Designing the Perfect SaaS Business (Steal My Checklist)

Every founder dreams of building the Every founder dreams of building the next big SAS success. But what separates next big SAS success. But what separates next big SAS success. But what separates the ideas that just sound good from the the ideas that just sound good from the the ideas that just sound good from the ones that truly take off? After two ones that truly take off? After two ones that truly take off? After two decades in SAS, launching everything decades in SAS, launching everything decades in SAS, launching everything from ebooks about duckboats to from ebooks about duckboats to from ebooks about duckboats to multi-million dollar exits from SAS, multi-million dollar exits from SAS, multi-million dollar exits from SAS, I've seen one pattern repeat over and I've seen one pattern repeat over and I've seen one pattern repeat over and over. The best businesses aren't built over. The best businesses aren't built over. The best businesses aren't built on luck. They're built on the right on luck. They're built on the right on luck. They're built on the right foundations. But here's the thing. Most foundations. But here's the thing. Most foundations. But here's the thing. Most founders go about finding their business founders go about finding their business founders go about finding their business or product idea backwards. they fall in or product idea backwards. they fall in or product idea backwards. they fall in love with a problem or a piece of love with a problem or a piece of love with a problem or a piece of technology or worse yet some idea that technology or worse yet some idea that technology or worse yet some idea that just came to them out of thin air. I've just came to them out of thin air. I've just came to them out of thin air. I've done that and it rarely works. Instead, done that and it rarely works. Instead, done that and it rarely works. Instead, what if you had a checklist, a set of what if you had a checklist, a set of what if you had a checklist, a set of clear attributes that if your idea ticks clear attributes that if your idea ticks clear attributes that if your idea ticks enough of the boxes, you could enough of the boxes, you could enough of the boxes, you could dramatically increase your odds of dramatically increase your odds of dramatically increase your odds of building something that grows, scales, building something that grows, scales, building something that grows, scales, and maybe even changes your life. In and maybe even changes your life. In and maybe even changes your life. In this video, I'm going to share my this video, I'm going to share my this video, I'm going to share my personal checklist for the perfect SAS personal checklist for the perfect SAS personal checklist for the perfect SAS idea. The more boxes you can check, the idea. The more boxes you can check, the idea. The more boxes you can check, the higher your chance of success. Let's higher your chance of success. Let's higher your chance of success. Let's break down exactly what makes a SAS idea break down exactly what makes a SAS idea break down exactly what makes a SAS idea not just good, but exceptional. The not just good, but exceptional. The not just good, but exceptional. The first item on the list is going to sound first item on the list is going to sound first item on the list is going to sound obvious given how much I talk about it, obvious given how much I talk about it, obvious given how much I talk about it, but I would only go B2B. I'm going to but I would only go B2B. I'm going to but I would only go B2B. I'm going to sell the B to businesses, sometimes B to sell the B to businesses, sometimes B to sell the B to businesses, sometimes B to both. You've heard me talk about dual both. You've heard me talk about dual both. You've heard me talk about dual funnels where there might be a proumer funnels where there might be a proumer funnels where there might be a proumer consumerish version on the low end where consumerish version on the low end where consumerish version on the low end where it's a low price point and you're it's a low price point and you're it's a low price point and you're selling to people who are more price selling to people who are more price selling to people who are more price sensitive maybe doing it as a hobby or sensitive maybe doing it as a hobby or sensitive maybe doing it as a hobby or maybe doing it as a side gig like maybe doing it as a side gig like maybe doing it as a side gig like photographers or folks who sell things photographers or folks who sell things photographers or folks who sell things on Etsy that they make at their house on Etsy that they make at their house on Etsy that they make at their house but then you have a higherend top end of

but then you have a higherend top end of but then you have a higherend top end of the funnel where you are selling $500 or the funnel where you are selling $500 or the funnel where you are selling $500 or $1,000 a month. And that's what I mean $1,000 a month. And that's what I mean $1,000 a month. And that's what I mean by B to both where you are selling to by B to both where you are selling to by B to both where you are selling to businesses as well as to consumers businesses as well as to consumers businesses as well as to consumers proumers. But realistically B2B selling proumers. But realistically B2B selling proumers. But realistically B2B selling to other businesses even if they're to other businesses even if they're to other businesses even if they're small businesses is probably the small businesses is probably the small businesses is probably the simplest way to explain it. And I've simplest way to explain it. And I've simplest way to explain it. And I've already talked about all the reasons why already talked about all the reasons why already talked about all the reasons why one would want to do that. So I won't one would want to do that. So I won't one would want to do that. So I won't belabor the point here. Number two on my belabor the point here. Number two on my belabor the point here. Number two on my list for an ideal SAS business is one list for an ideal SAS business is one list for an ideal SAS business is one that I'll say it's debatable and you can that I'll say it's debatable and you can that I'll say it's debatable and you can break this rule. It's not a hard and break this rule. It's not a hard and break this rule. It's not a hard and fast 99.9% of the time rule, but it is fast 99.9% of the time rule, but it is fast 99.9% of the time rule, but it is one that if you are bootstrapping or one that if you are bootstrapping or one that if you are bootstrapping or mostly bootstrapping a SAS, in general, mostly bootstrapping a SAS, in general, mostly bootstrapping a SAS, in general, I see the trend that vertical SAS has an I see the trend that vertical SAS has an I see the trend that vertical SAS has an advantage, especially when you're advantage, especially when you're advantage, especially when you're bootstrapping. So to explain the bootstrapping. So to explain the bootstrapping. So to explain the difference between vertical and difference between vertical and difference between vertical and horizontal as related to SAS, we can horizontal as related to SAS, we can horizontal as related to SAS, we can take our hypothetical example of an app take our hypothetical example of an app take our hypothetical example of an app I often use as an example called I often use as an example called I often use as an example called Postcard. Postcard. Postcard. usepostcard.com and it is an email usepostcard.com and it is an email usepostcard.com and it is an email marketing platform or an ESP, email marketing platform or an ESP, email marketing platform or an ESP, email service provider, but it's focused on service provider, but it's focused on service provider, but it's focused on realtors. And so the vertical is realtor realtors. And so the vertical is realtor realtors. And so the vertical is realtor versus horizontal ESPs like Mailchimp, versus horizontal ESPs like Mailchimp, versus horizontal ESPs like Mailchimp, Active Campaign, Aweber, they focus Active Campaign, Aweber, they focus Active Campaign, Aweber, they focus across all verticals. That's why they're across all verticals. That's why they're across all verticals. That's why they're called horizontal. I didn't make this called horizontal. I didn't make this called horizontal. I didn't make this naming up. It's just the way it is. So a naming up. It's just the way it is. So a naming up. It's just the way it is. So a horizontal play is a very general tool horizontal play is a very general tool horizontal play is a very general tool that can be used by any type of that can be used by any type of that can be used by any type of business. It's not industry specific.

business. It's not industry specific. business. It's not industry specific. So, think of electronic signature app So, think of electronic signature app So, think of electronic signature app Signwell or Savvy Calal, which is a Signwell or Savvy Calal, which is a Signwell or Savvy Calal, which is a great scheduling link, a competitor to great scheduling link, a competitor to great scheduling link, a competitor to Calendarly. Those are all horizontal Calendarly. Those are all horizontal Calendarly. Those are all horizontal businesses because they're not focused businesses because they're not focused businesses because they're not focused on a single vertical versus a tool like on a single vertical versus a tool like on a single vertical versus a tool like Builder Prime, which is a company I've Builder Prime, which is a company I've Builder Prime, which is a company I've invested in, and they are kind of like invested in, and they are kind of like invested in, and they are kind of like CRM or like a business operating system CRM or like a business operating system CRM or like a business operating system that you run your entire business on, that you run your entire business on, that you run your entire business on, but they're focused on home improvement but they're focused on home improvement but they're focused on home improvement contractors. Or think of Gym Desk, which contractors. Or think of Gym Desk, which contractors. Or think of Gym Desk, which is similar. you run your entire gym and is similar. you run your entire gym and is similar. you run your entire gym and fitness studio on their suffer. So very fitness studio on their suffer. So very fitness studio on their suffer. So very focused on a single vertical. Now as focused on a single vertical. Now as focused on a single vertical. Now as I've said that I've said vertical is I've said that I've said vertical is I've said that I've said vertical is better. Now you might be wondering why I better. Now you might be wondering why I better. Now you might be wondering why I went deep into this and my first book went deep into this and my first book went deep into this and my first book start small stay small. I think I have start small stay small. I think I have start small stay small. I think I have an entire chapter about this. But an entire chapter about this. But an entire chapter about this. But realistically the nuts and bolts and the realistically the nuts and bolts and the realistically the nuts and bolts and the simple answer is that it is easier to simple answer is that it is easier to simple answer is that it is easier to market usually in verticals rather than market usually in verticals rather than market usually in verticals rather than horizontal because there's not hundreds horizontal because there's not hundreds horizontal because there's not hundreds of millions of dollars of venture being of millions of dollars of venture being of millions of dollars of venture being pumped in. you can usually carve out a pumped in. you can usually carve out a pumped in. you can usually carve out a pretty nice niche or or a position in pretty nice niche or or a position in pretty nice niche or or a position in that space and your customers use cases that space and your customers use cases that space and your customers use cases and what they need to use your software and what they need to use your software and what they need to use your software for are usually a lot more homogeneous for are usually a lot more homogeneous for are usually a lot more homogeneous if you're in a vertical because all gyms if you're in a vertical because all gyms if you're in a vertical because all gyms tend to run in a similar way versus if tend to run in a similar way versus if tend to run in a similar way versus if I'm going to build an operating system I'm going to build an operating system I'm going to build an operating system or you know software that every business or you know software that every business or you know software that every business you can imagine building gym desk but you can imagine building gym desk but you can imagine building gym desk but for every business it would be an for every business it would be an for every business it would be an absolute mess. So that's like an extreme absolute mess. So that's like an extreme absolute mess. So that's like an extreme thought experiment of how bad that can thought experiment of how bad that can thought experiment of how bad that can be. But the fewer verticals you serve, be. But the fewer verticals you serve, be. But the fewer verticals you serve, the fewer use cases you need to support.

the fewer use cases you need to support. the fewer use cases you need to support. Now the danger of course of being in a Now the danger of course of being in a Now the danger of course of being in a vertical is it may not be large enough vertical is it may not be large enough vertical is it may not be large enough to allow you to grow to where you want to allow you to grow to where you want to allow you to grow to where you want to go. But if you're bootstrapping, you to go. But if you're bootstrapping, you to go. But if you're bootstrapping, you want to be 2 3 5 10 million in annual want to be 2 3 5 10 million in annual want to be 2 3 5 10 million in annual recurring revenue. You don't need a recurring revenue. You don't need a recurring revenue. You don't need a market that's that that big. And that's market that's that that big. And that's market that's that that big. And that's one of the advantages of not raising one of the advantages of not raising one of the advantages of not raising venture is that you can go after venture is that you can go after venture is that you can go after verticals that aren't big enough for the verticals that aren't big enough for the verticals that aren't big enough for the big funded competitors to come in out big funded competitors to come in out big funded competitors to come in out market outspend out build. You have a market outspend out build. You have a market outspend out build. You have a little bit of a fighting advantage little bit of a fighting advantage little bit of a fighting advantage there. I've talked about vertical versus there. I've talked about vertical versus there. I've talked about vertical versus horizontal, but I'm going to throw in a horizontal, but I'm going to throw in a horizontal, but I'm going to throw in a third term that I coined and it's called third term that I coined and it's called third term that I coined and it's called orthogonal. probably haven't heard this orthogonal. probably haven't heard this orthogonal. probably haven't heard this elsewhere because the only reason I came elsewhere because the only reason I came elsewhere because the only reason I came up with it is my co-founder of Tiny up with it is my co-founder of Tiny up with it is my co-founder of Tiny Seed, Anar and I were looking across all Seed, Anar and I were looking across all Seed, Anar and I were looking across all of our Tiny Seed investments and we of our Tiny Seed investments and we of our Tiny Seed investments and we realized that vertical SAS had a bit of realized that vertical SAS had a bit of realized that vertical SAS had a bit of an advantage actually quite a bit an advantage actually quite a bit an advantage actually quite a bit advantage over the horizontal plays that advantage over the horizontal plays that advantage over the horizontal plays that we've backed. There are exceptions of we've backed. There are exceptions of we've backed. There are exceptions of course but in general trends you know course but in general trends you know course but in general trends you know the numbers were kind of pointing in the numbers were kind of pointing in the numbers were kind of pointing in that direction. But the other thing we that direction. But the other thing we that direction. But the other thing we saw is there were horizontal apps that saw is there were horizontal apps that saw is there were horizontal apps that could be used across all types of could be used across all types of could be used across all types of industries but they were aimed at a industries but they were aimed at a industries but they were aimed at a single job title or single role of a single job title or single role of a single job title or single role of a person at a company. So imagine HR person at a company. So imagine HR person at a company. So imagine HR software, applicant tracking systems or software, applicant tracking systems or software, applicant tracking systems or whatever that is really sold to HR whatever that is really sold to HR whatever that is really sold to HR directors or the head of HR and people directors or the head of HR and people directors or the head of HR and people ops or imagine a scrum tool or an agile ops or imagine a scrum tool or an agile ops or imagine a scrum tool or an agile tool that is aimed specifically either tool that is aimed specifically either tool that is aimed specifically either at like a senior developer or at like a senior developer or at like a senior developer or potentially at the head of product or at potentially at the head of product or at potentially at the head of product or at a development manager, you know, the a development manager, you know, the a development manager, you know, the manager of the software developers at a manager of the software developers at a manager of the software developers at a company. That's what I call orthogonal.

company. That's what I call orthogonal. company. That's what I call orthogonal. It's horizontal technically because it It's horizontal technically because it It's horizontal technically because it can be used across many different can be used across many different can be used across many different verticals. So all company types but the verticals. So all company types but the verticals. So all company types but the orthogonal is indicating that you are orthogonal is indicating that you are orthogonal is indicating that you are focused on a single job title or single focused on a single job title or single focused on a single job title or single role at a company. So one more advantage role at a company. So one more advantage role at a company. So one more advantage of both orthogonal and vertical SAS apps of both orthogonal and vertical SAS apps of both orthogonal and vertical SAS apps is that they are almost inevitably is that they are almost inevitably is that they are almost inevitably they're usually in kind of boring they're usually in kind of boring they're usually in kind of boring markets which is a good thing. They markets which is a good thing. They markets which is a good thing. They don't attract a lot of attention and don't attract a lot of attention and don't attract a lot of attention and you're over here in your corner minting you're over here in your corner minting you're over here in your corner minting money because everyone else is going and money because everyone else is going and money because everyone else is going and focusing on the new hotness of the day focusing on the new hotness of the day focusing on the new hotness of the day in verticals in tight industry groups. in verticals in tight industry groups. in verticals in tight industry groups. Think of HR or you know education Think of HR or you know education Think of HR or you know education professionals, realtors, just any any professionals, realtors, just any any professionals, realtors, just any any industry. They usually have places that industry. They usually have places that industry. They usually have places that they hang out both online. So it might they hang out both online. So it might they hang out both online. So it might be Facebook groups and Slack groups or be Facebook groups and Slack groups or be Facebook groups and Slack groups or WhatsApp groups, whatever, or in-person WhatsApp groups, whatever, or in-person WhatsApp groups, whatever, or in-person events. So this gives you an easy events. So this gives you an easy events. So this gives you an easy ability to get in front of them if you ability to get in front of them if you ability to get in front of them if you hang out there too. Subreddits, you hang out there too. Subreddits, you hang out there too. Subreddits, you know, there's all types of places where know, there's all types of places where know, there's all types of places where if you show up and you offer value and if you show up and you offer value and if you show up and you offer value and you offer to help people, you can you offer to help people, you can you offer to help people, you can actually find all your customers in one actually find all your customers in one actually find all your customers in one place. not all your customers, but you place. not all your customers, but you place. not all your customers, but you know, a huge amount versus if you were know, a huge amount versus if you were know, a huge amount versus if you were just a complete horizontal play, like just a complete horizontal play, like just a complete horizontal play, like you can kind of market to anyone. Where you can kind of market to anyone. Where you can kind of market to anyone. Where do you find them? Where are they?

do you find them? Where are they? do you find them? Where are they? They're online. They're everywhere. They're online. They're everywhere. They're online. They're everywhere. Well, then how do you market to them? Well, then how do you market to them? Well, then how do you market to them? And finally, on the vertical, And finally, on the vertical, And finally, on the vertical, horizontal, orthogonal piece, word of horizontal, orthogonal piece, word of horizontal, orthogonal piece, word of mouth is usually much better with mouth is usually much better with mouth is usually much better with vertical and orthogonal products because vertical and orthogonal products because vertical and orthogonal products because obviously, think about if you're in a obviously, think about if you're in a obviously, think about if you're in a specific industry, if you're in specific industry, if you're in specific industry, if you're in construction, whatever, people talk. construction, whatever, people talk. construction, whatever, people talk. They talk about what they use, the new They talk about what they use, the new They talk about what they use, the new stuff sweeps in, and people start stuff sweeps in, and people start stuff sweeps in, and people start talking about it. Orthogonal is the same talking about it. Orthogonal is the same talking about it. Orthogonal is the same way. If you're an HR professional, you way. If you're an HR professional, you way. If you're an HR professional, you go to the HR conferences, you're in go to the HR conferences, you're in go to the HR conferences, you're in groups talking to other HR professionals groups talking to other HR professionals groups talking to other HR professionals and you're going to tell them if there's and you're going to tell them if there's and you're going to tell them if there's a new tool that is super interesting a new tool that is super interesting a new tool that is super interesting versus again coming back to horizontal. versus again coming back to horizontal. versus again coming back to horizontal. I'm not saying you should never do I'm not saying you should never do I'm not saying you should never do horizontal, but what I am saying is as a horizontal, but what I am saying is as a horizontal, but what I am saying is as a bootstrapper, I personally would want to bootstrapper, I personally would want to bootstrapper, I personally would want to veer in the direction of a vertical or veer in the direction of a vertical or veer in the direction of a vertical or an orthogonal product. Criteria number an orthogonal product. Criteria number an orthogonal product. Criteria number three is I'll say it's a nice to have, three is I'll say it's a nice to have, three is I'll say it's a nice to have, but it's a really nice to have, and it's but it's a really nice to have, and it's but it's a really nice to have, and it's to choose a market where the founder has to choose a market where the founder has to choose a market where the founder has some kind of advantage. You might hear some kind of advantage. You might hear some kind of advantage. You might hear this referred to as product founder fit. this referred to as product founder fit. this referred to as product founder fit. And this can be like a strong desire for And this can be like a strong desire for And this can be like a strong desire for a passion to work with that customer a passion to work with that customer a passion to work with that customer base. That's not a huge advantage, but base. That's not a huge advantage, but base. That's not a huge advantage, but it will allow you to succeed over folks it will allow you to succeed over folks it will allow you to succeed over folks who care less about it. Uh maybe you who care less about it. Uh maybe you who care less about it. Uh maybe you have a strong network in a space. Maybe have a strong network in a space. Maybe have a strong network in a space. Maybe you have a strong audience. Maybe you you have a strong audience. Maybe you you have a strong audience. Maybe you have deep knowledge of the space, a have deep knowledge of the space, a have deep knowledge of the space, a unique skill set that deals with a unique skill set that deals with a unique skill set that deals with a particular vertical or a particular role particular vertical or a particular role particular vertical or a particular role at a company as I've said with, you at a company as I've said with, you at a company as I've said with, you know, vertical and horizontal. And so know, vertical and horizontal. And so know, vertical and horizontal. And so this is a nice to have. I've seen plenty this is a nice to have. I've seen plenty this is a nice to have. I've seen plenty of folks design and build amazing of folks design and build amazing of folks design and build amazing products where they didn't have an products where they didn't have an products where they didn't have an advantage in their space. But since I'm advantage in their space. But since I'm advantage in their space. But since I'm putting together the list of an ideal putting together the list of an ideal putting together the list of an ideal SAS business, this of course is on that SAS business, this of course is on that SAS business, this of course is on that list. Criteria number four is for me list. Criteria number four is for me list. Criteria number four is for me that you can reach them online. This that you can reach them online. This that you can reach them online. This again, I've seen great businesses,

again, I've seen great businesses, again, I've seen great businesses, especially ones that I've invested in be especially ones that I've invested in be especially ones that I've invested in be built purely through offline marketing built purely through offline marketing built purely through offline marketing through in-person events and in-person through in-person events and in-person through in-person events and in-person meetups. And I'll say, you know, I don't meetups. And I'll say, you know, I don't meetups. And I'll say, you know, I don't I don't particularly count cold email as I don't particularly count cold email as I don't particularly count cold email as like online marketing, although like online marketing, although like online marketing, although technically you can say it's online, but technically you can say it's online, but technically you can say it's online, but pretty much everyone has an email pretty much everyone has an email pretty much everyone has an email address these days. But realistically address these days. But realistically address these days. But realistically for me, and probably you, if you're for me, and probably you, if you're for me, and probably you, if you're watching this video, you do want folks watching this video, you do want folks watching this video, you do want folks that are online and that you can reach that are online and that you can reach that are online and that you can reach online, whether it's through SEO, online, whether it's through SEO, online, whether it's through SEO, content, partnerships, places they hang content, partnerships, places they hang content, partnerships, places they hang out, ads, cold email, as I said before, out, ads, cold email, as I said before, out, ads, cold email, as I said before, just makes things a little easier. So, just makes things a little easier. So, just makes things a little easier. So, can you build and bootstrap a great can you build and bootstrap a great can you build and bootstrap a great business without your customers being business without your customers being business without your customers being online? Yeah, within reason you could online? Yeah, within reason you could online? Yeah, within reason you could pull it off if the annual contract pull it off if the annual contract pull it off if the annual contract values are high enough and you can reach values are high enough and you can reach values are high enough and you can reach them through other means that aren't them through other means that aren't them through other means that aren't super expensive and your churn is low. super expensive and your churn is low. super expensive and your churn is low. But realistically, this goes on my list But realistically, this goes on my list But realistically, this goes on my list of things that I'd like in an ideal SAS. of things that I'd like in an ideal SAS. of things that I'd like in an ideal SAS. Point number five is that one maybe two Point number five is that one maybe two Point number five is that one maybe two people make the buying decision because people make the buying decision because people make the buying decision because when you are selling to a committee, when you are selling to a committee, when you are selling to a committee, there's a lot of work there. It's not a there's a lot of work there. It's not a there's a lot of work there. It's not a one call close anymore when you have to one call close anymore when you have to one call close anymore when you have to convince two, three, six, eight people, convince two, three, six, eight people, convince two, three, six, eight people, a whole committee to buy your product.

a whole committee to buy your product. a whole committee to buy your product. In addition, in a perfect world, since In addition, in a perfect world, since In addition, in a perfect world, since I'm just dreaming here, the person I'm just dreaming here, the person I'm just dreaming here, the person experiencing the pain is the same one experiencing the pain is the same one experiencing the pain is the same one that is making the buying decision. That that is making the buying decision. That that is making the buying decision. That makes it even easier because if you have makes it even easier because if you have makes it even easier because if you have someone who's experiencing pain, but someone who's experiencing pain, but someone who's experiencing pain, but they need a manager or someone else in they need a manager or someone else in they need a manager or someone else in the company to make that decision, they the company to make that decision, they the company to make that decision, they have to then convince them that they're have to then convince them that they're have to then convince them that they're experiencing the pain and convince them experiencing the pain and convince them experiencing the pain and convince them that your solution is going to, you that your solution is going to, you that your solution is going to, you know, be more valuable than the money know, be more valuable than the money know, be more valuable than the money coming out of the budget. But when coming out of the budget. But when coming out of the budget. But when you're experiencing the pain firsthand, you're experiencing the pain firsthand, you're experiencing the pain firsthand, you just want to pay to make it go away. you just want to pay to make it go away. you just want to pay to make it go away. So, this one definitely fits on this So, this one definitely fits on this So, this one definitely fits on this list. Item number six is you're entering list. Item number six is you're entering list. Item number six is you're entering an existing proven market. And a bonus an existing proven market. And a bonus an existing proven market. And a bonus is that there's a large hated incumbent, is that there's a large hated incumbent, is that there's a large hated incumbent, maybe more than one hated incumbent. maybe more than one hated incumbent. maybe more than one hated incumbent. This makes it really nice for customer This makes it really nice for customer This makes it really nice for customer acquisition because if it's an existing acquisition because if it's an existing acquisition because if it's an existing market, then there's already some market, then there's already some market, then there's already some probably some search volume. There's probably some search volume. There's probably some search volume. There's potentially groups, whether again potentially groups, whether again potentially groups, whether again Facebook groups, Slack groups, or Facebook groups, Slack groups, or Facebook groups, Slack groups, or whatever built around this. And this whatever built around this. And this whatever built around this. And this incumbent has kind of been the pioneer incumbent has kind of been the pioneer incumbent has kind of been the pioneer that is walking ahead of you and taking that is walking ahead of you and taking that is walking ahead of you and taking the arrows in the back. and you can look the arrows in the back. and you can look the arrows in the back. and you can look at the mistakes they've made and the at the mistakes they've made and the at the mistakes they've made and the successes that they've had, what's successes that they've had, what's successes that they've had, what's worked and what hasn't, and you can worked and what hasn't, and you can worked and what hasn't, and you can double down on what's working for them, double down on what's working for them, double down on what's working for them, and you can avoid the potential mistakes and you can avoid the potential mistakes and you can avoid the potential mistakes that you've seen them make. Now, being that you've seen them make. Now, being that you've seen them make. Now, being in an existing market with a big hated in an existing market with a big hated in an existing market with a big hated incumbent, it's also really good for incumbent, it's also really good for incumbent, it's also really good for hiring. You can hire really good talent hiring. You can hire really good talent hiring. You can hire really good talent out of big companies that are creaky and out of big companies that are creaky and out of big companies that are creaky and groy and not moving fast, not super groy and not moving fast, not super groy and not moving fast, not super interesting to ambitious folks who may interesting to ambitious folks who may interesting to ambitious folks who may want to stay in the same space and have want to stay in the same space and have want to stay in the same space and have amazing experience. and you can pull amazing experience. and you can pull amazing experience. and you can pull them into your team easier than if there them into your team easier than if there them into your team easier than if there wasn't a big existing market or a bunch

wasn't a big existing market or a bunch wasn't a big existing market or a bunch of competitors that you're dealing with. of competitors that you're dealing with. of competitors that you're dealing with. Now, with that, I want to give you a Now, with that, I want to give you a Now, with that, I want to give you a warning about some markets that are warning about some markets that are warning about some markets that are existing and have large hated existing and have large hated existing and have large hated incumbents, but are really hard to break incumbents, but are really hard to break incumbents, but are really hard to break into. Just some examples, but you can into. Just some examples, but you can into. Just some examples, but you can get the idea. There are more than this. get the idea. There are more than this. get the idea. There are more than this. So, trying to build healthcare SAS is So, trying to build healthcare SAS is So, trying to build healthcare SAS is pretty tough. It's it's hard to sell it. pretty tough. It's it's hard to sell it. pretty tough. It's it's hard to sell it. Uh it's hard to keep it all secure. Uh it's hard to keep it all secure. Uh it's hard to keep it all secure. There's just a lot to it. It's it's There's just a lot to it. It's it's There's just a lot to it. It's it's complex. It's long sales cycles. Same complex. It's long sales cycles. Same complex. It's long sales cycles. Same with selling to large governments. Now, with selling to large governments. Now, with selling to large governments. Now, I know some folks who sell to city I know some folks who sell to city I know some folks who sell to city governments, um, even counties, but man, governments, um, even counties, but man, governments, um, even counties, but man, you start selling to state and federal you start selling to state and federal you start selling to state and federal governments. Again, I'm not saying don't governments. Again, I'm not saying don't governments. Again, I'm not saying don't do it, but I personally wouldn't do it. do it, but I personally wouldn't do it. do it, but I personally wouldn't do it. It's not something I have a ton of It's not something I have a ton of It's not something I have a ton of expertise in. And if you do, and that's expertise in. And if you do, and that's expertise in. And if you do, and that's one of your unique advantages, well, one of your unique advantages, well, one of your unique advantages, well, that's great. It can be a moat. But if that's great. It can be a moat. But if that's great. It can be a moat. But if you haven't, it's really, really hard to you haven't, it's really, really hard to you haven't, it's really, really hard to get into healthcare and government, even get into healthcare and government, even get into healthcare and government, even education. Now, you know, again, I've education. Now, you know, again, I've education. Now, you know, again, I've invested in some companies who made it invested in some companies who made it invested in some companies who made it work, but the there's a budget process work, but the there's a budget process work, but the there's a budget process there. They're very seasonal. They're there. They're very seasonal. They're there. They're very seasonal. They're pretty price sensitive. It does depend pretty price sensitive. It does depend pretty price sensitive. It does depend on what you're building and for whom, on what you're building and for whom, on what you're building and for whom, but I would veer away if all things but I would veer away if all things but I would veer away if all things being equal, veer away from the being equal, veer away from the being equal, veer away from the education space. And then there are education space. And then there are education space. And then there are spaces that really don't adopt new spaces that really don't adopt new spaces that really don't adopt new technology quickly. Almost everyone is a technology quickly. Almost everyone is a technology quickly. Almost everyone is a lagard. If we're thinking about early lagard. If we're thinking about early lagard. If we're thinking about early adopters versus, you know, the adopters versus, you know, the adopters versus, you know, the mainstream versus laggers, but mainstream versus laggers, but mainstream versus laggers, but construction industry is pretty slow.

construction industry is pretty slow. construction industry is pretty slow. Legal, accounting, retail, there are Legal, accounting, retail, there are Legal, accounting, retail, there are some that are just harder to sell into. some that are just harder to sell into. some that are just harder to sell into. Even like restaurants, I know they've Even like restaurants, I know they've Even like restaurants, I know they've adopted QR codes and credit card adopted QR codes and credit card adopted QR codes and credit card technology a bit more uh than they used technology a bit more uh than they used technology a bit more uh than they used to. mostly due to the uh pandemic. But to. mostly due to the uh pandemic. But to. mostly due to the uh pandemic. But in general, these are for my ideal in general, these are for my ideal in general, these are for my ideal business. None of these industries are business. None of these industries are business. None of these industries are on that list. Item number seven is that on that list. Item number seven is that on that list. Item number seven is that people are actively searching for a people are actively searching for a people are actively searching for a solution to their problem. Even if all solution to their problem. Even if all solution to their problem. Even if all the search traffic's being sucked up by the search traffic's being sucked up by the search traffic's being sucked up by the big giants who are amazing at SEO, the big giants who are amazing at SEO, the big giants who are amazing at SEO, it at least shows that there's a lot of it at least shows that there's a lot of it at least shows that there's a lot of interest and it's an opportunity for you interest and it's an opportunity for you interest and it's an opportunity for you to learn to get better and to find the to learn to get better and to find the to learn to get better and to find the cracks, find the edges of the longtail cracks, find the edges of the longtail cracks, find the edges of the longtail searches. Even in the age of AI where AI searches. Even in the age of AI where AI searches. Even in the age of AI where AI is slowly creeping in and taking over is slowly creeping in and taking over is slowly creeping in and taking over you know whatever the Google search you know whatever the Google search you know whatever the Google search results if there's a need people will results if there's a need people will results if there's a need people will find it they will search other places find it they will search other places find it they will search other places and as things change and these paradigms and as things change and these paradigms and as things change and these paradigms shift you as a startup can get in there shift you as a startup can get in there shift you as a startup can get in there and maybe you can't outrank your huge and maybe you can't outrank your huge and maybe you can't outrank your huge competitor in Google but you can find competitor in Google but you can find competitor in Google but you can find the cracks and find the other places to the cracks and find the other places to the cracks and find the other places to creep in. So if there is search volume, creep in. So if there is search volume, creep in. So if there is search volume, that implies that there is a need and that implies that there is a need and that implies that there is a need and that people are going out after it. And that people are going out after it. And that people are going out after it. And that that's a good sign that they really that that's a good sign that they really that that's a good sign that they really need this pain point fixed for need this pain point fixed for need this pain point fixed for themselves. And even if you as an themselves. And even if you as an themselves. And even if you as an upstart have to go to places like upstart have to go to places like upstart have to go to places like YouTube or Facebook groups or Reddit YouTube or Facebook groups or Reddit YouTube or Facebook groups or Reddit groups or second tier search engines or groups or second tier search engines or groups or second tier search engines or figure out other opportunities in places figure out other opportunities in places figure out other opportunities in places that folks are seeking these answers that folks are seeking these answers that folks are seeking these answers because typing something into Google and because typing something into Google and because typing something into Google and getting 10 blue links, you know, getting 10 blue links, you know, getting 10 blue links, you know, obviously is in question and potentially obviously is in question and potentially obviously is in question and potentially it could be argued that that is fading.

it could be argued that that is fading. it could be argued that that is fading. But the searches don't go away. People But the searches don't go away. People But the searches don't go away. People still need to educate themselves on what still need to educate themselves on what still need to educate themselves on what software to use. And so if they're software to use. And so if they're software to use. And so if they're searching it, it's a great signal searching it, it's a great signal searching it, it's a great signal there's a deep need for your product. there's a deep need for your product. there's a deep need for your product. Speaking of deep needs for a product, if Speaking of deep needs for a product, if Speaking of deep needs for a product, if I'm going to build software, I want it I'm going to build software, I want it I'm going to build software, I want it to be an aspirin. And that means that it to be an aspirin. And that means that it to be an aspirin. And that means that it solves a deep pain point. So if you've solves a deep pain point. So if you've solves a deep pain point. So if you've heard me talk about this, it's aspirin heard me talk about this, it's aspirin heard me talk about this, it's aspirin versus vitamin. And aspirin is when I versus vitamin. And aspirin is when I versus vitamin. And aspirin is when I have a headache, I'm willing to drive to have a headache, I'm willing to drive to have a headache, I'm willing to drive to the store right now to solve that the store right now to solve that the store right now to solve that problem. Vitamins are nice to have. problem. Vitamins are nice to have. problem. Vitamins are nice to have. There's something I take when I There's something I take when I There's something I take when I remember, but there is almost never remember, but there is almost never remember, but there is almost never urgency in taking vitamins. And so urgency in taking vitamins. And so urgency in taking vitamins. And so products I build, I want them to be an products I build, I want them to be an products I build, I want them to be an aspirin. It means that they are aspirin. It means that they are aspirin. It means that they are essential. They solve the deep pain essential. They solve the deep pain essential. They solve the deep pain point. Oftent times, though, not always, point. Oftent times, though, not always, point. Oftent times, though, not always, someone is running their entire business someone is running their entire business someone is running their entire business on it. I mentioned this earlier where on it. I mentioned this earlier where on it. I mentioned this earlier where it's like the business operating system. it's like the business operating system. it's like the business operating system. So, I gave two examples earlier So, I gave two examples earlier So, I gave two examples earlier actually. Gym is software where you run actually. Gym is software where you run actually. Gym is software where you run your entire gym, martial arts, dojo or your entire gym, martial arts, dojo or your entire gym, martial arts, dojo or fitness studio on it. And builder prime fitness studio on it. And builder prime fitness studio on it. And builder prime is for home improvement contractors, but is for home improvement contractors, but is for home improvement contractors, but they run their entire business on it. they run their entire business on it. they run their entire business on it. And my last SAS app was Drip. And not And my last SAS app was Drip. And not And my last SAS app was Drip. And not everyone ran their entire business on everyone ran their entire business on everyone ran their entire business on it, but the bloggers and the online it, but the bloggers and the online it, but the bloggers and the online marketers did. They used it as their marketers did. They used it as their marketers did. They used it as their marketing database. And so it definitely marketing database. And so it definitely marketing database. And so it definitely fit the definition of being an aspirin.

fit the definition of being an aspirin. fit the definition of being an aspirin. Number nine is choosing competitor pain Number nine is choosing competitor pain Number nine is choosing competitor pain versus customer pain. And in this case, versus customer pain. And in this case, versus customer pain. And in this case, I would personally choose competitor I would personally choose competitor I would personally choose competitor pain. Though I know that some other pain. Though I know that some other pain. Though I know that some other folks choose customer pain. The folks choose customer pain. The folks choose customer pain. The differences are competitor pain is when differences are competitor pain is when differences are competitor pain is when you have a lot of competitors and it's you have a lot of competitors and it's you have a lot of competitors and it's painful to compete with them. Customer painful to compete with them. Customer painful to compete with them. Customer pain is when you enter a small space, pain is when you enter a small space, pain is when you enter a small space, whether it's a vertical or an orthogonal whether it's a vertical or an orthogonal whether it's a vertical or an orthogonal play, and you have customers that are play, and you have customers that are play, and you have customers that are hard to educate, they're hard to sell hard to educate, they're hard to sell hard to educate, they're hard to sell to. They're they need they're not to. They're they need they're not to. They're they need they're not technical, so they need a lot of help technical, so they need a lot of help technical, so they need a lot of help with support, but there aren't many with support, but there aren't many with support, but there aren't many competitors, right? So, you kind of are competitors, right? So, you kind of are competitors, right? So, you kind of are not trading one for the other. But in a not trading one for the other. But in a not trading one for the other. But in a perfect world, you pick one or the perfect world, you pick one or the perfect world, you pick one or the other. And again, I would pick other. And again, I would pick other. And again, I would pick competitor pain myself because I'm competitor pain myself because I'm competitor pain myself because I'm willing to enter a fast growing willing to enter a fast growing willing to enter a fast growing competitive market that is proven and to competitive market that is proven and to competitive market that is proven and to pull customers from a large hated pull customers from a large hated pull customers from a large hated incumbent rather than deal with the incumbent rather than deal with the incumbent rather than deal with the day-to-day pain of customers. But I have day-to-day pain of customers. But I have day-to-day pain of customers. But I have seen people build incredible seen people build incredible seen people build incredible bootstrapped seven and eight figure bootstrapped seven and eight figure bootstrapped seven and eight figure businesses with customer pain. The worst businesses with customer pain. The worst businesses with customer pain. The worst of both worlds though, don't do this, is of both worlds though, don't do this, is of both worlds though, don't do this, is when you have both competitor pain and when you have both competitor pain and when you have both competitor pain and customer pain. Run away from that. The customer pain. Run away from that. The customer pain. Run away from that. The nine items I've shared today are just nine items I've shared today are just nine items I've shared today are just the beginning. They're the first half of the beginning. They're the first half of the beginning. They're the first half of my full checklist for designing the my full checklist for designing the my full checklist for designing the ideal SAS business. This video was ideal SAS business. This video was ideal SAS business. This video was actually pulled from one of my favorite actually pulled from one of my favorite actually pulled from one of my favorite modules in the SAS launchpad, which is modules in the SAS launchpad, which is modules in the SAS launchpad, which is my in-depth 9 and 1/2 hour course that my in-depth 9 and 1/2 hour course that my in-depth 9 and 1/2 hour course that takes you from zero to your first paying takes you from zero to your first paying takes you from zero to your first paying customer. Val Soapie said the course customer. Val Soapie said the course customer. Val Soapie said the course helped him discover his most recent B2B helped him discover his most recent B2B helped him discover his most recent B2B SAS, which he just launched, and with SAS, which he just launched, and with SAS, which he just launched, and with which he's already in the process of which he's already in the process of which he's already in the process of signing up his second client with over signing up his second client with over signing up his second client with over 80 employees after signing up his first

80 employees after signing up his first 80 employees after signing up his first client, who has more than 300 employees. client, who has more than 300 employees. client, who has more than 300 employees. We've also added a new module featuring We've also added a new module featuring We've also added a new module featuring Arvid Call, the founder of Arvid Call, the founder of Arvid Call, the founder of Podscan.fm. Arvid and I go deep on what Podscan.fm. Arvid and I go deep on what Podscan.fm. Arvid and I go deep on what really matters before you bring AI into really matters before you bring AI into really matters before you bring AI into your SAS. What to watch out for, what's your SAS. What to watch out for, what's your SAS. What to watch out for, what's working, and where founders are getting working, and where founders are getting working, and where founders are getting tripped up right now. If you're even tripped up right now. If you're even tripped up right now. If you're even thinking about AI, you'll want to check thinking about AI, you'll want to check thinking about AI, you'll want to check it out. If you want to dive deeper into it out. If you want to dive deeper into it out. If you want to dive deeper into the course, you can get the rest of this the course, you can get the rest of this the course, you can get the rest of this checklist for free. Just watch the checklist for free. Just watch the checklist for free. Just watch the 28minute DNA of a great SAS idea module 28minute DNA of a great SAS idea module 28minute DNA of a great SAS idea module available at available at available at sasaunchaunchpad.co. And if you watch it sasaunchaunchpad.co. And if you watch it sasaunchaunchpad.co. And if you watch it before June 1st of 2025, you'll before June 1st of 2025, you'll before June 1st of 2025, you'll automatically be entered to win a automatically be entered to win a automatically be entered to win a completely free copy of the entire completely free copy of the entire completely free copy of the entire course. And for subscribers of the course. And for subscribers of the course. And for subscribers of the channel, if you buy and complete the channel, if you buy and complete the channel, if you buy and complete the course in the next 30 days, you'll be course in the next 30 days, you'll be course in the next 30 days, you'll be entered to win a private 30inut entered to win a private 30inut entered to win a private 30inut one-on-one session with me. We can one-on-one session with me. We can one-on-one session with me. We can workshop your SAS idea, solve any workshop your SAS idea, solve any workshop your SAS idea, solve any challenges you're facing, or map out challenges you're facing, or map out challenges you're facing, or map out your next steps together. If you go to your next steps together. If you go to your next steps together. If you go to sassaunchpad.co and you go to checkout, sassaunchpad.co and you go to checkout, sassaunchpad.co and you go to checkout, use the promo code checklist to get use the promo code checklist to get use the promo code checklist to get $150 off the course as a thank you for $150 off the course as a thank you for $150 off the course as a thank you for being a subscriber here. All the details being a subscriber here. All the details being a subscriber here. All the details and that free sample lesson are at and that free sample lesson are at and that free sample lesson are at saslaunchpad.co. You'll find the link in saslaunchpad.co. You'll find the link in saslaunchpad.co. You'll find the link in the description below. Thanks for the description below. Thanks for the description below. Thanks for watching and we'll see you next time.