Start a SaaS vs Productized Service?

Brian Casel here, answering another reader's question. You can join my free newsletter and reply with your questions by subscribing at https://productizeandscale.com.

Kyle asked: "What has your experience / lessons been between starting a SaaS product vs A Productised Service? Can you do both at the same time?"

Each has it's pros and challenges (not cons).

SaaS Pros:

- More scalable long-term (exponentially scalable)
- More valuable asset
- Potentially smaller team size

SaaS Challenges:

- A lot harder to identify a value proposition (selling a tool, not a done-for-you)
- Requires a much longer runway
- Requires a wide range of technical skills

Productized Service Pros:

- Easier/faster to launch
- Done-for-you is an easier value proposition
- Shorter runway required (can grow revenue and profit much faster)

Productized Service Challenges:

- Customer growth requires team growth
- Dramatic swings in revenue
- Requires a lot more emphasis on processes (I like this challenge, and its why I created ProcessKit).

Bottom line:

I see Productized Services as "the path of least resistance" to transitioning to your first "big" business. If software is something you want to do, that's a good next step after productized service, but it's certainly not without its challenges.

Видео Start a SaaS vs Productized Service? канала Brian Casel