What is micro-SaaS?

Micro-SaaSrefers to small-scale software applications that are built as a service over the internet. Unlike traditional SaaS products, which often serve large enterprises or address broad market needs, micro-SaaS solutions are typically targeted at niche markets or specific problems.

Micro-SaaS are often run by small teams or even individual founders.
In essence, micro-SaaS represents a lean and agile approach to software entrepreneurship, where the emphasis is on solving a specific problem for a defined group of users rather than building a one-size-fits-all solution.

How to choose the right micro-SaaS idea to work on?

Are you thinking of building a micro-SaaS business? Choosing the right idea is a crucial step; you don’t want to build something for the wrong audience or an audience that lacks the propensity to pay or is not easily accessible. Selecting the right idea means choosing something for the right industry—one that is familiar to you so that your solution not only scratches the surface but also deeply understands and solves the user's problem in a way that competitors might fail to do.

Here are 10 questions you need to answer while selecting the right micro-SaaS idea:

1. Willingness to Pay: It's important to know if people are actually willing to pay for what you're offering. If they are ready to spend some money, it's a good sign that your solution is hitting the mark and solving a real problem they care about. Making something for companies that have money to pay is easier than making something for those who don’t.

   
   

2. Saving Time or Money (or Both): Think about it—what's better than saving time or money? If your solution does either (or even better, both!), people are going to be all over it. It's like giving them a shortcut or a discount—everybody loves that!

   
   

3. Recurring vs. One-Time Problems: Would you rather solve a problem that keeps coming back for more or one that's a one-off thing? Recurring problems mean recurring customers, which is the dream for any business. Solving something which is a huge pain point but appears only once a year will be very difficult to sell.

   
   

4. Finding Users Where They Hang Out: You know how you always find what you're looking for in the same places? It's the same deal with your potential users. If you know where they hang out online—like Reddit, Facebook groups, or maybe even their favorite blogs—you're halfway there. If your target group doesn’t hang out on the internet, it will be very difficult to reach out to them.

   
   

5. Smooth Sailing with Less Effort: Once you've got your solution up and running, you don't want to be stuck babysitting it all the time, right? That's why it's awesome if everything just runs on autopilot without needing tons of manual work. If you are building a micro-SaaS that you are running on the side, you don’t want a lot of customer support queries or repetitive tasks.

   
   

6. Skipping the Red Tape: Nobody likes jumping through hoops, especially when it comes to getting stuff done. If your solution doesn't need a bunch of approvals or compliance checks, you can get things done way faster and with way less hassle. As something run by a single person, it is recommended not to build something which is compliance-heavy or requires approvals because such things take a lot of time.

   
   

7. Having Rivals Isn't Always a Bad Thing: Ever heard the saying "competition is healthy"? Well, it's true! If there are other players in the game already, it means there's demand for what you're offering. Plus, you can learn a lot from what they're doing (or not doing). Not having a competitor is a tough thing for you. Either you are building something that no one has solved, which will require you to educate the user and create a market, or you are building something that no one wants.

8. Stand Out in the Crowd: Imagine walking into a room full of people wearing the exact same outfit as you. Awkward, right? The same goes for your solution—make sure it has something special that makes it stand out in a sea of options.

   
   

9. Knowing Your Stuff: It's like being the guru of whatever industry you're diving into. If you know the ins and outs of what's going on, you'll be way better at solving problems and making your solution the go-to choice. Solving a problem you have expertise in will be much better than building something in an industry that is new to you. With expertise, you will be much better at solving deeper problems; otherwise, it will take a lot of effort, and you will just scratch the surface.

   
   

10. Getting Those First 100 Fans: It's like throwing a party and making sure your best buds show up first. Once you've got those first 100 users hooked, it's like having a solid foundation to build on. You need to have a clear path on how you will get those 100 fans, whether they are hanging out in a Reddit community, Facebook group, or Twitter. You should know about them and should be confident that you will be able to attract them.