Using a framework in any SaaS business helps to pre-define the path that facilitates the highest chance of success. It accelerates the start-up process and reduces time-to-market by shortening the application development lifecycle.
In this article, we are sharing a framework for coming up with low competition SaaS ideas from Andrew Cloke, the CEO and Founder of Data Fetcher. Andrew has bootstrapped 2 SaaS companies (Data Fetcher and Influencer Grid) to $6 500 and $3 500 monthly recurring revenue using this replicable framework that anyone else can use to get started and lay a foundation for a to-be successful SaaS tool.
The Framework Goes as Follows:
- Find a Platform that Is Growing Massively
Andrew advises using a trends research website like Exploding Topics first to find data on SaaS tools that are growing massively at the given time. Exploding Topics uses increases in Google search volume to show topics that are blowing up/ about to go mainstream. I typically use the 'business', 'startup', or 'technology' filters.
For each topic, take a couple of minutes to Google it and understand it. What is it? What are people saying about its future? If it's a company, much traction/funding/revenue do they have?
- Look at Tools for Similar but More Mature Platforms
This is the most important step according to Andrew. He suggests you look for a successful tool that is related to an existing platform (from step 1) that could be copied but with the existing platform swapped for the growing one. The idea is to come up with a combination that has very little competition - i.e. the tool that will be (one of) the first of its kind.
Some good places to look for inspiration: Product Hunt, app stores, marketplaces like Shopify, Hubspot, and Monday, blogs related to a particular industry, and software review sites like G2.
- Build an equivalent tool for the new platform.
Make sure you pick an idea you can build in 1 to 2 months so you can validate it with real users as soon as possible. For the tech stack, use what you know already to finish it quicker. If you're not technical, the ideas you can build will be more limited, but try no-code tools.
- Profit through lack of competition.
Because you picked an idea with very little competition in step 2, you should now have an early mover advantage. There should be customers who need what you've built, have a lack of other options, and will happily hand over their money for it. Contact industry blogs and tell them about your new tool, outreach to people on LinkedIn, and launch on Product Hunt, etc. If you can get a few early customers, that's enough validation to know this will work.
You won't always have the early mover advantage - assume that others will eventually come up with the same idea or copy you — so exploit your timing for all its worth. Talk to your users so your features are always one step ahead of your competitors. Also, switch your marketing to SEO/YouTube/other channels that are scalable.
Real-World Examples of This Framework Applied by Andrew
Andrew has used this framework to bootstrap two SaaS start-ups, Data Fetcher and Influencer Grid (sold) to over 5 figures in annual recurring revenue each. Below is how he has applied it for the two SaaS tools:
- Data Fetcher
- Influence Grid
1. Data Fetcher
In 2020, Andrew noticed a Google Sheets add-on called API Connector for connecting Sheets to third-party APIs. He knew Airtable, a Google Sheets competitor that was exploding in popularity at that time. Airtable had also just opened up an app marketplace at that time and lacked such an API Connector add-on as Google had. So Andrew launched an Airtable app for connecting to APIs and called it Data Fetcher. Today, it's at 190 recurring customers and generates $6 500 monthly recurring revenue.
2. Influence Grid
In December 2019, Andrew noticed that "TikTok" was an exploding topic — this was well before lockdowns and everyone being on TikTok. While researching the market, he discovered that there were dozens of "Instagram influencer search engines". So he swapped out Instagram for TikTok and built influence Grid, a "TikTok influencer search engine" to help brands find TikTok influencers.
He bootstrapped it to $3 500 monthly recurring revenue before selling it to another company for $55 000.
Conclusion
By following this framework, Andrew was able to build 2 successful SaaS tools with less competition and eventually earned $6 500 and $3 500 monthly recurring revenue from them.
The framework is easy to replicate and it's as simple as finding a platform that is growing massively. Then look at marketplaces for similar but more mature SaaS platforms and build an equivalent tool.
