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For a B2B SaaS company, the easiest/most likely[1] algorithm to succeed[2]: 1) Be embedded in the industry for a while 2) Make lots of connections, build cred

For a B2B SaaS company, the easiest/most likely[1] algorithm to succeed[2]: 1) Be embedded in the industry for a while 2) Make lots of connections, build credibility 3) Build SaaS app to solve key pain point you experienced in #1 4) Sell to the folks you know from #2 5) For bonus points/de-risking: find 25 potential customers (from #2) and reach out to them and validate this idea (Jobs-to-be-Done). Get a handful of them to commit, even verbally, to buy this when you've got an MVP built. [1] Clearly this is not the only way to be successful, but "I have a random idea lemme build it" is a great way to be not successful [2] Succeed = your business that makes enough revenue to support you and a reasonable lifestyle, equating (and/or eventually surpassing) what you would typically make at a W2 gig, from a diversity of customers and not trading your personal time for money.

goatherders 8y ago
1 through 3 is 100% correct in my experience. I left my job recently and after a short break I called 3 friends from the industry side and 3 friends from the customers-of-that-industry side and said "if I do this will you pay me?"
michaelbuckbee 8y ago
Agreed, but there is a slight twist to that I have seen be even more effective. 1) Consult in the industry as a contract developer at X/hour rate. 2) When you find a problem that they're facing that you might be able to turn into a business, offer them 0.75X/hour while you work on it in exchange for the right to commercialize it. Obviously this doesn't work for everything, but it's a non-obvious way to get paid while fixing a real problem and build a business.
- goatherders 8y ago
  Good advice. I have a B2B lead gen system that I offer - built on 19 years of experience - for 75% of the price of someone who has 2 years experience.
- ryanmarsh 8y ago
  2.b Be independent contractor. Carefully work on side-biz on your own time. Have good documentation and git-log in case someone at the client ends up caring when you worked on it (zero risk if it's not core biz for them and they aren't assholes). Don't tell anyone what you're working. Don't use proprietary data in your product. Profit
  - michaelbuckbee 8y ago
    Again, every situation is different. But the benefit of bringing the client in is that they can act as your first reference client (the hardest to get), and that it's not job+sidebusiness, but a hybrid so your time is more efficiently spent.
thelastidiot 8y ago
" but "I have a random idea lemme build it" is a great way to be not successful" I should print this and frame it in my home office. You rock!
- quickthrower2 8y ago
  I think they call it an Entrepreneurial Seizure.
ggg9990 8y ago
This is exactly the recipe I used and sold a company for $10m. Also, I am a absolutely terrible programmer and v1 of the product, with which this recipe was executed, was full of copy pasted code, unhashed passwords, all of the hallmarks of terrible programming. I got to $100,000 revenue before a friend of mine joined who actually knew how to program and rewrote the whole thing (literally zero lines of my original code were preserved).
- csomar 8y ago
  Care to share what the company was?
- haskellandchill 8y ago
  So? You’re a fraud enjoy your money it means nothing.
  - ir0nic 8y ago
    "Really nice person who wants you to succeed."
    - haskellandchill 8y ago
      Well they have already succeeded so we're good here.
  - 2stop 8y ago
    Why a fraud?
  - PeterFBell 8y ago
    Don't see whats fraudulent about building something people want, use and presumably get value from.
  - deleted 8y ago
    [deleted]
  - sveng 8y ago
davidjnelson 8y ago
Extremely well stated. Thanks for taking the time to write this.
deleted 8y ago
[deleted]
sametmax 8y ago
This has nothing to do with comming up with idea like the title suggests. And it's because having ideas is overated. You find good ideas everywhere, all the time. the execution matters the most, which is part of what you describe.
aeden 8y ago
Nice and succinct. This is exactly what I did for DNSimple.

goatherders 8y ago

1 through 3 is 100% correct in my experience. I left my job recently and after a short break I called 3 friends from the industry side and 3 friends from the customers-of-that-industry side and said "if I do this will you pay me?"

michaelbuckbee 8y ago

Agreed, but there is a slight twist to that I have seen be even more effective. 1) Consult in the industry as a contract developer at X/hour rate. 2) When you find a problem that they're facing that you might be able to turn into a business, offer them 0.75X/hour while you work on it in exchange for the right to commercialize it. Obviously this doesn't work for everything, but it's a non-obvious way to get paid while fixing a real problem and build a business.

goatherders 8y ago
Good advice. I have a B2B lead gen system that I offer - built on 19 years of experience - for 75% of the price of someone who has 2 years experience.
ryanmarsh 8y ago
2.b Be independent contractor. Carefully work on side-biz on your own time. Have good documentation and git-log in case someone at the client ends up caring when you worked on it (zero risk if it's not core biz for them and they aren't assholes). Don't tell anyone what you're working. Don't use proprietary data in your product. Profit
- michaelbuckbee 8y ago
  Again, every situation is different. But the benefit of bringing the client in is that they can act as your first reference client (the hardest to get), and that it's not job+sidebusiness, but a hybrid so your time is more efficiently spent.

thelastidiot 8y ago

" but "I have a random idea lemme build it" is a great way to be not successful" I should print this and frame it in my home office. You rock!

quickthrower2 8y ago
I think they call it an Entrepreneurial Seizure.

ggg9990 8y ago

This is exactly the recipe I used and sold a company for $10m. Also, I am a absolutely terrible programmer and v1 of the product, with which this recipe was executed, was full of copy pasted code, unhashed passwords, all of the hallmarks of terrible programming. I got to $100,000 revenue before a friend of mine joined who actually knew how to program and rewrote the whole thing (literally zero lines of my original code were preserved).

csomar 8y ago
Care to share what the company was?
haskellandchill 8y ago
So? You’re a fraud enjoy your money it means nothing.
- ir0nic 8y ago
  "Really nice person who wants you to succeed."
  - haskellandchill 8y ago
    Well they have already succeeded so we're good here.
- 2stop 8y ago
  Why a fraud?
- PeterFBell 8y ago
  Don't see whats fraudulent about building something people want, use and presumably get value from.
- deleted 8y ago
  [deleted]
- sveng 8y ago

davidjnelson 8y ago

Extremely well stated. Thanks for taking the time to write this.

deleted 8y ago

[deleted]

sametmax 8y ago

This has nothing to do with comming up with idea like the title suggests. And it's because having ideas is overated. You find good ideas everywhere, all the time. the execution matters the most, which is part of what you describe.

aeden 8y ago

Nice and succinct. This is exactly what I did for DNSimple.