How to Find SaaS Ideas That Actually Work
Frameworks for finding SaaS ideas — problem discovery, category selection, and validating before building.
Where Ideas Come From
Industries you've worked in.
Painful tasks you or peers do repeatedly.
Existing tools users complain about.
Idea Frame
Who: specific ICP.
What painful job.
How they do it today.
Why current solutions fall short.
SaaS idea evaluation
| Criteria | Green | Red |
|---|---|---|
| Willingness to pay | >$50/mo | <$20/mo |
| Frequency | Weekly+ | Once/quarter |
| Existing budget | Yes | Net new spend |
| Distribution access | You have it | You need to buy it |
Validate
20+ interviews.
Pre-orders / LOIs.
Concierge MVP before code.
Category Selection
Vertical (specific industry) or horizontal (broad category)? Vertical wins for smaller teams.
Moat Check
Distribution advantage? Data advantage? Domain expertise? Network effects?
Frequently Asked Questions
How do I know if an idea is good?+
20+ interviews + willingness-to-pay evidence.
Should I clone a successful SaaS?+
Only with a real differentiator — vertical, workflow, or 10x better on one dimension.
How competitive is too competitive?+
Not by count — competitors validate the market. Only skip categories with no room to differentiate.
Can I build in a small market?+
Yes — vertical SaaS in $50M markets can support $5M ARR companies.
What about AI SaaS?+
See AI Business Ideas guide.