â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â Hey there, Welcome to the 365 new entrepreneurs who joined last week. Thanks to [Rob Walling]( (TinySeed),[Stewart Townsend]( (Channel as a Service),[Whit Anderson]( (Bad Unicorn),[Natwar Maheshwari]( (Engineering Brew),[Noah Bragg]( (Potion),[Jeremy Abraham]( (Spiffy),[Ramy Khuffash]( (Page Flows),[Yarty Kim]( (Bourne Fighter),[Will Hankinson]( (IntroCave),[Vishal Srivastava]( (Trainedge),[Thomas Jacquesson]( (TweetHunter),[Kimsia Sim]( (GreenDeploy),[Héctor Reyes]( (Control),[Sam Julien]( ([SamJulien.com]( Deck]( (ShieldNumber),[Shashank Agrawal]( (Omdena),[Jamil Abreu]( (Substack) and[Lu Doan]( (Agent Shield). We had a great time jamming on this report. Let's talk about Micro-SaaS. What youâll learn: - Whatâs Micro-SaaS?
- How to increase your odds of success?
- What are the advantages of Micro-SaaS?
- How do small teams solve big problems?
- Why should you buy instead of build?
- (ð Pro) How to validate your Micro-SaaS?
- (ð Pro) Whatâs Software with a Service (SwaS)?
- (ð Pro) How to lower customer acquisition costs and boost lifetime value?
- (ð Pro) How to productize your pain?
- (ð Pro) Whatâs the âupsideâ of platform risk? Unlock Trends Pro
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Collaborate on Upcoming Reports [Become a Trends Pro Member]( [Micro-SaaS]( âIf youâre selling to everyone, youâre selling to no one.â Why It Matters Micro-SaaS helps you design your life without optimizing for investors and large teams. It can also be a wedge into larger markets. Morphing into SaaS. Or even a platform. Big things start small. ð Problem Large SaaS apps solve lots of problems for lots of people. ð¡ Solution
Micro-SaaS apps solve a specific problem for a specific group of people. Some traits:
- Run by a solo founder or small team
- Focused on a single feature or minimal feature set
- Extends a platform such as Shopify, Stripe or Intercom ð Players - [Potion]( ⢠Create custom websites in Notion.
- [TextRetailer]( ⢠Let customers shop using text messages.
- [Placid]( ⢠Generate social share images.
- [Elon Stocks]( ⢠Trade on Elon's tweets.
- [Super]( ⢠Turn Notion pages into websites.
- [Plausible]( ⢠Simple, privacy-friendly analytics.
- [PermanentLink]( ⢠Prevent link rot.
- [ilo]( ⢠Understand how your tweets perform.
- [Benji]( ⢠Tax write-offs for Canadian freelancers.
- [Control]( ⢠Financial management app for small businesses.
- [Userbase]( ⢠User authentication.
- [ScreenshotAPI]( ⢠Programmatic screenshots. ð® Predictions - Weâll see more Micro-SaaS apps built with [no-code]( tools like Bubble and Bildr. [InvestorFuse]( reached $50k/mo using Podio and Zapier. [SendPilot.co]( runs on Bubble. The first version of [Shoutout]( was built on Bubble.
- Open-source, SaaS alternatives will continue to emerge. A few examples:
- [Baserow]( ⢠Alternative to [Airtable](
- [Joplin]( ⢠Alternative to [Notion]( and [Evernote](
- [Athens]( ⢠Alternative to [Roam]( and [Obsidian](
- [Papercups]( ⢠Alternative to [Crisp]( and [Intercom](
- [Supabase]( and [Nhost]( ⢠Alternatives to [Firebase](
- [Calendso]( Alternative to [SavvyCal]( and [Calendly](
- [Bitwarden]( ⢠Alternative to [1Password]( and [LastPass]( - Platforms will continue to clone popular plugins. Shopify now offers [native abandoned cart recovery](. They are outsourcing R&D.
- Micro-SaaS will thrive despite platforms cloning features. Abandoned cart apps, like [CartHook]( [Consistent Cart]( and [Privy]( solve problems missed by Shopify. They can move faster than large apps and design for thousands instead of millions of people. âï¸ Opportunities - Index into an existing market to reduce [market risk](. Find fast-growing form factors like [AI-Generated Copy]( [Notion-to-Site]( and [Sheet-to-Site]( tools. Donât try to recreate the wheel.
- Build a [Micro-XaaS](. See [NurtureKit]( and [Gloat](. Services are typically faster to revenue than software. This is another way to [stairstep]( your way to SaaS.
- Buy instead of build to save time. [XOXO Capital]( owns a feedback tool, screenshot service and sheet-to-API tool. See more examples in the [Micro Private Equity]( report. Time is not money. Itâs non-renewable.
- Look at [digital product subscriptions](. See [Page Flows]( [GoRails]( [Storytale]( [JustDjango]( and [Start React Native](. Content can offer a faster route to revenue than software. [Stairstep]( your way to SaaS.
- Make the leap from services to SaaS. Tyler Tringas got the idea for [Storemapper]( while freelancing. Craig Hewitt ran a podcast editing service before a [podcast hosting service](. ð Key Lessons - Micro-SaaS is about focus. Large, monolithic apps may have more features, financing and people. But they lack focus. Micro-SaaS apps can make design concessions for specific groups of people.
- Technical moats are fading. Code is being commoditized. Distribution matters more than ever.
- Micro-SaaS is an example of the increasing leverage of individuals. Solo founders and small teams can build more and faster than ever before. This meta-trend also shows up in Million-Dollar, One Person Businesses, No-Code and Low-Code. ð Haters
âYour definition of Micro-SaaS doesnât mention revenue.â
Youâre right. [It doesnât](. A revenue ceiling may be correlated to small teams and hyper-focused features. But making money doesnât make you less of a Micro-SaaS. âWhat if a customer outgrows my Micro-SaaS?â
Some will. [Productized Services]( are similar. Their ability to streamline operations stems from their ability to focus. If youâre selling to everyone, youâre selling to no one. Focus isnât free. Donât lose a diamond chasing glitter. âYou say index into markets. What about well-established markets?â
Itâs not a hard rule. Slow-growing markets with embedding effects may be hard to break into. Or the market is already small. Consider opportunity costs. Some battles arenât worth fighting. ð Links - [Who should I talk to about Micro-SaaS?]( ⢠The tweet behind this report.
- [The Stair Step Approach to Bootstrapping]( ⢠"In my experience, the biggest pitfall that trips up first-time product people is trying to create something too complex."
- [SaaS Market Predictions]( ⢠"In my mind, the 'micro' in Micro-SaaS referred not to the size of the company or product, but to the scope of the problem being solved." What else? [Trends PRO #0063â Micro-SaaS]( has more insights. What youâll get: - 50 Micro-SaaS Apps (216% More)
- 9 Predictions (125% More)
- 11 Opportunities (120% More)
- 6 Key Lessons (100% More)
- 10 Links (233% More)
- 16-minute audio episode with exclusive Micro-SaaS stories, insights and opportunities.
With Trends Pro you'll learn:
- (ð Pro) How to validate your Micro-SaaS?
- (ð Pro) Whatâs Software with a Service (SwaS)?
- (ð Pro) How to lower customer acquisition costs and boost lifetime value?
- (ð Pro) How to productize your pain?
- (ð Pro) Whatâs the âupsideâ of platform risk?
- (ð Pro) Whatâs the future of lifetime deals?
- (ð Pro) Who built the first version of their SaaS with no-code tools?
- and a lot more⦠Unlock Trends Pro
â
Access All Trends Pro Reports
â
Learn Together in our Book Club
â
Stay Accountable with Daily Standups
â
Meet Curious Entrepreneurs in Weekly Meetups
â
Discuss Reports with Domain Experts
â
Collaborate on Upcoming Reports [Become a Trends Pro Member]( Thanks, Dru Riley
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