How Micro SaaS is leading Mega Democratization of Digital Entrepreneurship

Would you like to be a founder of an internet technology company? What if Micro SaaS is a fast track to there? 

Just as SaaS (Software-as-a-Service) has democratized the usage of the software tools by giving anybody access from their browser upon a few clicks and maybe a credit card pass, without having to install and maintain anything, Micro SaaS is enabling more and more people to become digital entrepreneurs. 

What is Micro SaaS?

Micro SaaS is a software platform (web/mobile app) that enables users to have a very specific task done quickly and without installing any software, nor buying subscriptions for a big SaaS platform. One of my favorite examples is Calendly! It focuses on one simple task (scheduling a meeting) which used to cause many headaches, and provides an easy to use and integrate solution that literally saves the day for many users. 

Why is Micro SaaS attractive to the users?

Comprehensive and thus big SaaS platforms serve well big users: companies with various departments, complex workflows and activities with many different fields being executed by a great number of employees. On the other hand, the growing number of micro (individual) entrepreneurs, freelancers and small business owners are overwhelmed not only by pricing, but also by the learning curve and navigation among numerous features majority of which they will never use. In addition, even those that they do use, often end up being too generic to satisfy the specific need. These users want a cheap, quick, and most of all, extremely targeted function that simply does the job of the day. 

Why should you consider launching a Micro SaaS?

Like the above mentioned growing number of micro entrepreneurs, maybe you want to innovate fast, launch soon, iterate quickly and stay relevant without needing to hire big teams and raise significant funds. As an example, the ongoing Generative AI race is mostly driven by the Micro SaaS platforms built on top of ChatGPT API. So many creative, talented and smart entrepreneurs have managed to launch great products within months if not weeks. Believe it or not, many micro entrepreneurs simply prefer to stay micro. Not everybody wants to be the next Facebook or Twitter, some sort of unicorn and have a fancy campus with thousands of employees. In the world of remote work, digital nomadism and the quest for a more balanced life, being a solo founder with a few freelancers chipping in, is actually the dream of many. 

In a similar way Expertise-on-Demand or Expertise-as-a-Service has revolutionized the way we collaborate by exchanging expert services efficiently, Micro SaaS is providing a way to offer and consume numerous software features on-demand, in a very flexible, efficient and more personal way. Interestingly enough, many of the Micro Saas users are experts on-demand, as their personalized and flexible work requires the same type of tools. 

Micro SaaS founders can often get by with bootstrapping and a small team of experts on-demand, quickly reaching the breakeven and enjoying the lifestyle with comfortable income and minimized stress. Less is more, more than ever. 

Do Micro SaaS need to iterate more often? 

At big SaaS with a big number of features, at any given moment there are features being A/B tested, validated, upgraded, or revoked. It’s just that there are so many that the big monolith doesn’t seem to be changing that much. On the other hand, if you have just a few, each time you incorporate user feedback or competitors analysis results, your product changes noticeably. And that’s ok, actually it’s great, as your users feel that you follow the trends in their daily activities, and for you it is easy enough to make it happen. 

Can Micro SaaS still achieve significant growth? 

Even though many micro entrepreneurs don’t aim at significant growth, it certainly is possible that it happens, intentionally or not. It could happen that your niche actually has more potential users than you thought (the problem is present in other target groups you were not aware of, fx) or similar scenario. Or, you can keep launching related micro tools and eventually consolidating one comprehensive platform containing the best sellers. Or partner up with other micro SaaS solo founders and offer a package. Or raise funds, hire more people and transform it into a big SaaS. Even if that is your actual goal from the beginning, starting with a Micro SaaS is a great, lean way. 

What about the exit? 

In a similar way many Expertise-as-a-Service consultants prefer working on a new client’s project each time instead of spending a career at one company, many Micro SaaS owners feel the same excitement about exiting a successfully running Micro SaaS, taking an extended break and starting a new micro adventure when the inspiration kicks in. As things happen at great speed with these micro companies, it’s not impossible you turn a serial micro entrepreneur and have your apps regularly listed for sale at Micro SaaS marketplaces. 

To clarify the incentive on the other side, many entrepreneurs are stronger at sales and marketing and would rather skip the first part and then focus on the phase they love. One of the other options would be acquisition, as these micro and extremely targeted features are generally easy to fit in a broader software package.

With the Micro SaaS trend going stronger, starting a tech startup has become easier than ever. Click to learn 10 steps to launch a Micro SaaS !