How To Find SaaS Ideas

September 22, 2024

Heads up, long-read ahead. This guide is about 3000+ words!

In this guide, you'll learn step-by-step methods you can use to find SaaS ideas that people will pay for. Following that, you'll learn a few ways to validate your idea before you go out and build the product.

This is the guide I wish I had when starting out. I've gone through plenty of failed products before finally starting Vocalmatic, an automatic transcription platform. We help people convert audio to text all online. It's a product that solves a real problem that people are willing to pay for!

Alright lets get started and take a look at the table of contents to see what you're getting into!

Table Of Contents

Intro: What You'll Learn From This Course

When starting out, I had no clue how to build a SaaS product. I would come up with ideas, most of them fun, but none of them were something people would pay for.

Over the course of a few years, I've developed an eye for spotting product ideas I could build that people would pay for. This came from observing how companies operated from within at my full-time job as a developer, to consuming tons of articles, videos, and blog posts online about starting a SaaS business.

So, to help those interested in building SaaS products, I put together this course to speed up the process of identifying products you can build.

But before we get into the methods, you have to change your mindset on all of this. Let's go over that in the next section!

Focus on Finding Problems Over Ideas

To find good SaaS ideas, you need to change your focus.

What most people recommend is that you "find ideas". Not only is this advice hard to act on with no clear direction, but it's advice that can typically lead someone astray.

What you need to do instead is focus on finding problems that people have.

Once you've found a problem, it's pretty easy to come up with ideas on how to solve it!

Why Focusing On Problems Is Important

Hands down, it's because it's the fastest way to getting paid.

Here's why: problems themselves are grounded in two things—time and money spent. Solve either one of these with your product and people will be inclined to pay for your solution.

An Example

Let's talk about the time spent aspect. Imagine you're a Graduate Student Researcher.

(Just an FYI, I'm going to refer back to Vocalmatic quite a bit because I think it's a great example of a lot of the concepts outlined in this course.)

As part of your research, you have to do a lot of interviews with people, and part of that requires transcribing your interview recordings into text.

Researchers probably have a lot of other tasks to handle, so spending hours transcribing an interview can cut into the time they need for other work.

Here, they are experiencing the problem of spending a lot of time doing something that most don't enjoy.

Now, let's take it a step further.

Suppose you decide to outsource the work to a third party for transcription. You would have various options, but you might notice that outsourcing is pretty pricey.

What are your other options?

A solution where they don't spend a lot of money and that cuts down on the time it takes to transcribe their recordings would be ideal.

Automatic transcription software is a viable option if you aren’t able to spend too much money and are willing to put in some time to transcribe the audio into text.

In Summary

Start paying attention to the problems that people face. Get a pulse on what they say they struggle with. From there, you'll be able to identify problems that can become products to solve those problems!

In the next section, we'll go over the first method you can use to find SaaS ideas. Remember, all the methods outlined here are deeply grounded in the principle of finding problems.

Method #1: The Job Search Method

Now that we've changed our mindset about finding SaaS ideas, let’s introduce the Job Search Method.

This method is all about finding problems that people have based on their job descriptions. It will lead you directly to the problems people face.

Let's jump right in!

Step 1 – Find an Industry

Before finding problems, choose an industry. I like to use this website when exploring industries.

There are tons of industries to choose from—which means there are plenty of opportunities. Take some time to review the list of industries, read their Wikipedia pages or blog posts, or even watch a few YouTube videos to learn how they operate.

Once you find an industry that interests you, start learning about the types of jobs that exist within it.

Step 2 – Find Jobs Within That Industry

To find jobs in an industry, simply type the industry name into a job search engine like Indeed.

For example, if I choose the Car Dealers industry, I would enter "car dealers" into Indeed.

The term "car dealers" isn’t a job title, but Indeed will show you jobs within that industry. This becomes your starting point to discover even more jobs in the field.

Within the search results for "car dealers," a job titled "Service Manager" might appear. Let’s use that as an example in the next step.

Step 3 – Pay Attention to the Job Description

After finding a job, dig into its description.

Look for the responsibilities that the job requires. This is the core of the method. Focus on the terms that represent the job responsibilities and see if any of them are relevant to a software product.

Step 4 – Start Building Search Keywords Based on Your Findings

Use this formula to create a keyword for finding potential SaaS ideas:

Job Responsibility PLUS the words “management software”

For example, as a Service Manager, you might have to "ensure compliance with Health and Safety regulations." Combine that with "management software" to form the keyword, say, "Health and Safety management software".

Now you have a lead to a potential SaaS product. Enter that keyword into a search engine like Google and see what results you get.

In a future section, we’ll dive deeper into using keywords to validate your idea. For now, here’s a checklist for searching the term "health and safety management software":

  • Are there ads advertising this type of product?
  • Do other similar products exist?
  • Are there related terms that can help refine your search?

If you see evidence that similar products exist—like advertisements—it’s a strong sign that the market is validated and people are willing to pay for such solutions.

Summary

The Job Search Method helps you identify problems that people face, based on their job descriptions. It’s a repeatable method for narrowing down your search for SaaS ideas.

In the next section, we’ll cover another method: the App Store Method.

Method #2: The App Store Method

Welcome to Method #2 of How To Find SaaS Ideas!

This method leverages app stores, which are a great source of SaaS ideas. App stores exist to solve problems for platform users, making it easier to find ideas.

Best of all, the very existence of an app in a store validates the idea by proving that someone built it to solve a problem.

Let’s walk through the steps:

Step 1 – Choose an App Store

There are many app stores available. I prefer using the Shopify App Store.

Other app stores you could explore include:

  • Apple App Store
  • Salesforce AppExchange
  • Big Commerce App Store
  • Chrome App Store
  • Google Play Store

In this guide, we'll mainly focus on the Shopify App Store, though the same principles apply elsewhere.

Step 2 – Choose a Category

Within the Shopify App Store, apps are organized by category (e.g., marketing, customer support, inventory management).

Pick any category that interests you. Then, dig deeper into that category to see the different types of apps available.

Step 3 – Sort the Results

Once you’ve selected a category, sort the apps from top to bottom based on reviews or installations.

Filtering for the most popular apps shows you what users are most likely to use or buy.

Step 4 – Find the 1 Star Reviews

Select one of the top apps and navigate to its review section. Then, filter the reviews to show only the 1-star ratings.

Here, you’ll see reviews where users express their dissatisfaction. Some reviews are detailed, while others are brief expressions of discontent.

Pay close attention to comments about features that are severely lacking. These pain points represent opportunities for improvement and innovation.

Step 5 – Use Your Findings to Come Up with a SaaS Idea

After completing the steps above, you should have a solid foundation for a new app idea.

Remember, the app you found exists to solve a problem. You might consider simply imitating it, but ideally, build an app that addresses the main problem—and fixes the issues noted in the 1-star reviews.

Method #3: The What-Theyre-Using-Excel-For Method

This method is what I call the What-Theyre-Using-Excel-For Method.

Yes, I’m referring to Microsoft Excel or Google Sheets. You could also call it the What-Theyre-Using-Spreadsheets-For Method!

Here’s how to put this method into action:

Listen to What People Use Spreadsheets For

If you’re like me (and since you’re reading this, you probably are), start noticing what people use Excel for in their daily work.

As mentioned in the Job Search Method, ask clarifying questions about people’s workflows. If a task sounds like it might be managed with spreadsheets, simply ask, “What software do you use to do that?”

Two outcomes are possible:

  1. They might tell you about a software tool they use.
  2. They might say they rely on a spreadsheet to solve that problem.

Either way, if they mention spreadsheets, it could indicate an opportunity to build software that makes their lives easier—and one they might even pay for!

Now that you know three methods to find SaaS ideas, it’s time to validate these ideas. While talking to potential customers is best, the following sections will show you how to validate your ideas without direct user interviews.

Validate Your SaaS Idea: The Keyword Research Method

Once you have a SaaS idea, the next step is to validate it. This section explains how to use keyword research for validation.

The goal is to identify keywords that people are searching for which relate to your SaaS idea. For example, we’ll revisit the idea of “Health and Safety Management Software” from the Job Search Method.

Enter Your SaaS Idea into Google Keyword Planner

Before using Google Keyword Planner, you need a Google Ads account (which is free to create). Once registered, head over to the Google Keyword Planner tool and enter the keyword “health and safety management software”.

Google Keyword Planner will then provide data on monthly searches and the cost per click. Generally, the higher the numbers, the more interest there is in that keyword.

Here’s what the result for “health and safety management software” looks like:

Keyword Planner Results

You’ll notice a good volume of searches and several related keyword ideas. This indicates that people are searching for a solution to this problem.

Keep in mind, if you come across an idea with weak results, it might not be worth pursuing.

After confirming search volume in the Keyword Planner, type your keyword directly into Google.

To further validate your idea, check for:

  • Ads that appear for your keyword
  • Top organic results featuring similar software products

If you see ads and organic results, it’s a strong indicator that people are looking for this solution. You can then dive deeper by researching competitor pricing and product details.

Validate Your SaaS Idea: Keyword Research using UberSuggest

In the previous section, we used Google Keyword Planner for keyword research. Now, let’s explore UberSuggest, a free alternative that doesn’t require an account.

UberSuggest functions similarly to Keyword Planner by providing search volume and related keyword suggestions. Give it a try for your keyword research and see what insights you can uncover.

Validate Your SaaS Idea: The Question Research Method

Another effective method for validating your SaaS idea is the Question Research Method.

This method not only helps validate the idea but also uncovers competitors and the types of questions people ask about the product—information that can shape your SEO and marketing strategy.

Step 1 – Start with a "What" Question

Begin by entering a question like:
"What is Health and Safety management Software?"
into Google.

This query helps Google surface related questions and terms, essentially taking you down the rabbit hole of search queries.

After entering the query, you’ll see results similar to the following:

Google Question Results

Focus on these details:

  • New Keyword: For example, “Health and Safety Software” is also known as EHS Software—another keyword to explore.
  • Competitors: A site like Cority.com may appear, indicating that someone is already offering EHS-related software. This validates that there is a market for such solutions.

Step 2 – Repeat with Other "W" Questions

Now that you understand what EHS or Health and Safety software is, ask further questions such as:

  • How does EHS software work?
  • Where does EHS software get used?
  • What industries use EHS software?
  • Who uses EHS software?

These questions help uncover additional competitors and insights into the market, guiding your strategy if you decide to pursue the idea.

Summary

In summary, start by asking Google questions about your keyword. Analyze the results to identify competitors and new keywords. Once you have enough data, you can decide whether to pursue the idea further. This method gives you a clear idea of how to bring your product to market.

Build Your MVP, Fast

Now that you’ve identified and validated a SaaS idea, it’s time to build your product’s first version.

Focus on developing the core functionalities and get your MVP (Minimum Viable Product) out as quickly as possible.

There are two main reasons to build fast:

  1. It lets you test the market to see if people actually want your product. You can even start with just a waitlist signup that explains what your product does.
  2. As you build your product, search engines like Google begin to recognize your site. When you publish new content, it can start ranking quickly.

An Example of Taking Too Long

Back in 2017, I spent 8 months building a product that no one wanted. I got caught up in creating a fully featured product and ended up wasting a lot of time.

Since then, I learned to focus on building something simple with the core features, then testing the waters to see if people will actually use it.

You can read all about my failure (which I’m actually really proud of) here.

For more on this topic, jump to the final section:

Build Your SaaS Product: Split Your Time 50/50, Product Development and Marketing

Build Your SaaS Product: Split Your Time 50/50, Product Development and Marketing

Finally, it’s essential to balance your time between product development and marketing. This concept is inspired by the book Traction.

As you build your SaaS product, dedicate half of your time to marketing and the other half to development. A successful SaaS business requires strong efforts in both areas.

  • Marketing: Build up a user base that can provide feedback and ideas for new features.
  • Product Development: Use user feedback to drive improvements and new features.

Keeping these two efforts in sync is vital for growing your SaaS product and business!