If you’re interested in diving into the micro-SaaS niche, you might be wondering where to find micro-SaaS for sale.
A micro-SaaS business is a fantastic way to earn passive income.
And with thousands of new software and online tools popping up in the market seemingly every day, buying a pre-existing micro-SaaS company is now a no-brainer option.
In this how-to guide, we’ll talk about everything you need to know about how to buy and sell a micro-SaaS business.
What Is Micro-SaaS?
In our blog covering the tips to starting a micro-SaaS company, we explained in depth what it means to be in the micro-SaaS niche.
A micro-SaaS business sells specialized software services catered to a particular target market and dedicated user base.
It’s typically a small team or a single founder who is behind the development and marketing of a micro-SaaS business.
Micro-SaaS businesses offer simple solutions like spreadsheets, software, and plug-ins. However, they are made specifically for niche businesses and users.
Some examples micro-SaaS programs include but are not limited to the following:
- Workforce management software
- WordPress plugins
- Finance software for invoicing and billing
- Email management tools
- Food and recipe software
- Training software
Micro-SaaS vs. SaaS: The Difference
The difference between a micro-SaaS and a large SaaS business is in the breadth of software options and services they offer.
Micro-SaaS companies offer niche software specialized for various fields or needs.
In contrast, SaaS, as a whole, have a menu of software choices for various fields or users.
For example, micro-SaaS businesses cater to dedicated user bases focused on using software for one specific purpose instead of a one-size-fits-all solution.
This leads to micro-SaaS companies being cheaper to buy and sell since they typically have lower operating costs than large-scale SaaS businesses.
Nonetheless, micro-SaaS businesses have the potential to generate impressive revenue with minimal resources.
Because of this, micro-SaaS acquisition can be a better option than large-scale SaaS in terms of generating passive income.
How to Buy a Micro-SaaS Business
1. Check Listings for Micro-SaaS for Sale
First, you need to look through various online listings to purchase a micro-SaaS company for sale.
Note, however, that looking through listings can be one of the most grueling steps of buying a micro-SaaS for sale.
It’s important to set expectations since finding the right software services with a financial status that matches your expectations and budget takes time.
Luckily, there are plenty of online resources to make this step easier.
Registering in AcquireMe allows you to search for micro-SaaS companies for sale.
This website helps connect founders and buyers so they can buy and sell online businesses.
1.2 Dealflow Brokerage
Dealflow Brokerage is another online listing that helps startups get their financials ready to sell.
It has a powerful network of trusted investors and a database of established micro-SaaS companies for sale.
Another platform you can look at is IndieMaker, a fantastic marketplace for buying and selling micro-SaaS businesses, social media accounts, and domains.
MicroAcquire is an excellent marketplace for those who don’t want to pay commission fees.
Logging in to the platform means getting access to listings for micro-SaaS and startup businesses.
Another great alternative to scouring through listings is attending conferences and networking with bootstrapped SaaS founders through MicroConf.
After you’ve spent time browsing listings for micro-SaaS businesses for sale and found some options that suit your needs, you’re ready to move to step two.
2. Go Through the Companies’ Financials and Get Evaluations
Now that you’ve found some micro-SaaS companies you’re looking to buy, you’ll want to review the financials and get a second opinion by conducting an evaluation.
Ask for information regarding rough prices, screenshots of analytics and profits, and report overviews.
You can also consult with an evaluation agency to do a second evaluation of the company’s financials.
The important thing here is that you don’t just rely on the seller’s evaluation.
Instead, you need to also do your due diligence to ensure you’re getting an accurate appraisal.
3. Do Your Due Diligence
Speaking of due diligence, doing this for a micro-SaaS business means double-checking everything before putting down money on the company.
It’s not a particularly fun part of the buying process, but foregoing this step can result in catastrophic losses.
Remember when Elon Musk bought Twitter without conducting proper due diligence and then unsuccessfully tried to get out of the deal?
That goes to show how vital it is to understand the risks of taking on a new micro-SaaS business.
When exploring if a micro-SaaS for sale is worth buying, check what procedures are in place to understand how seamlessly the company can transition from old to new management.
Ask questions like how the micro-SaaS business would function without the founders and how many team members you need to run it.
Conduct a risk analysis and pose questions regarding the capital you need to successfully run it.
4. Complete the Transaction and Transfer
After you’ve done your due diligence, gone over financials, and understood the procedures in place, you’re set to complete the transaction and transfer.
Decide ahead of time what support guidelines you need from the previous owners.
After all, it might take some time to switch over passwords and bank accounts, adjust coding, and get the new management set up.
Not only that, but it’s likely you’ll run into kinks during the transfer process as well.
For easier transactions, use a wire transfer or escrow service to transfer funds for a micro-SaaS for sale.
Escrow services typically add fees, but wire transfers require more trust from both parties.
How to Sell a Micro-SaaS Business
After working hard to build a successful micro-SaaS business, some owners want to sell their companies to explore other passions.
Follow the steps below to learn how to sell a micro-SaaS business.
1. List Your Micro-SaaS Business for Sale
The first step of selling a micro-SaaS business is listing it for sale.
We mentioned a handful of marketplaces in step one for buying a micro-SaaS business.
You can take a look at them since they also serve as great resources for putting your micro-SaaS for sale.
Or, you can also check out our article on the top micro-SaaS marketplaces for a list of our trusted recommendations.
2. Gather the Financials for Selling a Micro-SaaS Business
To list your business for sale, you’ll need to gather your financials to give prospective buyers a greater insight into your service’s possible risks and profits.
Take screenshots of analytics and financial reports and get your company financially evaluated by a professional.
This is critical since many solopreneurs have difficulty letting go of their startup micro-SaaS business when they decide to sell.
And if you’re one of them, you might also face the temptation of overestimating the cost of your micro-SaaS business and feel disheartened at the final sale price.
To avoid this, opt to get various market evaluations instead.
This will ensure that you’re prepared to accept a fair price for what your micro-SaaS business is worth.
3. Do Your Due Diligence
Just like interested buyers, sellers of micro-SaaS companies should also do their due diligence.
This way, you can ensure that the buyer can pay for the business and that the new management will uphold any essential facets of the company that you want to retain after the sale.
Understanding your buyer’s history is a good way to gauge if they have the qualifications to handle all the aspects necessary to run the company successfully.
4. Transfer Your Micro-SaaS Business
The final stage of buying and selling micro-SaaS is the same: transferring money and the company.
Consult with your bank and a legal representative to help you with accepting funds and the legal aspects of selling your micro-SaaS.
In this stage, a seller will usually assist with answering questions so that the new owner can seamlessly transition ownership by updating passwords and affiliated accounts.
Things to Consider Before Buying and Selling a Micro-SaaS Business
There are a few things to consider before diving into a new investment or letting go of a profitable micro-SaaS business.
Here they are:
1. Interest and Involvement
When searching for micro-SaaS businesses for sale, consider how interested you are in the business and how much effort you’ll exert running it.
Understand the standard operating procedures (SOPs) to get a feel for how employees receive training and how management does things.
SOPs will help you see how automated things are and how much customer support and team management you need.
Having an interest and passion in the business you’re buying isn’t essential, but it can make learning new processes easier if you have some experience.
2. Cost and Profit Potential
Every business will have a different price and potential for earning.
Do a deep dive into your financials and the financial reports of the micro-SaaS for sale.
This way, you can ensure that you are financially ready to handle the transaction and startup costs.
Buying and selling micro-SaaS businesses and turning a profit from a sale takes practice.
Thus, you have to determine if you see potential in it and if it’s worth the cost.
3. How You’ll Do Your Due Diligence
Due diligence is an essential step when buying or selling a micro-SaaS business.
You need to decide if you will invest your time conducting the background checks yourself or if it’s worth it to outsource the process to an experienced, capable team.
Final Thoughts on Micro-SaaS for Sale
Now that you know everything about buying and selling a micro-SaaS business, you’re ready to embark on a new business journey.
Check out our article on how you can manage a micro-SaaS business.
On the other hand, if you’re seeing a slow user adoption rate to your newly bought micro-SaaS, you can also read our blog for tips to address that.