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Forgot to say in my other comment: a huge difference between those businesses and a SaaS product is margin. A $10k MRR SaaS product at 85%+ margins, requires no
by corry 6y ago
Forgot to say in my other comment: a huge difference between those businesses and a SaaS product is margin. A $10k MRR SaaS product at 85%+ margins, requires no equipment other than a laptop to maintain, is vastly superior to a lawn mowing company IMO, which will have a truck, a mower, labour, etc. So from a margin perspective, you'd vastly prefer the SaaS product.
- upen946 6y agoCorrect. And with everyone adopting cloud, serverless, managed services I wouldn't be surprised if its 90% margin. Specifically if the architecture is purely written on front end, it would be much cheaper.
- peterwoerner 6y agoIn the case of the lawn mowing company, you don't have employees showing up at customer houses drunk. You don't have to deal with your employees running into houses and cars with their trailers, trucks etc. Lots more head aches with in person businesses than SaaS. I have a neighbour who switched from lawn care to SaaS (selling other peoples tools), says it doesn't matter how much you pay him, he wouldn't go back.
- rmah 6y agoIt's only 85% margin if your time is valued at $0/hr. IMO, that's just a silly way to look at it.
- icedchai 6y agoMost SaaS companies have significant operational costs (cloud spend, operations people, developers fixing bugs, etc.) The small, single person SaaS with huge margins (and real revenue) is largely mythical.