How Non-Technical Entrepreneurs Can Gain Credibility by Writing Code and the Importance of User Engagement in SaaS

How Non-Technical Entrepreneurs Can Gain Credibility by Writing Code and the Importance of User Engagement in SaaS

Starting a business as a non-technical entrepreneur can be challenging, especially when it comes to attracting talented engineers to join your team. While there are various methods to accomplish this, one effective approach is for entrepreneurs to learn coding themselves and create a prototype. By doing so, they not only demonstrate their commitment to their vision but also gain a deeper understanding of the technical aspects of their product.

Learning to code may seem daunting for those without any programming experience, but it can be a valuable investment of time and effort. Take the example of Mr. Shibayama, who participated in a five-week programming bootcamp to learn the basics of coding. He worked on creating a prototype that he could proudly showcase to potential engineers, which significantly increased their interest in his project. The ability to present a functional prototype not only demonstrates seriousness but also allows for more productive discussions with engineers.

Taking the initiative to learn coding has multiple benefits. Firstly, it showcases the entrepreneur's level of commitment and determination to bring their ideas to life. By going as far as developing a prototype, entrepreneurs prove that they are willing to put in the work to make their vision a reality. This level of dedication is likely to resonate with investors and venture capitalists who want to support individuals who are willing to go the extra mile.

Secondly, learning coding provides entrepreneurs with insights and knowledge that can be valuable in collaborating with engineers. Understanding algorithms, data management, UI/UX design, and development tools and processes enables entrepreneurs to communicate effectively with their technical team. It allows for a more efficient exchange of ideas and minimizes misunderstandings between the business and technical sides of the venture.

Moreover, the ability to write code empowers non-technical entrepreneurs to iterate and experiment with their product independently. Instead of relying solely on engineers, they can make small adjustments and improvements to the prototype, which can save time and resources. This hands-on approach not only fosters a deeper understanding of the product but also encourages a culture of continuous improvement within the team.

In the realm of Software as a Service (SaaS), user engagement is a critical metric for success. Daily Active Users (DAU) and Monthly Active Users (MAU) are commonly used to measure the level of user involvement with an app or platform. DAU represents the number of unique users who interact with the app on a given day, while MAU refers to the number of people who engage with the app in the past month.

The ratio of DAU to MAU, commonly known as stickiness, is a key indicator of the app's ability to retain and engage users. A higher ratio suggests that users are consistently returning to the app, indicating a high level of stickiness. On the other hand, a lower ratio may indicate that users are not finding value in the app or are not engaged enough to use it frequently.

For SaaS companies, the average DAU/MAU ratio falls between 10-20%. This range is considered healthy and indicates that a significant portion of users are returning to the app regularly. However, the ideal ratio can vary depending on factors such as the nature of the app and whether it is free or paid.

To improve the DAU/MAU ratio, entrepreneurs must focus on enhancing user engagement. This can be achieved through various strategies such as implementing personalized onboarding processes, providing valuable and relevant content, and continuously improving the user experience. By prioritizing user engagement, entrepreneurs can increase the stickiness of their app and build a loyal customer base.

In conclusion, non-technical entrepreneurs can gain credibility and attract talented engineers by taking the initiative to learn coding and creating a functional prototype. This not only demonstrates commitment but also fosters better collaboration and understanding between the business and technical sides of the venture. Additionally, in the SaaS industry, user engagement plays a crucial role in the success of an app or platform. By focusing on improving the DAU/MAU ratio, entrepreneurs can increase user stickiness and build a thriving user community.

Actionable Advice:

1. Embrace the challenge of learning to code: By investing time and effort in learning the basics of coding, non-technical entrepreneurs can gain valuable skills and demonstrate their commitment to their vision.
2. Develop a prototype: Creating a functional prototype not only showcases seriousness but also allows for more productive discussions with engineers and potential investors.
3. Prioritize user engagement: To improve the DAU/MAU ratio, entrepreneurs should focus on enhancing user engagement through personalized onboarding, valuable content, and continuous improvement of the user experience.