Should You Buy a SaaS Product Instead of Building One? My Dilemma
Considering whether to create a new Software as a Service (SaaS) product from the ground up or to acquire an existing one can be a challenging decision for entrepreneurs. Recently, I’ve found myself at a crossroads, contemplating this very choice.
On one hand, there’s a certain allure to starting with a blank slate and bringing a fresh idea to life through my own efforts. After all, many entrepreneurs take pride in the process of building something entirely new. However, I can’t shake the thought that purchasing a small, already operational SaaS might be a more strategic move.
With my background in managing successful businesses, I believe I possess the skills necessary to amplify the growth of an existing product. This leads me to consider a compelling option: investing in a SaaS that is already generating revenue. I’m particularly interested in offerings that boast a Monthly Recurring Revenue (MRR) between $5,000 and $10,000. If anyone in the community knows of an innovative and polished product fitting that description, I would love to hear about it!
Additionally, I’m reaching out to those who have either embarked on a similar journey or seriously weighed their options. Any insights, experiences, or advice before I take the plunge would be incredibly valuable.
Ultimately, I am trying to determine if this route is a wise decision or if it might lead to unforeseen challenges down the road. Your thoughts would be greatly appreciated as I navigate this intriguing yet complex choice.
One Comment
Great question and a common dilemma for many entrepreneurs exploring SaaS opportunities. Opting to buy an existing SaaS product can indeed offer significant advantages—such as immediate revenue streams, established customer bases, and proven market fit. It can also reduce development time and allow you to focus on scaling rather than building from scratch.
However, it’s crucial to conduct thorough due diligence. Look beyond the revenue numbers—evaluate product stability, customer retention, churn rate, and the scalability of the technology. Additionally, understanding the reasons behind the current owner’s sale can reveal potential challenges or growth opportunities.
Furthermore, consider how well the existing product aligns with your strategic vision and expertise. Since you mentioned growth experience, leverage that by identifying opportunities for optimization, marketing, and feature enhancements to maximize the value of your acquisition.
If you haven’t already, explore platforms like Flippa, MicroAcquire, or established broker networks for SaaS listings fitting your criteria. Connecting with founders who have gone through similar journeys can also provide invaluable firsthand insights.
Ultimately, whether you choose to buy or build, clarity on your long-term goals, resource availability, and risk appetite will help guide the best decision. Best of luck in your pursuit—you’re asking the right questions, and that’s a key first step!