How to Develop a Winning SaaS Idea for Your Side Hustle: A Step-by-Step, Data-Driven Guide

Adam Gelencser
3 min readJan 6, 2024

Embarking on an Adventure

Imagine you’re at the edge of a vast, unexplored forest — the SaaS industry. It’s dense, mysterious, and filled with hidden treasures. You’re about to embark on a journey to find your unique spot in this digital ecosystem, armed with nothing but your wits, a laptop, and a treasure trove of data.

Photo by Walls.io on Unsplash

Step 1: Understanding the SaaS Terrain

As of 2023, the SaaS market is not just growing; it’s exploding. According to Gartner, the global SaaS market is expected to reach $208 billion by 2024, a clear indicator of the massive opportunities that lie ahead. But in this ocean of potential, how do you find your island of success?

Step 2: Finding Your Niche

  • Target Market Identification: Zoom in on who needs your service. Small businesses? Freelancers? Large corporations? For instance, Forbes reports that 65% of enterprises are prioritizing SaaS solutions for their operations.
  • Trend Analysis: Stay ahead of the curve. Use tools like Google Trends or BuzzSumo to understand what’s gaining traction in the SaaS world.

Step 3: Addressing a Specific Problem

The golden rule of SaaS success: solve a specific problem for a specific audience. Conduct surveys, participate in forums like Reddit or Quora, and directly engage with potential users to uncover their pain points.

Step 4: Harnessing Technology Smartly

AI, Blockchain, and IoT are not just buzzwords; they’re game-changers. For instance, integrating AI for personalized user experiences can drastically increase customer engagement, as per a report by Adobe.

Step 5: Developing Your MVP

The MVP (Minimum Viable Product) is your beta tester’s dream. It’s not about perfection; it’s about functionality and feedback. Use agile development methodologies to build, test, and iterate.

Step 6: Monetization Mastery

  • Subscription Models: According to Chargebee…

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Adam Gelencser

Tech enthusiast, currently entrepreneuring — regularly sharing content on tech news and irregularly on other topics. Founder of QMapper.co video AI tool.