Entrepreneurship 15 min read 49 views

From Side Project to $10K MRR: Lessons from Building a SaaS

A candid look at the journey of building and growing a successful SaaS product, including the mistakes made, pivots taken, and strategies that worked.

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Shahzad Farooq
December 17, 2025
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From Side Project to $10K MRR: Lessons from Building a SaaS

The Beginning

Every successful SaaS starts with a problem you've experienced firsthand. Mine started when I couldn't find a simple tool to manage client projects and communications in one place.

Year One: Validation & MVP

Finding Product-Market Fit

The first six months were about validation:

  • Built a basic MVP in 6 weeks using Laravel and Vue.js
  • Gave it away free to 20 beta users
  • Conducted weekly calls to understand pain points
  • Iterated based on feedback, not assumptions

Key Lesson: Don't build features. Solve specific problems.

First Paying Customers

Month 7 was when I charged for the first time:

  • Started at $29/month (too low, in retrospect)
  • Got 5 paying customers in the first week
  • Realized people value solutions, not features
  • Learned that pricing is positioning

The Struggle Phase (Months 8-15)

Mistakes I Made

1. Building Too Much I added features nobody asked for. Wasted 3 months on a "revolutionary" dashboard that users ignored.

2. Ignoring Marketing Built for 6 months before doing any marketing. Big mistake. Start marketing from day one.

3. Poor Pricing Strategy Underpriced initially, then jumped prices too fast. Lost 30% of customers during a price change.

What Worked

Cold Outreach

  • Sent 50 personalized emails daily
  • 15% response rate
  • 3% conversion to paid
  • Each email took 10 minutes to research and write

Content Marketing

  • Wrote one technical article per week
  • SEO took 6 months to kick in
  • Now drives 40% of signups

Community Building

  • Started a Discord for users
  • Users became advocates
  • Best feature ideas came from here

The Growth Phase (Months 16-24)

Finding the Right Channels

Not all marketing channels work for every SaaS:

What Worked For Me:

  • SEO/Content marketing
  • Cold email outreach
  • Product-led growth (free trial)
  • User referrals (incentivized)

What Didn't Work:

  • Paid ads (too expensive for my price point)
  • Conferences (wrong audience)
  • Social media ads (poor ROI)

Scaling Strategy

Reached $10K MRR by focusing on:

  1. Retention over acquisition

    • Churn from 8% to 3% monthly
    • Added onboarding sequences
    • Weekly check-ins with new users
  2. Pricing optimization

    • Tested 5 different pricing models
    • Ended up with 3-tier pricing
    • Annual plans at 20% discount
  3. Automation

    • Automated onboarding emails
    • Self-service documentation
    • Chatbot for common questions

The Numbers

Here's the realistic breakdown:

  • Month 1-6: $0 MRR (building & validating)
  • Month 7: $145 MRR (5 customers)
  • Month 12: $1,200 MRR (40 customers)
  • Month 18: $4,500 MRR (105 customers)
  • Month 24: $10,500 MRR (180 customers)

Key Metrics:

  • Average Customer Value: ~$58/month
  • Customer Acquisition Cost: $120
  • Lifetime Value: $900
  • Monthly Churn: 3%
  • Time to profitability: 11 months

Lessons Learned

1. Start With Why

Understand the pain deeply. I used my own tool daily, which kept me focused on real problems.

2. Ship Fast, Learn Faster

Don't wait for perfect. My first version was embarrassingly simple, but it solved one problem really well.

3. Talk to Customers

I did 100+ customer calls in year one. Every major feature came from these conversations.

4. Pricing is Hard

Experimented constantly. Your first price is always wrong. Test and adjust.

5. Distribution > Product

An okay product with great distribution beats a great product with no distribution.

6. Sustainability Matters

Growth at all costs is a trap. I focused on profitable growth from month one.

What's Next

Currently at $10K MRR with a team of one (me). Next goals:

  • $25K MRR by focusing on enterprise customers
  • Hire first support person at $15K MRR
  • Build product partnerships
  • Expand into adjacent markets

Resources That Helped

  • Books: The Mom Test, Traction, Obviously Awesome
  • Podcasts: Startups For the Rest of Us, Indie Hackers
  • Communities: Indie Hackers, r/SaaS, Twitter #buildinpublic

Final Thoughts

Building a SaaS is a marathon, not a sprint. Most overnight successes took 2-3 years. Focus on solving real problems, talk to customers, and be patient with growth.

The best time to start was yesterday. The second best time is now.

Want to build your own SaaS?

Book a Call
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Written by Shahzad Farooq

Full-stack developer and entrepreneur with 10+ years of experience building digital products. I write about development, architecture, and the business of software.

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