MicroConf On Air
MicroConf Tactics: How to Build SaaS from Scratch in 8 Simplified Steps
Wed Jul 12 2023Description
Building a SaaS from scratch involves determining if you have an unfair advantage, identifying problems worth solving, evaluating and validating solutions, and finding product market fit. Each step brings more certainty and requires careful consideration of audience, network, and potential solutions. Marketing before coding, building an MVP, and gradually rolling out the product are key strategies. Ultimately, success is determined by users' willingness to pay for the product.
Insights
Unfair Advantage
Having a network is the most important advantage in the SaaS industry, while an audience is advantageous but less crucial. Being early to a space can be an unfair advantage, but luck and timing also play a role.
Identifying Problems
Maintaining a notebook of problems encountered over time can help when starting a new software product. Various approaches exist for finding problems worth solving.
Evaluating Solutions
Using the 5PM Idea Evaluation Framework, it's important not to become too attached to one solution too soon. Consider how your solution differs from existing ones and validate it through conversations with potential customers.
Building an MVP
Start marketing before coding by setting up a landing page and capturing email addresses. Build the minimum viable product (MVP) to provide value and solve the problem in the simplest way possible.
Finding Product Market Fit
Finding product market fit is uncertain and requires gradual feedback gathering. Phased launches, showing the product to subsets of your launch list, and avoiding huge discounts during early access are key strategies.
Chapters
Building a SaaS from Scratch
00:08 - 06:48
- Determining if you have an unfair advantage is the first step.
- Network is the most important advantage in the SaaS industry.
- Having an audience is advantageous, but less important than a network.
- Beware of the curse of the audience, where people may express interest in your product to please you rather than because they genuinely need it.
- Being early to a space can be an unfair advantage, but it also involves luck and may not always lead to success.
- The second step is to start with identifying problems that need solving.
- Maintaining a notebook of problems encountered over time can be helpful when starting a new software product.
- There are various approaches for finding problems worth solving, which will be outlined in a future video by the speaker.
- The third step is to move from problems to potential solutions, keeping in mind that not all solutions have to be software-based.
- Examples of different solutions for the same problem are provided, such as building AI into an email pop-up widget or offering conversion rate optimization services.
- Don't become too attached to one solution too soon; evaluate multiple options before deciding on the best approach using the 5PM Idea Evaluation Framework.
Evaluating and Validating Solutions
06:24 - 12:36
- Don't get attached to your solution too soon.
- Evaluate your solution using the 5PM Idea Evaluation Framework.
- Consider how your solution will solve the problem differently than existing solutions.
- Have conversations with potential customers to validate the problem and solution.
- Skip this step if it's a cheap product or part of the stair-step method of entrepreneurship, but at your own peril.
- Start marketing before coding by setting up a landing page and capturing email addresses.
- Build the minimum viable product (MVP) to provide value and solve the problem in the simplest way possible.
- Validation doesn't guarantee certainty, but each step increases confidence without spending excessive time on code.
Finding Product Market Fit
12:07 - 15:01
- Finding product market fit is extremely uncertain and you can't expect 100% validation.
- Each step in the process of finding product market fit brings a little more certainty.
- A phased launch, also known as a slow launch, can help gather feedback and iterate on the product.
- Start by showing the product to people you've had conversations with or subsets of your launch list.
- Roll out the product gradually to avoid overwhelming feedback and churn.
- If the software has bugs, call it a beta. If it's complete but simple, call it early access and charge for it.
- Charge when people are getting enough value from the product that they're willing to pay for it.
- Avoid giving huge discounts or lifetime comps during the early access phase.
- Seeing if users are willing to pay validates that you've built something people want.