How to Choose the Right SaaS Idea to Build

Stuck for ideas on what to build for a profitable SaaS? We take a look at techniques for validating ideas. Plus an update on my $1k MRR challenge.

Hey there, welcome to this week’s NoCode SaaS newsletter - where we talk about building a profitable software business without code on Bubble.

This week’s edition is all about how to get ideas for your SaaS - working out what you can build that users will pay you money for.

It sounds easy, but it’s the stage a lot of us get stuck on.

When I started UserLoop, I spent time thinking hard about what I wanted to work on for the next few years.

In this issue I wanted to dive into some of the things that helped me decide what I wanted to build.

What are you good at?

When starting UserLoop, I learned about the concept of Ikigai, and used that as a guide for deciding what I should work on next.

Ikigai is a Japanese term that blends two words: “iki” meaning “to live,” and “gai” meaning “reason,” which translates to “a reason to live.”

The four rules of ikigai are usuall shown in an ikigai diagram, split up into the following sections…

• Your passion (what you love)

• Your vocation (what you're good at)

• Your mission (what the world needs)

• Your profession (what you can be paid for)

I put one of these diagrams together for myself and it was hugely valuable in deciding what I should be building.

It was important for me to pick an idea I would be happy working on for a long time, and where I wouldn’t be so likely to burn out. I really wanted to optimise for enjoying the process of building a business, rather than growth at any cost.

As you might have heard on the podcast, I have previous experience with running a VC funded business - and it took it’s toll on me mentally.

This time I wanted to set things up to be more sustainable, and enjoyable in the long run.

For me that meant boostrapping and being self funded from the start, using nocode tools to build and iterate a product quickly, and to focus on a market with which I had some experience - ecommerce.

I spent time talking to some industry experts on MentorPass to really validate the ideas I had. I talked with lots of potential customers about the challenges they faced with collecting customer feedback, what the issues with current tools were and how much they would potentially pay for some software that solved those problems for them.

I also recommend reading as much as you can. Reading has really helped challenge my own assumptions and led to better decisions.

Three of my favourite startup books are...

Make Something People Love by Alexis Ohanian, Zero to Sold by Arvid Kahl and more recently The SaaS Playbook by Rob Walling.

What do people need?

A really good place to start looking for potential profitable SaaS ideas is where people are doing things in a sub optimal, or even old-fashioned way.

You’ve probably heard the old joke about every big Excel spreadsheet being an opportunity for a new SaaS - and there is definitely a lot of truth in that!

In his essay "How to Start a Startup," Paul Graham also argues that the best ideas come from founders' personal needs.

Brian Chesky and Joe Gebbia started Airbnb to solve their own problem of paying rent by renting out their space to travelers.

With every app I’ve built, it’s often started from a personal problem I was experiencing.

For example before starting UserLoop I’d often help out with a relative’s e-commerce business, and noticed how hard it was for them to collect high-quality feedback from their customers about what people liked, and what needed to be improved.

That eventually evolved into the first version of UserLoop - a super simple, mega basic app that I built over Christmas one year for fun.

And through collecting and refining my own customer feedback the app has evolved and transformed into the full featured platform it is today.

Building a tool for a problem you’re experiencing yourself also means you can be your own first user, and dogfood your own product.

Building for yourself also means you’re more likely to build something useful, rather than imagining problems other people might be having - when you later realise you’d been working on assumptions that turned out not to be correct.

If you’re building for a problem you’re experiencing - you already likely have a good knowledge of the problem, and how to put things right.

Putting together a quick prototype in Bubble to start solving the problem for yourself is a fantastic way to start.

Observing trends

We’re at an incredible moment in history, where technology is evolving at a pace never seen before.

The pace at which AI is developing means new opportunities for building a profitable SaaS are opening up all the time.

If you’re reading this newsletter, the good news is you’re already likely ahead of 95% of people in knowing about the power of nocode tools to build incredible software.

The opportunities for automating things, replacing inefficient workflows, or building delightful software are more abundant than ever.

Sam Altman the CEO of OpenAI has often talked about the importance of focusing on future trends. He advises looking at where the world is going and building something that will be valuable in that future.

Being of aware of what the technology is capable of, and how to apply it to real world problems give you the potential to build incredibly profitable (and life changing) software.

In future issues, I’m going to be covering some of the incredible new AI APIs that you can use with Bubble to build these kinds of apps.

Don’t overthink it

The most important thing with your SaaS is not to overthink things too much, I know I am as guilty as anyone for this sometimes, but it really is important to get something out there as early as possible.

When I look back at the first version of UserLoop now it makes me cringe with how basic and simple it was. It was only capable of running a single survey, with a single question. It didn’t have any integrations like Shopify, you had to set everything up manually.

But I’m really glad I did launch the app super early and put it out there. Getting real people using, and talking to them about what they liked and what they wanted eventually led to me developing the hundreds of other features the tool has today.

It was through momentum that the app improved, and in turn got more paying customers.

Your startup has a 1000% higher chance of success if you stop overthinking everything and just ship it. Overthinking kills startups. Planning and perfecting forever means you never launch. Speed is key.

Get your product out quickly, get feedback, and improve fast. Perfection does not exist with startups. Waiting for perfect means missed chances and falling behind.

Real user feedback is gold. It shows what works, what doesn’t, and what your customers need.

Andrew Gazdecki on X

Without taking that initial leap of launching it, none of that would ever have happened.

Like a lot of people I also had imposter syndrome when it launched. What if this doesn’t work, are people going to think I’m stupid? Is the landing page too basic? Why would anyone choose my app over the competition?

I really encourage you to push through this kind of thinking and just get your idea out there.

The reality is no one is thinking about you anything like as much as it can feel like in your own head.

Just get the app out there. Talk to users. Iterate. Experiment. Fail. Repeat.

A lot of having a successful startup is simply iterating - and sticking with it.

Startups that succeed are those that manage to iterate enough times before running out of resources

Eric Ries

In the meantime, if you have any thoughts or feedback, please do drop me a line on Twitter, or just hit reply to this email.

Happy building!

James.