Protect yourself from downtimes with SLA

Think back to the last time your internet went down.

You remember that sinking feeling? Watching the clock tick as productivity, time, and money slipped away.

Now, imagine that happening with a SaaS platform your business relies on daily.

It’s not just frustrating, it’s costly. And in today’s fast-paced world, even a small disruption can derail weeks of work. This is where Service Level Agreements (SLAs) come into play.

There's 1 Reason I Love SLA

When I first started MTLegal Team, time management was one of my biggest struggles. In fact, last week was another reminder of how hard it can be to juggle everything.

Between finalizing a fundraising guide for Indian startups and keeping up with consultation calls, every minute counted.

For SaaS founders, it’s no different. You rely on your platforms. Whether it’s a CRM, project management tool, or customer support system.

But what happens when they don’t deliver? Let’s say your CRM platform promises 99.9% uptime.

That’s fantastic - until the day the platform goes down for hours, and suddenly, you can’t reach your customers or track sales.

Without a solid SLA in place, you’re stuck dealing with downtime, losses, and a whole lot of frustration.

What an SLA Really Does for You

The truth is, SLAs aren’t just about uptime. They do a lot more for you and your business. SLAs cover:

1) Error response times: How quickly the provider will resolve critical issues.

2) Service performance: Guarantees around speed, reliability, and efficiency.

3) Financial accountability: If the provider fails to meet their commitments, they face consequences—like refunding a portion of your service fees or allowing you to terminate the contract.

I see founders all the time who get burned because they didn’t focus on these details upfront.

When we were first building our firm, I was guilty of this too. I was so focused on growth that I overlooked the legal safety nets I needed in place.

But after seeing what happens when contracts go wrong, I’ve made it a mission to help other founders avoid the same mistakes.

How to Make Sure Your SLA Is Ironclad

When I work with SaaS founders today, we always review the SLA carefully. It’s not enough to assume the provider has you covered.

You have to be proactive. This ties into something I’ve been reflecting on recently: consistency.

Success isn’t built overnight. It comes from showing up every day, handling the details, and building a strong foundation for your business.

Here’s what I recommend you look for in an SLA:

1) Uptime Guarantees: If your provider is promising 99.9% uptime, make sure they have financial consequences if they fall short. Without this, that promise is meaningless.

2) Response Times: If something breaks, how long will it take for the provider to fix it? Make sure these timelines are written into the SLA so you aren’t left in limbo.

3) Performance Benchmarks: This isn’t just about being online. The platform needs to perform at the speed and efficiency you need to run your business.

4) Financial Remedies: What happens if they don’t meet the SLA? Refunds? Service credits? The ability to walk away? These need to be clearly stated in the agreement.

The Real Impact of a Strong SLA

Let’s put this into perspective.

If your SaaS platform goes down for a full day, it’s not just downtime - it’s lost revenue, potential customer dissatisfaction, and a hit to your reputation.

And as someone who has spent years building my own business, I know how devastating it can be to lose the trust you’ve worked so hard to earn.

Having a solid SLA in place changes everything. It’s a safety net that protects you when things don’t go as planned.

And while I’m focused on publishing my Fundraising Guide for Indian startups this week...

I’m reminded that no guide or platform can truly help you unless you’ve laid the legal groundwork to protect what you’re building.

Final Thoughts

SLAs should never be treated as legal jargon or a random piece of document that gets signed.

They’re the difference between watching your business spiral during an outage and holding your provider accountable.

Just like I’ve learned with time management and consistency, preparation is key.

Whether it’s ensuring uptime, performance, or error handling, an ironclad SLA means you’re not left scrambling when things go wrong.

Because in the world of SaaS, it’s not about if there’s a problem, it’s about WHEN. And when it happens, you need to be ready.

So, next time you’re reviewing a contract, don’t skim over the SLA. Get it in writing. Make sure it’s airtight. Your business depends on it.

If you need my help with it, I am just a reply away. You can hit me up on this email or on my LinkedIn or Twitter.

Talk to you soon.