Loading...
Answers
MenuCan you be the founder of a saas startup if you're not a tech person?
Since 100% of the business relies on having the product and I don't have the skills to create the product, should I drop the idea or find a tech cofounder?
Because then I'm 100% reliant on the tech cofounder to build it and how do I know the person doesn't just build it and market it themselves?
Answers
Great question.
You should definitely not drop the idea if you think that it is worth pursuing. Just like you need the tech-founder, he needs a business founder with a dream, and the passion to make it succeed.
I suggest that following:
1. Do market validation/ POC to see if the idea has potential (get a general idea of how here: https://clarity.fm/questions/6423/how-do-you-do-market-research).
2. If it shoes potential, start looking for a tech-co-founder. There are numerous ways (try these):
www.meetup.com
www.founderdating.com
www.cofounderslab.com
http://www.founders-nation.com
www.founder2be.com
Linkedin...
3. Do a trial period + sign a founder's agreement.
Happy to help you with any of the above once/if you need.
Good luck!
I've successfully helped over 350 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/assafben-david
You ca do this for certain and agree with the other answer that you do not have to have the skills to create the product. If you are going to bring on a co-founder for the tech side, legal agreements can be to ensure both of you are protected.
You can also think about outsourcing the technical work to one of many companies who can architect and build out your product, meaning that you maintain ownership.
There is surely more than one way to approach, but do not give up on your concept due to a lack of technical skills.
Happy to discuss more if I can be of help to you.
Carlos
I can say as an experienced angel investor, the proven magical founder formula for a tech startup always consists of at least two people like Steve Jobs & Steve Wozniak and Bill Gates & Paul Allen. One of them is a business strategist with a massive transformative purpose to change the world. On the other side; the other one is a tech guru, who can convert the idea to a tangible solution.
This thing is also one of the key points all of the investors would like to see in a tech startup with the potential to grow exponentially.
And, you will need some other skills soon to grow your business exponentially.
I heard many variations of this question during the initial phases of building startups from new entrepreneurs.
Think of it this way. If you want to be a racecar driver, do you really need to be a mechanic? It helps if you know how to maintain the car and tune it. Most of the great racecar drivers are not known for their auto mechanic skills. However, the racecar driver cannot be successful without his car being in the top-notch condition. In most cases, they find somebody else who can maintain the car for them.
In my experience, the best founders are the ones close to the customer. If you are in sales or customer management, it would be very useful. You can always find people to help you build the tech platform if you know what the customer wants and how to get it to them. A technical co-founder or an agency can build the platform for you.
I'm a former early-stage SaaS co-founder and growth-stage SaaS CTO.
Many tech startups - including the ones I've been personally involved in - are co-founded by one person who focuses on business and operations and another who focuses on tech.
You should definitely focus first on gaining validation. Early validation doesn't usually require technology. For example, it is easy to conduct surveys and interviews, it is easy to deploy ads and landing pages, etc. Once you have some meaningful validation, you should ask *yourself* some key questions:
- Why are you and your team uniquely suited to grow this business?
- Why now?
- Why isn’t anyone else already doing it or why do you have the upper hand on them?
If you can answer those questions - fairly and confidently - then you have every right to consider yourself an important half of a co-founding equation. You will - of course - at this point need to bring in someone more technical. You will be reliant on them for the tech, but they will be reliant on you for everything else - business acumen, inside knowledge, connections, the things only you can bring to the table. A good technical co-founder will understand that an idea is just a seed, but it takes the right business partner to make it come to life.
Check out this recent blog post I wrote on the role of an early-stage CTO, how to find one and compensate one, etc:
https://www.linkedin.com/pulse/startups-burning-questions-ctos-answered-anthony-putignano/
If you have any further questions, let me know!
This is a complex question.
Likely best to talk with several smart people about whether or not your idea lends itself to your situation.
With the limited context you provided + no guess about your personality style, no way to guess.
Yes, yes, yes -- a million times yes!
Throw the idea that you "don't have the skills to create the product" out of the window. These days, you don't have to know how to code to build software.
There are a whole slew of "No-Code" and "Low-Code" tools available to help you build your tech startup -- and a whole community of solo founders to ask questions of. Check out these two resources:
I'm a software engineer and have been building startups for 15+ years. I'm making the transition into No Code for two reasons: first, to build faster and launch my own products with less work; and second, so that I do a better job helping non-technical founders launch their startups on thier own.
The ecosystem isn't 100% there yet, but it will be in the next few years. Depending on which tool you use, you may run into feature limitations and/or find vendor lock-in when you reach a certain scale.
But that still meshes with the ethos of a Lean Startup MVP: you're eventually going to throw it all away anyway and start over from scratch. And when you do, you'll have customers, you'll have money, and you'll be in a better place to hire developers without worrying about them stealing your idea.
Let me know if I can do anything to help. You got this!
I have helped many non-technical founders getting their ideas started and running successfully. it is the most important question when they start. I usually recommend two choices in this case.
1. Find a Co-founder
2. Recruit somebody who can do it
Following are the Pros and Cons:
SaaS is an extremely slow burn but can also have amazing growth potential depending on the space. You need to find technical talent that doesn't mind grinding for 6-24 months without turning much of a profit.
Even if you are well funded, unless you have prior success in SaaS, you will most likely burn up your runway finding product-market fit. This why I personally suggest against hiring technical talent until the business has achieved certain milestones.
You really need a technical cofounder that share the vision for the service, that understand the insane amount of work involved, and can build your MVP.
My last startup failed because of this very thing. Except that I was the tech person and he was the salesperson. He just did not understand the tech so he could sell it well. He was a highly successful salesperson but he just did not get the tech--so the company failed. I know many here are super positive about these issues and indeed a properly setup instrument can protect you from a usurping co-founder but if you do not understand the tech well things can go wrong. I suggest you get a tech adviser like myself to check what the person is doing (of course also get a co-founder agreement) and if all is going well. Set benchmarks that the tech person must meet in an agreement to keep him or her on their toes, Keep control but you can only keep control if you understand what the tech does and how it will help the world.
Related Questions
-
How can I manage my developers' performance if I don't understand IT?
Whenever you assign them a task, break down the task into small chunks. Make the chunks as small as you can (within reason, and to the extent that your knowledge allows), and tell your devs that if any chunks seem large, that they should further break those chunks down into bite size pieces. For instance, for the overall task of making a new webpage, _you_ might break it down as follows: 1) Set up a database 2) Make a form that takes user email, name, and phone number and adds them to database 3) Have our site send an email to everyone above the age of 50 each week When your devs take a look at it, _they_ might further break down the third step into: A) Set up an email service B) Connect it to the client database C) Figure out how to query the database for certain users D) Have it send emails to users over 50 You can keep using Asana, or you could use something like Trello which might make more sense for a small company, and might be easier to understand and track by yourself. In Trello you'd set up 4 columns titled, "To Do", "Doing", "Ready for Review", "Approved" (or combine the last two into "Done") You might want to tell them to only have tasks in the "Doing" column if they/re actually sitting at their desk working on it. For instance: not to leave a task in "Doing" overnight after work. That way you can actually see what they're working on and how long it takes, but that might be overly micro-manager-y At the end of each day / week when you review the tasks completed, look for ones that took a longer time than average (since, on average, all the tasks should be broken down into sub-tasks of approximately the same difficulty). Ask them about those tasks and why they took longer to do. It may be because they neglected to further break it down into chunks as you had asked (in which case you ask them to do that next time), or it may be that some unexpected snag came up, or it may be a hard task that can't be further broken down. In any case, listen to their explanation and you should be able to tell if it sounds reasonable, and if it sounds fishy, google the problem they say they encountered. You'll be able to get a better feel of their work ethic and honesty by how they answer the question, without worrying as much about what their actual words are. Make sure that when you ask for more details about why a task took longer, you don't do it in a probing way. Make sure they understand that you're doing it for your own learning and to help predict and properly plan future timelines.LV
-
What is the average pre-money valuation of a enterprise/SaaS stat-up that is pre-revenue?
There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.TP
-
Does anyone know of a good SaaS financial projection template for excel/apple numbers?
Here is a link to a basic model - http://monetizepros.com/tools/template-library/subscription-revenue-model-spreadsheet/ Depending on the purpose of the model you could get much much more elaborate or simpler. This base model will help you to understand size of the prize. But if you want to develop an end to end profitability model (Revenue, Gross Margin, Selling & General Administrative Costs, Taxes) I would suggest working with financial analyst. You biggest drivers (inputs) on a SaaS model will be CAC (Customer Acquisition Cost, Average Selling Price / Monthly Plan Cost, Customer Churn(How many people cancel their plans month to month), & Cost to serve If you can nail down them with solid backup data on your assumption that will make thing a lot simpler. Let me know if you need any help. I spent 7 years at a Fortune 100 company as a Sr. Financial Analyst.BD
-
Freemium v.s. free trial for a marketplace?
It depends on a number of factors but I'd boil it down to two key things to start: 1) What is your real cost to provide a free plan or trial? 2) Who exactly is your customer and what are they used to paying and who and how do they pay today? When you say "online workforce marketplace" it sounds as though you're placing virtual workers. If that's the case, or if you're paying for the supply side of the marketplace, the question is how much can you subsidize demand? Depending on where you're at in the process, I'd also question how much you can learn about the viability of your marketplace by offering a free version, assuming again, that free is actually a real cost to you. I was part of a SaaS project that started charging people for early access based mostly on just a good landing page (we clearly stated they were pre-paying) and were amazed at the response. I've also run a SaaS product that offered free trials and realized that the support costs and hand-holding and selling required to convert from free trial to paid wasn't worth it, this despite the product's significant average ARR. You might be better off providing a "more information" sign-up form (to capture more leads) and let them ask for a free trial while only showing your paid options. I've been amazed at the lead capture potential from a simple "have questions? Click here and we'll contact you" This is all the generalized advice I can offer based on the limited information I have, but happy to dive-in further if you'd like on a call.TW
-
What are the SaaS B2B expectations when paying annually - annual paid annually or annual paid monthly? Is a discount necessary (i.e. 20%)?
Most Software as a service vendors generally don't book annual deals except in highly specialized cases. Most customers prefer to be able to cancel/change anytime they choose. Also, deals done "offline" end up actually often being more trouble than they are worth to administrate especially for a $2988 ticket. Generally, companies don't view prepaying for SaaS products a year in advance as a "convenience" (to them) so if the debate is internal (not customer driven), I'd set this debate aside until it's requested by the customer. Most customers will request a discount to pre-pay annual service. Happy to talk this through with you in a call, to work through the specifics of your situation in more detail.TW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.