Day 875 - Build to sell ≠ build to own - https://golifelog.com/posts/build-to-sell-build-to-own-1685014349659
I was intrigued by this tweet by [@tarasowski](https://twitter.com/tarasowski/status/1660903135227805698) about building a SaaS to $100 MRR and then selling it for $10k:
> How to make $10,000 in the next 4 weeks.
> 1. Build a SaaS
> 2. Bring it to $100 MRR
> 3. List on @acquiredotcom
> 4. Sell it for $10,000+
>
> I have done that, it works.
And obviously this was intriguing enough for others that that my [retweet](https://twitter.com/jasonleowsg/status/1661154692427317249) blew up.
$20k in 4 weeks sounds like a good deal, no? Sounds like a lucrative opportunity. Of course, there’s no guarantee it can happen every month. The reality is that it is possible but *not commonplace* – this [Feb 2023 report](https://blog.acquire.com/acquire-com-biannual-acquisition-multiples-report-feb-2023/) shows SaaS are asking multiples at 2-3x revenue or 5x profit:
The way I see it, this could be a fun way for someone who's still looking for a main project to focus on, to try many different things first. For sure, this approach has trade-offs on opportunity cost and focus, so not ideal if you already got a good project going.
Or say if I build something but don't foresee a long term future with it, and want to sell. Maybe after building it I realised I'm not in love with the problem enough to do it long term... then selling for $20k after trying it out for 1 month sounds like a nice exit, yes?
Can also imagine that if someone is good at marketing and have good acumen at spotting opportunities, this might be a good way own a business already running on momentum and grow it multiple fold. What’s interesting is how someone could buy it at $10k, build it from $100 MRR to $100k MRR, and flip it for millions.
But the key draw for me is if I build something with the intention to sell it off, maybe new and different opportunities would open up, because I wouldn’t need to fall in love with the problem...
I’ve always judged product ideas on whether I’m in love with the problem, not whether the opportunity is there. I feel like I need to have that maker enjoyability aspect, otherwise I won’t last in the long term. But this got me thinking: Why do I need to always build something to own? Why do I need my products to be like my babies, or borrowing an analogy from @dvassallo, why treat them like pets instead of cattle? If I’m not obsessed with having to love a problem, maybe I can work on product ideas that are trending and is a good opportunity for a limited time, say 1-2 months, and flip it for a good multiple. I can live with 1-2 months! And in the process, I’d probably learn a lot too, work out my shipping muscles, and gain some followers for building in public. Rather than procrastinating and dwelling in abstract terms over which idea I should throw myself into and not ending up not acting at all…
The way I see it might work for me personally, is I don't know if it's a problem space that I'm interested in, but I saw a big opportunity and went for it. Build it out and grow it. Then could decide to sell if still not in love after 4 weeks, or if I start to like it, I can continue growing it. Previously I would have to just let it die if I didn't want to continue and it'll go to waste, or I continue grudgingly - either which are less than ideal.
Build to sell ≠ build to own.
> How to make $10,000 in the next 4 weeks.
> 1. Build a SaaS
> 2. Bring it to $100 MRR
> 3. List on @acquiredotcom
> 4. Sell it for $10,000+
>
> I have done that, it works.
And obviously this was intriguing enough for others that that my [retweet](https://twitter.com/jasonleowsg/status/1661154692427317249) blew up.
$20k in 4 weeks sounds like a good deal, no? Sounds like a lucrative opportunity. Of course, there’s no guarantee it can happen every month. The reality is that it is possible but *not commonplace* – this [Feb 2023 report](https://blog.acquire.com/acquire-com-biannual-acquisition-multiples-report-feb-2023/) shows SaaS are asking multiples at 2-3x revenue or 5x profit:
The way I see it, this could be a fun way for someone who's still looking for a main project to focus on, to try many different things first. For sure, this approach has trade-offs on opportunity cost and focus, so not ideal if you already got a good project going.
Or say if I build something but don't foresee a long term future with it, and want to sell. Maybe after building it I realised I'm not in love with the problem enough to do it long term... then selling for $20k after trying it out for 1 month sounds like a nice exit, yes?
Can also imagine that if someone is good at marketing and have good acumen at spotting opportunities, this might be a good way own a business already running on momentum and grow it multiple fold. What’s interesting is how someone could buy it at $10k, build it from $100 MRR to $100k MRR, and flip it for millions.
But the key draw for me is if I build something with the intention to sell it off, maybe new and different opportunities would open up, because I wouldn’t need to fall in love with the problem...
I’ve always judged product ideas on whether I’m in love with the problem, not whether the opportunity is there. I feel like I need to have that maker enjoyability aspect, otherwise I won’t last in the long term. But this got me thinking: Why do I need to always build something to own? Why do I need my products to be like my babies, or borrowing an analogy from @dvassallo, why treat them like pets instead of cattle? If I’m not obsessed with having to love a problem, maybe I can work on product ideas that are trending and is a good opportunity for a limited time, say 1-2 months, and flip it for a good multiple. I can live with 1-2 months! And in the process, I’d probably learn a lot too, work out my shipping muscles, and gain some followers for building in public. Rather than procrastinating and dwelling in abstract terms over which idea I should throw myself into and not ending up not acting at all…
The way I see it might work for me personally, is I don't know if it's a problem space that I'm interested in, but I saw a big opportunity and went for it. Build it out and grow it. Then could decide to sell if still not in love after 4 weeks, or if I start to like it, I can continue growing it. Previously I would have to just let it die if I didn't want to continue and it'll go to waste, or I continue grudgingly - either which are less than ideal.
Build to sell ≠ build to own.
