Micro SaaS
A small software-as-a-service business targeting a niche market, often run by one person or a tiny team.
Also known as: Micro-SaaS, Small SaaS, Niche SaaS
Category: Business & Economics
Tags: entrepreneurship, solopreneurship, businesses, software-development, saas
Explanation
Micro SaaS refers to small, focused software-as-a-service businesses that target specific niches rather than broad markets. Unlike venture-backed SaaS companies pursuing rapid growth, Micro SaaS businesses prioritize profitability, sustainability, and founder lifestyle.
**Defining Characteristics:**
1. **Niche focus**: Solve one specific problem for a specific audience
2. **Small scale**: Often run by solo founders or teams of 2-3
3. **Bootstrap-friendly**: Can be built and maintained without external funding
4. **Sustainable revenue**: Aim for steady recurring revenue, not hockey-stick growth
5. **Low overhead**: Minimal infrastructure and operational costs
**Common Micro SaaS Categories:**
- Integrations and connectors between existing tools
- Browser extensions with premium features
- Niche-specific tools (real estate, dentists, podcasters)
- Developer tools and utilities
- Workflow automation for specific industries
- Add-ons for platforms (Shopify, WordPress, Notion)
**Advantages:**
- Can reach profitability with small customer base (50-500 customers)
- Recurring revenue provides stability
- Deep customer relationships enable product-market fit
- Lower competition in niches than broad markets
- Full ownership and control
- Can be run alongside other work
**Building a Micro SaaS:**
1. Find a painful problem in a niche you understand
2. Validate demand before building
3. Launch minimal version quickly
4. Iterate based on customer feedback
5. Focus on retention over acquisition
6. Automate and systematize operations
**Revenue Expectations:**
Micro SaaS businesses typically target $5K-50K MRR (Monthly Recurring Revenue) rather than millions. Success means building a profitable, sustainable business - not raising funding or achieving unicorn status.
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