Software as a service (SaaS) is a popular model for many businesses because it's more affordable and convenient than traditional software models. However, not all SaaS companies are created equal. In this blog post, we'll explore the difference between a micro SaaS and a traditional SaaS company.
Micro SaaS companies are usually defined as startups that have fewer than 10 employees. They're generally self-funded and don't have any outside investors.
Micro SaaS companies also tend to have a very specific focus; they don't try to be everything to everyone like traditional SaaS companies do. Instead, they laser-focus on solving one specific problem really well.
Because of their small size and focus, micro SaaS companies are able to be nimble and move quickly to adapt to the ever-changing needs of their customers.
Traditional SaaS companies, on the other hand, are much larger in size and scope. They usually have hundreds or even thousands of employees and millions of dollars in funding. Because of their size, they're not able to move as quickly as micro SaaS companies can.
Traditional SaaS businesses also tend to have a broader focus, which means they don't usually specialize in any one particular thing.
Even though they don't have the same level of focus that micro SaaS companies do, they're still able to provide a lot of value to their customers due to their size and scale.
The main difference between micro SaaS and traditional SaaS businesses is in their target markets.
Traditional SaaS companies usually target larger enterprises. However, they may focus on a certain market segment or size of business. For example, a company that offers an online invoicing and accounting solution may target smaller businesses, while a company that offers a human resources management solution may target businesses of all sizes.
Micro SaaS companies typically target smaller businesses. A company that offers an online customer relationship management (CRM) solution may target small businesses. Alternatively, they may focus on specific departments within larger organizations, such as marketing or sales teams.
Because micro SaaS companies offer more targeted, niche solutions, they are often better suited to the needs of small businesses than traditional SaaS companies.
Another important difference is in their pricing models. Micro SaaS companies usually have lower price points than traditional SaaS companies because they're targeting smaller businesses with smaller budgets.
Traditional SaaS companies, on the other hand, typically charge more because they're providing enterprise-level solutions that require more features and support.
Traditional SaaS platforms tend to be much more complex than micro SaaS platforms, offering a wide range of features and integrations.
Micro SaaS platforms are generally much simpler, offering just a handful of core features. They tend to focus on a few key features so they can be built and maintained at a lower cost.
It should come as no surprise that micro SaaS companies are much less expensive to buy.
A traditional SaaS company typically requires a larger up-front investment and more ongoing maintenance than a micro SaaS. This is due to the fact that a traditional SaaS offers more features and functionality, which can be more expensive and time-consuming to develop and maintain.
Micro SaaS companies, on the other hand, offer fewer features and are therefore much less expensive to buy. This makes them an attractive option for businesses that only need basic software functionality.
Micro SaaS products are becoming increasingly popular because they offer a more targeted, niche solution than traditional SaaS companies. They're less expensive to buy and maintain, which makes them an attractive option for growing a business.
Schedule a call with an Acquisition Specialist and launch your own micro SaaS today.