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Ask HN: Next steps for my SaaS business?

2 points by gojuka ↗ HN
Long time HN reader here, first post (ever!). I need some advice on what I can do with my SaaS application and companion Android app (https://www.servicekit.io). A little over 4 years ago I started building this app in my spare time. Long story short, I partnered up with someone (for funding) and outsourced the application to a remote team and over the course of 4 years have 4 users (2 paying). I acquired these users in the first 2 years, and the last 2 years I haven't been putting much effort into the business at all. Growth has stopped as a result. Collectively, my partner and I have invested approximately 85k (USD) into the business, and the paying users are covering the monthly expenses. It's completely passive, the paying users don't bother me at all. The app is also rock solid, haven't had to touch it in I can't remember how long.

My partner was a "silent" partner and just provided funding. I built this app from the ground up, did all the cold calling, acquired my customers, and basically got it to where it is now (its been the most valuable experience in my professional life by the way). I've lost my passion for the app, and my partner and I decided we need to see what our next steps can be. What are my options? There's a lot of competitors in the space, and pricing is all over the place (from freemium to hundreds of dollars per month). I've considered selling it, to taking on another partner who would help take it to the next level.

Any advice would be greatly appreciated!

2 comments

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PacifyFish
Assuming your monthly expenses are ~$20 (server costs + miscellanae), you’re telling me you have two paying customers at $10/month, and you sank $85k into this??!

Cut your losses, friend, and don’t invest any more money into it until you hit at LEAST 10k monthly recurring revenue.

I would sell it if you can get anything over $1000.

If you don’t want to sell the app, start cold calling again and get wayyyy more customers. Target companies with the same need as your current paying customers, hop on LinkedIn, and start dialing/emailing.

If my initial cost assumptions are way off, please say so! Because if instead your customers are paying $X,000 a month that changes things.

gojuka
I have 2 paying customers at $100 per month. Agree I made a big mistake here jumping in without proving the model first (selling first a la Dane Maxwell). Lesson well learned.