7 questions SaaS founders must answer
Tags: webdev, watercooler, discuss, javascript
Published: 2023-09-16 10:10:15

Charlie here 👋

This week I re-read [Zero To One](https://amzn.eu/d/emjurE2) by Peter Thiel - the billionaire co-founder of PayPal and Palantir Technologies.

Today I’m sharing with you **7 questions** that Peter thinks every founder must answer about their business.

Use this framework to **continually validate your vision** for your SaaS and you’ll keep yourself on the straight and narrow.

(Reading time: 5 mins.)

Let’s jump in… 👇

> Join 500+ tech peeps learning to start and grow SaaS products every week for free on [IdeaHub](https://ideahub.beehiiv.com/subscribe?utm_source=devto&utm_medium=blog&utm_campaign=7-questions-for-saas-founders).


## 1. The Engineering Question

> _Can you create breakthrough technology instead of incremental improvements?_

Think of it like this:

If your product currently saves a user $100 or 10 hours a month, **find ways to deliver 10X** that. Not 2X.

To stand out these days you have to be **an order of magnitude better** than the next guy.

It’s not enough to copy an existing product and charge $10/month less.

How long can that last? How long can you keep up?

The message is clear: **always be doing something fresh and innovative.**


## 2. The Timing Question

> _Is now the right time to start your particular business?_

If your landing page even remotely contains the letters A and I, then pass GO and collect $200 in MRR…

For the rest of us, **pay attention** to what’s happening in your solution space right now.

As a solo founder, it’s unlikely you’ll be too early, but **you could be too late.**

If googling “alternatives to [X]” returns a smorgasbord of competitive sponsorship, you’re probably too late:

![SERP for Jira](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/5j93tkyksb9fzs7e7mxx.png)


## 3. The Monopoly Question

> _Are you starting with a big share of a small market?_

If your plan is to go **head-to-head** with Canva, Shopify or any other massively successful SaaS then I wish you luck but it’s going to be **very tough indeed.**

Instead, focus on **starting small** and monopolising a niche.

**Build a reputation** that you can later leverage when branching into new customer segments.

Last week I wrote all about how to do this effectively by [niching down](https://ideahub.beehiiv.com/p/how-to-differentiate-your-saas-product#:~:text=2.-,Niching%20down,-Say%20you%20have).


## 4. The People Question

> _Do you have the right team?_

The fantastic thing about this era of SaaS is that small teams are **more empowered** than they ever have been.

Anyone can build an MVP, launch a product and start collecting payments within a couple of months.

But that doesn’t mean you have to do it on your own.

If you can find like-minded, driven people **who excel at something you don’t** then you should embrace them.

But at heart, **you should all be technologists** driven by solving problems:

“_[a suit] was a real red flag, because real technologists wear T-shirts and jeans._” - Peter Thiel, Zero To One


## 5. The Distribution Question

> _Do you have a way to not just create, but deliver your product?_

A _“build it and they will come”_ mentality is just not enough.

You need a **clear strategy** for finding customers.

It’s okay to still be figuring this out, it’s massively experimental.

But it **doesn’t have to mean paid ads.**

There’s plenty of organic traffic out there, you just have to find it and position your product effectively.

A few things to try:

- **Repurpose your blog posts**
_Dev.to, HackerNews and IndieHackers are obvious places to start in the tech sphere._

- **Experiment with Reddit**
_[Gummysearch](https://gummysearch.com/?via=ideahub) is a great tool for researching subreddits where your customers might be hanging out._

{% embed https://x.com/IdeaHubTweets/status/1699437410596139008?s=20 %}

## 6. The Durability Question

> _Will your market position be defensible 10 and 20 years into the future?_

Building something **just to ride a wave** is basically gambling.

You might as well take that money you’re gonna spend on AWS and put it all on red.

This was recently abundantly clear with the LK-99 superconductor craze.

![LK99 search trends](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/j81z4wl8d01vll1y6dwa.png)

I think we can all agree it’s **more difficult than ever to stay focused** on our mission without getting distracted by hype.

But those that do are **uniquely rewarded** for perseverance:

{% embed https://x.com/Timb03/status/1700754114429473068?s=20 %}

## 7. The Secret Question

> _Have you identified a unique opportunity that others don’t see?_

Yes, it’s much easier to start a SaaS now than 10 years ago, but that also means **more competition.**

The best marketing strategy cannot stop customers from churning if your product doesn’t **do something that few others have thought of.**

Consider what **unique knowledge** you have that **sets you apart** from those who are positioned against you.

Share the ideas, but **keep the details to yourself…**

![IdeaHub](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/a5njhyzq8tpa91i5wsjw.jpg)

> Join 500+ tech peeps learning to start and grow SaaS products every week for free on [IdeaHub](https://ideahub.beehiiv.com/subscribe?utm_source=devto&utm_medium=blog&utm_campaign=7-questions-for-saas-founders).