What is a Micro-SaaS and How to Create One

Denis Shatalin
Founder of Saas Camp
SaaS founders often get caught up trying to create the next Hubspot or Salesforce—a large scale product that attracts a diverse user-base. There's nothing wrong with being ambitious, but it's important to remember that not every SaaS product needs to be all-encompassing.

In fact, some of the most successful SaaS products are those that focus on a very specific market or niche.

In this article, we'll be doing a deep into the world of micro-SaaS. By the end, you'll have a good understanding of what micro-SaaS products are, why they make profitable products, and how you can go about creating one.

So, without further ado, let's get started!

What Is Micro-SaaS?

Micro-SaaS is a software as a service product that is targeted at a very specific market or niche and normally does one specific set of functions. It is usually much smaller and simpler than traditional SaaS products, and can be created and launched in a very short amount of time. For instance, Cleanvoice is a micro-SaaS that uses AI to automatically edit your podcast audios.

In this article, I will explore what micro-SaaS is, how to create one, and why you should create one, along with some examples of successful micro-SaaS products.

Why You Should Create a Micro-SaaS Product

Now that you know what micro-SaaS is and how to create one, you might be wondering why you should bother creating a micro-SaaS product in the first place. Here are some of the biggest benefits of creating a micro-SaaS product:

Micro-SaaS products solve very specific problems

One of the biggest benefits of micro-SaaS products is that they solve specific problems. This is in contrast to traditional SaaS products, which often try to be everything to everyone and as a result, don't do anything particularly well.

As you’re solving a very specific set of problems, you can also focus on targeting your primary customers with a very clear message and position. There is no room for ambiguities, when you can only do one set of things! If there is, then it's time to see how you can make your branding clearer.

Micro-SaaS products are easier to create

Another benefit of micro-SaaS products is that they are much easier to create than traditional SaaS products. This is because they are usually smaller and simpler, and don't require as much development time and resources.

With micro-SaaS products, you can test out your ideas without having to commit a lot of time or resources. This means that you can ship fast, fail rapidly, and iterate in an agile way, all of which can benefit early-stage startups.

Micro-SaaS products have a lower barrier to entry

Another benefit of micro-SaaS products is that they have a lower barrier to entry. This means that it's easier to get started with a micro-SaaS product than it is with a traditional SaaS product.

While developing SaaS products usually requires long development time, you can actually create a micro-SaaS product with a small team of developers—even on your own in some cases!

Micro-SaaS products can be created quickly

Another benefit of micro-SaaS products is that they can be created very quickly. This is because they are usually much smaller and simpler than traditional SaaS products.

Because micro-SaaS products are small and focused, they can be created relatively quickly and with very little upfront investment. This makes them ideal for entrepreneurs who want to get their business up and running quickly and efficiently.

Micro-SaaS products have less enterprise competition

Another benefit of micro-SaaS products is that they have a high potential for success. Because micro-SaaS product are designed to solve very specific problems, there's often less competition over users from large incumbents, as it would not be profitable enough for them to tackle your niche.

Micro-SaaS products are less risky

One final reason why you should consider creating a micro-SaaS product is that they are less risky than traditional SaaS products. By launching an MVP, you can test your hypotheses about the problem you're solving and the market you're targeting without putting too much time or money into development.

If your MVP is successful, you can then invest more heavily in the product and scale it up. However, if it's not successful, you can move on to another idea without having wasted a lot of time and money.

How to Create a Micro-SaaS Product

Creating a micro-SaaS product is actually a lot simpler than you might think. Here's a quick overview of the steps you'll need to take:

  1. Identify a problem or need in your target market.
  2. Develop a solution that meets that need.
  3. Start with basic planning.
  4. Create a minimal viable product (MVP) and launch it.
  5. Test and iterate on your MVP based on feedback.
  6. Market and sell your micro-SaaS product.
  7. Scale your micro-SaaS business.
Now, let's take a closer look at each of these steps.

1) Identify a very specific problem or need in your target market.

The first step to creating a micro-SaaS product is to identify a problem or need in your target market. You can do this by:

  • Researching your target market and talking to potential customers to find out what their biggest pain points are.
  • Going through reviews and checking out what’s lacking from the products in the niche you’re competing in.
  • Using Ahrefs to see queries in your target niche that people search for.
  • Assessing a problem that you’re facing yourself in your workflow.
If you're looking for more guidance about how to identify potentially profitable problems, I can help! My coaching program is designed to teach developers how to analyze different industries and niches for opportunities they can pounce on. Don't worry if you're new to SaaS development, we'll teach you the skills you need to brainstorm profitable solutions!

In the meantime, check out How To Come Up With Ideas For Great SaaS Products for a rundown of the idea generation process.

2) Develop a solution that meets that need

Once you've identified a problem or need, it's time to develop a solution that meets it. This will involve coming up with an idea for your micro-SaaS product and then developing it into a working prototype.

Generally, there are two ways this can play out:

  1. If there is a passable solution on the market, much of the hard work has already been done. Your primary goal is finding ways to improve it in meaningful ways—unless you can think of an entirely new way of approaching the problem.
  2. If there isn’t a passable solution already on the market, you’ll probably need to put more effort into coming up with a solution that fully solves the problems people are having. However, the lack of competition might mean you’ve stumbled upon an untapped market!
Note: In the second scenario, it’s crucial that you validate any solutions you come up with before launching into the development phase—there might be a reason no one has developed a solution yet!

3) Start with basic planning

Once you've brainstormed a solution, it's time to start planning your micro-SaaS product. This is where you'll decide on the features you want to include, the target market you're going to focus on, and the overall direction of the product.

It's best to paint with a broad brush to start with—that means:

  • Wireframes
  • UI Sketches
  • Feature Lists
  • App Maps
Slowly (but surely) the plans for a functional micro-SaaS product will begin to crystallize.

4) Create a minimal viable product (MVP) and launch it

Once you have a prototype of your micro-SaaS product, it's time to launch it as an MVP. An MVP is a version of your product that is good enough to start selling, but which may not be fully polished or feature-complete.

Focus on core features that address the main pain points of your audience without getting bogged down by perfectionism. If you find yourself saying, “it would be nice if I added…”, the thing that follows should probably get pushed to a later stage of development.

Once you have the MVP, you can start selling access. However, you'll probably want to limit your marketing expenditure until you have a more polished product.

5) Test and iterate your MVP based on feedback

Once you've launched your MVP, it's time to start gathering feedback from your users. This feedback will be essential for shaping the future development of your product.

There are a number of ways to gather feedback from users:

  • Direct Emails
  • Widgets like Feedback Lane
  • User Surveys
  • Customer Interviews
  • Product Reviews
Don't be afraid to make changes to your product based on user feedback. Remember, at this stage, your goal is to create a product that people actually want to use.

6) Market and sell your micro-SaaS product

Now that you have a polished micro-SaaS product, it's time to start marketing and selling it!

There are a number of channels you can use to reach your target audience:

  • Social media
  • Content marketing
  • Paid advertising
  • PR/media outreach
  • Community building
  • Word of mouth
It's important to experiment with different marketing channels and find the ones that work best for your product. There is no one-size-fits-all solution when it comes to marketing, so don't be afraid to try new things!

7) Scale your micro-SaaS business

Once you've found a formula that works for marketing and selling your micro-SaaS product, it's time to start scaling your business. This will involve hiring new team members, investing in growth hacking initiatives, and expanding your marketing efforts to reach new audiences.

Final Thoughts

Creating a micro-SaaS product is a great way to get started in the world of SaaS development. It's less risky than developing a traditional SaaS product, and it can be launched in a relatively short amount of time. So if you're looking for an idea for your next software project, consider creating a micro-SaaS product.

I've helped tons of SaaS founders navigate the various stages of product creation, and I'd love to do the same for you! If you're ready to build a SaaS product that get you to freedom, apply for SaaS Camp accelerator today.
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✋ Hey, it's Denis! Thanks for reading :) Want help with your startup or to have a chat? Just reach out to me on Twitter, Email or LinkedIn.