Key Takeaways:
- 70% of SaaS startups fail in five years due to unclear market need and poor user feedback.
- Designli uses frameworks like MoSCoW and the Eisenhower Matrix to focus on what matters and avoid wasting resources.
- Validate your app idea early by defining the problem, gathering insights, and testing with an MVP.
By 2024, nearly 70% of SaaS startups failed within their first five years, with many shutting down before their second year, according to data from SaaSy Brands.
Here’s why so many don’t make it:
Why Do SaaS Startups Fail?
- No clear market need
- Churn kills growth
- Funding runs dry
- Too much competition
- Weak product-market fit
As Designli puts it, one of the most common missteps is building features just because they “sound cool.” Teams also tend to skip real user feedback, overlook the competition, or build too much too soon.
Without a solid strategy behind development, even the most promising ideas lose momentum fast.
Editor’s Note: This is a sponsored article created in partnership with Designli.
That’s why successful SaaS teams move beyond assumptions and focus on what users need. In this space, building the right thing matters more than building everything.
“When everything feels important, it’s tough to decide what to build next,” Keith Shields, Designli’s CEO, said.
For Shields and his team, the product design process kicks off with product owners because they understand the clients, users, and what really matters.
“They gather feedback from every direction and dig deep into the real needs behind every request,” he explained.
This clarity guides Designli’s process. The team starts with validation long before a single feature is designed to ensure a product is worth building.
12 Steps to Validate Your Idea
Validating your app idea early on helps avoid wasting time and money on something that might not work.
Designli breaks down 12 essential steps to validate your app idea and make sure it’s worth pursuing:
- Define the problem your app will solve, ensuring it addresses a real need.
- Estimate the size of your target market using tools like Google Ad Planner and social media groups.
- Listen to your audience by exploring forums, conducting interviews, and reading app reviews.
- Stay updated on trends by browsing the App Store and Google Play to see what’s gaining traction.
- Analyze competitors by looking at their features, user feedback, and market presence.
- Engage with your target audience early to validate assumptions and gather feedback.
- Map the customer journey by identifying how users will discover, use, and benefit from your app.
- Get expert feedback to refine your app concept and strategy.
- Secure initial funding from investors, crowdfunding, or personal networks.
- Build a Minimum Viable Product (MVP) to test core features and gather real user feedback.
- Launch a “Coming Soon” page to gauge interest and build an early email list.
- Turn your insights into action by setting benchmarks and preparing for the next steps.
But this is just the start. Designli suggests combining experience, data, and a prioritization framework to decide what gets built first.
Why? Because it keeps the team focused despite the overall urgency.
Add client priorities and technical constraints, and product owners can create a realistic roadmap that focuses on what matters, instead of just a wishlist.
Two frameworks can help with this: The MoSCoW Method and the Eisenhower Matrix.
The MoSCoW Method breaks features into:
- Must-haves: Critical to functionality
- Should-haves: Important but not urgent
- Could-haves: Nice-to-have extras
- Won’t-haves: Not worth tackling right now
The Eisenhower Matrix sorts tasks by:
- Urgent and important: Needs immediate attention
- Important, not urgent: Strategic but not time-sensitive
- Urgent, not important: Feels pressing but isn’t impactful
- Neither: Probably not worth doing
When used together, these frameworks can help product owners decide what’s worth building and what isn’t, before time and budget get wasted.
Every strong app starts with clear priorities and real-world validation.
Get those right, and you’re already ahead of most who don’t make it past year two — especially when programs like Designli’s Impact Week help founders prioritize effectively and avoid the typical mistakes that lead to failure.
