• Vibe Your SaaS
  • Posts
  • Common Founder Questions (+Answers) About Building in Niche Markets

Common Founder Questions (+Answers) About Building in Niche Markets

What Makes a Niche SaaS Idea Worth Pursuing

Vibe Update

Join me for a webinar: It’s this week, May 28. "Every marketing channel sucks right now." Why Andrew Chen of a16z is Right and what you can do about it. If you havne’t realredy register here →

Common Founder Questions (+Answers) About Building in Niche Markets

When I talk with founders online and IRL, they often ask what makes a niche SaaS idea worth pursuing.

The key is to think beyond trendy AI apps or riding the latest hype wave (they are fun, this is true). To make money with a niche SaaS app, you must focus on solving real problems. Think HIPAA-compliant messaging for small medical clinics, a scheduling tool for pet grooming salons, or onboarding portals for HR teams. These aren't glamorous, but they solve a real pain point for customers with a budget.

Whether automating boring back-office work, helping physical businesses run smoother, or enabling underserved professionals with no-code tools, these ideas reflect one simple truth: when you solve a specific pain point well, businesses will pay.

I wrote this FAQ to address founders' most common questions and concerns about building niche SaaS products.

Q: Why should I care about unsexy niche markets?

A: The gold mine isn’t in your generic tracker app. It’s in solving real problems in industries that are often overlooked by tech. These companies are desperate for effective solutions and willing to pay well for software that understands their specific pain points.

Q: What if there are already competitors in the niche?

A: Great! Competitors validate market demand. Most niches aren't winner-take-all. Your edge can be in better execution, customer service, or a specific subsegment your competitors ignore. Often, being second in a proven market is better than being first in an unproven one.

Q: I have a product already, can I still niche down?

Yes, absolutely. Even if your product is already developed or launched, you can still niche down by refining who you're targeting and how you position your product. Niching down doesn’t always mean changing the product itself. It can mean changing your messaging, marketing channels, or the problems you highlight.

Q: I don’t have experience in that industry. How do I even begin?

A: Talk to 5–10 people in the field. Join their online communities. Go to their trade shows. Better yet, partner with someone who has domain expertise. The knowledge barrier protects you from lazy competitors and gives you a moat if you do the work.

Q: How do I find good niche opportunities?

A: Look for businesses still using spreadsheets, fax machines, or outdated legacy software. Ask friends in non-tech fields what frustrates them. Browse forums, job postings, and Reddit threads for repeated complaints. The best opportunities are usually hiding in plain sight.

Q: How do I price a niche SaaS product?

A: Don’t underprice. Niche products often solve mission-critical problems and can command premium pricing. Research what customers currently spend on outdated or manual solutions. The price is based on the value you deliver, not just your cost. $100–$500+ per month is often reasonable.

Q: Aren’t these niche markets too small to build a business around?

A: Not at all. A focused $3M business in a specific niche beats a failed unicorn attempt. Most niches are larger than they appear and can support multiple successful players. Start narrow, build trust, and expand later.

Q: How do I market to niche audiences?

A: Skip the growth hacks. Go where your audience already is: industry conferences, LinkedIn groups, trade publications, and niche forums. One trusted customer or industry influencer can open more doors than a generic ad campaign ever could.

Q: How do I validate my idea before building anything?

A: Don’t start with code. Start with conversations. Talk to potential customers, sketch out the user journey, and test demand with landing pages or no-code prototypes. If someone is willing to pre-pay, commit to a pilot, or introduce you to their team, you're on the right track.

Q: How technical do I need to be to launch a niche SaaS?

A: You don't need to be a developer, but you do need to be resourceful. Use no-code tools like Bubble, Glide, or Softr for MVPs. Hire freelance developers or partner with a technical co-founder. Focus your energy on customer discovery, UX clarity, and solving a meaningful problem.

Q: What if I can’t scale my product to millions of users?

A: That’s perfectly fine. Most niche SaaS companies aren’t aiming for massive user bases. They succeed by deeply serving a smaller number of high-value customers. Think quality of revenue over quantity of users. You can still build a profitable, sustainable business. And the truth is, many large companies started as small niche companies (but that is a topic for another newsletter).

Solving niche problems isn't just good business, it’s often the fastest path to sustainable revenue.

Stop chasing trends and start digging where the gold is.

Free Vibe Your SaaS Resources

This is a new section where I list all of the free resources Vibe Your SaaS offers to founders and entrepreneurs.

  • 30-Day SaaS Growth Plan Template: Designed For Technical Founders Who’d Rather Be Building. Get the free eBook →

  • How to get your first 1,000 followers on 𝕏: Building a large following on 𝕏 in 2025 is still possible. Get the free eBook →

  • VC Pitch Deck Templates for Founders: Based on the legendary Sequoia deck, built for real fundraising. Get the free templates →

I Vibe Coded a Game

That’s right. I drank a ton of coffee and felt inspired to make a Flappy Bird clone, which I called Flappy Nerds. I did it entirely with Claude AI and deployed it to Squarespace since I already had an account there. Play Flappy Nerds

Do You Need More Vibes (I Mean Customers) For Your Startup?

Of course, you do.

You can read all the growth playbooks in the world, but if you’re not turning these steps into real customers, you’re just spinning your wheels.

That’s why I created Vibe Your SaaS. A hands-on, tactical coaching program built for technical SaaS founders who want to stop guessing and start growing.

  • I’ll help you define your ICP (Ideal Customer Profile)

  • Build your first real marketing plan

  • Launch a campaign that actually drives leads

  • And stop wasting months “planning” without results

Spots are limited.
If you’re serious about growing your SaaS, schedule an intro call now. 

Let’s vibe.