Most Profitable SAAS Business Ideas in 2023

Since the Covid-19 pandemic began in 2020, the SaaS industry has grown tremendously. According to BVP Cloud Index data of the top 15 SaaS companies globally, the majority of them grew their revenues by 46% to as high as 152%. The combined market capitalization is at over 2.4 trillion US dollars at the time of writing!

With such exciting statistics, it’s no wonder that you are here looking for ways to get into this lucrative and fast-growing industry. So, which are some of the best SAAS business ideas you can implement today? Well, read on to get some inspirations and examples that will get you started.

Why Should You Start up a SaaS Company?

Why would you even consider starting a SaaS company? Aren’t there already so many out there? Here are a few reasons that set apart SaaS from any other kind of startup:

Scalability

The main goal of any business out there is to grow and increase profits. But this objective isn’t always easy to achieve. The growth path has many obstacles. For instance, each step has to be calculated carefully to get bigger and more scalable.

For a company to be scalable, it must grow so that as profits go up, expenses go down. For physical businesses, growth means adding more staff and goods. Additional staff and goods increase salary and capital expenses and make it hard for the company to be scalable.

On the other hand, SaaS companies can easily grow their profits as their expenses go down. They only need to find a way to add new users or customers to their existing ones. And since they don’t have to worry about hiring new employees, they can scale much faster than traditional brick-and-mortar businesses.

Low Risk

Starting a business is never an easy task. It takes a lot of effort, planning, and money. However, all these factors are minimized with a SaaS business idea because you do not have to invest anything except your own time and energy. All you need is to create a product and then sell it online.

Easy to Start

Another reason people choose to start up a SaaS company is that it’s easier to start one. You need to launch a website and start selling your products/services. There’s nothing complicated about it.

Easy to maintain

Unlike physical businesses, where you have to deal with many things like inventory management, accounting, and physical customer service, SaaS companies only require maintenance of their software. Everything else is taken care of by the cloud platform itself.

With a SaaS business model, you also don’t have to worry if your inventory runs out. Your customers pay for what they use, and you’ll receive payment once your subscription starts.

Lower costs

One thing that sets SaaS companies apart from physical businesses is lower operating costs. You don’t need to hire anyone to manage your operations with a SaaS business. Instead, you can focus on creating quality content and marketing strategies.

Global access

A physical business requires you to be physically present to run its operations. If something goes wrong, you have to travel to fix it yourself. A SaaS company, however, doesn’t have this physical limitation. It can have customers from any part of the world without traveling to the locations. And if something happens to your server or software, you can contact your hosting provider or developer and ask him to fix it.

More flexible

Since SaaS companies operate online, they’re very flexible. Unlike physical businesses, they can work at any hour of the day and night without having to close their doors. Sales can be made at any time regardless of whether you are awake or asleep.

Less competition

When starting a physical business, you will face stiff competition. Because there are already thousands of stores, restaurants, and services available, you may not stand a chance against such existing brands. On the contrary, when you start a SaaS business, you only need to employ SEO strategies and marketing techniques to obtain customers. If a customer subscribes to any of your plans, you are less likely to lose them to competitors if you offer quality services.

Higher revenue growth rate

The higher number of paying customers you get, the higher your revenue will become. Since SaaS businesses don’t have any limitations regarding the number of customers, they can easily increase their revenue.

Better ROI

In addition to being profitable, SaaS businesses offer a higher return on investment (ROI) than physical businesses. The main reason is that you don’t have to spend money buying expensive equipment and renting office space.

Recurring revenue

Another benefit of running a SaaS business is that it offers recurring revenue. You do not need to invest money into purchasing new items every month. If a customer subscribes to any of your plans, you will be receiving payments after every month or 12 months.

For physical businesses such as electronic shops, once a customer purchases something, they do not need to purchase another item unless it is damaged. Hence, they do not have regular recurring revenues.

Types of SaaS Companies

Before going straight into the ideas, it is vital to know the different types of SaaS companies. They include the following:

SaaS startups

The first type on our listing is SaaS startups. These companies are usually small-scale ventures in their first stages of operation. Two or more people with a usually found them believe that there is demand. These companies have higher starting costs and smaller revenue, so many try to source funding from venture capitalists.

A SaaS startup business also doesn’t have a comprehensive business model. It is mainly funded by the owners and lacks the capital to move to the next phase in the industry.

A good example of a SaaS startup is RoadMate. This company provides payment solutions to employers that help them manage their staffs’ trips and reduce their carbon footprint. Thanks to this startup, employers can now give employees a strict budget for commuting allowances using a RoadMate debit card.

SaaS CRM startups

These types of SaaS companies deal with Customer Relationship Management Software (CRM). CRM is a process many businesses use to manage their relationships with potential clients and existing customers. The platform enables them to build seamless sales processes and grow revenues.

A SaaS CRM startup normally has a ready platform set on the cloud that helps businesses track leads, manage customer interactions, drive sales, and stay organized.

A good example of a SaaS CRM is HubSpot. This platform offers a lot of functions to businesses, such as creating databases, scanning social media, making marketing templates, invoice generating software, and much more.

Micro-SaaS startups

This type of SaaS company deals with micro-services. A micro-service is a code that performs one specific task or a solution targeted to perform particular needs. Such a business often targets a niche market and is run by a small group with small costs, a narrow focus, and a small, dedicated user base. Such a company does not have outside funding.

For instance, under the website development market, a micro-SaaS company can focus on providing a solution to add social media icons by drag and drop without having to code.

Profitable SaaS business ideas

Here is a list of the best SaaS ideas in 2022. Every profitable SaaS idea listed below has the potential of making you a lot of money if implemented well. So, shall we get started?

1. Marketing automation

Marketing automation software is a SaaS that helps your business save time and money by automating repetitive tasks. For example, if you want your customers to receive an email every time they buy a product from you, marketing automation can automatically send out emails for you.

If you need to track different metrics for each of your products, marketing automation will do that for you and allow you to analyze the data collected. It’s a great tool for tracking lead generation, customer engagement, and conversion rates.

Why will it be profitable?

In 2022, marketing automation will be the best profitable SaaS idea in its category because it’s one of the easiest ways for businesses to use analytics to gain insight into their campaigns. Analytics are key for crafting successful campaigns, but it takes a lot of time to gather the data and even more time to figure out what it all means.

With marketing automation software, all of this information is already stored and organized so that you can take advantage of it quickly and easily. Businesses everywhere realize that the best way to stand out from competitors is with innovative campaigns that reach new customers while staying true to your brand identity. Marketing automation allows companies to create campaigns without much hassle.

Which top companies are already in the market?

Currently, many companies are offering SaaS marketing automation packages. These companies vary widely in size, services, and automation level. Top SaaS providers in this category include Marketo, HubSpot, MailChimp, and so forth.

2. Time management

They say time waits for no man, but in 2022, you may be able to change that. As we enter the year, there is a new trend in business management: time management.

It is not a new concept—time management is as old as business itself—but it has become newly important to businesses and individual employees, who need to focus on short-term goals and long-term ones.

And it makes sense: Time is the most limited resource in any business or personal life. If one can get their time organized effectively, they can accomplish anything.

Why will it be profitable?

Let’s face it—the way most people manage their time today is broken. They don’t use the right tools and get distracted by too many things. Time management software is the latest trend that many companies use to help their workers manage time effectively. This software allows you to sync up with your employees’ calendars and plan exactly when work will get done, who will do it, and so on.

If you can create a “Google Calendar on Steroids” that can then set dates for when tasks should be completed, work schedule, and so forth, it will sell. Many companies are even encouraging their workers to work from home; hence, demand for such a tool is high.

Which top companies are already in the market?

Top firms in this industry include Hubstaff, ezClocker, Monday.com, Toggl, etc. All these sites have great tools to monitor in-house or remote employees.

3. Video Rendering

Video rendering is also among the top SaaS app ideas you should consider diving into if you are a developer.

Due to the rapid growth of the video rendering industry and its accompanying software, we predict that cloud-based video rendering SaaS will be the biggest trend in technology in 2022.

Cloud-based video rendering SaaS allows users to store their media files on a server connected to the Internet and then use the cloud to render/edit the video—which means you don’t need expensive hardware or software on your end. It has numerous advantages over traditional setups. It is cheaper, more accessible, and more convenient.

Why will it be profitable?

When you consider that almost 2 billion people have access to the Internet worldwide, it’s easy to see why this is a good idea. Many of these people need to edit videos for TikTok, WhatsApp status, Instagram, YouTube, and so forth.

However, the majority do not have devices that can support resource-intensive programs such as Adobe Illustrator and so forth. Hence, editing their videos online without downloading any software is the best option.

Which top companies are already in the market?

Currently, there are a few cloud-based editing software. The top ones include YouTube Video Editor, Filmora, and FlexClip. All these editors allow you to render videos online without downloading anything.

4. CRM freelancers

The demand for CRM freelancers SaaS (customer relationship management software) continues to grow as more and more companies turn to this software to manage their customer relationships. These systems allow organizations to manage their client relationships in one centralized platform, meaning they can more effectively manage sales leads and customer information.

For many years, though, the only type of CRM tool available was the one that required users to download a computer program onto their hard drive. That meant that the software had to be installed on each computer within the company, making for a lot of work for IT professionals and an overall slow adoption rate among smaller businesses. But in the current era, there is an alternative. Companies no longer need to download anything.

Why will it be profitable?

CRMs are no longer limited to companies that serve only pizza delivery, freelancers, or online retail stores. Now banks and healthcare providers use them too, and organizations from all different industries are using CRMs to improve how they interact with customers. The fact that so many different types of organizations can use this technology makes it one of the most profitable micro SaaS ideas.

Which top companies are already in the market?

Established brands in this niche include Hectic, Clientjoy, and Bonsai. These companies have diverse features tailored to reduce the time you take for customers to make payments, sign up, receive an invoice, and do many other tasks.

5. Workforce management

Effective workforce management is the best way to make your company successful in 2022 is effective workforce management. Real-time employee management can be the difference in success or failure for your company. The only way to be sure you’re managing your workforce effectively and making the right decisions is to have all the information.

But that’s a lot of data and work. Also, you cannot be at every corner of your office to monitor your workers. If they work at home, you can’t visit their homes for assessment. So, how do you manage them?

The answer is a Workforce Management solution that makes sure you can get all the employee data you need in real-time. The solution can do countless other tasks like payroll processing, talent management, time management, and labor management.

Why will it be profitable?

Workforce management SaaS has completely taken over the workforce management industry. It’s not just a fad, it’s the standard, and it’s here to stay.

The number of companies using Workforce management software is skyrocketing, with more and more businesses switching to this new system in the past decade alone.

Those who haven’t switched are at a severe disadvantage: with increasing pressure for companies to be more productive and innovative, those who have adopted this new system are reaping the benefits of increased employee productivity and creativity, as well as increased profits.

Which top companies are already in the market?

Top SaaS companies in this niche include Paylocity, ADP Workforce Now, and Bamboo HR. These tools simplify the work of HR managers and help them get timely reports about their employees and many other things.

6. Tele-healthcare

Tele-Healthcare is also among the best micro SaaS ideas in 2022. It is arguably the best thing ever invented after sliced bread.

This idea is all about delivering medical care through on-demand video calls or chats instead of in person. This SaaS saves money for everyone involved and provides quicker treatment for patients who can’t make it to a doctor’s office or don’t have one available to them.

Whether it’s because you’re stuck in a snowstorm, your nanny is out sick, or you have a simple cold and don’t want to miss work, telehealthcare is an absolute game-changer for consumers in this decade.

Why will it be profitable?

Telehealthcare is a hot trend these days, and for a good reason. The healthcare industry is on the move—and experts predict that telemedicine software solutions will be the most popular in 2022.

With today’s economy, people are looking for cheaper options to traditional healthcare. Then, it makes sense that the healthcare industry itself is looking for ways to cut costs and become more efficient.

What’s more, if you are a doctor or a nurse, all you need is to start a website and use your expertise to earn money. It is simple to start and doesn’t have many risks involved.

Which top companies are already in the market?

Top solutions in this industry include Mend, Doxy Me, AMC Health, and swyMed. All these platforms offer support to patients online without necessarily visiting the hospital. Visitation is only required for cases that need an advanced diagnosis.

7. Corporate communication

Corporate communication is among the best SaaS ideas for developers willing to build and manage their platforms. If you can code and create flawless communication portals on the cloud, you should consider implementing this idea.

Corporations have looked for ways to streamline their communication systems for some time now, and many are turning to Corporate Communication SaaS. It’s a service that allows companies to communicate more easily and with fewer errors, saving time, money, and headaches in the long run.

Why will it be profitable?

It is easy to assume that Corporate Communication platforms are just for large corporations, but if you consider the number of small businesses that have come into existence over the past few years thanks to SaaS, it becomes clear that this is a market ripe for growth.

Businesses no longer have to spend time and money building and maintaining their infrastructure; instead, they can focus on their core products or services and leave everything else to a provider.

The same is true of corporate communication software – no longer do businesses need to worry about how they will host their communication platforms or keep up with growing demand. Instead, they can focus their time and resources on creating the best possible communication platform for their company. If you can create such a SaaS, then it will be profitable.

Which top companies are already in the market?

If you venture into this field, you will have Nextiva, Slack, Guru, Hiver, Zoom, Loom, CloudApp, Zendesk, and many other brands as your competitors. These brands have revolutionized how people communicate and collaborate.

8. Social media marketing

With the overwhelming success of social media marketing in the 21st century—and the continued domination of social media giants like Instagram, Twitter, and Facebook—it’s no wonder that so many companies are flocking to invest in a social media marketing SaaS (software-as-a-service). These services offer a myriad of tools to help businesses make their mark on the world using advertising and online exposure. And their popularity is only growing.

Why will it be profitable?

Social media marketing has always been a huge focus of marketers and businesses, but it wasn’t until recently that the idea of outsourcing this work came to light. What used to be something businesses did in-house is now being done by SaaS companies specializing in social media marketing.

When businesses hire SaaS companies to manage their accounts, they will have more time and money to focus on running business, advertisements, and building relationships with their customers. They do not need to worry about simple tasks that SaaS can automate. These are some of the reasons why many companies will be in need of Social Media automation tools in 2022.

Which top companies are already in the market?

Top solutions here include Avista Advantage, Anonymous Content, Later, Buffer, Zoo Digital, Crowdfire, etc. These tools have grown in popularity due to their features specifically built to raise awareness and run social media accounts smoothly.

9. Property management

Property management is a pain for everyone involved. Property managers have to deal with the hassle of managing multiple tenants, collecting rent payments and processing deposits, sending out monthly statements, and keeping track of maintenance requests. Tenants have to deal with the fact that their complaints about the property manager will go unanswered and many other problems.

I could go on and on about how broken housing management is, but I won’t bore you with that. Well, Property Management SaaS is the new way to keep tabs on your rental properties.

Why will it be profitable?

Previously, managing property was a nightmare. Managers had to hire a room full of people to enter the office, input data for all the properties and their maintenance records, and then process everything through their systems. The work was repetitive and rote, which led to a high turnover rate and many errors. It was terrible.

The advent of Property management SaaS promises to make this entire process easier, cheaper, and more accurate. If you can build an amazing platform that is going to make everything run so much more smoothly as well as cost-effectively – you will be swimming in profits!

Which top companies are already in the market?

The top solutions in this industry include Buildium, TurboTenant, AppFolio, SimplyEM, Yardi Breeze, etc. Each solution is built to address specific problems and make property management much easier.

10. Content planner

Content planning software allows users to plan and track their existing content more effectively with an online tool that helps them find and curate content for their site.

Marketers and bloggers can use their software to make sure all their content is consistent and on-brand without relying on contractors to do it for them. The software might also track how your content performs so you can see what’s working and what isn’t, helping you optimize your website or blog in the process.

Why will it be profitable?

Not long ago, content marketing was a fairly straightforward practice. Every November, you’d think about what you wanted your content to be for the next year, and you’d map out which topics were going to be tackled when on a paper or document. You’d outline how many blog posts you wanted to write each month, and you’d make sure you had a good mix of visuals and text. In short, you made a plan of what topics would be covered, how often they would be covered, and what form they would take.

But now? Now it’s different. For one thing, there are more websites than ever. Ranking on Google’s first page is a challenge. Hence, serious bloggers and companies need solutions to plan their content without much paperwork.

The majority of the 1.9 billion websites in the world need content. Serious social media users also need consistent posts on their pages. If you can have a content planning solution in 2022, the odds of succeeding are more.

Which top companies are already in the market?

Top content planners include Loomly, ContentCal, MarketMuse, Trello, among many others. These tools are packed with features that enable the user to track the performance of their content on their websites and social media accounts.

How to outdo your top brands

So you’ve got your idea from this guide, and you’re ready to go—but now a question looms: How do you reach your audience? And more importantly, how do your potential customers find you? As a beginner, you may be at a disadvantage compared to the large, established brands in your industry. Well, here is how you can compete with the big boys in your area of specialization:

• You need content: This is where blogging and social media come into play: You can create a brand identity and create buzz around your brand by creating an engaging presence on Facebook, Twitter, Instagram, Google, and other search engines/social media platforms.
• Identify their market: Who are they trying to sell to? What are their customers like? Where do they come from? Find as much information about their clients as you can because you’ll need to cater your product to them.
• Underscore your strengths: What does your company have that theirs doesn’t? What can you do that they cannot? How can you exploit your advantages to make them shine through in your marketing?
• Emphasize your differences: Don’t try to hide from being compared to competitors—instead, highlight differences. Your product may be different in crucial ways, and people will be more likely to buy it if you actively clarify those differences.
• Play up major benefits: Make sure every piece of content you release highlights a major benefit of your product. This way, people will know what is so great about it, and why they should buy it right away.

Frequently Asked Questions

1. How do I start my own SaaS company?

Let’s be honest: not everyone is cut out to start their own business. And that’s okay! It’s understandable. Some people don’t even know how to turn on a computer – and they’re still alive and well. And sadly, some people who have tried to start their businesses have failed to make it work.

But this doesn’t mean that you can’t get into the SaaS game if you’re looking for a new career path. All you need to do is market research, build a great product, get a reliable cloud hosting platform, have a team of awesome people, and you are good to go.

2. Does SaaS require coding skills?

Yes and No. If you have the money to hire a serious developer, you do not need any coding skills. If you don’t have the money, then coding the platform for yourself will save you a lot of expenses and capital.

3. Is SaaS really profitable?

The answer, of course, depends on what you mean by “really profitable.”

If you were to ask most SaaS founders and salespeople, they’d tell you that SaaS is the most profitable model for software companies. This isn’t just because SaaS is easier to onboard customers—it’s also because SaaS companies don’t have to worry about purchasing capital equipment or maintaining it.

4. Why do most SaaS companies fail

The reason for failure is simple: the value of their product isn’t realized by the user. The user doesn’t know how to use the product, it’s too complicated, or they aren’t incentivized to use it.

Some fail due to adopting traditional methods of marketing. We are in a new world where methods such as word of mouth, posters, and so forth no longer work.

Final Thoughts

With all the advancements in SaaS technology, it’s hard to know where to start. There are also many new products, which makes it difficult to decide which ones will make you the most money. The increase of SaaS companies over the past few years makes it even harder to find a less competitive niche.

Hopefully, the above top ten SaaS business Ideas have taken the guesswork you had. All you need to do now is choose the best idea that captures your interests. Implementing it will need a lot of hard work and research.