Why You Shouldn’t Build A Software or App As A Solopreneur (Unless You Want To Be Broke)
And what you should do instead.
I was left stunned.
During my morning coffee in Bali, I spoke to a software founder. He built a B2B Software-As-A-Service (SaaS) AI that nurtures leads. His product was rapidly scaling in monthly recurring revenue and user adoption.
But he didn’t start there.
He started off his software as a service. Manually nurturing the clients. Identifying pain points. Building a client list. And then once he was ready to make this transition to SaaS, 80% of the job had already been done.
Here’s why this is the best approach.
The problem with the software-first approach.
Too many solopreneurs are obsessed with one thing:
Scale.
They mistakenly believe you need to build a product that has immediate scale.
Let’s be clear: Any business model is scalable.
But, they each have their own difficulty.
The question is not: Can you scale this model?
But rather: Do you have the skills to scale it?
I’m not saying every business model can reach a trillion dollars.
That would be tough. There are clear limits to every business model. But we aren’t talking about making trillions. As a solopreneur, any model could work if you want to make $20–50k per month.
A version of your business model has reached this scale.
The software-first approach requires huge upfront costs. You need capital, time, and energy to create the product. This is before you generate any revenue or even validate the market need for it.
In Bali, I’ve seen a graveyard of software and app failures.
Or, they manage to scale to $10k p/m and then get stuck.
Why?
Most people haven’t experienced the problem they are trying to solve.
They simply saw a gap in the market. And tried to create a solution. But deep down, they don’t really care or know enough about the problem. I’ll go into more detail about this later on.
Service isn’t the end, it’s the start of software.
I was talking to an aspiring entrepreneur in Bali.
She wanted to build something related to AI.
When I asked why, she said: “It’s hot right now and scalable”.
The only problem?
She had no skills, knowledge, or even networks related to AI.
She asked for my advice on what she should do.
So I told her:
“Start a service version of the software first.”
She looked at me as if I had said to her that I was going to kill her.
“It’s not as scalable as software,” she replied.
She refused to consider anything but software. But she didn’t have a scale problem. She had a ‘no business, no revenue’ problem.
A service-based business solves both problems.
You can charge a high-ticket service to another business. And get to understand their problems deeply. You’re essentially getting paid to do market research.
I’ve got a service-based business that I’m scaling.
I provide DFY and DWY services in:
Sales.
Marketing.
Positioning.
Most of my clients are private equity firms and business owners.
Through providing a hands-on service, I’ve drastically improved my skillset, knowledge, and understanding of the problem.
If I had tried to go directly to software, I would have scaled my inefficiency and ignorance. If I had created a software solution based on where I was 8 months ago, it would have sucked.
A service-based business isn’t my end goal.
It’s the beginning of my software journey.
Solve problems you’ve experienced.
I solve problems I had 3–4 years ago.
Too many solopreneurs chase the shiny object. They see AI, so they try to create a solution. But they have never experienced that problem before.
As Dan Koe said:
Solve a problem in private, it’s called self-improvement.
Solve a problem in public, it’s called business.
When you’ve experienced the deep pain of the problem, you understand it at a level no one else can relate to.
I started my first business in 2022.
The pain of trying to start, grow, and scale it was unbearable. Every day felt like I was eating glass. Why? I didn’t know enough about sales, marketing, or positioning.
If you don’t have those basics, everything is harder.
As a result, I almost crashed my first one-person business. I spent months speed learning everything to do with sales and marketing. After six months, I made my first $20k month.
I realized how many other solopreneurs also had this problem.
I knew what the symptoms were, how it felt to be going through this problem. Once I started creating content, I could attract my ideal clients.
Build your competitive moats.
Products are becoming a commodity.
With AI, most people can code a product. Anyone can create a service that is identical to yours. This can happen overnight. If you’re relying on just your product or service as an advantage, you’re dead.
Alongside your product, build:
Brand.
Networks.
Distribution.
These are your only competitive advantages.
As a solopreneur, people can’t copy your brand, networks, and distribution. It’s impossible.
But so many solopreneurs waste their time on:
Websites.
Logos.
One of my friends used AI to help him ‘vibe code’ a software over a weekend that’s already generating him revenue. It’s unbelievable. Is it perfect? Nope.
But the means of product development are getting easier.
Look at Nike.
People buy overpriced Nike gear because:
Being associated with the name = brand.
Tapping into a community of athletes = network.
Nike is found in almost every store and country = distribution.
Nike doesn’t create superior products.
Most of the equipment is probably made in the same factories as every other sporting brand.
But Nike has now built a competitive moat that is difficult to overcome.
You can do the same thing for your business.
How to start a software business…
You don’t.
Start with a service-based business, based on the same problem you want to solve with software.
Here’s how:
Don’t obsess over scale.
Solve a problem you’ve experienced.
Build your competitive moats (brand, network, distribution).
And then after you’ve done all this, move into software.
👉 Build your PROFITABLE six-figure one-person business while you work a 9–5 corporate job (Even if you have kids or a mortgage). If you want my one-person business growth system, I’ve created a FREE email course for you to get started