Give Me 36 Minutes and I'll Teach You How to Find $1M SaaS Ideas

Choosing the right SaaS idea can be the Choosing the right SaaS idea can be the difference between making 10,000, difference between making 10,000, difference between making 10,000, 100,000, or even a million dollars a 100,000, or even a million dollars a 100,000, or even a million dollars a month and making nothing at all. But I'm month and making nothing at all. But I'm month and making nothing at all. But I'm not here to give you another list of not here to give you another list of not here to give you another list of hypothetical SaaS ideas, cuz that's not hypothetical SaaS ideas, cuz that's not hypothetical SaaS ideas, cuz that's not what you need. What you really need is what you need. What you really need is what you need. What you really need is to know how successful founders actually to know how successful founders actually to know how successful founders actually found their idea and how you can steal found their idea and how you can steal found their idea and how you can steal their tactics to find your own idea their tactics to find your own idea their tactics to find your own idea today. So, here's what I did. I surveyed today. So, here's what I did. I surveyed today. So, here's what I did. I surveyed over 200 SaaS founders making at least a over 200 SaaS founders making at least a over 200 SaaS founders making at least a thousand dollars a month, some making thousand dollars a month, some making thousand dollars a month, some making well over a hundred thousand dollars a well over a hundred thousand dollars a well over a hundred thousand dollars a month, to uncover the exact methods they month, to uncover the exact methods they month, to uncover the exact methods they used to find their winning ideas. This used to find their winning ideas. This used to find their winning ideas. This is something no one else on YouTube is is something no one else on YouTube is is something no one else on YouTube is doing. People are talking out of their doing. People are talking out of their doing. People are talking out of their opinion and limited experience, but on opinion and limited experience, but on opinion and limited experience, but on this channel, I like to get some data this channel, I like to get some data this channel, I like to get some data and provide you with some insights that and provide you with some insights that and provide you with some insights that you can't get anywhere else. So, in this you can't get anywhere else. So, in this you can't get anywhere else. So, in this video, I'm going to break down the top video, I'm going to break down the top video, I'm going to break down the top eight ways these founders discovered eight ways these founders discovered eight ways these founders discovered profitable SaaS opportunities, and I'll profitable SaaS opportunities, and I'll profitable SaaS opportunities, and I'll give you examples for each. I've seen give you examples for each. I've seen give you examples for each. I've seen these methods work in my own companies these methods work in my own companies these methods work in my own companies and across the hundreds of startups I'm and across the hundreds of startups I'm and across the hundreds of startups I'm invested in, as well as the thousands of invested in, as well as the thousands of invested in, as well as the thousands of SaaS companies that I've seen started in SaaS companies that I've seen started in SaaS companies that I've seen started in the broader TinySeed, MicroConf, and the broader TinySeed, MicroConf, and the broader TinySeed, MicroConf, and Startups For The Rest Of Us ecosystem.

Startups For The Rest Of Us ecosystem. Startups For The Rest Of Us ecosystem. There's a lot to cover in this video, so There's a lot to cover in this video, so There's a lot to cover in this video, so let's dive in. Method number one was let's dive in. Method number one was let's dive in. Method number one was used by a shocking 48% of founders that used by a shocking 48% of founders that used by a shocking 48% of founders that we surveyed, and honestly, didn't we surveyed, and honestly, didn't we surveyed, and honestly, didn't surprise me at all. For years, I've surprise me at all. For years, I've surprise me at all. For years, I've said, "Don't tell me your idea, tell me said, "Don't tell me your idea, tell me said, "Don't tell me your idea, tell me what problem it solves." And for almost what problem it solves." And for almost what problem it solves." And for almost half of the successful founders we half of the successful founders we half of the successful founders we surveyed, that problem showed up right surveyed, that problem showed up right surveyed, that problem showed up right where they were already spending 40 where they were already spending 40 where they were already spending 40 hours a week. Method number one is hours a week. Method number one is hours a week. Method number one is finding a problem at your day job. So, finding a problem at your day job. So, finding a problem at your day job. So, this is where you spot a problem while this is where you spot a problem while this is where you spot a problem while working your regular job, either as a working your regular job, either as a working your regular job, either as a developer frustrated by bad tools, or as developer frustrated by bad tools, or as developer frustrated by bad tools, or as a subject matter expert who knows your a subject matter expert who knows your a subject matter expert who knows your industry's pain points. You already have industry's pain points. You already have industry's pain points. You already have contacts, you have credibility, and contacts, you have credibility, and contacts, you have credibility, and access to potential customers. One access to potential customers. One access to potential customers. One example of this is Alex Yumishev, the example of this is Alex Yumishev, the example of this is Alex Yumishev, the founder of Jitbit, which is a help desk founder of Jitbit, which is a help desk founder of Jitbit, which is a help desk ticketing system. Alex told us, "While ticketing system. Alex told us, "While ticketing system. Alex told us, "While working my full-time job, I realized working my full-time job, I realized working my full-time job, I realized that many existing tech support and that many existing tech support and that many existing tech support and customer support apps were missing the customer support apps were missing the customer support apps were missing the boring features that real teams actually boring features that real teams actually boring features that real teams actually need. Things like SSO, Active Directory need. Things like SSO, Active Directory need. Things like SSO, Active Directory integration, user provisioning, on-prem integration, user provisioning, on-prem integration, user provisioning, on-prem self-hosted deployment for Windows, and self-hosted deployment for Windows, and self-hosted deployment for Windows, and many other features. The sleek modern many other features. The sleek modern many other features. The sleek modern tools had none of that, and the ones tools had none of that, and the ones tools had none of that, and the ones that did have the boring features look that did have the boring features look that did have the boring features look like they were straight out of the '90s.

like they were straight out of the '90s. like they were straight out of the '90s. Cluttered UIs, endless checkboxes, Cluttered UIs, endless checkboxes, Cluttered UIs, endless checkboxes, painfully complicated setup flows. And painfully complicated setup flows. And painfully complicated setup flows. And while the market was very saturated, I while the market was very saturated, I while the market was very saturated, I took that as a good sign. The market was took that as a good sign. The market was took that as a good sign. The market was there." Attacking a big competitor can there." Attacking a big competitor can there." Attacking a big competitor can be a benefit on one hand, stealing cool be a benefit on one hand, stealing cool be a benefit on one hand, stealing cool marketing ideas from the smaller marketing ideas from the smaller marketing ideas from the smaller companies on the other. Maybe you've companies on the other. Maybe you've companies on the other. Maybe you've spent years working in an industry and spent years working in an industry and spent years working in an industry and you're a subject matter expert. You know you're a subject matter expert. You know you're a subject matter expert. You know all the headaches inside and out, like all the headaches inside and out, like all the headaches inside and out, like Zach from Upstream Edge. Zach told us, Zach from Upstream Edge. Zach told us, Zach from Upstream Edge. Zach told us, "I provide a desktop application for "I provide a desktop application for "I provide a desktop application for forecasting and valuing oil and gas forecasting and valuing oil and gas forecasting and valuing oil and gas wells that include sophisticated wells that include sophisticated wells that include sophisticated engineering and financial analysis engineering and financial analysis engineering and financial analysis tools. 100 times faster speed and higher tools. 100 times faster speed and higher tools. 100 times faster speed and higher level features compared to alternatives level features compared to alternatives level features compared to alternatives are what differentiate my product. I are what differentiate my product. I are what differentiate my product. I worked in the oil and gas industry as a worked in the oil and gas industry as a worked in the oil and gas industry as a petroleum engineer for a decade, and my petroleum engineer for a decade, and my petroleum engineer for a decade, and my frustration with the current tools led frustration with the current tools led frustration with the current tools led me to learn how to build new tools to me to learn how to build new tools to me to learn how to build new tools to solve our daily problems. I had a solve our daily problems. I had a solve our daily problems. I had a burning desire to see better software, burning desire to see better software, burning desire to see better software, and I decided to make the product I and I decided to make the product I and I decided to make the product I thought the industry needed." Then thought the industry needed." Then thought the industry needed." Then there's Lee Dido, the founder of there's Lee Dido, the founder of there's Lee Dido, the founder of Didomite. Lee told us, "It's the fastest Didomite. Lee told us, "It's the fastest Didomite. Lee told us, "It's the fastest way to get looping video on a public way to get looping video on a public way to get looping video on a public screen. I started working at a company screen. I started working at a company screen. I started working at a company called BrightSign in 2012, who was the called BrightSign in 2012, who was the called BrightSign in 2012, who was the market leader in digital signage media market leader in digital signage media market leader in digital signage media players. It's a very hardware-focused players. It's a very hardware-focused players. It's a very hardware-focused industry, and I repeatedly kept seeing industry, and I repeatedly kept seeing industry, and I repeatedly kept seeing the same problems over and over when it the same problems over and over when it the same problems over and over when it came to operational software. Just came to operational software. Just came to operational software. Just nobody was thinking about user nobody was thinking about user nobody was thinking about user experience, and I kept socking away my experience, and I kept socking away my experience, and I kept socking away my ideas until one day, 10 years later, I ideas until one day, 10 years later, I ideas until one day, 10 years later, I thought it was time to jump." Consider thought it was time to jump." Consider thought it was time to jump." Consider jobs you've had, even a long time ago.

jobs you've had, even a long time ago. jobs you've had, even a long time ago. The problem I just mentioned was The problem I just mentioned was The problem I just mentioned was something Lee experienced a decade something Lee experienced a decade something Lee experienced a decade earlier. Think about those tedious, earlier. Think about those tedious, earlier. Think about those tedious, repetitive tasks that are currently repetitive tasks that are currently repetitive tasks that are currently being human automated and that could be being human automated and that could be being human automated and that could be turned into software. The next example turned into software. The next example turned into software. The next example is similar in that it's automating a is similar in that it's automating a is similar in that it's automating a task that this consultant did for their task that this consultant did for their task that this consultant did for their clients. Ahmed Babikir is the co-founder clients. Ahmed Babikir is the co-founder clients. Ahmed Babikir is the co-founder of Blue Gamma, which is interest rate of Blue Gamma, which is interest rate of Blue Gamma, which is interest rate forecasts for finance teams. Ahmed told forecasts for finance teams. Ahmed told forecasts for finance teams. Ahmed told us, "My co-founder and I used to work at us, "My co-founder and I used to work at us, "My co-founder and I used to work at a consultancy, where clients would ask a consultancy, where clients would ask a consultancy, where clients would ask us for interest rate data, sometimes us for interest rate data, sometimes us for interest rate data, sometimes multiple times a day. As a recent multiple times a day. As a recent multiple times a day. As a recent graduate, my job was to pull the data, graduate, my job was to pull the data, graduate, my job was to pull the data, format it, and send it over in a format it, and send it over in a format it, and send it over in a spreadsheet every time. After leaving spreadsheet every time. After leaving spreadsheet every time. After leaving the company and learning about startups the company and learning about startups the company and learning about startups a year later, we realized it was a a year later, we realized it was a a year later, we realized it was a repetitive problem that software could repetitive problem that software could repetitive problem that software could solve very easily." Or maybe at your day solve very easily." Or maybe at your day solve very easily." Or maybe at your day job, you see a colleague doing job, you see a colleague doing job, you see a colleague doing repetitive work that you know could be repetitive work that you know could be repetitive work that you know could be streamlined, like Steve from Loody, streamlined, like Steve from Loody, streamlined, like Steve from Loody, formerly Metro Retro. Loody is formerly Metro Retro. Loody is formerly Metro Retro. Loody is collaboration software focused on collaboration software focused on collaboration software focused on development teams, helping them with development teams, helping them with development teams, helping them with retrospectives, refinement, planning, retrospectives, refinement, planning, retrospectives, refinement, planning, and so on. Steve told us, "I created an and so on. Steve told us, "I created an and so on. Steve told us, "I created an early prototype of a canvas-based retro early prototype of a canvas-based retro early prototype of a canvas-based retro tool as part of a hackathon at my last tool as part of a hackathon at my last tool as part of a hackathon at my last real job. The idea came from watching real job. The idea came from watching real job. The idea came from watching the PM write up the notes after every the PM write up the notes after every the PM write up the notes after every meeting by hand." So, now let's take a meeting by hand." So, now let's take a meeting by hand." So, now let's take a step back and look at what makes this step back and look at what makes this step back and look at what makes this first method of finding a problem at first method of finding a problem at first method of finding a problem at your day job work. The first is, you your day job work. The first is, you your day job work. The first is, you already have deep context around the already have deep context around the already have deep context around the problem. You've lived it, you know the problem. You've lived it, you know the problem. You've lived it, you know the workarounds, you understand why existing workarounds, you understand why existing workarounds, you understand why existing solutions fall short. The second is you solutions fall short. The second is you solutions fall short. The second is you have built-in access to potential have built-in access to potential have built-in access to potential customers and beta testers. These are

customers and beta testers. These are customers and beta testers. These are your colleagues, your industry contacts, your colleagues, your industry contacts, your colleagues, your industry contacts, and so on. The third is that you and so on. The third is that you and so on. The third is that you understand the buying process. You know understand the buying process. You know understand the buying process. You know who signs off on purchases, what budget who signs off on purchases, what budget who signs off on purchases, what budget cycles look like, what objections come cycles look like, what objections come cycles look like, what objections come up. And the fourth is that you can up. And the fourth is that you can up. And the fourth is that you can potentially validate the idea while potentially validate the idea while potentially validate the idea while still employed, reducing your risk. But still employed, reducing your risk. But still employed, reducing your risk. But there are three things to watch out for there are three things to watch out for there are three things to watch out for with this approach. The first is make with this approach. The first is make with this approach. The first is make sure the problem exists beyond your sure the problem exists beyond your sure the problem exists beyond your specific company. Your employer might specific company. Your employer might specific company. Your employer might just be uniquely dysfunctional, so just be uniquely dysfunctional, so just be uniquely dysfunctional, so validate your idea outside of your validate your idea outside of your validate your idea outside of your little bubble. The second is check your little bubble. The second is check your little bubble. The second is check your employment agreement for IP clauses. employment agreement for IP clauses. employment agreement for IP clauses. Some companies claim ownership of Some companies claim ownership of Some companies claim ownership of anything you build while you're anything you build while you're anything you build while you're employed. And the third is be careful employed. And the third is be careful employed. And the third is be careful not to use proprietary information or not to use proprietary information or not to use proprietary information or customer data from your employer to customer data from your employer to customer data from your employer to build your product. I also wouldn't use build your product. I also wouldn't use build your product. I also wouldn't use any of my employer's hardware, like a any of my employer's hardware, like a any of my employer's hardware, like a laptop. I would have a personal laptop laptop. I would have a personal laptop laptop. I would have a personal laptop that I worked on, and as I mentioned, I that I worked on, and as I mentioned, I that I worked on, and as I mentioned, I would check that IP clause and be really would check that IP clause and be really would check that IP clause and be really clean about it. So, with this method, clean about it. So, with this method, clean about it. So, with this method, I'd be asking myself three questions to I'd be asking myself three questions to I'd be asking myself three questions to try to get my juices flowing. The first try to get my juices flowing. The first try to get my juices flowing. The first is what tools do I use on a daily basis is what tools do I use on a daily basis is what tools do I use on a daily basis that frustrate me or my coworkers? The that frustrate me or my coworkers? The that frustrate me or my coworkers? The second is what manual process or second is what manual process or second is what manual process or processes exist today that I think processes exist today that I think processes exist today that I think should be automated by software? And the should be automated by software? And the should be automated by software? And the third is, are the incumbent tools in third is, are the incumbent tools in third is, are the incumbent tools in this industry actually old and clunky this industry actually old and clunky this industry actually old and clunky and not changing, or are they actually and not changing, or are they actually and not changing, or are they actually pretty good and I just don't like them?

pretty good and I just don't like them? pretty good and I just don't like them? So, there were a lot of companies that So, there were a lot of companies that So, there were a lot of companies that used this first method. As I said, it used this first method. As I said, it used this first method. As I said, it was almost 50%, but I don't want to was almost 50%, but I don't want to was almost 50%, but I don't want to spend this whole video talking about it. spend this whole video talking about it. spend this whole video talking about it. So, I put together a completely free So, I put together a completely free So, I put together a completely free resource over at robwalling.com/ideas. I'll tell you more about that later, but I'll tell you more about that later, but one thing I want you to notice is that one thing I want you to notice is that one thing I want you to notice is that all of these folks were solving problems all of these folks were solving problems all of these folks were solving problems that people would be willing to pay for. that people would be willing to pay for. that people would be willing to pay for. In the next category, the founders knew In the next category, the founders knew In the next category, the founders knew that there would be a customer ready to that there would be a customer ready to that there would be a customer ready to pay because they copied an existing idea pay because they copied an existing idea pay because they copied an existing idea or an existing product. This was about or an existing product. This was about or an existing product. This was about 10% of our respondents. In some cases, 10% of our respondents. In some cases, 10% of our respondents. In some cases, founders saw how much their employer was founders saw how much their employer was founders saw how much their employer was spending on a solution and thought, "I spending on a solution and thought, "I spending on a solution and thought, "I could do that cheaper," or "I could do could do that cheaper," or "I could do could do that cheaper," or "I could do that better." Or you might notice a that better." Or you might notice a that better." Or you might notice a large space with a hated competitor. large space with a hated competitor. large space with a hated competitor. While I didn't participate in this While I didn't participate in this While I didn't participate in this particular survey, I did exactly this particular survey, I did exactly this particular survey, I did exactly this when I was building Drip, and we did it when I was building Drip, and we did it when I was building Drip, and we did it by accident, if I'm being honest. We had by accident, if I'm being honest. We had by accident, if I'm being honest. We had built a little email capture widget and built a little email capture widget and built a little email capture widget and the ability to send sequences of emails the ability to send sequences of emails the ability to send sequences of emails to people that signed up. What we to people that signed up. What we to people that signed up. What we quickly realized is there was market quickly realized is there was market quickly realized is there was market pull. There were people talking about pull. There were people talking about pull. There were people talking about marketing automation and email marketing automation and email marketing automation and email automation features that didn't exist in automation features that didn't exist in automation features that didn't exist in the less expensive email service the less expensive email service the less expensive email service providers, and every tool that had these providers, and every tool that had these providers, and every tool that had these features was really expensive, had features was really expensive, had features was really expensive, had annual contracts, software wasn't great, annual contracts, software wasn't great, annual contracts, software wasn't great, and they required you to talk to a and they required you to talk to a and they required you to talk to a salesperson. So, we started building salesperson. So, we started building salesperson. So, we started building some of those features, and while we some of those features, and while we some of those features, and while we didn't copy any existing products, we didn't copy any existing products, we didn't copy any existing products, we did enter an existing category, and did enter an existing category, and did enter an existing category, and there were already paradigms in place there were already paradigms in place there were already paradigms in place that we certainly slotted into, and it

that we certainly slotted into, and it that we certainly slotted into, and it made selling and marketing our tool a made selling and marketing our tool a made selling and marketing our tool a lot easier because when people arrived lot easier because when people arrived lot easier because when people arrived at the homepage drip.com, they could at the homepage drip.com, they could at the homepage drip.com, they could see, "Oh, this is this type of tool. Why see, "Oh, this is this type of tool. Why see, "Oh, this is this type of tool. Why is it different?" And that's all I had is it different?" And that's all I had is it different?" And that's all I had to communicate. I didn't have to to communicate. I didn't have to to communicate. I didn't have to communicate what we were doing and how communicate what we were doing and how communicate what we were doing and how novel we were. I just had to say, "We novel we were. I just had to say, "We novel we were. I just had to say, "We are either an email service provider," are either an email service provider," are either an email service provider," or at some point we were an email or at some point we were an email or at some point we were an email automation software, and then we became automation software, and then we became automation software, and then we became lightweight marketing automation. And lightweight marketing automation. And lightweight marketing automation. And then I just had to tell you, "Why are we then I just had to tell you, "Why are we then I just had to tell you, "Why are we better or different than all the other better or different than all the other better or different than all the other incumbents?" And there were a lot of big incumbents?" And there were a lot of big incumbents?" And there were a lot of big clunky incumbents that people didn't clunky incumbents that people didn't clunky incumbents that people didn't like. And that, in addition to the fact like. And that, in addition to the fact like. And that, in addition to the fact that we executed really well, was the that we executed really well, was the that we executed really well, was the reason that Drip grew so quickly and reason that Drip grew so quickly and reason that Drip grew so quickly and resulted in a life-changing exit for me resulted in a life-changing exit for me resulted in a life-changing exit for me back in 2016. Another example of using back in 2016. Another example of using back in 2016. Another example of using this approach comes from Tim Leland, the this approach comes from Tim Leland, the this approach comes from Tim Leland, the founder of t.ly. founder of t.ly. founder of t.ly. t.ly is an all-in-one URL shortener and t.ly is an all-in-one URL shortener and t.ly is an all-in-one URL shortener and QR code platform. It's built for QR code platform. It's built for QR code platform. It's built for marketers, developers, creators, and marketers, developers, creators, and marketers, developers, creators, and teams. And Tim told us, "I was working teams. And Tim told us, "I was working teams. And Tim told us, "I was working for a company on an online giving for a company on an online giving for a company on an online giving product, and we were tasked to build a product, and we were tasked to build a product, and we were tasked to build a text to give feature. To do this, we had text to give feature. To do this, we had text to give feature. To do this, we had to shorten the URLs since SMS messages to shorten the URLs since SMS messages to shorten the URLs since SMS messages are limited to 160 characters. We looked are limited to 160 characters. We looked are limited to 160 characters. We looked at Bitly and saw it was thousands of at Bitly and saw it was thousands of at Bitly and saw it was thousands of dollars to use a custom domain to create dollars to use a custom domain to create dollars to use a custom domain to create short links. So, to save money, I built short links. So, to save money, I built short links. So, to save money, I built a simple in-house URL shortener over the a simple in-house URL shortener over the a simple in-house URL shortener over the weekend that we could host ourselves.

weekend that we could host ourselves. weekend that we could host ourselves. This got me thinking other companies may This got me thinking other companies may This got me thinking other companies may want a more affordable option, but they want a more affordable option, but they want a more affordable option, but they don't want to build it in-house." don't want to build it in-house." don't want to build it in-house." Another example of a founder who used Another example of a founder who used Another example of a founder who used this approach is Lilia Tobin. She this approach is Lilia Tobin. She this approach is Lilia Tobin. She started BigMailer, which is an email started BigMailer, which is an email started BigMailer, which is an email marketing platform with a focus on marketing platform with a focus on marketing platform with a focus on multi-brand management for agencies and multi-brand management for agencies and multi-brand management for agencies and franchises. Lilia told us, "While franchises. Lilia told us, "While franchises. Lilia told us, "While working on our previous B2C startup, we working on our previous B2C startup, we working on our previous B2C startup, we had grown our email list to more than had grown our email list to more than had grown our email list to more than 300,000 subscribers. All the available 300,000 subscribers. All the available 300,000 subscribers. All the available email solutions seemed too expensive for email solutions seemed too expensive for email solutions seemed too expensive for a product update newsletter of our size, a product update newsletter of our size, a product update newsletter of our size, so we built an in-house solution powered so we built an in-house solution powered so we built an in-house solution powered by Amazon and decided to make it into a by Amazon and decided to make it into a by Amazon and decided to make it into a standalone tool. Another option might be standalone tool. Another option might be standalone tool. Another option might be to port an existing product to a new to port an existing product to a new to port an existing product to a new country, language, or geography. We had country, language, or geography. We had country, language, or geography. We had a couple of respondents who copied an a couple of respondents who copied an a couple of respondents who copied an idea that seemed to be working in the US idea that seemed to be working in the US idea that seemed to be working in the US and they translated it to the needs of and they translated it to the needs of and they translated it to the needs of different geographies. One example is different geographies. One example is different geographies. One example is Checkout Joy, which provides custom Checkout Joy, which provides custom Checkout Joy, which provides custom checkout pages for e-learning businesses checkout pages for e-learning businesses checkout pages for e-learning businesses that connect local payment processors that connect local payment processors that connect local payment processors with LMS platforms. The founder, Merijn with LMS platforms. The founder, Merijn with LMS platforms. The founder, Merijn de Wet, told us, "My wife had a de Wet, told us, "My wife had a de Wet, told us, "My wife had a membership business and couldn't easily membership business and couldn't easily membership business and couldn't easily accept payments from their LMS platform.

accept payments from their LMS platform. accept payments from their LMS platform. No Stripe where we live and very limited No Stripe where we live and very limited No Stripe where we live and very limited PayPal usage. Locals don't want to pay PayPal usage. Locals don't want to pay PayPal usage. Locals don't want to pay in USD, but that was all the LMS in USD, but that was all the LMS in USD, but that was all the LMS offered. I was researching solutions and offered. I was researching solutions and offered. I was researching solutions and realized that there are potentially realized that there are potentially realized that there are potentially thousands of businesses with the same thousands of businesses with the same thousands of businesses with the same issue. So I built a quick MVP with our issue. So I built a quick MVP with our issue. So I built a quick MVP with our local payment processor and got them local payment processor and got them local payment processor and got them live within a week. We could see an live within a week. We could see an live within a week. We could see an immediate bump in conversions for them immediate bump in conversions for them immediate bump in conversions for them and it made it easy to do business and and it made it easy to do business and and it made it easy to do business and quickly get funds into their local bank quickly get funds into their local bank quickly get funds into their local bank account." Another founder who took this account." Another founder who took this account." Another founder who took this approach is Simon Thompson, the founder approach is Simon Thompson, the founder approach is Simon Thompson, the founder of Hururu.ai, of Hururu.ai, of Hururu.ai, which is an AI answering service to help which is an AI answering service to help which is an AI answering service to help local Australian business owners manage local Australian business owners manage local Australian business owners manage phone calls, especially during weekends phone calls, especially during weekends phone calls, especially during weekends and after hours. It has local Australian and after hours. It has local Australian and after hours. It has local Australian voices and sensibilities. Simon told us, voices and sensibilities. Simon told us, voices and sensibilities. Simon told us, "I saw examples in the US, such as Rosie "I saw examples in the US, such as Rosie "I saw examples in the US, such as Rosie AI, doing the same thing and figured AI, doing the same thing and figured AI, doing the same thing and figured there would be a need for the same type there would be a need for the same type there would be a need for the same type of service, but specifically with of service, but specifically with of service, but specifically with Australian accents and sensibilities. I Australian accents and sensibilities. I Australian accents and sensibilities. I also guessed that it wouldn't make sense also guessed that it wouldn't make sense also guessed that it wouldn't make sense for the major players in the US to build for the major players in the US to build for the major players in the US to build Australian accents into their platform Australian accents into their platform Australian accents into their platform and go to market in Australia, at least and go to market in Australia, at least and go to market in Australia, at least not anytime in the near future." So what not anytime in the near future." So what not anytime in the near future." So what makes this method work? Well, four makes this method work? Well, four makes this method work? Well, four things. The first is you have proof of things. The first is you have proof of things. The first is you have proof of demand. Someone else already validated demand. Someone else already validated demand. Someone else already validated that people will pay for it. The second that people will pay for it. The second that people will pay for it. The second is you can learn from the incumbent's is you can learn from the incumbent's is you can learn from the incumbent's mistakes by reading their negative mistakes by reading their negative mistakes by reading their negative reviews and support forums. You can see reviews and support forums. You can see reviews and support forums. You can see what they're doing right and see what what they're doing right and see what what they're doing right and see what they're doing wrong because they they're doing wrong because they they're doing wrong because they pioneered it. The third is you can pioneered it. The third is you can pioneered it. The third is you can differentiate on price, user experience, differentiate on price, user experience, differentiate on price, user experience, specific features, or a particular specific features, or a particular specific features, or a particular niche. And if the incumbent has been niche. And if the incumbent has been niche. And if the incumbent has been around for a long time, they've often around for a long time, they've often around for a long time, they've often raised prices and gone up market and raised prices and gone up market and raised prices and gone up market and that can leave a lot of opportunity. The that can leave a lot of opportunity. The that can leave a lot of opportunity. The fourth is if the market is large enough,

fourth is if the market is large enough, fourth is if the market is large enough, even a small slice can be a great even a small slice can be a great even a small slice can be a great business if you're a mostly bootstrapped business if you're a mostly bootstrapped business if you're a mostly bootstrapped founder. But there are also four things founder. But there are also four things founder. But there are also four things to watch out for when using this to watch out for when using this to watch out for when using this approach. The first is copying a product approach. The first is copying a product approach. The first is copying a product in a small market means you're fighting in a small market means you're fighting in a small market means you're fighting for scraps. This approach works best for scraps. This approach works best for scraps. This approach works best when the market is big. The second is when the market is big. The second is when the market is big. The second is make sure you have a real make sure you have a real make sure you have a real differentiator. It's not just we're differentiator. It's not just we're differentiator. It's not just we're newer, that's not enough. So when we use newer, that's not enough. So when we use newer, that's not enough. So when we use the word copy, what we really mean is the word copy, what we really mean is the word copy, what we really mean is enter an existing category where there enter an existing category where there enter an existing category where there are already other players. I still think are already other players. I still think are already other players. I still think you need to get in and position yourself you need to get in and position yourself you need to get in and position yourself in a corner of the market that isn't in a corner of the market that isn't in a corner of the market that isn't being served very well. The third thing being served very well. The third thing being served very well. The third thing to watch out for is the incumbent has a to watch out for is the incumbent has a to watch out for is the incumbent has a head start on brand recognition, on SEO, head start on brand recognition, on SEO, head start on brand recognition, on SEO, integrations, customer trust, marketing, integrations, customer trust, marketing, integrations, customer trust, marketing, all kinds of things. And the fourth is all kinds of things. And the fourth is all kinds of things. And the fourth is be honest about why you think you can be honest about why you think you can be honest about why you think you can win. I'll just execute better is not a win. I'll just execute better is not a win. I'll just execute better is not a strategy and just copying an existing strategy and just copying an existing strategy and just copying an existing player is very unlikely to work. So the player is very unlikely to work. So the player is very unlikely to work. So the questions to ask yourself are number questions to ask yourself are number questions to ask yourself are number one, why are customers unhappy with the one, why are customers unhappy with the one, why are customers unhappy with the current options? Is it price, features, current options? Is it price, features, current options? Is it price, features, support, usability, or something else? support, usability, or something else? support, usability, or something else? The second, is my differentiation The second, is my differentiation The second, is my differentiation something customers actually care about something customers actually care about something customers actually care about or is it just interesting to me? The or is it just interesting to me? The or is it just interesting to me? The third is can I reach customers through a third is can I reach customers through a third is can I reach customers through a channel the incumbent isn't using well channel the incumbent isn't using well channel the incumbent isn't using well or where there's some type of or where there's some type of or where there's some type of opportunity? And the fourth is is there opportunity? And the fourth is is there opportunity? And the fourth is is there a specific segment of the market that's a specific segment of the market that's a specific segment of the market that's underserved and would love a product underserved and would love a product underserved and would love a product built just for them? Method number three built just for them? Method number three built just for them? Method number three is discovering a problem through is discovering a problem through is discovering a problem through freelancing. About 10% of the founders freelancing. About 10% of the founders freelancing. About 10% of the founders we surveyed took this approach. Examples we surveyed took this approach. Examples we surveyed took this approach. Examples include Ben Walker, the founder of Drum, include Ben Walker, the founder of Drum, include Ben Walker, the founder of Drum, which is an ERP for small to medium

which is an ERP for small to medium which is an ERP for small to medium consulting firms. Ben told us, "I was consulting firms. Ben told us, "I was consulting firms. Ben told us, "I was consulting as a custom software consulting as a custom software consulting as a custom software developer and found that I was building developer and found that I was building developer and found that I was building very similar functionality over and very similar functionality over and very similar functionality over and over. I felt that if I could build a over. I felt that if I could build a over. I felt that if I could build a very basic version of what I was very basic version of what I was very basic version of what I was building my clients, but build it as a building my clients, but build it as a building my clients, but build it as a standalone tool, I should be able to standalone tool, I should be able to standalone tool, I should be able to find some early customers and iterate." find some early customers and iterate." find some early customers and iterate." John Reynolds, the founder of Civic John Reynolds, the founder of Civic John Reynolds, the founder of Civic Review, which is permitting software for Review, which is permitting software for Review, which is permitting software for local government, told us, "I was a local government, told us, "I was a local government, told us, "I was a freelance software developer and I was freelance software developer and I was freelance software developer and I was asked to build our product, permitting asked to build our product, permitting asked to build our product, permitting software, by municipalities. I was asked software, by municipalities. I was asked software, by municipalities. I was asked three times and on the third time I three times and on the third time I three times and on the third time I decided, 'Okay, these guys can't find a decided, 'Okay, these guys can't find a decided, 'Okay, these guys can't find a SaaS solution that fits their needs. SaaS solution that fits their needs. SaaS solution that fits their needs. I'll just make my own and sell it so I I'll just make my own and sell it so I I'll just make my own and sell it so I don't have to keep rewriting the same don't have to keep rewriting the same don't have to keep rewriting the same software.'" There's also the chance that software.'" There's also the chance that software.'" There's also the chance that you discover a problem to solve that's you discover a problem to solve that's you discover a problem to solve that's not something you've been asked to build not something you've been asked to build not something you've been asked to build multiple times, but rather it's a tool multiple times, but rather it's a tool multiple times, but rather it's a tool that you need in order to be more that you need in order to be more that you need in order to be more efficient in running your agency. Colin efficient in running your agency. Colin efficient in running your agency. Colin Bartlett, the co-founder of StatusGator, Bartlett, the co-founder of StatusGator, Bartlett, the co-founder of StatusGator, which is a status aggregator, told us, which is a status aggregator, told us, which is a status aggregator, told us, "I was working on a bug ticket for a "I was working on a bug ticket for a "I was working on a bug ticket for a customer all day and then finally came customer all day and then finally came customer all day and then finally came across the status page for the Facebook across the status page for the Facebook across the status page for the Facebook Ads API and it had a warning about there Ads API and it had a warning about there Ads API and it had a warning about there being intermittent failures. Turns out being intermittent failures. Turns out being intermittent failures. Turns out that was the bug. It annoyed me that I that was the bug. It annoyed me that I that was the bug. It annoyed me that I did not even know the status page did not even know the status page did not even know the status page existed. Plus the app interfaced with existed. Plus the app interfaced with existed. Plus the app interfaced with like 10 other ads APIs. I thought it like 10 other ads APIs. I thought it like 10 other ads APIs. I thought it would be really nice to have all that on would be really nice to have all that on would be really nice to have all that on one screen and get an email when the one screen and get an email when the one screen and get an email when the status changed. So I built StatusGator status changed. So I built StatusGator status changed. So I built StatusGator for myself." Note that it's important, for myself." Note that it's important, for myself." Note that it's important, if you're going to do this, that you if you're going to do this, that you if you're going to do this, that you think very carefully about the think very carefully about the think very carefully about the intellectual property. In a lot of intellectual property. In a lot of intellectual property. In a lot of consulting and employment agreements,

consulting and employment agreements, consulting and employment agreements, you will sign away anything you build at you will sign away anything you build at you will sign away anything you build at the job and anything you build in your the job and anything you build in your the job and anything you build in your free time, even on your own computers at free time, even on your own computers at free time, even on your own computers at home. So you you want to be very home. So you you want to be very home. So you you want to be very diligent about this and have all your diligent about this and have all your diligent about this and have all your eyes dotted and t's crossed. Another eyes dotted and t's crossed. Another eyes dotted and t's crossed. Another example is Dump Truck Dispatcher, example is Dump Truck Dispatcher, example is Dump Truck Dispatcher, founded by Joe Walling, no relation. founded by Joe Walling, no relation. founded by Joe Walling, no relation. Dump Truck Dispatcher streamlines the Dump Truck Dispatcher streamlines the Dump Truck Dispatcher streamlines the operations and logistics for bulk operations and logistics for bulk operations and logistics for bulk hauling companies. And Joe told us, "At hauling companies. And Joe told us, "At hauling companies. And Joe told us, "At the time I ran a custom software the time I ran a custom software the time I ran a custom software development company. I had a client who development company. I had a client who development company. I had a client who wanted this type of software. I kept the wanted this type of software. I kept the wanted this type of software. I kept the IP in return for charging them less for IP in return for charging them less for IP in return for charging them less for the software." So let's look at four the software." So let's look at four the software." So let's look at four reasons why this method works. The first reasons why this method works. The first reasons why this method works. The first is you see the same problems across is you see the same problems across is you see the same problems across multiple clients, which validates that multiple clients, which validates that multiple clients, which validates that demand exists beyond one company. The demand exists beyond one company. The demand exists beyond one company. The second is the clients are literally second is the clients are literally second is the clients are literally paying you to understand their problems. paying you to understand their problems. paying you to understand their problems. You're getting paid to do market You're getting paid to do market You're getting paid to do market research and customer development. The research and customer development. The research and customer development. The third is you build real expertise in the third is you build real expertise in the third is you build real expertise in the domain as you're getting paid. And the domain as you're getting paid. And the domain as you're getting paid. And the fourth is you can sometimes fund early fourth is you can sometimes fund early fourth is you can sometimes fund early product development through your agency product development through your agency product development through your agency or freelancing revenue. But four things or freelancing revenue. But four things or freelancing revenue. But four things to watch out for include agency work is to watch out for include agency work is to watch out for include agency work is demanding. Finding time to build a demanding. Finding time to build a demanding. Finding time to build a product on the side is genuinely hard.

product on the side is genuinely hard. product on the side is genuinely hard. Number two is make sure IP ownership is Number two is make sure IP ownership is Number two is make sure IP ownership is clear in your clients' contracts before clear in your clients' contracts before clear in your clients' contracts before you productized anything, like in the you productized anything, like in the you productized anything, like in the case of Dump Truck Dispatcher. The third case of Dump Truck Dispatcher. The third case of Dump Truck Dispatcher. The third is that the transition from freelancing, is that the transition from freelancing, is that the transition from freelancing, agency, custom work to actually thinking agency, custom work to actually thinking agency, custom work to actually thinking like a product owner is harder than it like a product owner is harder than it like a product owner is harder than it looks. You have to learn to say no to looks. You have to learn to say no to looks. You have to learn to say no to feature requests. And the fourth is feature requests. And the fourth is feature requests. And the fourth is don't build a product so tailored to one don't build a product so tailored to one don't build a product so tailored to one client that no one else wants it. So I client that no one else wants it. So I client that no one else wants it. So I have four questions to ask yourself if have four questions to ask yourself if have four questions to ask yourself if you're going to take this approach. The you're going to take this approach. The you're going to take this approach. The first is what functionality have I built first is what functionality have I built first is what functionality have I built three or more times for different three or more times for different three or more times for different clients? What internal tools have I clients? What internal tools have I clients? What internal tools have I built to make my agency more effective built to make my agency more effective built to make my agency more effective or efficient that others might want? Do or efficient that others might want? Do or efficient that others might want? Do I have a clear path to transitioning I have a clear path to transitioning I have a clear path to transitioning from agency revenue to product revenue from agency revenue to product revenue from agency revenue to product revenue or will I be stuck doing both forever? or will I be stuck doing both forever? or will I be stuck doing both forever? And the last is are my clients in an And the last is are my clients in an And the last is are my clients in an industry I actually want to serve industry I actually want to serve industry I actually want to serve long-term? So real quick, if you found long-term? So real quick, if you found long-term? So real quick, if you found any of this helpful so far, can you any of this helpful so far, can you any of this helpful so far, can you please give this video a like and please give this video a like and please give this video a like and subscribe to the channel? My team and I subscribe to the channel? My team and I subscribe to the channel? My team and I are working really hard to bring you are working really hard to bring you are working really hard to bring you content like this. We put a ton of time content like this. We put a ton of time content like this. We put a ton of time and energy into making sure the content and energy into making sure the content and energy into making sure the content is super valuable for you. And when we is super valuable for you. And when we is super valuable for you. And when we see those metrics on YouTube, the likes see those metrics on YouTube, the likes see those metrics on YouTube, the likes and the subscribes, it helps us know and the subscribes, it helps us know and the subscribes, it helps us know that we're on the right track.

that we're on the right track. that we're on the right track. So those first three methods all assume So those first three methods all assume So those first three methods all assume you have work experience to draw from. you have work experience to draw from. you have work experience to draw from. But what if you're early in your career But what if you're early in your career But what if you're early in your career or you want to look beyond your current or you want to look beyond your current or you want to look beyond your current industry? Method number four is solving industry? Method number four is solving industry? Method number four is solving a problem for a spouse, friend, or a problem for a spouse, friend, or a problem for a spouse, friend, or colleague and about 8% of respondents colleague and about 8% of respondents colleague and about 8% of respondents said this is how they found their said this is how they found their said this is how they found their startup idea. In this case, you're going startup idea. In this case, you're going startup idea. In this case, you're going to want to go on the hunt and try to to want to go on the hunt and try to to want to go on the hunt and try to find problems. So you'll want to reach find problems. So you'll want to reach find problems. So you'll want to reach out to your network. Maybe you talk to out to your network. Maybe you talk to out to your network. Maybe you talk to your spouse or maybe you talk to your your spouse or maybe you talk to your your spouse or maybe you talk to your friends to see what problems they have friends to see what problems they have friends to see what problems they have in their day jobs. John Sister is the in their day jobs. John Sister is the in their day jobs. John Sister is the founder of Quill Therapy Solutions, founder of Quill Therapy Solutions, founder of Quill Therapy Solutions, which he describes as software that which he describes as software that which he describes as software that generates progress notes and other forms generates progress notes and other forms generates progress notes and other forms of documentation for mental health of documentation for mental health of documentation for mental health therapists in an ethical and therapists in an ethical and therapists in an ethical and privacy-focused way without recording privacy-focused way without recording privacy-focused way without recording therapy sessions. John told us how he therapy sessions. John told us how he therapy sessions. John told us how he came up with the idea. He said, "My wife came up with the idea. He said, "My wife came up with the idea. He said, "My wife is a therapist and she 100% thought of is a therapist and she 100% thought of is a therapist and she 100% thought of the idea. She saw me working on a the idea. She saw me working on a the idea. She saw me working on a different idea that relied on AI to different idea that relied on AI to different idea that relied on AI to rearrange information and she basically rearrange information and she basically rearrange information and she basically said, 'Hey, could you do that for said, 'Hey, could you do that for said, 'Hey, could you do that for progress notes instead?'" And she was progress notes instead?'" And she was progress notes instead?'" And she was right. One way to approach this method right. One way to approach this method right. One way to approach this method is to have a chat with someone who has is to have a chat with someone who has is to have a chat with someone who has deep experience. Yoav Sigurðsson is the deep experience. Yoav Sigurðsson is the deep experience. Yoav Sigurðsson is the founder of CrankWheel, which is a screen founder of CrankWheel, which is a screen founder of CrankWheel, which is a screen sharing web conferencing and video sharing web conferencing and video sharing web conferencing and video platform for sales. And Yoav told us, platform for sales. And Yoav told us, platform for sales. And Yoav told us, "So my co-founder, Gilsi, had been "So my co-founder, Gilsi, had been "So my co-founder, Gilsi, had been working for years in various sales jobs, working for years in various sales jobs, working for years in various sales jobs, mostly sort of hybrid telephone and mostly sort of hybrid telephone and mostly sort of hybrid telephone and in-person sales, like insurance and in-person sales, like insurance and in-person sales, like insurance and banking, telecoms, that kind of stuff.

banking, telecoms, that kind of stuff. banking, telecoms, that kind of stuff. And we started brainstorming about And we started brainstorming about And we started brainstorming about what's missing from that kind of space. what's missing from that kind of space. what's missing from that kind of space. We rediscovered a lot of sales We rediscovered a lot of sales We rediscovered a lot of sales enablement tools that already existed enablement tools that already existed enablement tools that already existed and I'd been working on real-time and I'd been working on real-time and I'd been working on real-time communications in Google Chrome at communications in Google Chrome at communications in Google Chrome at Google. So I innocently asked him at Google. So I innocently asked him at Google. So I innocently asked him at some point what people use when they're some point what people use when they're some point what people use when they're on the phone with a prospect and they on the phone with a prospect and they on the phone with a prospect and they need to show them something. As it need to show them something. As it need to show them something. As it turned out, they didn't use anything turned out, they didn't use anything turned out, they didn't use anything because it's too complex for a lot of because it's too complex for a lot of because it's too complex for a lot of prospects and you don't want to take a prospects and you don't want to take a prospects and you don't want to take a good sales call and ruin it with some good sales call and ruin it with some good sales call and ruin it with some tech issues. That's how the idea for tech issues. That's how the idea for tech issues. That's how the idea for CrankWheel was born." What makes this CrankWheel was born." What makes this CrankWheel was born." What makes this method work are the following four method work are the following four method work are the following four things. Number one, you have a direct things. Number one, you have a direct things. Number one, you have a direct line to someone experiencing the line to someone experiencing the line to someone experiencing the problem, instant access for interviews, problem, instant access for interviews, problem, instant access for interviews, feedback, and iteration. Number two, you feedback, and iteration. Number two, you feedback, and iteration. Number two, you can deeply understand the problem can deeply understand the problem can deeply understand the problem without having to cold call strangers at without having to cold call strangers at without having to cold call strangers at least initially. Number three, your least initially. Number three, your least initially. Number three, your relationship creates accountability. relationship creates accountability. relationship creates accountability. You're more likely to follow through You're more likely to follow through You're more likely to follow through when someone you care about is counting when someone you care about is counting when someone you care about is counting on you. And number four, they can on you. And number four, they can on you. And number four, they can introduce you to others in the field for introduce you to others in the field for introduce you to others in the field for validation and early sales. But there validation and early sales. But there validation and early sales. But there are things to watch out for. The first are things to watch out for. The first are things to watch out for. The first is your spouse or friend might have a is your spouse or friend might have a is your spouse or friend might have a unique problem that others in their unique problem that others in their unique problem that others in their field don't share, so you want to field don't share, so you want to field don't share, so you want to validate beyond them. The second one is validate beyond them. The second one is validate beyond them. The second one is they might be too nice to tell you your they might be too nice to tell you your they might be too nice to tell you your solution isn't good, so push for honest solution isn't good, so push for honest solution isn't good, so push for honest feedback. The third is mixing business feedback. The third is mixing business feedback. The third is mixing business and personal relationships can get and personal relationships can get and personal relationships can get complicated. So you're going to want to complicated. So you're going to want to complicated. So you're going to want to set expectations early. And finally, you set expectations early. And finally, you set expectations early. And finally, you still need to understand the market.

still need to understand the market. still need to understand the market. Their expertise plus your building Their expertise plus your building Their expertise plus your building skills isn't enough on its own. If skills isn't enough on its own. If skills isn't enough on its own. If you're going to attempt this method, you're going to attempt this method, you're going to attempt this method, you're going to want to ask yourself you're going to want to ask yourself you're going to want to ask yourself four questions. The first is, what does four questions. The first is, what does four questions. The first is, what does my spouse, partner, or close friend my spouse, partner, or close friend my spouse, partner, or close friend complain about in their day job? The complain about in their day job? The complain about in their day job? The second is, do I think they can introduce second is, do I think they can introduce second is, do I think they can introduce me to other people who potentially work me to other people who potentially work me to other people who potentially work in the same field and have the same in the same field and have the same in the same field and have the same problem? It'd be nice to have five problem? It'd be nice to have five problem? It'd be nice to have five intros, for example. The third question intros, for example. The third question intros, for example. The third question is, am I building this to solve a real is, am I building this to solve a real is, am I building this to solve a real problem that I think can be a great problem that I think can be a great problem that I think can be a great business, or am I doing it to solve the business, or am I doing it to solve the business, or am I doing it to solve the problem of a person that I care about? problem of a person that I care about? problem of a person that I care about? And the last one is, do I have the And the last one is, do I have the And the last one is, do I have the patience to learn an industry that I'm patience to learn an industry that I'm patience to learn an industry that I'm not already familiar with? Method number not already familiar with? Method number not already familiar with? Method number five for finding startup ideas is to five for finding startup ideas is to five for finding startup ideas is to find a problem online, and only 3% of find a problem online, and only 3% of find a problem online, and only 3% of respondents used this approach. So this respondents used this approach. So this respondents used this approach. So this is where, instead of going to people you is where, instead of going to people you is where, instead of going to people you know, you are looking for ideas in know, you are looking for ideas in know, you are looking for ideas in forums, in online groups, whether it's forums, in online groups, whether it's forums, in online groups, whether it's Facebook or Reddit or private Slack Facebook or Reddit or private Slack Facebook or Reddit or private Slack groups you're in. Maybe you're lurking groups you're in. Maybe you're lurking groups you're in. Maybe you're lurking in support forums looking for problems in support forums looking for problems in support forums looking for problems that aren't already solved. And this that aren't already solved. And this that aren't already solved. And this method often gets touted online, but method often gets touted online, but method often gets touted online, but it's really hard to do, as evidenced by it's really hard to do, as evidenced by it's really hard to do, as evidenced by the fact that only 3% of folks who the fact that only 3% of folks who the fact that only 3% of folks who responded to the survey actually used responded to the survey actually used responded to the survey actually used it. It didn't show up much in our it. It didn't show up much in our it. It didn't show up much in our research, and only a handful of research, and only a handful of research, and only a handful of respondents had used this method. Couple respondents had used this method. Couple respondents had used this method. Couple examples are Tolu Akinola, who is the examples are Tolu Akinola, who is the examples are Tolu Akinola, who is the founder of String Thing. String Thing is founder of String Thing. String Thing is founder of String Thing. String Thing is a Shopify app to enable buyers to select a Shopify app to enable buyers to select a Shopify app to enable buyers to select a specific delivery date, for example, a specific delivery date, for example, a specific delivery date, for example, for gift purchases. Tolu told us, for gift purchases. Tolu told us, for gift purchases. Tolu told us, "Someone had recently asked me to help "Someone had recently asked me to help "Someone had recently asked me to help set up a Shopify store, and I noticed

set up a Shopify store, and I noticed set up a Shopify store, and I noticed they had an open API, so I decided to they had an open API, so I decided to they had an open API, so I decided to build a Shopify app. I combed through build a Shopify app. I combed through build a Shopify app. I combed through the Shopify support forums to find the Shopify support forums to find the Shopify support forums to find issues that merchants were complaining issues that merchants were complaining issues that merchants were complaining about. Once I came up with a short list, about. Once I came up with a short list, about. Once I came up with a short list, I looked in their app store to find I looked in their app store to find I looked in their app store to find which apps addressed the issue. I which apps addressed the issue. I which apps addressed the issue. I prioritized issues that had apps with prioritized issues that had apps with prioritized issues that had apps with lots of reviews, but also a lot of lots of reviews, but also a lot of lots of reviews, but also a lot of negative reviews. This helped identify negative reviews. This helped identify negative reviews. This helped identify problems that were pervasive but not problems that were pervasive but not problems that were pervasive but not well addressed." Another example is Rami well addressed." Another example is Rami well addressed." Another example is Rami Koufach, the founder of Hovercode, which Koufach, the founder of Hovercode, which Koufach, the founder of Hovercode, which is a dynamic QR code generator. Dynamic is a dynamic QR code generator. Dynamic is a dynamic QR code generator. Dynamic meaning the scan destination can be meaning the scan destination can be meaning the scan destination can be edited after printing, and you get edited after printing, and you get edited after printing, and you get analytics. So Rami told us, "It was a analytics. So Rami told us, "It was a analytics. So Rami told us, "It was a mixture of having somewhat of a mixture of having somewhat of a mixture of having somewhat of a hypothesis or interest and keyword hypothesis or interest and keyword hypothesis or interest and keyword research. I found QR codes interesting research. I found QR codes interesting research. I found QR codes interesting generally, and after chatting with a generally, and after chatting with a generally, and after chatting with a friend who works in marketing, I started friend who works in marketing, I started friend who works in marketing, I started to think that marketers were still in to think that marketers were still in to think that marketers were still in the early stages of making use of QR the early stages of making use of QR the early stages of making use of QR codes, and there was still opportunity. codes, and there was still opportunity. codes, and there was still opportunity. I did some keyword research with Ahrefs I did some keyword research with Ahrefs I did some keyword research with Ahrefs to see if there was demand for QR code to see if there was demand for QR code to see if there was demand for QR code tools and saw huge search volume, which tools and saw huge search volume, which tools and saw huge search volume, which was enough for me to get involved in the was enough for me to get involved in the was enough for me to get involved in the space." What makes this work? Well, space." What makes this work? Well, space." What makes this work? Well, there's there's a bunch of things, but there's there's a bunch of things, but there's there's a bunch of things, but let's cover four. One is you can let's cover four. One is you can let's cover four. One is you can discover problems in industries you've discover problems in industries you've discover problems in industries you've never worked in. Public forums give you never worked in. Public forums give you never worked in. Public forums give you unfiltered access to real frustrations unfiltered access to real frustrations unfiltered access to real frustrations and complaints. You can validate demand and complaints. You can validate demand and complaints. You can validate demand through search volume, number of through search volume, number of through search volume, number of complaints, or size of communities. And complaints, or size of communities. And complaints, or size of communities. And lastly, negative reviews of existing lastly, negative reviews of existing lastly, negative reviews of existing products are a goldmine for products are a goldmine for products are a goldmine for differentiation. But there are things differentiation. But there are things differentiation. But there are things you should watch out for. The first is, you should watch out for. The first is, you should watch out for. The first is, people complain about a lot of things people complain about a lot of things people complain about a lot of things they wouldn't actually pay for. The they wouldn't actually pay for. The they wouldn't actually pay for. The signal-to-noise ratio can be low. You signal-to-noise ratio can be low. You signal-to-noise ratio can be low. You lack the context that insiders have. You lack the context that insiders have. You lack the context that insiders have. You might misunderstand the problem or the might misunderstand the problem or the might misunderstand the problem or the market dynamics. The third one is, this

market dynamics. The third one is, this market dynamics. The third one is, this method takes a lot of time and patience. method takes a lot of time and patience. method takes a lot of time and patience. Most people give up before finding Most people give up before finding Most people give up before finding anything good. And lastly, selling to anything good. And lastly, selling to anything good. And lastly, selling to people you've never met in an industry people you've never met in an industry people you've never met in an industry you don't understand is genuinely hard. you don't understand is genuinely hard. you don't understand is genuinely hard. Some questions to ask yourself are, am I Some questions to ask yourself are, am I Some questions to ask yourself are, am I finding the same complaint repeated by finding the same complaint repeated by finding the same complaint repeated by many people, or is this just a one-off many people, or is this just a one-off many people, or is this just a one-off gripe? Would people pay money to solve gripe? Would people pay money to solve gripe? Would people pay money to solve this, or do they want to vent? Can I this, or do they want to vent? Can I this, or do they want to vent? Can I actually reach these people to sell to actually reach these people to sell to actually reach these people to sell to them, or are they scattered and going to them, or are they scattered and going to them, or are they scattered and going to be hard or expensive to find? And am I be hard or expensive to find? And am I be hard or expensive to find? And am I willing to invest the time to deeply willing to invest the time to deeply willing to invest the time to deeply understand an unfamiliar industry before understand an unfamiliar industry before understand an unfamiliar industry before I start building? Among our respondents, I start building? Among our respondents, I start building? Among our respondents, there were a couple of people who had there were a couple of people who had there were a couple of people who had grown nice marketplace businesses. And grown nice marketplace businesses. And grown nice marketplace businesses. And if you're interested in building an if you're interested in building an if you're interested in building an add-on for an existing platform, my team add-on for an existing platform, my team add-on for an existing platform, my team has pulled together a list of over 75 has pulled together a list of over 75 has pulled together a list of over 75 marketplaces at marketplaces at marketplaces at microconf.com/marketplaces. microconf.com/marketplaces. microconf.com/marketplaces. In addition, you can look at Reddit In addition, you can look at Reddit In addition, you can look at Reddit communities related to specific communities related to specific communities related to specific industries or professions. You can look industries or professions. You can look industries or professions. You can look at Facebook groups for niche at Facebook groups for niche at Facebook groups for niche professional communities, support forums professional communities, support forums professional communities, support forums for existing products where you want to for existing products where you want to for existing products where you want to look for repeated complaints, review look for repeated complaints, review look for repeated complaints, review sites like G2, Capterra, or app store sites like G2, Capterra, or app store sites like G2, Capterra, or app store reviews, and finally keyword research reviews, and finally keyword research reviews, and finally keyword research tools like Ahrefs, Semrush, or even tools like Ahrefs, Semrush, or even tools like Ahrefs, Semrush, or even Google's keyword planner. So I have one Google's keyword planner. So I have one Google's keyword planner. So I have one real-world example from someone who real-world example from someone who real-world example from someone who completed the survey. And in this completed the survey. And in this completed the survey. And in this example, they actually noticed something example, they actually noticed something example, they actually noticed something while they were out in the real world.

while they were out in the real world. while they were out in the real world. So Steven Gladney is the founder of So Steven Gladney is the founder of So Steven Gladney is the founder of OrderNerd, and OrderNerd aggregates OrderNerd, and OrderNerd aggregates OrderNerd, and OrderNerd aggregates third-party online ordering apps like third-party online ordering apps like third-party online ordering apps like DoorDash, Uber Eats, Grubhub into a DoorDash, Uber Eats, Grubhub into a DoorDash, Uber Eats, Grubhub into a single platform to make it easier for single platform to make it easier for single platform to make it easier for restaurant owners and staff to manage. restaurant owners and staff to manage. restaurant owners and staff to manage. Steven told us, Steven told us, Steven told us, "We already had our team, a sales guy "We already had our team, a sales guy "We already had our team, a sales guy and a developer, and we're actively and a developer, and we're actively and a developer, and we're actively hunting ideas. One day my co-founder was hunting ideas. One day my co-founder was hunting ideas. One day my co-founder was at a restaurant and saw a wall of at a restaurant and saw a wall of at a restaurant and saw a wall of tablets and began talking to the staff tablets and began talking to the staff tablets and began talking to the staff about it. The pain in their voice was about it. The pain in their voice was about it. The pain in their voice was palpable. I laughed because, man, when palpable. I laughed because, man, when palpable. I laughed because, man, when you when you hear a pain point like you when you hear a pain point like you when you hear a pain point like that, it's it's often a a good sign. He that, it's it's often a a good sign. He that, it's it's often a a good sign. He texted me a photo and said, 'It might be texted me a photo and said, 'It might be texted me a photo and said, 'It might be the beer talking, but I think this is the beer talking, but I think this is the beer talking, but I think this is the problem we need to solve.' Given the problem we need to solve.' Given the problem we need to solve.' Given that I had previously sold to that I had previously sold to that I had previously sold to restaurants for 5 years, and he had over restaurants for 5 years, and he had over restaurants for 5 years, and he had over a decade of experience working with a decade of experience working with a decade of experience working with third-party APIs, we knew we were the third-party APIs, we knew we were the third-party APIs, we knew we were the right people to tackle this problem." right people to tackle this problem." right people to tackle this problem." Obviously, this is a unique example that Obviously, this is a unique example that Obviously, this is a unique example that might be hard to replicate, but it's a might be hard to replicate, but it's a might be hard to replicate, but it's a good reminder that by remaining curious good reminder that by remaining curious good reminder that by remaining curious and observant, you might find an idea in and observant, you might find an idea in and observant, you might find an idea in a place you wouldn't expect. Method a place you wouldn't expect. Method a place you wouldn't expect. Method number six is to scratch your own itch, number six is to scratch your own itch, number six is to scratch your own itch, and this one was made so popular in the and this one was made so popular in the and this one was made so popular in the early and mid-2000s early and mid-2000s early and mid-2000s by Basecamp, by DHH and Jason Fried, by Basecamp, by DHH and Jason Fried, by Basecamp, by DHH and Jason Fried, because they scratched their own itch because they scratched their own itch because they scratched their own itch and it worked for them. And so they and it worked for them. And so they and it worked for them. And so they would often talk that maybe that's the would often talk that maybe that's the would often talk that maybe that's the best way to start a startup. And while best way to start a startup. And while best way to start a startup. And while it's certainly not a bad way, only 16% it's certainly not a bad way, only 16% it's certainly not a bad way, only 16% of our respondents did this. This is of our respondents did this. This is of our respondents did this. This is where you build something to solve your where you build something to solve your where you build something to solve your own problem, and you discover that other own problem, and you discover that other own problem, and you discover that other people have the same issue, and you can people have the same issue, and you can people have the same issue, and you can find them, and they will pay for it. So find them, and they will pay for it. So find them, and they will pay for it. So there's a lot that has to come into

there's a lot that has to come into there's a lot that has to come into play. So there's a lot of things that play. So there's a lot of things that play. So there's a lot of things that have to line up in order for this to have to line up in order for this to have to line up in order for this to work. You can't just say, "I have a work. You can't just say, "I have a work. You can't just say, "I have a problem, therefore that's validation." problem, therefore that's validation." problem, therefore that's validation." It's not. You validated that you will It's not. You validated that you will It's not. You validated that you will have one customer paying you $0, which have one customer paying you $0, which have one customer paying you $0, which is yourself. So when I think about is yourself. So when I think about is yourself. So when I think about scratching my own itch, which is I I've scratching my own itch, which is I I've scratching my own itch, which is I I've done I built Drip was a originally done I built Drip was a originally done I built Drip was a originally software to scratch your own itch. And I software to scratch your own itch. And I software to scratch your own itch. And I took that idea and went and asked 17 took that idea and went and asked 17 took that idea and went and asked 17 other founders that I knew if they had other founders that I knew if they had other founders that I knew if they had the problem. Then when I got 10 or 11 the problem. Then when I got 10 or 11 the problem. Then when I got 10 or 11 yeses, then we started building. So if I yeses, then we started building. So if I yeses, then we started building. So if I was going to do scratch my own itch, I was going to do scratch my own itch, I was going to do scratch my own itch, I would want to validate there other would want to validate there other would want to validate there other people out there with this issue. people out there with this issue. people out there with this issue. Examples of founders who scratched their Examples of founders who scratched their Examples of founders who scratched their own itch include Olga Khusar, founder of own itch include Olga Khusar, founder of own itch include Olga Khusar, founder of Dialog Shift, which is an AI application Dialog Shift, which is an AI application Dialog Shift, which is an AI application for hotels. It's chatbot, phone AI, for hotels. It's chatbot, phone AI, for hotels. It's chatbot, phone AI, email AI. Olga told us, "We came up with email AI. Olga told us, "We came up with email AI. Olga told us, "We came up with the idea as hotel guests ourselves, the idea as hotel guests ourselves, the idea as hotel guests ourselves, frustrated by how difficult it was to frustrated by how difficult it was to frustrated by how difficult it was to get simple information about what, get simple information about what, get simple information about what, where, and when things were happening where, and when things were happening where, and when things were happening during our stay. Our initial thought during our stay. Our initial thought during our stay. Our initial thought was, how great would it be to just send was, how great would it be to just send was, how great would it be to just send a WhatsApp message and instantly get a WhatsApp message and instantly get a WhatsApp message and instantly get answers to all our questions about the answers to all our questions about the answers to all our questions about the hotel. For example, when is the next hotel. For example, when is the next hotel. For example, when is the next yoga class? Till what time is breakfast yoga class? Till what time is breakfast yoga class? Till what time is breakfast served? Can you send me the daily served? Can you send me the daily served? Can you send me the daily program?" One more example is from Scott program?" One more example is from Scott program?" One more example is from Scott Brownlee, the founder of Simple Booklet.

Brownlee, the founder of Simple Booklet. Brownlee, the founder of Simple Booklet. Simple Booklet is marketing, Simple Booklet is marketing, Simple Booklet is marketing, communication, and support collateral communication, and support collateral communication, and support collateral presentation that includes distribution presentation that includes distribution presentation that includes distribution and tracking across the web. Scott told and tracking across the web. Scott told and tracking across the web. Scott told us, "I had sold an earlier business in us, "I had sold an earlier business in us, "I had sold an earlier business in the early 2000s, then went sailing with the early 2000s, then went sailing with the early 2000s, then went sailing with my wife for 11 years around the world. my wife for 11 years around the world. my wife for 11 years around the world. Getting access to information about Getting access to information about Getting access to information about places was difficult, and usually was in places was difficult, and usually was in places was difficult, and usually was in the form of paper brochures, lookbooks, the form of paper brochures, lookbooks, the form of paper brochures, lookbooks, and guides. I really just wanted to scan and guides. I really just wanted to scan and guides. I really just wanted to scan a QR code or get it on my tablet or a QR code or get it on my tablet or a QR code or get it on my tablet or phone to access. And since every print phone to access. And since every print phone to access. And since every print brochure started as a PDF, how could we brochure started as a PDF, how could we brochure started as a PDF, how could we make that more accessible?" What makes make that more accessible?" What makes make that more accessible?" What makes scratching your own itch work? Well, scratching your own itch work? Well, scratching your own itch work? Well, first of all, you understand the problem first of all, you understand the problem first of all, you understand the problem intimately because you've experienced it intimately because you've experienced it intimately because you've experienced it yourself. You're motivated to solve it yourself. You're motivated to solve it yourself. You're motivated to solve it because it genuinely bothers you. You because it genuinely bothers you. You because it genuinely bothers you. You can be your own first user, which speeds can be your own first user, which speeds can be your own first user, which speeds up iteration. And your passion for the up iteration. And your passion for the up iteration. And your passion for the problem often comes through in marketing problem often comes through in marketing problem often comes through in marketing and sales. But there's a few things you and sales. But there's a few things you and sales. But there's a few things you want to watch out for. The first is, you want to watch out for. The first is, you want to watch out for. The first is, you might be a market of one. I referenced might be a market of one. I referenced might be a market of one. I referenced this earlier. Just because you have this this earlier. Just because you have this this earlier. Just because you have this problem doesn't mean enough other people problem doesn't mean enough other people problem doesn't mean enough other people do to make a business. The second is, do to make a business. The second is, do to make a business. The second is, you might build what you want rather you might build what you want rather you might build what you want rather than what the market wants. So stay open than what the market wants. So stay open than what the market wants. So stay open to feedback. The third, your use case to feedback. The third, your use case to feedback. The third, your use case might be too niche or too specific to might be too niche or too specific to might be too niche or too specific to your situation. And the fourth is, your situation. And the fourth is, your situation. And the fourth is, founders often underestimate how founders often underestimate how founders often underestimate how different their needs are from typical different their needs are from typical different their needs are from typical customers. So, questions to ask customers. So, questions to ask customers. So, questions to ask yourself. Number one, [snorts] how many yourself. Number one, [snorts] how many yourself. Number one, [snorts] how many other people have this exact problem?

other people have this exact problem? other people have this exact problem? Can I find them and talk to them? Am I a Can I find them and talk to them? Am I a Can I find them and talk to them? Am I a representative user, or am I an edge representative user, or am I an edge representative user, or am I an edge case? Would I pay more money to solve case? Would I pay more money to solve case? Would I pay more money to solve this problem, or do I just find it this problem, or do I just find it this problem, or do I just find it mildly annoying? And lastly, can I mildly annoying? And lastly, can I mildly annoying? And lastly, can I separate my personal preferences from separate my personal preferences from separate my personal preferences from what the market actually needs? Since we what the market actually needs? Since we what the market actually needs? Since we did all this research, I'm actually did all this research, I'm actually did all this research, I'm actually going to take a lot of it and put it in going to take a lot of it and put it in going to take a lot of it and put it in a new book I'm working on on finding, a new book I'm working on on finding, a new book I'm working on on finding, choosing, and validating your idea, choosing, and validating your idea, choosing, and validating your idea, finding product-market fit, and finding product-market fit, and finding product-market fit, and launching a profitable SaaS business. If launching a profitable SaaS business. If launching a profitable SaaS business. If you want early access to chapter you want early access to chapter you want early access to chapter previews, launch updates, that kind of previews, launch updates, that kind of previews, launch updates, that kind of thing, hop on my email list, thing, hop on my email list, thing, hop on my email list, robwalling.com/ robwalling.com/ robwalling.com/ emails. Method number seven is taking emails. Method number seven is taking emails. Method number seven is taking advantage of an emerging or a advantage of an emerging or a advantage of an emerging or a fast-growing technology. This is every fast-growing technology. This is every fast-growing technology. This is every developer's dream, where AI becomes a developer's dream, where AI becomes a developer's dream, where AI becomes a thing, or DHTML, remember Ajax in like thing, or DHTML, remember Ajax in like thing, or DHTML, remember Ajax in like what, 2006, where suddenly you could do what, 2006, where suddenly you could do what, 2006, where suddenly you could do stuff in a browser you couldn't do stuff in a browser you couldn't do stuff in a browser you couldn't do before. And you see it and you think, before. And you see it and you think, before. And you see it and you think, "What can I build with this?" And while "What can I build with this?" And while "What can I build with this?" And while it's every developer's dream to play it's every developer's dream to play it's every developer's dream to play with that new technology, it's very with that new technology, it's very with that new technology, it's very rare, at least according to our survey, rare, at least according to our survey, rare, at least according to our survey, that people actually turn these into that people actually turn these into that people actually turn these into businesses. Only 3% of respondents went businesses. Only 3% of respondents went businesses. Only 3% of respondents went this route. And when I say an emerging this route. And when I say an emerging this route. And when I say an emerging technology, this can be AI, it can be a technology, this can be AI, it can be a technology, this can be AI, it can be a brand new API, it can be a new platform, brand new API, it can be a new platform, brand new API, it can be a new platform, like when I think Facebook opened up for like when I think Facebook opened up for like when I think Facebook opened up for development and uh you know, development and uh you know, development and uh you know, Squarespace, HubSpot, like all these Squarespace, HubSpot, like all these Squarespace, HubSpot, like all these marketplaces, Shopify. When these open marketplaces, Shopify. When these open marketplaces, Shopify. When these open up, you can look for practical up, you can look for practical up, you can look for practical applications before the market gets applications before the market gets applications before the market gets crowded. Examples of this include Rom crowded. Examples of this include Rom crowded. Examples of this include Rom Shingale. He's the founder of WA Shingale. He's the founder of WA Shingale. He's the founder of WA Notifier, which is an all-in-one Notifier, which is an all-in-one Notifier, which is an all-in-one WhatsApp marketing tool for businesses.

WhatsApp marketing tool for businesses. WhatsApp marketing tool for businesses. Rom told us, "I used to run a WordPress Rom told us, "I used to run a WordPress Rom told us, "I used to run a WordPress agency, and setting up email marketing agency, and setting up email marketing agency, and setting up email marketing forms was one of the recurring things we forms was one of the recurring things we forms was one of the recurring things we used to do for businesses in Western used to do for businesses in Western used to do for businesses in Western countries. With WhatsApp gaining countries. With WhatsApp gaining countries. With WhatsApp gaining momentum and WhatsApp marketing starting momentum and WhatsApp marketing starting momentum and WhatsApp marketing starting to pick up, I made an assumption that if to pick up, I made an assumption that if to pick up, I made an assumption that if email and email marketing is big, email and email marketing is big, email and email marketing is big, WhatsApp marketing can also become big. WhatsApp marketing can also become big. WhatsApp marketing can also become big. This was especially for businesses in This was especially for businesses in This was especially for businesses in countries where WhatsApp was popular and countries where WhatsApp was popular and countries where WhatsApp was popular and a primary channel for communication like a primary channel for communication like a primary channel for communication like India, GCC countries, South America, India, GCC countries, South America, India, GCC countries, South America, etc. And then right around 2000, when I etc. And then right around 2000, when I etc. And then right around 2000, when I was looking for SaaS ideas, WhatsApp was looking for SaaS ideas, WhatsApp was looking for SaaS ideas, WhatsApp opened up their gates for new API opened up their gates for new API opened up their gates for new API partners. So, the timing was right and partners. So, the timing was right and partners. So, the timing was right and that's how I got started. Another that's how I got started. Another that's how I got started. Another example is from Alex Charles, founder of example is from Alex Charles, founder of example is from Alex Charles, founder of Gen Text AI. Gen Text AI is applied AI Gen Text AI. Gen Text AI is applied AI Gen Text AI. Gen Text AI is applied AI add-ins for Microsoft Word, expanding to add-ins for Microsoft Word, expanding to add-ins for Microsoft Word, expanding to other AI applications. Alex said, "I other AI applications. Alex said, "I other AI applications. Alex said, "I worked as a consultant and economist and worked as a consultant and economist and worked as a consultant and economist and used the Microsoft Office suite heavily. used the Microsoft Office suite heavily. used the Microsoft Office suite heavily. As soon as Chat GPT came out, I realized As soon as Chat GPT came out, I realized As soon as Chat GPT came out, I realized it would be extremely useful if it would be extremely useful if it would be extremely useful if connected to Office and if it could connected to Office and if it could connected to Office and if it could reduce hallucinations. That's how the reduce hallucinations. That's how the reduce hallucinations. That's how the idea came about." Then there's Tiago, idea came about." Then there's Tiago, idea came about." Then there's Tiago, the founder of PodSqueeze. PodSqueeze is the founder of PodSqueeze. PodSqueeze is the founder of PodSqueeze. PodSqueeze is an application we actually use to help an application we actually use to help an application we actually use to help produce my podcast Startup to the Rest produce my podcast Startup to the Rest produce my podcast Startup to the Rest of Us. It's an all-in-one for the of Us. It's an all-in-one for the of Us. It's an all-in-one for the production and promotion of podcasts.

production and promotion of podcasts. production and promotion of podcasts. So, you upload audio or video and it So, you upload audio or video and it So, you upload audio or video and it generates social media posts, clips, generates social media posts, clips, generates social media posts, clips, summaries, transcripts, and more. Tiago summaries, transcripts, and more. Tiago summaries, transcripts, and more. Tiago said, "I had my podcast and got really said, "I had my podcast and got really said, "I had my podcast and got really frustrated with all the post-production frustrated with all the post-production frustrated with all the post-production work. In other words, creating the show work. In other words, creating the show work. In other words, creating the show notes, promotional content. So, back notes, promotional content. So, back notes, promotional content. So, back then Chat GPT had just been released and then Chat GPT had just been released and then Chat GPT had just been released and we thought that even if the AI we thought that even if the AI we thought that even if the AI transcripts made mistakes, GPT was smart transcripts made mistakes, GPT was smart transcripts made mistakes, GPT was smart enough to get that content and generate enough to get that content and generate enough to get that content and generate good text assets. That's how we good text assets. That's how we good text assets. That's how we started." So, what makes this work? started." So, what makes this work? started." So, what makes this work? Well, first of all, early movers can Well, first of all, early movers can Well, first of all, early movers can establish themselves before the market establish themselves before the market establish themselves before the market gets crowded. New technology often gets crowded. New technology often gets crowded. New technology often creates new problems that need new creates new problems that need new creates new problems that need new solutions. The third is you can ride the solutions. The third is you can ride the solutions. The third is you can ride the wave of attention and interest in the wave of attention and interest in the wave of attention and interest in the technology itself. And lastly, customers technology itself. And lastly, customers technology itself. And lastly, customers are often more forgiving of rough edges are often more forgiving of rough edges are often more forgiving of rough edges when the technology is new. But there when the technology is new. But there when the technology is new. But there are some things to watch out for. First are some things to watch out for. First are some things to watch out for. First is timing can be extremely difficult. If is timing can be extremely difficult. If is timing can be extremely difficult. If you're too early, the technology isn't you're too early, the technology isn't you're too early, the technology isn't ready or the customers aren't educated. ready or the customers aren't educated. ready or the customers aren't educated. too late, then you're one of dozens or too late, then you're one of dozens or too late, then you're one of dozens or hundreds of competitors. Second thing is hundreds of competitors. Second thing is hundreds of competitors. Second thing is the hype cycle can mislead you. Just the hype cycle can mislead you. Just the hype cycle can mislead you. Just because people are talking about a because people are talking about a because people are talking about a technology doesn't mean they'll pay for technology doesn't mean they'll pay for technology doesn't mean they'll pay for whatever you're building. The third is whatever you're building. The third is whatever you're building. The third is the technology might not mature the way the technology might not mature the way the technology might not mature the way you expect, leaving you with a product you expect, leaving you with a product you expect, leaving you with a product built on shaky foundations. And lastly, built on shaky foundations. And lastly, built on shaky foundations. And lastly, big players can also move fast in hot big players can also move fast in hot big players can also move fast in hot spaces. So, you might get crushed by spaces. So, you might get crushed by spaces. So, you might get crushed by well-funded competitors. The questions well-funded competitors. The questions well-funded competitors. The questions to ask yourself are, is this technology to ask yourself are, is this technology to ask yourself are, is this technology actually ready for real-world use cases actually ready for real-world use cases actually ready for real-world use cases or is it still experimental? Second one, or is it still experimental? Second one, or is it still experimental? Second one, are businesses already spending money in are businesses already spending money in are businesses already spending money in adjacent areas or is this entirely adjacent areas or is this entirely adjacent areas or is this entirely speculative? Do I have a unique angle or speculative? Do I have a unique angle or speculative? Do I have a unique angle or insight or am I just chasing hype? And insight or am I just chasing hype? And insight or am I just chasing hype? And lastly, can I build something useful

lastly, can I build something useful lastly, can I build something useful quickly before the window closes? And my quickly before the window closes? And my quickly before the window closes? And my eighth and final method for finding SaaS eighth and final method for finding SaaS eighth and final method for finding SaaS ideas is building on an existing ideas is building on an existing ideas is building on an existing product. 4% of respondents told us this product. 4% of respondents told us this product. 4% of respondents told us this was their approach. So, this is where was their approach. So, this is where was their approach. So, this is where you're working on one product and you you're working on one product and you you're working on one product and you discover a bigger or a better discover a bigger or a better discover a bigger or a better opportunity. Maybe an internal tool with opportunity. Maybe an internal tool with opportunity. Maybe an internal tool with outside demand or an adjacent problem outside demand or an adjacent problem outside demand or an adjacent problem that your customers keep mentioning. that your customers keep mentioning. that your customers keep mentioning. This obviously wasn't a huge group, it This obviously wasn't a huge group, it This obviously wasn't a huge group, it was 4%, but we did have a number of was 4%, but we did have a number of was 4%, but we did have a number of respondents who were working on a respondents who were working on a respondents who were working on a product at various levels of success and product at various levels of success and product at various levels of success and then in doing so discovered a bigger then in doing so discovered a bigger then in doing so discovered a bigger opportunity. It's worth noting these opportunity. It's worth noting these opportunity. It's worth noting these weren't necessarily pivots, but new weren't necessarily pivots, but new weren't necessarily pivots, but new products altogether. So, Ivana is the products altogether. So, Ivana is the products altogether. So, Ivana is the founder of Authored Up, which is founder of Authored Up, which is founder of Authored Up, which is LinkedIn content creation and analysis LinkedIn content creation and analysis LinkedIn content creation and analysis integrated via Chrome extension. And integrated via Chrome extension. And integrated via Chrome extension. And Ivana told us, "We were working on a Ivana told us, "We were working on a Ivana told us, "We were working on a startup for hiring managers and startup for hiring managers and startup for hiring managers and recruiters. We had a product developed, recruiters. We had a product developed, recruiters. We had a product developed, but we were working in a vacuum, not but we were working in a vacuum, not but we were working in a vacuum, not talking to potential customers, no mom talking to potential customers, no mom talking to potential customers, no mom test. After we almost finished the test. After we almost finished the test. After we almost finished the product, we wanted to get feedback and product, we wanted to get feedback and product, we wanted to get feedback and beta users. We tried networking, sending beta users. We tried networking, sending beta users. We tried networking, sending LinkedIn DMs, and pitching. We realized LinkedIn DMs, and pitching. We realized LinkedIn DMs, and pitching. We realized we can try creating content on LinkedIn, we can try creating content on LinkedIn, we can try creating content on LinkedIn, but we couldn't find simple tools to but we couldn't find simple tools to but we couldn't find simple tools to help us out and that's when we built help us out and that's when we built help us out and that's when we built this internal tool." Refael, who's the this internal tool." Refael, who's the this internal tool." Refael, who's the founder of Super Data, which is an API founder of Super Data, which is an API founder of Super Data, which is an API that lets developers and no-code makers that lets developers and no-code makers that lets developers and no-code makers easily extract data from websites and easily extract data from websites and easily extract data from websites and platforms like YouTube, TikTok, platforms like YouTube, TikTok, platforms like YouTube, TikTok, Instagram, and X Twitter. Refael told Instagram, and X Twitter. Refael told Instagram, and X Twitter. Refael told us, "It's my own itch which turned into us, "It's my own itch which turned into us, "It's my own itch which turned into a business. I needed to scrape YouTube a business. I needed to scrape YouTube a business. I needed to scrape YouTube transcripts to add a feature to my other transcripts to add a feature to my other transcripts to add a feature to my other product. Over time, I also used the product. Over time, I also used the product. Over time, I also used the scraper to build other small products.

scraper to build other small products. scraper to build other small products. It became de facto an API servicing It became de facto an API servicing It became de facto an API servicing multiple apps. At some point, I decided multiple apps. At some point, I decided multiple apps. At some point, I decided to make a small experiment and try to to make a small experiment and try to to make a small experiment and try to monetize it on RapidAPI and from there monetize it on RapidAPI and from there monetize it on RapidAPI and from there it snowballed." And lastly, we have it snowballed." And lastly, we have it snowballed." And lastly, we have Ruben Gomez, the founder of SignWell. Ruben Gomez, the founder of SignWell. Ruben Gomez, the founder of SignWell. SignWell provides easy-to-use document SignWell provides easy-to-use document SignWell provides easy-to-use document signing with enterprise-grade security signing with enterprise-grade security signing with enterprise-grade security and compliance at an affordable price. and compliance at an affordable price. and compliance at an affordable price. Ruben told us, "The idea came from Ruben told us, "The idea came from Ruben told us, "The idea came from running another business and running another business and running another business and seeing/hearing about the dissatisfaction seeing/hearing about the dissatisfaction seeing/hearing about the dissatisfaction of customers with solutions in the of customers with solutions in the of customers with solutions in the e-signature space and trying ourselves e-signature space and trying ourselves e-signature space and trying ourselves to give them good options for that part to give them good options for that part to give them good options for that part of their workflow." So, what makes this of their workflow." So, what makes this of their workflow." So, what makes this approach work? The first is you're approach work? The first is you're approach work? The first is you're already in the market. You're talking to already in the market. You're talking to already in the market. You're talking to customers and you're seeing real customers and you're seeing real customers and you're seeing real problems. You have momentum, skills, and problems. You have momentum, skills, and problems. You have momentum, skills, and sometimes revenue to fund exploration. sometimes revenue to fund exploration. sometimes revenue to fund exploration. The third is you might discover that a The third is you might discover that a The third is you might discover that a tool you built for yourself has broader tool you built for yourself has broader tool you built for yourself has broader demand. And the fourth is the new demand. And the fourth is the new demand. And the fourth is the new opportunity often leverages what you've opportunity often leverages what you've opportunity often leverages what you've already learned. Things to watch out for already learned. Things to watch out for already learned. Things to watch out for include chasing shiny objects. It's a include chasing shiny objects. It's a include chasing shiny objects. It's a real risk. Make sure the new idea is real risk. Make sure the new idea is real risk. Make sure the new idea is actually better and not just more actually better and not just more actually better and not just more exciting. exciting. exciting. The second one is splitting focus The second one is splitting focus The second one is splitting focus between two products can kill both of between two products can kill both of between two products can kill both of them. Third is you might be running from them. Third is you might be running from them. Third is you might be running from hard problems in your current product hard problems in your current product hard problems in your current product rather than toward a real opportunity.

rather than toward a real opportunity. rather than toward a real opportunity. And the fourth is sunk cost in your And the fourth is sunk cost in your And the fourth is sunk cost in your current product can cloud your judgment. current product can cloud your judgment. current product can cloud your judgment. So, I have four questions I think you So, I have four questions I think you So, I have four questions I think you should ask yourself if you're going to should ask yourself if you're going to should ask yourself if you're going to take this approach. Number one, is this take this approach. Number one, is this take this approach. Number one, is this new product idea genuinely bigger and new product idea genuinely bigger and new product idea genuinely bigger and better or am I just bored with what I'm better or am I just bored with what I'm better or am I just bored with what I'm working on? Number two, can I validate working on? Number two, can I validate working on? Number two, can I validate this quickly without completely this quickly without completely this quickly without completely abandoning my current product? Number abandoning my current product? Number abandoning my current product? Number three, do I have the resources to pursue three, do I have the resources to pursue three, do I have the resources to pursue both of these ideas or do I have to make both of these ideas or do I have to make both of these ideas or do I have to make a really hard choice? And number four, a really hard choice? And number four, a really hard choice? And number four, what would have to be true for this new what would have to be true for this new what would have to be true for this new idea to be worth the switch? So, as a idea to be worth the switch? So, as a idea to be worth the switch? So, as a recap, here are the eight methods that recap, here are the eight methods that recap, here are the eight methods that the successful founders we surveyed used the successful founders we surveyed used the successful founders we surveyed used to fund their profitable SaaS ideas. Let to fund their profitable SaaS ideas. Let to fund their profitable SaaS ideas. Let me leave you with one number, 72. me leave you with one number, 72. me leave you with one number, 72. That's the percent of founders who found That's the percent of founders who found That's the percent of founders who found their idea through their work, be it day their idea through their work, be it day their idea through their work, be it day job frustrations, expensive tools they job frustrations, expensive tools they job frustrations, expensive tools they knew they could build better or cheaper, knew they could build better or cheaper, knew they could build better or cheaper, patterns from agency clients, or patterns from agency clients, or patterns from agency clients, or opportunities discovered while building opportunities discovered while building opportunities discovered while building something else. 72%. something else. 72%. something else. 72%. That means your SaaS idea might be right That means your SaaS idea might be right That means your SaaS idea might be right under your nose. But you need to know under your nose. But you need to know under your nose. But you need to know what to look for and that's why my team what to look for and that's why my team what to look for and that's why my team and I created the 9-to-5 audit. It's and I created the 9-to-5 audit. It's and I created the 9-to-5 audit. It's totally free. It includes even more totally free. It includes even more totally free. It includes even more founder examples we couldn't fit in this founder examples we couldn't fit in this founder examples we couldn't fit in this video and it walks you through thought video and it walks you through thought video and it walks you through thought exercises to help you discover SaaS exercises to help you discover SaaS exercises to help you discover SaaS opportunities hiding at your work day.

opportunities hiding at your work day. opportunities hiding at your work day. You can get your free copy at You can get your free copy at You can get your free copy at robwalling.com/ideas. robwalling.com/ideas. robwalling.com/ideas. I hope you find it helpful. Once you I hope you find it helpful. Once you I hope you find it helpful. Once you found your SaaS idea, the next step is found your SaaS idea, the next step is found your SaaS idea, the next step is validation and that's exactly what I validation and that's exactly what I validation and that's exactly what I cover in this next video. If you found cover in this next video. If you found cover in this next video. If you found this video helpful, I'd appreciate it if this video helpful, I'd appreciate it if this video helpful, I'd appreciate it if you give it a like and subscribe to the you give it a like and subscribe to the you give it a like and subscribe to the channel. Thanks to all the survey channel. Thanks to all the survey channel. Thanks to all the survey participants for helping out with this participants for helping out with this participants for helping out with this project. Thanks for watching and we'll project. Thanks for watching and we'll project. Thanks for watching and we'll see you next time.