I'm thinking of selling my SaaS. What would you do if you were me?
Thomas Bonfils
20 replies
Hey! I'm curious and a bit lost. I need to hear from you all.
I've been working on a Saas project for a year and a half, and in September, I'll onboard my first paying customer.
I developed a CMMS software for large companies, so the sales process is very long (1 year minimum). However, once I secure a contract, I have a comfortable MRR (av €900/month/client).
But I've realized that I no longer want to work with this type of customer. As a tech developer, I spend most of my free time on forums like Reddit, Product Hunt, and X (Twitter), where my target audience isn't present.
I've started working on a new project with my life partner - a community data platform - and we're really excited about it. On the other hand, our CMMS SaaS is gaining more attention and clients.
We're considering working on both projects.
Has anyone experienced a similar situation? I'd be happy to hear your thoughts and advice.
Thanks!
Replies
Audrey Godard@audrey_godard
Thank you Thomas for sharing! It's a tough decision to make and I am not in your situation but from my point of view, if you want to sell your Saas, it's better to have paying customers.
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@audrey_godard I agree, and I’m considering that. I just need to organize myself properly. Thanks Audrey
Selling a SaaS can be a big step! I’d start by evaluating how the business is performing and gathering all relevant financial and operational data to make a solid case to potential buyers.
I’d also consider preparing a comprehensive sales pitch that highlights the strengths and growth potential of the SaaS. It’s important to showcase what makes it unique and valuable.
If I were in your shoes, I’d look into getting a professional valuation to understand the worth of my SaaS. It might help to talk to a business broker or advisor who specializes in SaaS sales.
@yolanda_c_schneider I need to look at that more seriously and seek out the right person to discuss it with
I'd say follow your intuition if it's telling you to part with your CMMS business. You could sell it to:
* one of your customers, or
* a company that has an overlapping customer profile, for example a company that sells a complementary product or service, or even
* a direct competitor (as a last resort).
You could find buyers even if you don't have many paying customers, but then you'd have to price your business on the basis of the production cost of your software alone, not on future revenue projections. (On another note: to me €900/month/client seems a very low price if your customers are big businesses, unless you're offering other higher-priced plans as well.)
Good luck with your new business, it seems you are veering on the service side of the SaaS landscape. If you also want to do something on the product side, one idea would be to piggyback on SaaS businesses that already have many customers. One way to do that is to make integrations easier for the SaaS customers through Qworum.net APIs, and sell those APIs to the SaaS customers. BTW I'm launching Qworum on PH on Sept 13th.
Best of luck.
@doga_armangil 100% aligned with your points. I'm considering these buyers profile, especially since one of our future customers showed interest in buying our solution before it was actually live.
I will follow your launch closely and give support for sure!
Best of luck as well,
Balancing both could be challenging. You might want to sell the SaaS if it’s a good time and use the funds to fully commit to the community data platform you’re excited about.
@desire_waterman We will definitely reinvest the funds in our new project, so we're "waiting" for the good timing
Since you’re excited about the new project, it could be worth selling the SaaS to free up time and resources. But ensure you get a fair value for it.
@angelina__ashley Yes, I don't want to rush by selling my Saas at a low price just because I want to free up time.
I’d explore if it’s feasible to hire someone to manage the SaaS while you focus on the new project. That way, you don’t have to sell but can still pursue your passion.
If you are, I’d consider selling the CMMS SaaS if it’s not fulfilling anymore and focus on your new community data platform that excites you.
If you are passionate about the new platform and it’s gaining traction, it might be worth focusing on it while selling the CMMS SaaS. Balancing both might stretch you too thin.
i dont evaluate the potential of your CMMS SaaS market and the demand for your new project. If the new project has more growth potential and aligns with your passion, it might be worth shifting focus.
working in 2 projects at the same time can be very tough and unscalable. why?
It is not easy split your atention in half and drive sustainable growth to both
usually if you put 100% focus on 1 project, you will end up having more percentage of growth in MRR and ARR than working double for less