Playbook #087: Micro SaaS
🖼️ The Big Picture
You may already be familiar with SaaS (software as a service), a popular business model known for recurring revenue and high valuations. SaaS companies are especially desirable for lifestyle entrepreneurs and cash flow seekers, and as the space has become more saturated in recent years, the concept of smaller, focused “micro SaaS” businesses has become increasingly attractive.
Micro SaaS simply means taking a SaaS model and niching down to solve a specific problem for a specific group of people. These types of companies often have lean-and-mean teams from 1-5 people. Their goal is being profitable and simple, so they typically focus on being “bootstrapped” with low costs and no outside funding.
The ideal is to have low overhead, high margins, recurring revenue (from subscriptions with the option of adding services or other products like a newsletter) and relatively low risk. This makes them perfect for an owner-operator with the Investor DNA to be able to run a highly automated business with a remote workforce in a relatively short amount of time each week.
With the “no code” movement gaining traction, more and more entrepreneurs are able to build, buy, or invest in these types of businesses and operate them, without needing a heavy technology background.
The key here is having a clearly defined market that’s already paying for a solution. If you can gain significant traction, then you’ll have the option to continue operating as a cash flow business… or sell to a larger SaaS company like Drip did when they were bought by Leadpages (a leading internet marketing company).
This is definitely an opportunity better suited to the “tech savvy” CAPITALIZE readers… but even if this issue doesn’t seem like a fit for you initially, we’d encourage you to read through and analyze it so that you can continue to hone in your Investor DNA.