Here's a proven way to find a micro-SaaS idea that will generate 1-3lac/mo in recurring income for you.
A thread🧵👇
A thread🧵👇
But firstly, what is a micro-SaaS?
micro-SaaS is software which 1-2 people can build to solve a problem of a niche set of users who pay them a monthly recurring subscription to use the software.
The goal is 1-3 lacs MRR.
The smaller the niche, the lesser the competition.
micro-SaaS is software which 1-2 people can build to solve a problem of a niche set of users who pay them a monthly recurring subscription to use the software.
The goal is 1-3 lacs MRR.
The smaller the niche, the lesser the competition.
3 simple steps to find your micro-SaaS idea-
1. Find a market that already pays for a BASIC software that solves their problem.
2. Join forums/groups they hang out on and be friends with a few of your potential customers.
3. Identify a problem and build a basic solution.
1. Find a market that already pays for a BASIC software that solves their problem.
2. Join forums/groups they hang out on and be friends with a few of your potential customers.
3. Identify a problem and build a basic solution.
Now, let us understand the 3 steps in detail.
Most people will choose the wrong market.
The three most chosen WRONG markets are-
1. Friends/family.
2. Early Stage Startups/Solo-entrepreneurs.
3. Nerds/Tech-geeks.
Most people will choose the wrong market.
The three most chosen WRONG markets are-
1. Friends/family.
2. Early Stage Startups/Solo-entrepreneurs.
3. Nerds/Tech-geeks.
Why are these markets wrong for building your micro-SaaS?
It's one of 3 reasons-
1. They'll never say what you're working on is not worth it, and will give you false positives.
2. They don't have the money to pay for the solution.
3. They'll prefer building it on their own.
It's one of 3 reasons-
1. They'll never say what you're working on is not worth it, and will give you false positives.
2. They don't have the money to pay for the solution.
3. They'll prefer building it on their own.
What are the best markets to build your micro-SaaS for?
1. SMBs of all niches - restaurants, real estate, education, etc.
2. Marketplaces in which users already have a habit to pay for software. - Salesforce, Chrome, Shopify etc.
3. Communities of good net worth individuals.
1. SMBs of all niches - restaurants, real estate, education, etc.
2. Marketplaces in which users already have a habit to pay for software. - Salesforce, Chrome, Shopify etc.
3. Communities of good net worth individuals.
Why SMBs and not Enterprise?
1. SMBs are okay with BASIC software which 2 people can build on the idea.
2. No long approval and sales cycles required and lesser data/privacy concerns.
3. SMB market in itself is huge. I doubt if anyone has correctly estimated it's size.
1. SMBs are okay with BASIC software which 2 people can build on the idea.
2. No long approval and sales cycles required and lesser data/privacy concerns.
3. SMB market in itself is huge. I doubt if anyone has correctly estimated it's size.
Right Market✅
Now, let us understand how to find a problem to build a solution for.
3 steps -
1. Find where your users hang out and be present there.
2. Be friends with your users and observe & discuss their problems.
3. Come up with a solution and present it to them.
Now, let us understand how to find a problem to build a solution for.
3 steps -
1. Find where your users hang out and be present there.
2. Be friends with your users and observe & discuss their problems.
3. Come up with a solution and present it to them.
They could be hanging out on subreddits, Facebook/LinkedIn groups or on WhatsApp groups.
Whichever online/offline channel they're present on - be there and be immensely helpful to the community as a whole.
This will make them trust you with their problems, and talk to you.
Whichever online/offline channel they're present on - be there and be immensely helpful to the community as a whole.
This will make them trust you with their problems, and talk to you.
Problem✅
The lean way to get a solution-
The MVP can be a bunch of different software that you put together for them/ code just a little bit.
Ask them to pay a premium for it.
If they pay, continue building a better one.
If not, find a different problem/better solution.
The lean way to get a solution-
The MVP can be a bunch of different software that you put together for them/ code just a little bit.
Ask them to pay a premium for it.
If they pay, continue building a better one.
If not, find a different problem/better solution.
This is too time-consuming, right?
So, what's the proxy to finding a solution to an existing problem that people would pay for?
Simply clone the expensive software out there and sell it for a discounted price, and offer great customer service.
You'll most likely be right.
So, what's the proxy to finding a solution to an existing problem that people would pay for?
Simply clone the expensive software out there and sell it for a discounted price, and offer great customer service.
You'll most likely be right.
How do you know if your idea is going to work?
1. If you've cloned an existing product and are selling it for a discounted price.
2. If people using it can convince their managers to pay for it. (Have a quantifiable USP)
3. If it is saving them a lot of time/making them money.
1. If you've cloned an existing product and are selling it for a discounted price.
2. If people using it can convince their managers to pay for it. (Have a quantifiable USP)
3. If it is saving them a lot of time/making them money.
If you've done all the steps correctly, then-
1. Keep at it for 6 months and focus on customer acquisition.
2. Accept that it will be an exponential growth curve, with very few customers in the beginning.
3. It's okay to be one of many solutions. (SaaS markets are huge.)
1. Keep at it for 6 months and focus on customer acquisition.
2. Accept that it will be an exponential growth curve, with very few customers in the beginning.
3. It's okay to be one of many solutions. (SaaS markets are huge.)
If you've come this far, here are 3 bonus ideas for you-
1. Why do I need to pay 40$/mo for signing documents online? (rip off Docusign's 3 core features, and sell it for 10$)
2. Zoom Apps for specific use cases.
3. Build and sell Superhuman's top 5 features for 5$/mo.
1. Why do I need to pay 40$/mo for signing documents online? (rip off Docusign's 3 core features, and sell it for 10$)
2. Zoom Apps for specific use cases.
3. Build and sell Superhuman's top 5 features for 5$/mo.
In the coming weeks, I will be writing more threads on how to decide what to clone, how to build a micro-SaaS product, how to acquire customers, referrals, marketing, and so on...
Follow me if you think it can help you build your own micro-SaaS.
I'm @pareshmukh
Follow me if you think it can help you build your own micro-SaaS.
I'm @pareshmukh
• • •
Missing some Tweet in this thread? You can try to
force a refresh
