To survive in the 21st century, your business must keep up with the latest technology.
But to really thrive in this modern world, your business must not only keep up — it must take the lead in integrating technology into its entire business model.
All large and small businesses want two things: 1) to create recurring streams of revenue and 2) to take advantage of the latest developments in Internet and mobile technology.
With a software as a service (SaaS) product, you can do both. And, if you act now, you can lead your field in implementing it. There’s no better way to leverage your expertise, experience and intellectual property.
With a SaaS Product, You’ll Be Several Steps Ahead of Your Competitors
With a SaaS product, you can deliver the cutting-edge online and mobile services that your customers demand 24/7. In fact, if you don’t act now to convert your existing intellectual property and tools into software, your competitors might just beat you to it.
Software subscription services (think Netflix and Amazon Prime) have already transformed the business world. That’s because these services create recurring streams of income that ‘feed a business for life’, as Forbes’ Krzysztof ‘Kris’ Garlewicz puts it.
- Physicians, for example, can convert their knowledge and accessibility into a self-diagnostic tool for their patients. Patients could enter their symptoms into the software and see if their problem can wait, if they need to talk with the provider, or if they need to head to hospital for emergency care.
- Musicians could create online video lesson software their students could subscribe to for extra between-lesson tweaks. Or they could create an entirely online music lesson platform for remote students—even overseas subscribers.
- TV repair shops could create self-diagnostic software similar to the physician’s, but with some troubleshooting steps that could help TV owners do some minor repairs themselves.
And so on. The sky’s the limit when it comes to software as a service to help businesses thrive.
Enjoy Benefits Over and Above Subscription Fee Income
The benefits of your own customised SaaS don’t end with simple subscriptions. Even if you offer the service for free, the benefits are immense.
Having bespoke software for your patients, customers, and clients speaks to your knowledge of and your authority in your field. It will give your business a tremendous advantage over your competitors—even if it’s not a runaway success at the beginning.
‘But, there’s one small problem’, you say. ‘We don’t have a single tech person on our staff. After all, I’m a physician/musician/TV repair shop, not a developer’.
No Tech Whiz on Staff?
Good news. You don’t have to be a technological whiz to offer SaaS to your customers and potential customers. There are great software development companies out there who can create software and apps to deliver those needed services to your customers. We are one of them!
Even Better News — Developing a SaaS Product Will Qualify You for the R&D Tax Incentive
Even better news: Your business can take advantage of Australia’s research and development (R&D) tax incentive to create your software and apps. All the money you put into developing your custom software, therefore, can net you a hefty tax break. However, there’s a caveat.
Make Sure You Read the Fine Print
There’s one big catch with the Government’s R&D incentive program. Not only do you need to hire an Australian software development company, but that company must do all of your software’s development inside the Australian border.
That means that you’ll need to do some research when you hire. Offshore development companies are out. But so are Australian companies who outsource their development to offshore developers.
If you hire an Australian development company that outsources your app to an offshore freelancer, you could be in for a nasty surprise. According to the Australian Government, software development companies must meet one of the following criteria to qualify for the tax incentive:
- Incorporated under Australian laws
- Incorporated under a foreign country’s laws but meets Australian residency requirements for income
- Incorporated under a foreign country’s laws and a resident of a country that has a double tax agreement with Australia
That’s just the company itself. Where the company creates and develops the software, too, is a critical component of following the law. As Zegal, a legal software company, points out, ‘Even if an Australian company hires the developer and they are an AUS resident for tax purposes, it would still be considered overseas R & D if they happened to be overseas at the time that they created it’.
Unfortunately, penalties for crossing these legal lines can run in the millions. Don’t risk losing everything you’ve worked so hard to gain to save a few dollars on cheap outsourced developers.
Do Your Research
Yes, you should open your business to global markets, diversify your income, and increase your revenue through customised software applications. But do your research—and hire a development company who does everything inside Australia to make sure you won’t run afoul of the law.
To discover more about the advantages of SaaS productisation for your business and take your business to the next level, contact the software development team at NinjaDojo Software today. We can help you turn your great ideas into great software products.