Andrew Crossley

    How do I start a SaaS company?

    SHORT ANSWER

    Start a SaaS company by choosing a narrow, expensive, recurring problem for a specific group you can reach, validating that they will pay before you build, then shipping the smallest product that solves it end to end. Get to first paid customer before hiring, raising or automating anything. Distribution — how you reach that group repeatedly — matters more than the software.

    Answered by Andrew Crossley, Fractional Chief Product Officer · Updated 2026-08-01

    Why it matters

    SaaS is now cheap to build and expensive to distribute. The scarce asset is a reachable audience with a paid problem, not the codebase.

    Founders who build first and look for customers after typically burn six to twelve months finding out the problem was not painful enough.

    How it works in practice

    1. 1

      Pick a problem you can reach

      Recurring, expensive, and belonging to a group you can contact directly this week. Unreachable audiences kill otherwise good products.

    2. 2

      Validate willingness to pay

      Ten to fifteen conversations plus a commitment: a deposit, a letter of intent, a paid pilot. Verbal interest is not validation.

    3. 3

      Ship one flow

      Sign in, do the job, see the result. No teams, no admin panel, no settings until someone completes it repeatedly.

    4. 4

      Charge from day one

      Even a small price filters serious users and gives you the only reliable retention signal there is.

    5. 5

      Build one repeatable channel

      Outbound, community, content or partnerships — one, done properly. Multi-channel before PMF spreads you too thin to learn.

    6. 6

      Only then invest in the product function

      Once there is repeatable revenue, add product leadership and a real operating cadence.

    Common mistakes

    • Choosing a market you cannot reach without paid acquisition budget.
    • Building for a year before charging.
    • Incorporating, branding and building a website before talking to customers.
    • Copying a competitor's feature set instead of finding an underserved segment.

    FROM EXPERIENCE

    Distribution before software

    The SaaS businesses that get to revenue fastest usually start with an audience the founder already has access to — an industry they worked in, a community they belong to, a network of former customers.

    That is the practical version of 'unfair advantage': not a technical moat, but the ability to have twenty relevant conversations in a week.

    Frequently asked

    Do I need funding to start?

    Rarely at MVP stage in 2026. Build cost has collapsed; the case for raising is speed and distribution, not survival.

    How much should I charge initially?

    More than feels comfortable. Underpricing attracts customers whose problem was not painful, which corrupts your learning.

    Solo or with a co-founder?

    Solo is viable with AI tooling and contract help. A co-founder helps most when they bring a channel or a skill you genuinely lack.

    IN SHORT

    • Narrow, expensive, recurring problem for a group you can reach.
    • Validate payment before building; ship one flow; charge from day one.
    • One repeatable channel beats four half-built ones.

    Idea to MVP in six weeks

    A validated, instrumented first product in front of real users.

    Idea to MVP in six weeks

    THE FRAMEWORK

    The Crossley Method: idea to first revenue in seven stages

    See the full method
    1. STAGE 1DiscoverWeek 1
    2. STAGE 2ValidateWeek 2
    3. STAGE 3PrototypeWeek 3
    4. STAGE 4Build MVPWeeks 3-4
    5. STAGE 5LaunchWeek 5
    6. STAGE 6First RevenueWeek 6
    7. STAGE 7ScaleOngoing

    MORE ANSWERS

    Startup founders

    How do I find a technical co-founder?

    Technical co-founders come from people who already know you — former colleagues, communities you contribute to, and open-source or startup circles — far more often than from matching platforms. What makes them say yes is evidence: a validated problem, early customers, and a prototype you built yourself. In 2026, many founders should first ask whether they need a co-founder or a contractor plus AI tooling.

    What mistakes do first-time founders make?

    First-time founders consistently build before validating, scope too wide, hire too early, price too low, chase funding instead of revenue, and measure activity instead of outcomes. Each individually is survivable. Combined, they burn a runway cycle before anyone learns whether the core idea works. The counter-move is uncomfortable focus: one segment, one problem, one metric, one channel.

    What framework should founders use?

    Founders need one sequence, not a shelf of frameworks. A workable one: discover the problem, validate willingness to pay, prototype the flow, build the MVP, launch narrow, get first revenue, then scale what works. Borrow specific tools where they help — jobs-to-be-done for framing, opportunity solution trees for discovery — but a framework that produces artefacts instead of decisions is overhead.

    How do you validate a startup idea?

    Validate a startup idea by testing willingness to pay, not enthusiasm. Run ten to fifteen interviews about what people did last time they faced the problem, then ask for a commitment — a deposit, a paid pilot, a signed letter of intent. Set your pass thresholds before you start. Two weeks of this routinely prevents six months of building the wrong thing.