How Entrepreneurs Make Their First Dollar In Saas | DMS Insights

In the world of software as a service (SaaS), the competition can be fierce, especially when trying to create something entirely new. However, as Abhishek, the founder of Youform, demonstrates, there is a simpler and more effective strategy: finding existing market gaps and building a micro version of a successful product. In this blog post, we will explore Abhishek's journey, his approach to identifying opportunities, and how you can replicate his success.

The Journey of Abhishek and Youform

Abhishek launched Youform in 2023 as an alternative to Typeform, a popular online form builder. Within two years, he grew Youform to approximately $11,000 in monthly recurring revenue (MRR). His success did not stem from inventing a groundbreaking idea but rather from recognizing a gap in the market and addressing it effectively.

Finding the Idea

Abhishek's journey began with his previous SaaS project, Bflow, a no-code chatbot builder. While working on Bflow, he discovered that many users were utilizing it as an alternative to Typeform. Noticing that Typeform had recently raised its prices, he identified a potential opportunity. However, he realized that pricing alone was not enough; he needed to understand the specific pain points users experienced with Typeform.

To gather insights, Abhishek scoured social media platforms like Twitter and Reddit, as well as Typeform's own forums. He discovered several features that users desired but were not offered by Typeform. This research led him to the conclusion that there was a significant gap in the market that he could fill.

The Gap-Finding Strategy

Abhishek refers to his approach as "finding the gap." This strategy involves:

1. Identifying a Popular Tool: Look for a widely used product in the market.
2. Researching Pain Points: Use social platforms to find out what users dislike about the product. This could include high pricing or missing features.
3. Reaching Out with Solutions: Create a basic landing page that outlines your solution and reach out to potential users.
4. Facilitating Migration: Offer a simple way for users to transition from the competitor's platform to yours, such as a one-click migration tool.

By following these steps, Abhishek was able to create Youform, which addressed the gaps he identified in Typeform's offerings.

Why This Approach Works

Abhishek emphasizes that aspiring entrepreneurs should not aim to invent entirely new products, especially when starting with limited resources. Instead, they should focus on existing markets with validated demand. By identifying gaps in established products, they can create solutions that resonate with users and attract customers.

Examples of Opportunities

During the discussion, Abhishek highlighted several potential opportunities for aspiring entrepreneurs:

• Canny Alternatives: He noted the lack of simple alternatives to Canny, a product feedback tool, which could be an area to explore.
• Habit-Tracking Apps: He mentioned a gap in the market for apps that help users build habits through gamification, particularly those with poor reviews.

These examples illustrate that there are numerous opportunities to create micro SaaS products by addressing user dissatisfaction with existing solutions.

Building Youform

When it came to building Youform, Abhishek took a lean approach. He did not focus on creating a fully-featured product initially. Instead, he developed a minimum viable product (MVP) that allowed users to collect basic data, such as names and emails, and download it as a CSV file. This MVP was built in just two weeks, and the initial landing page was straightforward, directing users to start using Youform.

Key Metrics

As of now, Youform boasts:

• $11,000 MRR
• 35,000 registered users
• Approximately 500 paying customers
• A conversion rate of around 1.5% to 2%
• Over 4 million form submissions

These numbers reflect the effectiveness of Abhishek's strategy and the demand for his product.

Lessons Learned

Throughout his journey, Abhishek has learned several valuable lessons:

• Messaging Matters: The way you communicate what your product does is crucial. It should resonate with your target audience.
• Customer Support is Key: Providing excellent customer support not only retains existing customers but also encourages referrals.
• Take Risks Early: For younger entrepreneurs, taking risks can lead to significant rewards, especially when responsibilities are lower.
• Focus on Market Needs: Build products based on what users are actively seeking rather than what you think they need.

Conclusion

Abhishek's story is a testament to the power of identifying market gaps and building solutions that cater to user needs. By following his approach, aspiring entrepreneurs can create their own micro SaaS businesses and potentially achieve significant success. With the right strategy, tools, and mindset, making your first $10,000 in SaaS is within reach.

If you're inspired by Abhishek's journey and want to learn more about building with AI, consider exploring programs like Starter Story Build, which can guide you from idea to production-ready app in just a few days. The opportunities in the SaaS space are vast, and with the right approach, you could be the next success story.