Ask HN: Bootstrapping a SaaS – Have the idea, validated the market, what next?

25 points by ambivalents 4 years ago | 13 comments

I’ve encountered a specific problem in a market (product managers at startups and SMBs) that hasn’t been sufficiently solved. I have validated some demand for it, as well as basic requirements, although nothing formally documented.

Right now I just have pages and pages of notes (competitor research, ideas, prospective user feedback, etc.). I don’t have any formal specs written.

Goal: build a functional prototype and get my first actual users.

I’m a product manager, so while I can fumble my way around a command line, I don’t think I myself can build this thing. There are lots of options — no code, prototype in InVision, hire a freelancer, approach a trusted engineer colleague who could maybe moonlight with me for pay.

What’s my next step for getting this built? Assuming I have basically zero funds and will be bootstrapping it myself.

Few other things to note: app will leverage several APIs, require basic auth, a few integrations (though doesn’t have to be MVP).

I have the confidence and some validation, but now what?

tweezy 4 years ago |

Is there a way you could do a “Wizard of Oz” or “Concierge” type of MVP for your first 5-10 customers?

So instead of building something functional, you could use no code tools to design a custom front end for these early adopters and then hardcode (manually type in) the parts that will require real code to scale.

You could then deliver these as consulting style projects, and use the revenue you capture from these customers to pay someone to build a code-based version.

Upside to this would be bootstrapped funding for development, a clearer sense of what the app does and the user stories associated with it, and validation that people will actually pay money for the product.

Downside is you will have to manage the customers and the delivery, which can quickly get overwhelming. Especially for a solo founder.

Personally, I’ve found the concierge MVP route to be really effective. I used these early adopters as a Product Advisory Board, and they became excellent advocates and case studies for our product.

Phreaker00 4 years ago |

I see that you have a two-fold goal where the former (build a functional prototype) is a means to an end (first actual users).

Perhaps having a functional prototype isn't the best next step to getting to your ultimate goal. Start by defining as clear as possible the task to solve and then determine the easiest and quickest way to validate your solution. If the 'pain' for your prospective customers is big enough that they're willing to pay for a solution, they're willing to accept limitations with a product in development that solves their core problem.

As a freelance developer for various start-ups I've seen this mistake being made a lot of times: jumping from basic idea validation to product development. Unless you can get a prototype built for free, development is an expense you should put off as long as possible. This goes for situations where time is less valuable than money, which in your case it seems to be.

ambivalents 4 years ago | |

Thank you, this is very insightful.

> development is an expense you should put off as long as possible.

That lines up with all of my experience in startups and PMing, and yet, it is SO tempting to start building. I’ll try to remember this.

alexmingoia 4 years ago |

Can you serve your first customers manually? If so, consider setting up a landing page + Stripe checkout to get your first payments. Then you’ll be in a better position to fund development or raise capital.

I’d be happy to help you setup a landing page to take payments. Shoot me an email.

readonthegoapp 4 years ago |

i like the idea of balsamiq.

then invision.

then get 10 people to actually pay you $50. if you get payments from 10 customers within the next month, they get 6 months use of the product when it is released in 3 months. everyone else will have to pay $50/mo or whatever it is. if you don't get those 10 customers within a month (or whatever timeline you set), everyone gets their money back, project canceled, thank you for supporting my idea.

it'd be cool if there was a kickstarter-like escrow service that handled this threshold funding idea for you. like a private kickstarter. maybe that already exists. patreon or something.

ashwinipatankar 4 years ago |

Now, list down the features that shall be in a MVP. Once listed down, priories the list. If possible estimate the time and money required. If not, talk to the freelancers or engineering friends, and then estimate. Chalk down when and what needs to be completed.

This way, a MVP can be rolled out quickly and focus will shift to acquire early customers.

The alternate way to build the MVP is to use no code tool to build as much as possible and do the rest manually. Then over the time, replace the manual work with code.

winkv 4 years ago |

you can also look for technical co-founder, may be join https://www.startupschool.org/ there are lot of technical folks looking for product co-founders and vice-versa.

ambivalents 4 years ago | |

Just submitted my profile for co-founder matching. Thanks for the tip!

lifeplusplus 4 years ago |

I'm a developer and want to start something but don't have a validated idea would love to hear your reasons and market size myemailum14 gmail

sharemywin 4 years ago |

In your situation I would go the no code route. to get a working prototype. mvp. to get it in front of a couple early customers.

Jugurtha 4 years ago |

>I have validated some demand for it

What do you mean by that?

ambivalents 4 years ago | |

I have spoken to product managers who would use the tool in lieu of their current, manual process. Of course, this is not airtight validation (see e.g. The Mom Test), but it's a start.

Jugurtha 4 years ago | | |

I have spoken to people who agreed to pay and to be sent an invoice for an existing product which they have seen a demo of live and which they loved, and did not pay when they when the invoice was sent.

I'm not saying it is not a start, but maybe we could validate further? As in, dollars in the bank account? Just a little more.