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Thank you for candidly sharing your thoughts & experiences. As a fellow bootstrapped entrepreneur (& programmer), I sympathize with what you're going through.
by dumbfoundded 5y ago
Thank you for candidly sharing your thoughts & experiences.
As a fellow bootstrapped entrepreneur (& programmer), I sympathize with what you're going through. Maybe it's the survivorship bias but I think you could try some things differently. I'm not sure you're open to receiving advice but I hope you find it at least well intentioned.
My biggest piece of advice is that only the sales channel really matters. People talk about product-market fit but that's kind of ambiguous. What you need to do is really understand some sales channel. Your real goal isn't to create the best product in the world, it's to own some sales channel for a particular category. Take movie theater food for example. It's shitty & expensive but keeps selling because it's the only thing available. It may even be helpful to ignore the actual product part and learn about understanding and identifying opportunities in sales channels first. Then you build the product to dominate that category.
Sales channels can be content marketing, google, facebook, amazon, trade shows, in person meetings, and more. For example, if you wanted to do content marketing. Instead of building a product and hoping that content marketing would work, you should learn about how content marketing actually works. Things like link building, content optimization, technical SEO, and keyword research. Then you could find categories you're interested and start seeing where the competitiveness is relatively low compared to the volume. You may also learn that content marketing usually takes 5-figure investments + months to work even in niche categories.
If you really understand a sales channel, the opportunities become obvious. Most people don't really understand why Gitlab succeeded or how it's different from Github. If you're running a dev ops team with a requirement for an on-prem OSS solution, then it starts to make a lot more sense. Another example is the dozens of companies working to port Wordpress apps to Shopify. They're not making the apps any better, they're just making them work on shopify by owning their category in the Shopify App Marketplace. Here's one idea I posted on Shopify hoping someone would build it: https://community.shopify.com/c/shopify-apps/how-to-add-a-table-of-contents-for-your-blog-posts/td-p/1223631 https://community.shopify.com/c/shopify-apps/how-to-add-a-ta...
All in all, I wish you the best. It seems like your heart is in the right place but you need improvement on strategy. You want to build something that people use but thought experiments aren't the way to figure it out. Coming up with more ideas probably isn't going to work out if you don't understand why the other ones didn't work out. An idea without understanding the context of how it will be sold is only a prayer. Talking to customers is great & reaching out manually is a sales strategy as old as time, but it's hard to build a company out of this without 4+ figure deals.
For me, it was figuring SEO and micro influencers. My first business was CBD products got to ~$500K/month in 2.5 years before selling it. I'm now investing in (and helping build for a few months) a cardboard cat homes business. It's completely unrelated except for the sales channels. It sells exactly the same ways and it hit $10K in its 2nd month of sales. After this 3rd month, it should be profitable and I can step away to help other founders start more ecommerce businesses.
- HatchedLake721 5y agoI agree. Something to add for anyone starting a B2B SaaS, here's 2 big take aways: - Pick an uncomfortably narrow niche and stick with it until you reach $10k-$100k MRR - There are 4 main growth channels: 1. Inbound 2. Outbound 3. Partners 4. Ads Pick only 1 for the first 12 months and master it. If you're pre-revenue, I'd suggest to stay away from inbound & ads. You didn't prove yet there's demand for the problem you solve and that you provide value. And SEO takes too much time to get ROI back. I personally suggest to start with outbound. Identify your niche, start reaching out (LinkedIn/emails/groups/forums/etc) and speaking with them. Get their advice on how big the problem you think is and how you're solving it. After giving their advice, if it is a valid problem, they'll be interested to learn more about your product and give it a go. (Ideally do demos/onboarding for every customer <$10k MRR. You'll get invaluable amount of feedback by doing this) Partners is another great channel for early stages B2B SaaS because of very low CAC. Find companies that share same customer profile and where each of you can provide value to each other. P.S. - Going back to Inbound. SEO is not only inbound channel. One that is being very big right now and I recommend is LinkedIn. E.g. lemlist added 1m ARR via LinkedIn, just by building their personal brands there, posting and sharing a lot of valueable content. While doing outbound, you can also start posting on LinkedIn and building a network of your ideal customers and position yourself as an expert in the niche/problem you solve.
- OJFord 5y agoWhat do you mean by inbound and outbound? Based on 'outbound' description, I can sort of guess 'going out to find people' vs. 'waiting for people to come in', but that can't be quite right because then I don't see the distinction between ads and inbound, or rather surely ads is a (dominating!) subset of the latter?
- HatchedLake721 5y agoOutbound - reaching out to people, whether it's email, cold calling, linkedin, what not. This is your sales team (SDR). Inbound - blogs, vlogs, podcasts, guides, templates, checklists, webinars, content, answering quora, guest blogging, case studies, organic LinkedIn/social media. It's all about people stumbling on your content/online presence whether directly or indirectly, and then coming to you. Ads - is a completely different beast. You're actively spending money to advertise your product. > surely ads is a (dominating!) subset of the latter? Dominating in what sense?