How To Find Good Niche SaaS Ideas
No one remembers the developers who built the first version of Slack or the small team behind the initial iteration of Shopify. It doesn’t take a business visionary or a Silicon Valley wunderkind to create great software; it takes persistence, attention to detail, and a willingness to listen closely to unmet needs in the world around you. It’s not about genius or even luck—it’s about showing up and doing the work.
The same approach applies to finding a good niche SaaS (Software as a Service) idea. You don’t need to reinvent the wheel or be the next Steve Jobs. You need to observe, investigate, and commit to solving real problems. Let’s explore how you can do exactly that.
Start With Problems, Not Solutions
Look at Your Own Pain Points
The best SaaS ideas often begin with solving your own problems. What processes in your daily life or work feel overly complicated or inefficient? What tools do you wish existed to make things smoother?
Consider Jack Dorsey’s inspiration for Twitter—a streamlined way to share and consume thoughts online—or how the founders of Airbnb solved their own issue of finding affordable lodging. The key is this: if you’re frustrated by something, chances are others are too.
Study Existing Markets
SaaS doesn’t always need to disrupt an industry. Sometimes, simply improving upon an existing solution can create a powerful niche offering. Look for markets where the tools available look clunky, outdated, or overly complex. Is there room to simplify or specialize?
Take Notion, for example. It didn’t invent note-taking, but by consolidating multiple productivity tools into one elegant platform, it created an entirely new way for users to organize their lives.
Analyze Underserved Audiences
Look for Specific Industries
Broad audiences are tempting, but they’re also fiercely competitive. Narrowing your focus to a specific industry or profession can uncover untapped potential. Think about how Shopify specifically serves eCommerce businesses or how Calendly streamlines scheduling for professionals. Both tools thrive because they understand the unique needs of their respective audiences.
Consider smaller, niche industries that might not seem “sexy” but still experience real pain points. Dental offices, small law firms, independent fitness trainers—these kinds of markets are often ignored by major software players but can be highly profitable.
Explore Geographic Niches
Not all SaaS needs to be global. Regional markets have unique challenges that international software often misses. For example, accounting rules, tax regulations, or compliance requirements differ greatly between countries. A SaaS product tailored to local needs can quickly dominate in its target geography.
Engage With Communities
Immerse Yourself in Forums and Groups
Communities are treasure troves of information. Sites like Reddit, niche Facebook groups, or industry-specific forums are where people openly discuss problems, frustrations, and the solutions they wish existed. Pay attention to recurring complaints or questions—it’s like crowd-sourced market research.
For instance, if you notice a subreddit for freelance graphic designers repeatedly discussing the challenges of managing project revisions, that might signal an opportunity for a SaaS that offers smart revision tracking tools.
Conduct Customer Interviews
It’s easy to theorize about problems from afar, but nothing beats talking directly to potential customers. Reach out to the kinds of people you want to serve and ask about their daily workflows, challenges, and frustrations. The insights you get will likely surprise you—and guide your product development in ways you never considered.
Focus on Iteration, Not Perfection
Launch Small and Listen
One of the biggest misconceptions about building software is the need to launch a “perfect” product. In reality, the most successful SaaS companies start with minimal, focused offerings and improve based on user feedback. Your job isn’t to guess at the perfect feature set; it’s to listen, learn, and adjust.
Think about how Basecamp evolved. What started as a simple project management tool grew into a beloved platform, but only because the team behind it stayed closely connected to user feedback over time.
Don’t Overdesign
A successful niche SaaS doesn’t have to do everything—it just has to do one thing exceptionally well. Focus your energy on solving a single, meaningful problem. If the need is real and your solution is effective, users will find you.
Keep an Eye on Trends, but Dig Deeper
Avoid Chasing the Hype Alone
It can be tempting to jump ship and start building something in a “hot” area like generative AI or blockchain. While these trends are worth observing, it’s crucial to ask: who is this technology serving, and what actual problems does it solve?
Consider instead how trends can complement a real, specific problem. For instance, how can AI streamline tedious manual processes in your target industry? Use trending technologies as tools, not destinations.
Spot Evergreen Needs
Meanwhile, don’t lose sight of timeless problems that will exist regardless of trends: people need to save time, boost productivity, and reduce costs. These core drivers don’t change, even as the tools we use evolve. Anchor your SaaS idea in something perennial, and you’ll have a foundation that can weather technological shifts.
