Mindset Shift
The "Problem First" Mentality
To find good SaaS ideas, you need to change your focus.
What most people recommend is that you "find ideas". Not only is this advice that's hard to act on with no clear direction, but it's advice that can typically lead someone astray.
What you need to do instead is focus on finding problems that people have.
Once you've found a problem, it's pretty easy to come up with ideas on how to solve it!
Time & Money
Hands down, focusing on problems is the fastest way to getting paid.
Here's why: problems themselves are grounded in 2 things - time and money spent. Solve either one of these with your product and people will be inclined to pay for your solution.
Real-World Example
Let's talk about the Time Spent aspect. And let's imagine you're a Graduate Student Researcher.
As part of your research, you have to do a lot of interviews with people. And part of that requires that you transcribe your interview recordings into text.
Researchers probably have a lot of other things to do and take care of. Spending hours transcribing an interview can cut into the time they need to work on other things. Here, they are experiencing the problem of spending a lot of time doing something that most don't find enjoyment in.
Let's say you want to instead outsource the work to a third-party to transcribe. You would have various options to go about doing it, but what you'll notice is it's pretty pricey to go this route.
What are your other options? Well, I'd say a solution where they don't spend a lot of money and where it would cut down on the time it takes them to transcribe their recordings. Automatic transcription software is a viable option if you aren't able to spend too much money, and are willing to put in some time to transcribe the audio into text.
Start paying attention to the problems that people are facing. Get a pulse on what people are saying they struggle with. From there, you'll be able to identify problems, which in turn can become products that solve those problems!
Methods for Finding Ideas
The Job Search Method
The Job Search Method is deeply grounded in finding problems that people have. It will lead you right to the problems that people have.
Step 1 - Find an Industry
Before finding problems, we have to choose an industry. I like to use this website when trying to find an industry to explore. There are TONS of industries to choose from. Take some time to go through the list read up on Wikipedia pages or watch a few videos to learn how things operate in an industry.
Step 2 - Find Jobs Within That Industry
To find jobs in an industry, simply put the industry name right into a job search engine, such as Indeed. The term "car dealers" isn't a job, but what Indeed will do is show you jobs within that industry. This will be your starting point.
Step 3 - Pay Attention To The Job Description
After reading through a job description (e.g., "Service Manager"), pay attention to the terms that are the job responsibilities of that person and see if that job responsibility has any relevance to a software product.
Step 4 - Start Building Search Keywords Based On Your Findings
Here's the formula for creating a keyword to find potential SaaS ideas:
Job Responsibility PLUS the words "management software"
For example, as a Service Manager, you need to "ensure compliance with Health and Safety regulations". Combine that with "management software" and you get: "Health and Safety management software".
The App Store Method
App Stores are a great place to find SaaS ideas. They exist to solve problems for users of a particular platform, so it's pretty easy to find the ideas within them.
Step 1 - Choose an App Store
There are plenty of app stores you can choose from (Shopify, Apple, Salesforce AppExchange, Chrome, Google Play). I like to use the Shopify App Store.
Step 2 - Choose a Category
Select any category that interests you (e.g., marketing, customer support, inventory management).
Step 3 - Sort the Results
Sort the results of the apps in that category from top to bottom, based on review or installations. You want to be able to filter out the apps that are the most popular.
Step 4 - Find the 1 Star Reviews
Filter the reviews by the 1-star reviews. Pay attention to reviews where people discuss things that are severely lacking from the app. This is where the problems that users really care about will surface. Knowing these shortcomings will be your competitive advantage.
Step 5 - Use your findings to come up with a SaaS Idea
Instead of flat-out imitating the popular app, focus on building an app that solves the main problem AND solves the specific problems you've identified in the bad reviews!
The Excel/Spreadsheet Method
This involves looking for what people are using Microsoft Excel or Google Sheets for.
Listen to what people use spreadsheets for
If you're into this, start paying attention to what people are using Excel for in their day-to-day jobs. As described in the first method, you can ask clarifying questions when people describe what they do at their jobs. If a task they mention sounds like they might be using spreadsheets for it, just ask them "what software do you use to do that?".
Two things will happen:
- They will tell you about a piece of software they use to solve that problem for them.
- They will tell you that they have a spreadsheet to help them solve that problem.
If they talk about using spreadsheets for that task, you could find out further if software would make their lives easier and if that is something they (or their company) would pay for!
Validating Your Idea
The Keyword Research Method
The goal is to find keywords that people are searching for that will surface your SaaS idea.
Enter your SaaS idea into Google Keyword Planner
Use the Google Keyword Planner (requires a free Google Ads account). Enter your keyword (e.g., “health and safety management software”). Google will give you a range of numbers based on the number of searches that happen per month and the price per click. Generally, the higher the number, the more people are searching for a solution.
Enter your keyword into Google Search
Enter the keyword yourself into Google Search. To further validate your idea, look for:
- Ads appearing for your keyword.
- Top organic results showing similar software.
If your search shows either of these, it’s a pretty safe bet to say that people are looking for this type of solution.
Using UberSuggest
I want to introduce another tool you can use that is free and doesn't require you sign up for an account. It's called UberSuggest! It's a keyword research tool much like the keyword planner, where you can enter your terms and get the same information, such as search volume. Try it out here.
The Question Research Method
This method validates the idea, uncovers competitors, and helps find Q&A content for your SEO strategy.
Step 1 - Start with a "What" question
Simply enter the search term: "What is (your SaaS idea)".
For example: "What is Health and Safety management Software?".
Pay attention to:
- New Keywords: E.g., "Health and Safety Software" is also known as EHS Software.
- Competitors: If a company like Cority.com pops up, it validates that this is something people purchase.
Step 2 - Repeat the process with the other "W" Questions
Ask further questions like:
- How does EHS software work?
- Where does EHS software get used?
- What industries use EHS software?
- Who uses EHS software?
With questions like these, you'll start to uncover more competitors and potential avenues of breaking into the market.
Execution & Strategy
Building the MVP (Minimum Viable Product)
Now that you've validated the idea, it's time to build the first version. Focus on building the core functionalities and getting it out there as fast as possible.
Why speed matters:
- Testing: It lets you test the market to see if people really do want your product. You can even start off with just a waitlist sign up.
- SEO: While you are building your product, search engines like Google will already know you exist.
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