As a micro-SaaS enthusiast, I’ve noticed an exciting trend in the world of small software businesses. More and more people are looking to buy existing micro-SaaS apps instead of starting from scratch. It’s a brilliant way to get a head start in the industry.
What’s even more interesting is the growing number of small private equity firms that are snapping up these micro-SaaS businesses. They’re not just buying them; they’re holding onto them and helping them grow. This is fantastic news for those of us who are building our own micro-SaaS apps. It means we have a better chance of selling our creations and pocketing a tidy sum.
Key Takeaways
- Buying a micro-SaaS can be a smart way to enter the market quickly
- Small private equity firms are increasingly interested in micro-SaaS businesses
- The growing market for micro-SaaS increases the potential for profitable exits
Micro-SaaS Shops: Where to Buy and Sell
I’ve found some brilliant places to buy or sell small software businesses. These marketplaces are perfect for niche products and side projects.
For sellers, Transferslot is a top choice. They’ve got a community of trusted buyers ready to snap up your creation.
If you’re keen to sell quickly, MicroAcquire might be your best bet. They reckon they can get you chatting with potential buyers in just a month, and it won’t cost you a penny.
IndieMaker is brilliant for makers. It’s got over 1,000 members, all looking to buy or sell side projects and online businesses.
For developers, SideProjectors is fab. It’s a friendly place to show off what you’ve built and maybe find a buyer.
Whobal and Borderline are both free marketplaces. They’re great for selling all sorts of web apps and side projects.
If you’re after something bigger, try Flippa. They’ve got all kinds of online businesses for sale, not just software.
For serious investors, FE International is worth a look. They’re brokers with a solid reputation, and they can help you find profitable businesses to buy.
These platforms make it dead easy to buy or sell small software businesses. Whether you’re looking to cash in on your side project or invest in someone else’s creation, there’s a marketplace out there for you.
How Much Can You Flog Your Micro-SaaS For?
When it comes to selling my micro-SaaS, I’ve learned not to expect sky-high multiples. The bigger fish in the pond tend to fetch higher prices, which is why those public SaaS giants command such impressive valuations.
For us smaller fry with monthly recurring revenue (MRR) between £2,000 and £20,000, I reckon we’re looking at a more modest 1x to 5x annual recurring revenue (ARR) when we cash out. It’s not fortune and glory, but it’s still a tidy sum!
Why Might I Want to Sell My Micro-SaaS?
There are a few reasons I might consider parting ways with my micro-SaaS:
- Boredom: The thrill is gone, and I’m spending less time on it.
- New ventures: I’ve got fresh ideas brewing that need my full attention.
- Cash injection: Getting several years’ worth of revenue in one lump sum is tempting.
Even if my micro-SaaS is turning a profit, these factors could push me towards a sale. It’s all about weighing up the pros and cons for my unique situation.
Common Questions About Buying Micro SaaS
Where Can I Find Micro SaaS Businesses for Sale?
I’ve found several good places to look for micro SaaS businesses. Filippa is one of the oldest and largest marketplaces for web businesses, including micro SaaS. Other options include MicroAcquire and Tiny Acquisitions. These platforms often have a range of listings at different price points.
How Do I Know If a Micro SaaS Is Worth Buying?
To figure out if a micro SaaS is a good buy, I look at a few key things:
- Monthly recurring revenue (MRR)
- Growth rate over time
- Customer churn rate
- Profit margins
- Market potential
I also try to understand the product’s unique selling points and how it solves problems for its users.
What Should I Check Before Buying a Micro SaaS?
Before I buy, I always do these checks:
- Review financial records
- Test the product thoroughly
- Analyse customer feedback and support tickets
- Look into the tech stack and codebase
- Check for any legal issues or pending lawsuits
- Verify all claimed metrics and statistics
It’s crucial to be thorough to avoid nasty surprises later.
Are There Any Community-Run Micro SaaS Marketplaces?
Yes, there are some community-driven options. IndieHackers has a marketplace section where founders often list their micro SaaS businesses. Product Hunt also sometimes features micro SaaS products for sale. These can be great places to find interesting opportunities and connect directly with founders.
What Risks Should I Be Aware of When Buying a Micro SaaS?
Some risks I always keep in mind include:
- Dependency on a single developer
- Outdated technology that needs a costly update
- Changes in the market that could make the product obsolete
- Hidden technical debt
- Overreliance on a small number of big customers
It’s important to weigh these risks against the potential rewards.
How Can I Work Out a Fair Price for a Micro SaaS?
To price a micro SaaS, I usually look at:
| Factor | Typical Multiplier |
|---|---|
| Annual Recurring Revenue | 2-4x |
| Net Profit | 2-3x |
I also consider:
- Growth rate
- Age of the business
- Market trends
- Unique technology or IP
These are just starting points. The final price depends on many factors and can vary widely.
