The micro SaaS market is expected to grow to more than $59 billion by the year 2030. So, if you are looking for investment opportunities, then the acquisition of a micro SaaS can be a smart move. Though the micro SaaS sector is all about technology, you can buy micro SaaS even if you are a non-technical person. You just need to know the SaaS flipping guide for acquisition.
What Is a Micro-SaaS Business?
A micro SaaS is a Software as a Service business on a small scale. This type of business solves a particular problem for a targeted niche audience; for example, a testimonial app for lawyers. A micro SaaS is run by a small team and requires low overhead. That’s why you will get high returns. The acquisition cost is considerably low; therefore, the business is often self-funded. You have to be good at marketing to get more clients.
Benefits Of Buying a Micro-SaaS Business
The advantage of buying a micro SaaS business is that you know people are willing to pay for the service you will provide. You won’t have to spend months finding out whether there is demand for the service you are about to provide. The acquisition cost is low, and you can buy the business from various online marketplaces. You already have pre-existing customers for this business. Your job is to grow the customer base and expand your business.
Strategies To Follow For Acquisition
Micro SaaS mainly involves technology; however, it’s mainly a business model. Instead of using the software as a one-time product locally, you use it as a service over the internet. So, this business not only depends on the technical service, but also on the marketing and ongoing customer care. Therefore, even if you are a non-technical person, you have a lot to contribute to a Micro-SaaS business. Here, technology is just the medium that is delivering value. To move the business forward, you have to understand the user needs and provide service accordingly. Here are the strategies you must follow as a non-technical person.
✳️ Focus On An Industry That You Understand
You shouldn’t dive into a field that you don’t understand. Choose a niche that you are aware of, like marketing or real estate. Buy micro SaaS that involves a service in this niche. That way, you will understand whether the service will benefit your customer.
✳️ Find Out The Customer Pain Point
It is not necessary to learn the code, but you must understand what the customer needs. You must look for small problems that your targeted customers face frequently. The problem must be something that the general-purpose software ignores, doesn’t address properly, or addresses for a large population, not a niche population.
✳️ Buy From Established Marketplaces
As you are not aware of the technical know-how of the business you are going to buy, you must rely on the established marketplaces to buy micro SaaS. Some micro acquisition platforms are Acquire.com, Microns, and Flippa. These are trusted platforms for micro SaaS acquisition.
✳️ Conduct Due Diligence
Don’t buy the business by looking at its face value. As you are a non-technical investor, the seller may give you an incomplete service that you will fail to recognize. Before buying, you must know whether the business is promising by looking at its Annual Recurring Revenue (APR). Request the seller for verifiable Payment Processor statements so that they don’t give you a fictitious number. You can also ask for the customer churn rate. Next, you need to hire a technical person to audit the infrastructure and source code so that you know the software is well-built and not outdated. Before finalizing your deal, you should get full transfer of databases, domain names, email lists, social media accounts, and any other intellectual property. For this, you can also hire a technical person.
✳️ Hire Technical People For Operations
You should hire a freelance developer or partner with a technical co-founder to look after server problems, ongoing maintenance, and other operation-related tasks. You must focus on marketing and the growth of the business. However, you must have basic knowledge of the service you are providing. You can also buy a micro SaaS that doesn’t require coding; instead, acquire no code software that might be built with visual editors, AI tools, and platforms like Webflow and Bubble. In such a case, you may not have to depend on a technical person too much.
✳️ Perform Marketing And Distribution
You should find your specific niche audience and try to dominate them. Try to sell your services like extensions or add-ons on platforms like WordPress or Shopify and offer free trials to attract clients. You must focus on customer retention, which will eventually improve your revenue. This business depends mostly on customer satisfaction. If the customers are not happy, then they can cancel the service anytime. As this marketplace is highly competitive, you must focus on driving traffic and converting leads.
Conclusion
For a non-technical investor, it is more important to have good knowledge of project management, leadership, marketing, and sales. So, you shouldn’t be too worried if you don’t know any coding. You can simply follow the micro SaaS flipping guide and acquire micro SaaS.
