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People told me to turn my business idea into a SaaS, but does this model fit how I sell?

GGökhan D***Member
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System administrator
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Retail
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300-person organization
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Dec 2024
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5
#1

we built an order tracking and recipe formulation software for textile and contract manufacturing workshops in Bursa. we designed the system as a licensed on-prem package installed on desktops or a local server. our plan was to charge a one-time license fee of 70,000 TL per workshop, plus 12,000 TL annually for maintenance.

last week, two investors and a developer friend we spoke with told us the license-sales era is completely dead and btw they claim we absolutely must reframe the software as a SaaS tool and sell it via monthly subscriptions.

i get the basic concept, but what is a saas tool really, and what are the actual pros and cons for us in practice? my clients are traditional shops operating out of industrial parks with spotty internet infrastructure and they prefer keeping their data on their own iron but i feel like they arent ready to pay a 1,500 or 2,000 TL monthly subscription. anyway is switching from a one-off sale to a cloud subscription genuinely the right move at our scale?

RRecep S***MemberCommunity member
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342
Most Helpful#2

Short answer: A SaaS tool is a service model where software runs on centralized cloud infrastructure, accessible through a browser without local installation, while the client pays a monthly or annual subscription for as long as they use it. That said, not every software type or target audience fits this model; forcing SaaS onto a traditional customer base with weak connectivity who insists on on-prem data storage could kill your sales completely.

You need to weigh three key criteria before deciding: 1) Cash flow and runway: Instead of a one-time 70,000 TL license fee, charging a 2,000 TL monthly subscription means it will take nearly three years to collect the same cash from a single customer. If you lack the capital to fund servers, operations, and dev work out of pocket for the first two years, cash starvation will stall the company. 2) Operational overhead: With a license, server management and data security are the customer's problem. Once you build a SaaS tool, 24/7 uptime, database backups, and security vulnerabilities become entirely your responsibility.

3) Customer habits: Textile shop owners usually hate dealing with recurring monthly credit card charges or constant invoicing; they prefer paying a lump sum from their budget to own the tool outright. The upside of SaaS, though, is providing predictable recurring revenue and a vastly higher company valuation over the long haul.

My advice is not to scrap your current architecture right away. Keep selling the core engine as an on-prem license, but offer a mobile reporting dashboard—where owners can track production from their phones—as a lightweight SaaS tool for an add-on fee of 300-500 TL a month to test market appetite.

MMerveMember
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Operations manager
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cooperative
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Mar 2024
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118
#3

Don't go redesigning a working system just because investors hyped you up. Close your first 10 clients at the planned 70,000 TL license price. Get real cash flowing in, test the software out in the field. You can always fund the shift to a SaaS backend using that internally generated capital.

KKoray C***MemberCommunity member
Joined
Oct 2022
Message
180
#4

Investors push SaaS because it serves their own interests: recurring revenue brings higher valuation multiples, making the business much easier to flip. But when the internet cuts out and the workshop grinds to a halt, that investor won't be out in the field dealing with an angry manufacturing owner—you will.

HHilal B***ExpertCommunity member
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Feb 2026
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66
#5

In a similar industry, we switched from a one-time license of 45.000 TL to a monthly subscription of 1.200 TL. We hit a massive cash flow crunch for the first 9 months, because instead of pulling in 450.000 TL from 10 clients, we were only getting 12.000 TL a month. It took us a solid 15 months to recover and turn a profit.

HHakan A***Member
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Software team lead
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Catering
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20-person company
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Oct 2023
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#6

Turning an architecture built for desktop into a multi-tenant cloud SaaS tool essentially means rewriting the codebase from scratch. Issues like database isolation, data security, and server redundancy require serious technical engineering effort.

NNazlı A***Member
Job title
Clinic manager
Sector
Machinery manufacturing
Organization type
medium-sized business
Joined
Dec 2023
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353
#7

our accountants were also against the cloud at first but once two machines died and the data was wiped they realized its worth. bosses get used to monthly payments too as long as they can see everything from their phone even if the computer crashes.

HHüseyin T***Veteran
Job title
Clinic manager
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Food wholesale
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early-stage startup
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Jun 2024
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378
#8

Clarify these three questions before making the switch: 1) How many minutes of internet downtime can your client tolerate? 2) Does your company have enough runway to subsidize the low cash flow for the first 12 months? 3) Does your software require frequent updates and constant live support?

DDilara U***Member
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Store associate
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Energy
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8-person team
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15
#9

i know contract manufacturers well; they get furious when money gets charged to their card at the beginning of the month. btw consider SaaS only if you can bill an annual subscription and collect upfront, otherwise you'll be too busy chasing payments eveyr month to write any code.

İİbrahim T***ExpertCommunity member
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Mar 2025
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22
#10

Looking at it as a process, the picture changes. Calculate how many months you can survive without revenue, then halve that number.

Proven by experience.

MMurat K***Member
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Human Resources Manager
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Doki · Brand identity · 2023

#11

grat work.

GGürkan B***Member
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Business Owner
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Glass
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300-person organization
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106

Doki · Backup setup · 2024

#12

We need to take it step by step. Measure first, then divide. When the order is right, the debate ends.

I'm also curious if anyone does it differently.

NNuri E***Expert
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General coordinator
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Leather
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regional distributor
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#13

Same here. Don't hesitate to ask; those who don't ask always pay more.

I'm also curious if anyone does it differently.

EElif P***New member
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Quality control inspector
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Energy
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a company within a holding
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Jul 2026
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130
#14

My questions are cleared up, thanks. If it's your first time, start small; scaling comes later.

If you post the result here, it will help others too.

NNeşeNew member
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Hair salon
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Oct 2024
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21
#15

Let me summarize what's been said so far... anyway the harder it is to reverse a decision the slower you should make it.

Just leaving this note, it might be useful.

İİlker Y***Expert
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Intern
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Packaging
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cooperative
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#16

My questions are cleared up, thanks. Splitting your budget without knowing where you're losing users is just throwing money in the dark.

I'm also curious if anyone does it differently.

TTanerMember
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Construction company
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Oct 2023
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68
#17

You're right, I've been down that road too. Processes without records never improve, because you don't know what to fix.

İİlknur E***Member
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Social media manager
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Leather
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workshop
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Jul 2023
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228
#18

I have no experience with what is a saas tool, so I'm asking. If it's your first time, start small; scaling comes later.

Hope this helps.

SSultanExpert
Job title
Textile exporter
Organization type
two-branch business
Joined
Sep 2023
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148
#19

I'm a small business, let me explain from my side. The real issue isn't the number, but what it's based on.

A two-week notebook guides you more than a six-month forecast. Of course, it varies if your situation is different.

EEmre K***Member
Job title
Project manager
Sector
Software
Organization type
workshop
Joined
Nov 2023
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1
#20

If you're going this route, sort this out first. When making a decision first look at what data you have on hand.

This is my opinion, I'm not claiming it's absolute truth.

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