· technical  · 4 min read

From One-Off Project to Sellable SaaS: How I Think About 7-Figure Exits

DRAFT

Outline

Hook: Built a custom tool for a law firm. Then realized: 10,000 other law firms have the same problem. One client paying $5k vs. 100 clients paying $200/month. Same tool, different business model. That’s how you turn consulting into acquisition targets.

Core Argument: Most developers start with custom projects because they need revenue now. But the best projects have hidden SaaS potential—you just need to recognize the pattern and architect for generalization from day one. The path: Solve for one, build for many, sell to acquirer.

Key Sections:

  1. The Consulting-to-SaaS Pattern

    • Start: Custom project for Client A ($5-50k)
    • Recognize: Clients B, C, D have same problem
    • Generalize: Extract common solution
    • Productize: Multi-tenant SaaS
    • Scale: 100-1000 customers
    • Exit: Sell for 3-5x ARR or strategic acquisition
    • Why this works: Product validated before you build SaaS

  2. Spotting SaaS Potential in Custom Work

    • Signal 1: Client’s problem is industry-wide, not company-specific
    • Signal 2: Multiple clients ask for similar solutions
    • Signal 3: The solution is 80% common, 20% custom
    • Signal 4: Competitors exist but suck
    • Signal 5: Recurring value, not one-time task
    • Red flag: Problem is too specific to one client’s unique situation

  3. Architecting for Future Generalization

    • Day 1 decisions that matter later:
      • Multi-tenant DB schema (even for one client)
      • Feature flags and configuration (not hard-coded)
      • Clean API boundaries (frontend ← → backend)
      • Env-based config (not client-specific code)
      • Generic naming (not “Acme Corp Dashboard”)
    • Cost: 20% more time upfront
    • Benefit: 80% faster path to SaaS

  4. The Generalization Process

    • Step 1: Extract client-specific logic into config
    • Step 2: Build admin panel for configuration
    • Step 3: Add user auth and multi-tenancy
    • Step 4: Create self-serve onboarding
    • Step 5: Build billing/subscription system
    • Step 6: Scale infrastructure
    • Timeline: 2-4 months if architected well, 6-12 if not

  5. Pricing Strategy Evolution

    • Phase 1 (Custom): Project fee ($5k-$50k)
    • Phase 2 (Productized): Higher price, fewer clients ($500-2k/mo)
    • Phase 3 (SaaS): Lower price, more clients ($50-$200/mo)
    • Phase 4 (Scale): Tiered pricing, enterprise tier
    • Why downward pricing works: Market size > price per customer

  6. The Sellability Checklist

    • Product: Solves clear problem, differentiated, works reliably
    • Traction: $50k+ MRR, 20%+ growth, <5% churn
    • Market: TAM > $100M, clear ICP, category leadership potential
    • Tech: Modern stack, documented, not technical debt disaster
    • Business: Recurring revenue, B2B preferred, contracts not handshakes
    • Team: Can run without you (or is part of acqui-hire)
    • Red flags for acquirers: High churn, single-customer risk, tech debt

  7. Who Buys Micro-SaaS

    • Strategic acquirers: Competitors, adjacent players, consolidators
    • PE firms: Looking for roll-ups in specific verticals
    • Solo acquirers: Entrepreneurs buying profitable businesses
    • Marketplaces: MicroAcquire, Acquire.com, Flippa (for smaller exits)
    • Valuation range: 2-5x ARR (higher for fast growth, lower for slow)

  8. Case Study: Law Firm Tool → LegalTech SaaS

    • V1: Custom build for one firm ($15k project)
    • Recognition: 3 other firms asked for same thing
    • Generalization: 2 months, multi-tenant rebuild
    • Launch: 10 paying customers in 6 months
    • Growth: $30k MRR, 50 customers, 18 months
    • Exit scenario: Approached by competitor, 3.5x ARR offer
    • Decision factors: Burnout, market saturation, better opportunities

  9. When NOT to Go the SaaS Route

    • Problem is actually client-specific
    • Market too small (<1000 potential customers)
    • Solution requires heavy customization per client
    • You hate the domain and want out
    • Consulting is more profitable with less stress
    • Honest assessment: Not every project should become a company

  10. The Build-in-Public Strategy

    • Share journey: Twitter, blog, indie hackers
    • Benefits: Early customers, feedback, built-in marketing
    • Exit bonus: Demonstrates traction to acquirers
    • Network: Connections lead to opportunities

Examples/Stories:

  • Personal: Law firm tool → productized in 3 months
  • Success: Indie hacker sold SaaS for $500k after 2 years
  • Failure: Tried to generalize tool that was too custom → wasted time
  • Decision: Chose to keep consulting vs. build SaaS (sometimes right call)
  • Market: LegalTech consolidation → multiple exits in space

Takeaways:

  • Best SaaS ideas: Validated through custom work first
  • Architect for generalization from day one
  • Spot patterns: Same problem across multiple clients
  • Path: Custom → Productized → SaaS → Exit
  • Not every project should become SaaS—be honest
  • Sellability: $50k+ MRR, growth, clean tech, recurring revenue

Cross-Links:

  • ← “Idea Cemeteries” (Series 2-17)
  • → “How to Design Products for Non-Tech People” (Series 2-19)
  • ← “Building Tools for a Law Firm” (Series 2-15)
  • → “Build Once, Leverage Forever” (Series 2-20)
  • ← “The Narrow But Complete Rule” (Series 2-12)
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