How to build a $1M+ vertical SaaS business (step-by-step guide)

Join me as I chat with Luke Sophinos, Founder & CEO of CourseKey, as we discuss the frameworks and strategies for building a successful vertical SaaS business. Learn how to find, validate, and launch SaaS opportunities!Timestamps: 00:00 Intro01:51 Why Vertical SaaS?05:46  How to pick your vertical11:05 Understand the industry inside-out19:11 Analyze existing solutions22:02 Automating the ideation and validation process with AI35:04 Go-to-market strategy is CRITICAL40:19 The power of the wedge product49:35 Pricing framework1) Why Vertical SaaS?• Market often overlooked by VCs chasing unicorns• Opportunity to build enduring businesses with strong retention• Still massive potential in 2024, even in "boring" industries2) How to pick your vertical:• Focus on industry, not idea• Look for:a) Large market size ($1B+)b) Fragmented (many SMBs)c) Mix of small, mid-market, enterprise3) Understand the industry inside-out:• Map end-to-end operations• Get hands on P&Ls• Follow the money - where are they spending?• Identify areas still using pen & paper4) Analyze existing solutions:• Look for legacy providers• Identify where they're using horizontal solutions• Find gaps where AI/FinTech could add value5) The power of the wedge product:• Your "get in the door" offering• Should be:a) Easy to implementb) Solves a critical problemc) Ideally free or low-cost• Example: Roofer․com's proposal tool6) Go-to-market strategy is CRITICAL:• Many industries require relationship-based sales• Product-led growth is ideal (but rare)• Get creative: Industry newsletters, memes, etc.7) The payments opportunity:• Owning the transaction can 10x your market size• Build before/after transaction, then capture it• Example: Toast in restaurants8) Pricing framework:• Understand current spend on problem you're solving• Price based on ROI you deliver• Aim for 20-50% of value created9) Keys to success:• Only build products that:• Increase revenue• Decrease costs• Prevent churn• Maintain compliance10) Validating ideas:• Don't just Google search• Talk to actual businesses• Offer to buy lunch and shadow operationsWant more free ideas? I collect the best ideas from the pod and give them to you for free in a database. Most of them cost $0 to start (my fav)Get access: https://www.gregisenberg.com/30startupideas 🎯 To build your own portfolio businesses powered by community you might enjoy my membership.You'll get my full course with all my secrets on building businesses, peer-groups to keep you accountable, business ideas every single month and more!Spots are limited.https://www.communityempire.co/📬 Join my free newsletter to get weekly startup insights for free:https://www.gregisenberg.com/70,000+ people are already subscribed.To improve your rankings your business on Google and using AI for SEO, sign up tohttp://boringmarketing.com/FIND ME ON SOCIALX/Twitter: https://twitter.com/gregisenbergInstagram: https://instagram.com/gregisenberg/LinkedIn: https://www.linkedin.com/in/gisenberg/FIND NICK ON SOCIALX/Twitter: https://x.com/lukesophinosLuke’s Newsletter: https://www.newsletter.lukesophinos.comLuke’s vSaaS Bible: https://verticalsaasbible.com

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