How to Create a SaaS and Compete with the Big Players as a Solo Founder
mikealche.com
mikealche.com
Specifically for me it doesn't speak at all to the differences between starting a SaaS like this as a team of founders versus as a solo founder. As a committed solo founder all I can say is that choosing solo founding is not something to be undertaken lightly!
My startup CV is now roughly an equal length of being on a team of 4 founders and the current solo founder situation so I see the differences all the time. There are a lot of positives to both options but to write an article like this and not blend an awareness of the trade-offs between the two makes it much less interesting.
I've really struggled with being a solo founder despite it being a strong preference and learning to face every aspect of the running the business with a very conscious awareness that you're +1 in certain things and -1 in others is the only way I've found to make it work.
The idea you choose is a big part of this. I've seen thinking about your idea & solo founding preference described on twitter by @warikoo like this:
2x2 matrix
X-axis: Do you have the core skill reqd for the startup? Y-axis: Are you a control freak?
Y,Y: DON'T have a cofounder
Y,N: Could get one, but with complementary skills
N,Y: Hire people, might make them cofounders later
N,N: You have to have one!
My case: I work on https://hanami.run (will soon move to https://mailwip.com due to hanamirb.org conflict) and email forwarding is very competitive. Big and old players are all over the place because at the end of day, setting up email forwarding isn't hard and many open source project did it, heck you can spin up AWS lambda for incoming email in no time.
The pain point is: email will drop sometime, time to time no matter how good an email forwarding service is because they have to scan spam, have false positive, or because of strict DMARC/SPF rule. And I have no tools available to help me out there. So I focus strongly on my maillog features with many level of privacy:
- no log at all: defaut
- only log spam email: give you another chance to read email on our UI
- log meta data
- log meta data + subject
- log whole email
Then, next steps is regex forwarding. Again, I learned this from reddit, forum search of those use base.
Basically I focus on those small features that big player doesn't have.
Then I was able to obtain a very small user base who has issues with big providers. Then I work upward from there to spin out given now that I had a working and good product that people are willing to pay for.
The rest is just iteration.
Thanks for your kind words Codazoda. Much appreciate :-)
just like that. really? no matter what kind of SaaS you're running?
Current major players in the market I'm going after offer their products/services for free, and niche players offer their products for $5/month or $20/year.
Charging $47+/month is a nonstarter as customers are price conscious.
Depending on how easy it is to find customers, and your goals/options regarding to scale of course.
It seems to me that $20/year could be a good lowest tier price, especially for products targeting individual customers (as opposed to businesses). There are successful solo founder projects in that range (notably pinboard.in, $22/year).
This is a fairly decent bit of advice if someone's new and has analysis paralysis on pricing.
You see it a lot in the livestreaming/YouTuber circles too, 5 viewer channels advising 10 viewer channels how to grow
Theory is great but it should really be marked as such. At least give examples of other companies doing this or something if you're acting solely in a research and present findings capacity
What is his real world C++ experience? Being a C++ expert.
wikipedia.org/wiki/Ipso_facto
My thumbrule: 1. Pick a market that already has money-making companies. If you can beat them by price & quality, even after considering the first-mover advantage - go for it.
2. [From pg's essay] Just experiene more in life, with different people facing different kinds of problems from different sectors. That's a sure shot way to eventually run into a market with less competition.
This is probably why there are so many more startups pitching development tools than, for instance, something to make the lives of truckers a little easier.
If you work as a regular engineer, you must come across dozens of daily problems any of which are not properly solved by your current tools. Even simple things like following up consistently, or checking to see if someone responded to an email to a third party etc
Addendum: In response to many comments, I should add that this method is not supposed to guarantee you a good idea, but is a source for ideas to filter, refine, develop or abandon.
The best part (and the part relevant to your comment) is that this just opens a Chrome window and you can open (cmd-N) as many windows into the same slack team as you want, and it behaves like you expect a Mac app to behave: cmd-tab goes between teams and cmd-backtick goes between windows of a single team.
I gather that there are some Mac apps or extensions or something that let you gather windows of _any_ app into tabs, so you could likely use one of those here to get tabs instead of windows.
Supposedly Chrome is getting rid of support for Chrome Apps, I think that's what these things are called (?). If so, I'm going to be impacted when it finally goes away.
Threading suddenly works in a non-stupid way, search suddenly works, and you can manage your own windows.
at a game studio of 300 i would wander amd chat with the various non-coder teams and just watch their workflows. for the tech artists a big blocker was gui access to enums in shaders (custom engine). i just set several of them up to compile the engine and taught tyem how to link enums to the editor gui, saved them many weeks of wait time. saw the lighting bake loop would take 1 year to run fully and a local test loop was 8 hours. asked my boss for time and rigged up a cluster of 64 ps4 dev kits and brought that down to 45 minutes, going from less than one local iteration a day to 9, and less than one a year to 3 a week for full bakes (cluster would bake when it wasnt helping am artist).
at super large mega corp i do similar, constantly meeting people for coffee and understanding more than just my cog. Eventually I got good enough at it and a reputation for improving things that I just get pushed/pulled at problem/opportunities areas, but you have to work up to it.
while none of this is doing a startup, if youre not curious, youll never see the myriad of things that could be improved with software, nor will many non tech folks, or really anyone who doesnt think "outside the box" as the olds say. challenge for devs is understanding where that tech is worth it and how to sell it, and not become that angry dev who is just yelling at everyone and politics for not taking every one of their half baked ideas as words from on high.
An example from my day to day in a large corporation: we have to enter time weekly: how much time did you spend on project X, Y or in training/meetings/etc. Sure there is software that does this, but it's terrible There are many issues with it that should be trivially solvable.
Now, I will admit that time tracking software is a huge field with lots of strong competition, so this may not be a field you'd want to enter, but it's an example of the problems you would come across during an average workday that are ripe for better solutions.
Try meeting people not in your field. Yes, it will take effort. Yes, it will be uncomfortable. Because of those challenges, fewer people have explored that space - so there are still fertile grounds for new products.
Resptfully disagree. There are a lot of non-trivial problems that do not have good solutions. If you look for niche manifestations of hard problems, you can both find something with appropriate scope AND a good value proposition. You also don't need to solve problems, just make them better/easier.
Was the original remote app enabled? If not, now you have a potential product for those people who would rather use an app than the manual remote. Are spare remotes hard to get or expensive? There's another market that might want to buy from you, especially if the AC unit that is old or obsolete.
Spare parts/retrofits with new features is big business. There's a good chance that if you dug into this particular problem you'd find that it could be profitable. Not quit-you-day-job profitable, but at least enough to bring in a few extra $k per month.
My point was that this does solve my problem but it's an incredibly niche problem for an even smaller niche market. The owners of this AC from the same unknown manufacturer, that either can't find a spare remote or want to make it wifi enabled. It's insanely specific, isn't it? Let's not fool ourselves, writing the software is the easy part and fairly inexpensive when you can do it yourself, get a cheap stm32 board and flash it. Manufacturing on the other hand is a whole different ball game and honestly I can't justify the work of developing, manufacturing, distributing and dealing with taxes at the end of each month, all for 300 bucks tops(I'm probably far too optimistic).
edit: esp32, not stm32(I'm mostly playing with stm32 lately).
> an incredibly niche problem for an even smaller niche market
These are my favorite because no one "big" wants to get into them. I make a device that converts signals from heavy machinery that uses a specific type of almost-obsolete sensor to let it use a modern control that you can buy off the shelf. A friend of mine used to have a nice side business (was full time for a while) selling a replacement timer for a specific type of industrial printer.
I like markets like that. The biggest problem I'd see in your case is that it's a consumer item, not industrial. Most customers just don't want to spend a whole lot unless they have to.
My thumbrule: 1. Pick a market that already has money-making companies. If you can beat them by price & quality, even after considering the first-mover advantage - go for it.
2. [From pg's essay] Just experiene more in life, with different people facing different kinds of problems from different sectors. That's a sure shot way to eventually run into a market with less competition.
- http://paulgraham.com/startupideas.html
Agree with this. As they say - necessity is the mother of invention. A lot of the episodes I listened to on the Podcast - How I built this with Guy Raz - were about people getting frustrated with a problem they faced on a daily basis and deciding to fix it (usually starting quite small).
2) >>> This is probably why there are so many more startups pitching development tools than, for instance, something to make the lives of truckers a little easier. <<<
This makes sense if you're a developer or work in software. Eg, I'm a Product person who built tools on the side to scratch my itch. My platform was Google App Engine (GAE). When the GAE GUI was deprecated, I realized that I really found a GUI much more convenient and so built - https://nocommandline.com and in the process fixed stuff I didn't like about the old GUI.
I think the trick here is to set right expectation i.e. recognize that not every idea is going to be a Unicorn or a big business. It could remain 'just a side project' or turn out to be something that just brings you extra income (pay your rent, weekly gas bill, etc).
Unfortunately, my discovery and learning process also involved a good amount of luck and trying to describe it feels a lot like step #2 in the "How to draw an owl" meme. At some point, luck and hard work is involved, and there is no obvious playbook for your next step.
However, if there is a chiton of money to be made in Excel add-ins for amputee ballerinas, and you know how to make add-ins, and you know how to find and talk to amputee ballerinas, it might not be a bad career move, though...
i don't believe it have to be a niche. lets look at Zoom, its in a saturated market with a lot of established products that already have all the Zoom's functions built in but hide under complex UI that no one know how it work or its there.
Most of my projects have come from just listening to friends or families on their pain points (either in their jobs or life), evaluating the market around those problems and then taking action if it's a good idea.
Why does advice have to apply to every scenario ?
What if you are a paraguayan field worker and this is not actionable for you ?
Anyways, I’d suggest you talk to others around you and see if you spot the pain points in their day
This is not a predictable tactic that would yield a viable SaaS idea, this is a gamble "go dive into the ocean, maybe you will find treasure"
Of course you won't strike gold on the first person you talk to. Be smart about it, talk to people who work in an industry you would like to serve (doctors, lawyers, marketers, mechanics, etc.) and figure out the inefficiencies in their day to day life. It's not as hard as you've made it out to be.
Starting a business is a gamble. If you don’t have some risk tolerance, starting a startup is not the right path.
It's up to the recipient if they find it useful or not.
By lurking on HN and making a copy of one of "Show HN".
Just pick something that seems interesting for you.
Spend 2-3 years building it and marketing and if it works well you have it. If it does not work, start over again.
Unless you want a sure money making product - then stick to your 9-5 job that is money making product you have for sure.
Which is also like "find people that want something and build it for them" because that will be your next 9-5 job then.
Find a popular product, pick a growing niche that product serves not so well (you can see that in reviews, twitter, etc) and build a specialized version of that product with a friendly and modern UI. When serving different niches, usually products require different configurations for each and get quite heavy and confusing. You can fix that by specializing on one niche.
We don't refer to Doctors, Lawyers, and Accountants as "Solo Doctors", etc...
They are simply people who have studied their area of expertise for years, are disciplined and principled in their approach, likely carry some form of E&O insurance to warrant their work, and are perfectly capable forming their own legal entity and opening their own "office".
Broadly speaking, these professionals belong to networks of other professionals, who occasionally collaborate on projects.
Reading the article in this context then, focusing on a niche makes perfect sense for any Professional.