Why Starting an Agency Trumps Launching a SaaS in 2024

In the bustling world of tech startups, there’s a siren call that lures many aspiring entrepreneurs: the dream of building the next big SaaS (Software as a Service) company. But what if I told you there’s a smarter, more pragmatic path to success? Let’s dive into why starting an agency might just be your golden ticket in 2024.

The Agency Advantage: Quick Revenue and Real-World Skills

When you’re just starting out, cash is king. Here’s why agencies have the upper hand:

1. Faster Revenue Generation: Agencies can start billing clients almost immediately, often at much higher rates than a SaaS subscription.
2. Lower Initial Investment: You don’t need to build a complex product before you can start selling.
3. Valuable Business Skills: Running an agency teaches you client management, team leadership, and project execution — skills that are crucial for any business venture.

The SaaS Struggle: A Tough Road for First-Timers

Starting a SaaS as your first business venture can be like trying to run before you can walk:

• High Development Costs: Building a robust SaaS product requires significant time and money.
• Longer Time to Market: It can take months or even years before you have a viable product.
• Fierce Competition: The SaaS market is saturated, making it hard to stand out.

Why Agencies Win in the Short and Long Run

1. Immediate Cash Flow: Start earning while you learn the ropes of business.
2. Client Insights: Direct interaction with clients helps you understand market needs better.
3. Flexibility: Pivot your services based on market demand without overhauling an entire product.
4. Stepping Stone: Use agency profits to fund your SaaS dreams later.

The Mindset Shift: Profit-First vs. Growth-at-All-Costs

Running an agency instills a crucial mindset:

“Every dollar spent is a dollar earned from a client.”

This profit-first mentality is often lost in the SaaS world, where burning through investor cash is the norm. Agency owners learn to:

• Be resourceful with limited funds
• Focus on profitability from day one
• Make decisions based on real market feedback

Building Your Business Toolkit

Starting an agency helps you develop:

• Client acquisition skills
• Project management expertise
• Team leadership abilities
• Financial management acumen

These skills are transferable to any business model, including SaaS, when you’re ready to make that leap.

The Smart Path Forward

1. Start with a simple, well-defined agency service.
2. Focus on delivering value and building client relationships.
3. Learn the fundamentals of running a profitable business.
4. Use your agency profits and experience to launch your SaaS when you’re ready.

Conclusion: The Best of Both Worlds

Starting an agency doesn’t mean giving up on your SaaS dreams. Instead, it’s about taking a smarter, more calculated approach to entrepreneurship. You’ll gain invaluable experience, build a network, and generate the capital needed to fund your future ventures.

Ready to get started? Consider using Make.com to streamline your agency workflows. It’s free to start, and can significantly boost your productivity. And if you need help setting things up, don’t hesitate to reach out to Alacran Labs for expert guidance.

Remember, in the world of business, the tortoise often beats the hare. Start your agency journey today, and who knows? Your SaaS might just be the next chapter in your success story.