Trends #0088 — B2B SaaS

NFT #0087 from the Meta Trends collection.

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“The biggest competition in SaaS is a spreadsheet.” Ross Simmonds

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💎 Why It Matters

B2B SaaS gives you a simple, secure and accessible way to solve business problems.


🔍 Problem

You can solve internal challenges:

  • internally by building tools and hiring
  • externally by outsourcing the problem

Building your own tools can distract you from your core competency.


💡 Solution

B2B SaaS helps you focus on your core competency

While reaping the benefits of improvements made by teams dedicated to specific problems.


🏁 Players

B2B SaaS

  • Make • Build and automate workflows
  • InvoiceBerry • Online invoicing for small businesses
  • Gusto • Payroll, benefits and HR management
  • Hive • Manage tasks, workflows and team’s work
  • Lanva • Social video editing app. 
  • ClickUp • Manage tasks, docs, chat, goals and more
  • Plausible • Open-source privacy-friendly web analytics
  • Podcast Hawk • Podcast guest booking software. 
  • Writesonic • AI-driven content creation
  • Folderly • AI-Based platform to improve email deliverability.
  • Craftar • Build APIs with No-Code
  • Budibase • Low-code internal app builder
  • LiveAgent • All-in-one platform for live customer support
  • SavvyCal • Experience-focused Calendly alternative

Communities

  • Trends.vc • Community of entrepreneurs discovering new markets and ideas 
  • MicroConf • A community and event series for bootstrapped SaaS founders
  • Indie Hackers • Real stories, advice, and revenue numbers from indie makers
  • The Indiependent • A community for founders where you get kicked for inactivity
  • MegaMaker • A community for bootstrappers
  • 100DaysOfNoCode • Lessons, stories and activities for no-code founders

Funds


🔮 Predictions


☁️ Opportunities


🏔️ Risks

  • Feature parity • No-code and low-code tools make it easier to reach feature parity. This is a two-way problem. It increases competitor risk. You can catch up with competitors. They can also catch up to you. Competition lowers margins.
  • Low Lifetime Value • This makes it hard to invest in customer acquisition. Paired with other expenses it can lead to negative cash flow and the Valley of Death.
  • Platform Risk • Building on other platforms subjects you to their product roadmap, outages and fees. Changes to Notion API broke Super.


🔑 Key Lessons

  • Micro-SaaS does not mean low revenue. “Micro” means a specific niche, target audience or set of features. Hubstaff started as a time tracker for field and remote teams. It grew to 75,000 users and $3,800,000 ARR.
  • Growth systems > growth hacks. Growth hacks are designed for fast, low-cost user acquisition. Growth systems focus on long-term marketing strategies. Doopoll grew MRR by 800% over 6 months with a growth system using pain point SEO.


🔥 Hot Takes

  • The largest SaaS categories will be commoditized by Monetized Open-Source alternatives. Rocket.Chat and n8n are open-source alternatives to Intercom and Zapier. This is counter-positioning. It’s unlikely the latter will open source. 
  • You need lots of customers, a high customer lifetime value or both to build a great B2B SaaS business. A company without one of these is in a death zone
  • Feature parity is a weakness of SaaS. This leads to commoditization and lower margins. Low prices and complementary services become your key differentiators.


😠 Haters

“Markets are crowded. How do I stand out?”
There’s a marketing strategy for every taste. AJ from Carrd says a massive market has room for many solutions. Canny got to $1,000,000 ARR in the crowded market of user feedback management. Ruth and Eric built and grew Reconvert to $120,000 MRR, competing with 750+ Shopify cross-sell and up-sell apps.

Sales will always have a place in B2B SaaS. Self-serve does not always work.”
You’re right. Especially when selling to governments and large organizations such as hospitals. Self-serve, product-led models are increasingly effective with high lifetime value customers. 

“Lifetime deals seem risky. What if I shut the product down?”
Lifetime refers to the lifetime of your product, not your lifetime. It’s more like a “pay-once-and-use-forever” deal. Despite associated risks, some SaaS companies choose lifetime deals over subscriptions. Infinity ran a lifetime deal before official launch and decided to keep their pricing that way forever.

“Using open-source tools means self-hosting and taking on other responsibilities.”
There’s no free lunch. That’s the price of agency. Open source alternatives often offer hosted versions as well.


🔗 Links


📁 Related Reports


🙏 Thanks

Thanks to Rob Walling, Reza Saeedi, Stewart Townsend, Prabhjot Singh, Uwe Dreissigacker, Tarun Muvvala, Soma Mandal, Kimsia Sim, Darren Travel, Ben Alexander, Ab Advany, Yun, Niklas Nielsen and Vladislav Podolyako. We had a great time jamming on this report.

✏️ Emin researched and wrote this report. Dru researched and edited this report.



📈 What else?

Trends PRO #0088 — B2B SaaS has more insights.

What you’ll get:

  • 36 B2B SaaS Examples (157% More)
  • 23 Communities (283% More)
  • 23 B2B SaaS Funds (228% More)
  • 15 Predictions (275% More)
  • 16 Opportunities (300% More)
  • 6 Risks (100% More)
  • 4 Key Lessons (100% More)
  • 6 Hot Takes (100% More)
  • 15 Links (400% More)

With Trends Pro you’ll learn:

  • (📈 Pro) How to build fast with no-code tools?
  • (📈 Pro) How to leverage product-led growth?
  • (📈 Pro) Why buy instead of build?
  • (📈 Pro) How to monetize open-source SaaS?
  • (📈 Pro) What’s the difference between passive and active SaaS?
  • (📈 Pro) What are 8 examples of B2B SaaS lifetime deals that generated up to $800,000?
  • (📈 Pro) What is software-with-a-service?
  • (📈 Pro) How to hyper niche?
  • (📈 Pro) How to add value with APIs and integrations?
  • (📈 Pro) Where to buy SaaS apps?
  • (📈 Pro) How to reduce churn with customization?
  • (📈 Pro) What are 5 examples of white-label SaaS?
  • (📈 Pro) Why build your SaaS in public?
  • (📈 Pro) How to leverage existing ecosystems to grow your SaaS?
  • (📈 Pro) And much more…


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