Know why Micro-SaaS can be a bad business idea
I know about the wave Micro-SaaS created in the tech industry.
I am also aware the worth it holds for business owners to make it big in near future.
But let’s dive into some risks it holds too.
Better to weigh both the pros and cons before investing money in Micro-SaaS business, right?
Too much dependency on other platform
The first disadvantage is your dependency on another platform, another business.
Let’s say you got your Micro-SaaS available on a platform or through another bigger SaaS product.
If that platform or business just disappears one day, your Micro-SaaS business will crash in no time.
It’s always a risk to invest or start a Micro-SaaS business.
Too many rules by other platform
Let’s say you got your Micro-SaaS product running over the bigger platform like Shopify.
Your business has no choice but to follow the guidelines of that platform.
Although rules make sense, but it can limit the potential of your product in serving your target customers.
Let’s not forget the fees your business has to pay to the bigger platform or SaaS product.
Limited customer for your product
This is pretty obvious and I don’t need to point it out.
When you continue to niche down your product, your audience can get smaller.
Thus, you are less likely to reach to millions of customer base.
Is it a drawback or an opportunity?
I would say it is 50:50.
On the flipside, it’s good for your product in long run.
Your product will get better as you zero down the target audience.
Features get better with time too as there is enough clarity.
Of course, you will have to face limited exposure.
Limited pricing
Let’s say your product is making use of a bigger platform, then you have pay some cut to them.
Revenue-wise, it is a bad news but tables can be turned in your favour too.
If you Micro-SaaS got amazing features to identify/solve problems of target audience, you win.
Pricing will no longer be issue if customer find your product helpful.
They can pay massive amount too to get things done with ease.
It all comes down to one thing: How effectively you Micro-SaaS is able to add value to customers.
You might be thinking, “Gururaj, you showed the downsides of it. So, should I go for actual/bigger SaaS product instead of Micro-SaaS?”
Well, let’s stop for a moment and also glance at advantages of SaaS too.
Read this blog where I mentioned its advantages to help you make informed decision.
Reach out to me on LinkedIn if you like my work.
