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How to sell your Micro SaaS app and exit successfully

Having grown your Micro SaaS app from nothing into a badass monthly cash generator, you might think to yourself, why on earth would I want to sell my app?!?

After all, you’ve worked so hard on it, you understand it intimately and you’ve got more ideas on how to improve it going forward. In this chapter, I’ll run through some reasons as to why you might sell and exit your Micro SaaS app for a lump sum.

We’ll then move on to the valuation and sale process as I experienced it first hand, looking at the following aspects:

  • Why Exit & Sell Your Micro SaaS app?

  • Why I Sold My Micro SaaS Apps

  • Valuing A Micro SaaS Business

  • Factors Affecting The Valuation Multiplier

  • SaaS Metrics To Constantly Monitor & Improve

  • How I Sold My Micro SaaS Apps In 5 hours (at full asking price) 😲

  • From Idea To Exit

  • What Next?

Sell Micro SaaS Exit Word Cloud

Why Exit & Sell Your Micro SaaS?

Once you’ve scaled your Micro SaaS app to a certain level, the day-to-day operations may become too much for one person to handle effectively. You may need to hire a small team to help to free up your time to pull the biggest levers in your Micro SaaS business.

It’s at this point that you’ll want to revisit your goals and milestones that you set when you were preparing your Micro SaaS App for scaling. What targets have you hit, and what do you want to achieve from your Micro SaaS?

It’s worth taking some time to consider your purpose and motivation. Do you want to work on this app for the next year, 3 years, 10 years?!? It may be that you’ve reached your goals, and now you’ve become a little less enthusiastic about the grind of ramping up your Micro SaaS.

Some days, it may actually feel like a JOB, which is what you were probably trying to escape from way back when.

Reasons You Might Sell Your Micro SaaS App

  • Scaling Pains - Perhaps you’re better suited to developing technical solutions rather than scaling up a customer base. This could be the perfect opportunity to pass over the baton to someone with skills in organic/paid traffic.

  • Risk - You foresee some element of risk to your apps in the near or distant future and you’d rather get out whilst the going is still relatively good.

  • Trends - Maybe you’ve noticed that your niche is starting to stagnate or decline and worry about how that will affect your app’s growth potential.

  • Change of scenery - You may simply fancy working on a different technology stack or in a different niche.

  • Burnout - Starting and scaling a Micro SaaS app isn’t plain sailing. It can take a tonne of effort and you may have had enough of all the support and need to take an extended break from work.

  • Show me the money - Simply having a life-changing lump sum paid into your bank account could just be too appealing to resist.

  • Shiny object syndrome - You may have noticed potential opportunities in other niches and become distracted by the excitement of building something new. I am certainly guilty of this one as the image below sums up well 🤣

Micro SaaS Shiny Object Syndrome

Micro SaaS Shiny Object Syndrome Sufferer ✋

Why I Sold My Micro SaaS Apps

I had a crystal clear objective in my mind when I really doubled down on my Micro SaaS apps. That was simply to earn enough money from the apps to enable me to quit my unfulfilling/crappy 9-5 corporate job.

After saving up a 6 month runway and building up the monthly recurring income to be more than our family expenses, I finally jumped ship. Best. Day. Ever.

Sheldon Quits

From that point on, I was motivated by fear of the apps failing and me having to go back to the corporate world with my tail between my legs. As such, I worked tirelessly on improving the app and scaling them up to a point I felt comfortable that I would be able to survive any unforeseen circumstances (did someone say Covid-19?). My apps made me a very comfortable living for several years and they gave me an incredible freedom that I’d never had before.

Eventually though, after the users’ requests for new features quietened down and everything was running smoothly, I began to get itchy feet and noticed other opportunities for new apps in new niches. I’d spent several years working in the same niches, and whilst they were great niches, they just weren’t as exciting to me as they were in the early days.

I also didn’t have a huge motivation to reach the next milestones in my app growth trajectory. I figured that if the money was right, I’d sell my apps and focus on something new rather than trying to juggle too many things.

Once I’d decided that I’d be open to selling my apps, the next step was to get a valuation.