your product replace manual tracking or supplement existing tools?

Align Features to the Job: Focus your product development on the specific outcomes users want. If users value detailed breakdowns of appliance power usage, prioritize adding that feature before expanding into other areas.

Validate the Job: Test your product with early users to ensure it effectively performs the job they hired it for. Gather feedback to confirm it meets their expectations or refine it further.

10 Questions to develop your JTBD Framework

Build-Measure-Learn Cycle

Continuously test and improve your SaaS product through real-world feedback.

How to use the Build-Measure-Learn Cycle?

Build: Develop a prototype focusing on a single, high-impact feature. For example, a patient care coordination SaaS product might initially include only a secure messaging feature for doctors and nurses.

Measure: Track user interactions and gather data on how effectively the prototype solves the intended problem. Metrics might include the number of messages sent, response times, or user satisfaction scores.

Learn: Use data to decide whether to continue with the current approach, pivot to a new idea, or stop. For example, if nurses report communication delays even with the tool, consider adding real-time notifications.

Test Improvements: Implement changes based on feedback and re-test with the same or a new group of users. This iterative process ensures that each version of your product is better aligned with user needs.

Document Findings: Record insights from each iteration to refine your overall development strategy and product roadmap.

Blue Ocean Strategy

Identify underserved markets or create new demand.

How to use the Blue Ocean Strategy?

Map the Competitive Landscape: Identify competitors and analyze their offerings. For example, in tax compliance SaaS for freelancers, you might find competitors that cater primarily to corporate clients.

Spot Gaps: Look for unmet needs or underserved audiences. Freelancers might struggle with managing diverse income streams or calculating quarterly taxes, areas traditional tax software doesn’t address well.

Define Value Innovation: Position your SaaS product to uniquely solve these gaps. For example, offer automated income categorization and tax reminders tailored to freelancers’ needs.

Test Your Hypothesis: Validate your value proposition with early adopters. Use surveys, focus groups, or beta testing to confirm that your product addresses their pain points effectively.

Iterate: Refine your offering based on feedback and expand into other underserved niches as your product gains traction.

1. Prompts for the Lean Startup Framework

• “What assumptions should I test first about my SaaS product solving [specific problem] for [specific audience]?”
• “What features can I exclude to create a simple MVP for [specific industry]?”
• “How can I identify the right test users for my SaaS MVP in [location or globally]?”
• “What methods can I use to gather real-time feedback from early adopters of my MVP?”
• “How should I analyze engagement data to refine my SaaS product effectively?”

2. Prompts for TAM, SAM, SOM Analysis

• “What is the total addressable market (TAM) for solutions addressing [specific problem] in [specific location or globally]?”
• “What portion of the TAM is realistically reachable for my SaaS product in the short term?”
• “How can I estimate the market share (SOM) I can capture within the first year?”
• “What industry trends or reports can I use to validate my TAM and SAM calculations?”
• “What customer segments within my SAM are most likely to adopt my SaaS product early?”

3. Prompts for Jobs to Be Done (JTBD) Framework

• “What ‘job’ do potential users hire a product like mine to perform in [specific industry]?”
• “What pain points do users face when trying to accomplish [specific task or job]?”
• “How do users currently solve this problem, and what do they dislike about their existing solutions?”
• “What would an ideal solution look like to users attempting to complete [specific job]?”
• “How can my SaaS product deliver measurable value for users performing [specific task]?”

4. Prompts for the Build-Measure-Learn Cycle

• “What is the simplest feature I can build to test user interest in solving [specific problem]?”
• “How can I structure an experiment to test the effectiveness of [specific feature or solution]?”
• “What key metrics should I track during the testing phase to validate my MVP?”
• “How can I analyze feedback from early adopters to decide whether to iterate or pivot?”
• “What changes should I prioritize based on user feedback and engagement data?”

5. Prompts for the Blue Ocean Strategy

• “What gaps or underserved markets exist in the [specific industry] space for solving [specific problem]?”
• “What value can my SaaS product deliver that current competitors overlook?”
• “How can I position my SaaS product to create new demand rather than competing in a crowded market?”
• “What are the most common complaints or frustrations with existing solutions in [specific industry]?”
• “How can I design a feature or service that redefines user expectations in [specific niche]?”

Problem Identification

Discover whether your SaaS product addresses a real pain point.

• “What are the top three challenges faced by [target audience] in [specific industry] [in location X or globally]?”
• Follow-up: “How are these problems currently being addressed, and where do existing solutions fall short?”

Market Research

Validate the demand for your SaaS product and explore market dynamics.

• “What is the total addressable market (TAM) for solutions addressing [specific problem] [in location X or globally]?”
• Follow-up: “What trends indicate a growing demand for solutions in [specific industry or problem area]?”

Audience Analysis

Understand your target customers and what drives their decisions.

• “Who are the primary decision-makers or users for a SaaS product solving [specific problem] [in location X or globally]?”
• Follow-up: “What are the most common objections or barriers for these customers when adopting new solutions?”

Competitor Analysis

Uncover gaps and opportunities in the competitive landscape.

• “Provide a comprehensive list in a table format of Who are the top competitors addressing [specific problem] [in location X or globally], and what differentiates their solutions?”
• Follow-up: “What are the most frequent complaints or unmet needs among their users?”

MVP Validation

Test the viability of your Minimum Viable Product (MVP) and prioritize features.

• “Critically think and provide a table of what core features must an MVP include to effectively solve [specific problem] [in location X or globally]?”
• Follow-up: “What feedback from early users would indicate strong validation of the MVP?”

Pricing and Monetization

Explore the willingness to pay and identify optimal pricing strategies.

• “What pricing models (e.g., subscription, pay-per-use) are preferred by customers solving [specific problem] [in location X or globally]?”
• Follow-up: “What factors influence their decision to pay for such a solution?”

User Feedback Collection

Ensure your SaaS product aligns with user needs and expectations.

• “What’s the simplest way to collect actionable feedback on [specific product or feature] [in location X or globally]?”
• Follow-up: “How can this feedback be analyzed to identify recurring themes and prioritize improvements?”

Scalability Exploration

Plan for growth and long-term success.

• “What potential technical or operational challenges could limit the scalability of this SaaS product [in location X or globally]?”
• Follow-up: “What strategies can address these challenges while keeping development costs low?”

Marketing Strategy

Develop a cost-effective approach to reach your audience.

• “What marketing channels are most effective for targeting [specific audience] with this SaaS product [in location X or globally]?”
• Follow-up: “What types of content or messaging resonate most with this audience?”

Risk Assessment and Decision-Making

Assess potential risks and refine your approach.

• “What are the biggest risks associated with pursuing this SaaS product idea [in location X or globally]?”
• Follow-up: “What pivots or adjustments could mitigate these risks while maintaining the core value of the product?”