SaaS is one of the fastest-growing sectors of the IT industry. But with all the new companies showing up, it can sometimes be hard for your startup business to position itself. That is if you are solely focusing on the main SaaS arena.
As it turns out, other fields in the industry can give you more opportunities. One of these is the so-called micro SaaS. Let’s dive and discover what it offers and how you can penetrate it with Virtua Solutions’ help.
Understanding How Micro SaaS Works
As the name says, micro SaaS is a branch of SaaS that focuses on a particular niche. A small business team or a single proprietor typically runs this business. The idea for such a venture is to develop a solution for a specific problem with minimal resources.
Image from ControlHippo.
Micro SaaS often focuses on providing support for users of major SaaS products. Typically, they focus on a specific function that the larger SaaS product might lack. Thus, they serve as a supplement for users of these larger products. However, they can also be independent, solving a niche problem.
Why Micro SaaS Is A Great Option For Your Startup Business
At this point, you might wonder whether going micro is a good direction for your startup business. Here are a few reasons that are sure to convince you.
Lower Starting Cost For Your Startup Business
As we have mentioned earlier, micro SaaS requires fewer resources. You also only have a small starting capital. That makes it ideal for those new to the industry they are entering.
Faster Development Time
Another common characteristic of mainline SaaS products is that they often require a lengthy development time. That can range from months to years. For smaller companies, such lengthy development times mean they have to wait for a long while before being able to generate revenues. This s not always a favorable scenario, as it can make operating the business harder.
Image from AppInventiv
With micro SaaS, the development time is much shorter. These could even be just a few weeks in length. That faster deployment time allows you to recover costs and profit sooner. Additionally, this lets you develop multiple products faster, which can also contribute to increased revenues.
Predictable Recurring Revenues
One of the trickiest things about the SaaS business model is that your revenues can swing a lot. Changes in user behavior can significantly affect your user base and revenues. And with the size of your operations, it can sometimes be hard to track revenue changes.
Image from Exit Strategies Group.
A micro SaaS business offers a more predictable means of tracking your revenues. Since your operation targets a well-defined audience, you can better estimate your monthly income based on their possible actions. Additionally, since you are running a small team, it is easy to track overhead costs and bring them to a minimum.
Setting Up Your Micro SaaS Startup Company
Creating your micro SaaS startup company is similar to developing its larger counterpart. However, it requires you to look closer at the market you wish to penetrate. Here, you have two things to consider.
- Your solution is something that people would pay for.
- You have found your customers even before you build the product.
These two considerations can be more challenging when applied to micro SaaS. That is due to the very niche nature of the field. You should be sure that the solution is something that would indeed fit the niche you chose.
Developing Your Minimum Viable Product
Once you have fleshed out your idea, the next step is developing it into a minimum-viable product. This is the base version containing all the features and functionalities that solve you target problem.
Image from Quora.
After building your MVP, you can test it with a small number of people within your target market. They will tell what works and what needs to be improved more. The testing stage is an iterative process as you make changes and get it reviewed. However, since this is a small project, you can go through each iteration faster.
Setting Up Your Pricing Model
With your micro SaaS product ready to roll, you need the right pricing. Here, think about how your customers are likely going to use your product. That is closely tied to the problem that it addresses.
For instance, people might only use your product intermittently. In that case, you want a model that lets you earn more within that less frequent usage period. For this, a usage-based pricing model would be well suited. You should also ensure that the price itself is a good combination of competitive and profitable.
Getting The Support For your Micro SaaS Startup Business
We mentioned earlier that micro SaaS can be done even with a small team. But getting the right support will let you do more and boost the service. That is where Virtua Solutions come to your aid.
Our primary role is in customer service. As the usage of your product starts to grow, you will also encounter more requests for assistance. We serve as your frontline in answering these requests.
Our team of agents will handle everything from basic troubleshooting questions to more advanced concerns. We will work closely with your technical team to ensure that every concern gets a proper response. With that, your core team can focus more on improving the product.
We are also ready to help you with the project management aspect of the business. Virtua’s project managers will ensure that your development schedule is followed closely. We will also coordinate with the various development team members to help them accomplish their roles.
Micro SaaS might seem like a small venture at first. But as you continue, that small venture can eventually turn into a thriving startup business. And we are ready to support you in that journey. Contact us today and let’s do more.