Micro SaaS definition
It’s a SaaS company that caters to a specific market, is controlled by one person or a very small team, has little overhead, a specific target market, a tiny but devoted user base, and receives no outside funding. The term Micro SaaS is attributed to Tyler Tringas of Storemapper.
Micro SaaS is essentially a pocket-sized SaaS, hence it serves a very narrow market. It is typically handled by a small group, sometimes even only two or three. Additionally, because it caters to a much smaller audience, significantly less resources are needed to create and maintain it.
They have strong profits, are location independent, and pose little risk to the business. The term “Micro SaaS” was coined with the idea of problem-solving utilizing the least amount of resources possible.
Types of Micro saas
These are created on already-existing platforms, such as Shopify, Salesforce, Chimpcharge, Direct Memo etcetera, hence there is a concentrated platform risk
These programs operate independently. These could be desktop, web, or mobile applications like Placid, Simple Analytics, Headline etc.
These support several platforms, making it possible to access them from other platforms and integrate them through API protocol to improve workflow. By diversifying, the platform risk is reduced.
Who is Micro-SaaS for?
Anyone trying to earn an independent lifestyle. That includes you, your friends, your partner, and everyone else. It’s not simple, but it’s also not particularly challenging.
You can afford to move slowly when the goal is modest, such as $10,000 in MRR, and you’re not a big or bankrolled company that needs to reach milestones and raise the next round of funding.
The majority of folks I know who are starting a Micro SaaS business do so alongside their regular jobs. This gives them both a break from their regular jobs, a project they can work on to the fullest extent of their interests, and a steady income or runway so your Micro SaaS won’t be under pressure to increase sales quickly.
Pros of creating your own Micro SaaS
Micro SaaS concepts lack the same level of ambition as those that want to change the way the world functions. Their only objectives are to launch a firm using the resources at hand and promote organic growth gradually. Micro SaaS firms can avoid the two primary sources of high operational expenses that typical SaaS enterprises must budget for, because they rely more on word-of-mouth than sales and marketing.
Most of the time, your idea won’t need months or years to take off and begin generating revenue for you. Your motivation to achieve new heights will increase because your modest investment will pay off faster than a large SaaS project.
Better for beginners
Because there is not a lot of money at stake with small SaaS businesses, there is less pressure to succeed. Micro SaaS users also have a tendency to be more understanding of errors as long as an attempt is made to make up for them. In contrast to SaaS giants, where a single error can cost millions of dollars, inexperienced newcomers have a chance to learn from their mistakes and develop their business.
Some micro SaaS ventures begin as side jobs that transition into full-time positions once they have proven their value. An entrepreneur can avoid working an office job thanks to a steadily expanding tiny SaaS business that makes enough money. This gives him greater flexibility regarding his work schedule and his choice of where to live and work. Given that it won’t require the same level of meticulous attention to every detail as larger SaaS projects, it might even generate passive income.
It’s possible to work for a startup that permits remote work or engage in independent consulting; both of these are excellent options. When you have a Micro SaaS firm that is scaled up and operating, you may go on vacation knowing that when you return, the business will function mostly without you.
Leveraging time: Recurring Revenue
Any remote software business can provide some of the aforementioned advantages of location independence, but SaaS is unique in its own right. Without a doubt, the most effective revenue model in use today is recurring revenue. The dependability of recurring revenue gives you the freedom to start working on your Micro SaaS less and less while still earning the same or more money once it reaches a comfortable level.
It’s definitely doable to earn as much as a full-time job working 15, 10, or even 4 hours a week. SaaS businesses have the potential to start returning some of your time in addition to financial gains. Naturally, you don’t have to spend less time on it, but having that choice offers you a lot more control over how much time and money you spend on different things in your life.
Cons of Micro SaaS
Limited customer base
How well micro SaaS companies understand their clients has a significant impact on their success. Their limited customer base makes it simpler to communicate with them, comprehend their needs, fine-tune the developed solution, and address issues as soon as they happen.
However, by capping their potential, the small consumer base also works against smaller SaaS businesses. By abandoning this approach and diversifying into other markets, these businesses inevitably lose the unique personal touch that sets them apart in their client’s eyes.
Limited revenue potential
A Micro SaaS is unlikely to expand to the heights several SaaS giants have, as there is no exponential growth. Nevertheless, there are numerous examples that have generated five- or six-figure MRRs.
Top ideas for creating a Micro SaaS
A popular SaaS application that lets businesses efficiently plan, monitor, and manage the distribution of labor resources. At least 95% of new workforce management application sales are anticipated to be cloud-based by 2023.
Billing and Invoicing
Software for creating customizable invoices that can be emailed to customers or converted to PDF with a single click. Recurring invoices help your clients save time. It can enhance productivity control in the workplace when used in conjunction with time tracking.
Software for managing email enables businesses to keep track of their electronic correspondence and communicate timely updates to partners and clients. Use email tracking and analytics to get useful information that will help your email team be more productive.
Cookery & Recipe Software
Everyone’s favorite pastime seems to be cooking these days. Restaurants and chefs are demonstrating popular dishes and sharing their recipes online. It would be a great business idea to create an app that allows users to manage, organize, and exchange recipes.
Some people may not enjoy writing about the events in their daily life. Now more than ever, people have time to think back on their lives. With a novel one-sentence method, software like Punkt makes it simple for anyone to keep a journal of their thoughts.
Give employees the tools they need to maximize the potential of their company. Employees will succeed thanks to a remote learning platform with worthwhile information. This microlearning strategy takes less time and is more interesting.
The number of people doing their grocery shopping online has significantly risen. Apps that deliver groceries are more popular than ever. A SaaS-based model makes deployment quick and simple.
Training and Mentoring
Training apps offer pre-made courses for both kids and adults. More and more people are enrolling in online courses to advance in their careers and personal lives and gain the newest abilities. Teachers can make money by instructing others, wherever they are in the world.
Organizations track and analyze visitor data on their websites thanks to web analytics software. The information from advanced analytics aids in increasing the number of leads that become paying clients and increases revenue.
CMS – Content Management System
All the resources required to produce stunning and search engine optimized content for websites are available in a content management system. Teams from the content, design, and development departments work together to create a final product.
The future of Micro SaaS
Emergence of new platforms
Platforms are essential to Micro SaaS businesses for both application development and deployment. Low-code and no-code solutions make it simpler for lone developers to generate new concepts for applications. Some companies may use Notion or Shopify plugins or add-ons for distribution. It isn’t certain whether different ecosystems will develop in this platform market or if it will be a winner-take-all scenario. One dominant platform, would be my wager.
Micro SaaS becomes SaaS
I think we’ll see a $1 billion corporation run by just one person someday. Instagram had 13 employees at the time it was purchased for $1 billion. As tools and adoption advance, Micro SaaS will continue to generate more money until that moment arrives.