Should You Really Pivot from Services to Software? 3 Questions to Ask Before You Jump
Let's be honest—we've all been there. You're running a successful service business, but at night you dream about building the next big SaaS product. The allure is undeniable: recurring revenue that doesn't depend on billable hours, the chance to scale without hiring an army of people, and those sweet, sweet software company valuations. I get it. After spending years helping service business founders navigate this exact transition, I've seen the good, the bad, and the downright ugly. Here's what I've learned: the companies that succeed don't just chase the software dream because it sounds sexy—they make calculated decisions based on their unique situation. Before you start interviewing developers or sketching wireframes on napkins, take a breath and ask yourself these three crucial questions. ❓Question 1: "Is Your Service Actually Solving a Software-Worthy Problem?" Not every great service translates into great software. Many founders miss this fundamental point. Look for Patterns, Not One-Offs When you look across your client work, are you repeatedly solving the same problem with minor variations? Or is every project a beautiful snowflake of uniqueness? If you constantly find yourself saying "Well, this client is different because..." you might be solving problems that are too customized for software. But if you catch yourself thinking "Here we go again, solving the same issue for the fifth time this month," you've spotted a potential software opportunity. The Pain Test For software to succeed, the problem needs to hurt enough that people will pay to make it go away—and it needs to hurt for lots of people, not just your existing clients. I worked with a marketing agency that thought their client reporting process would make perfect SaaS. But when they dug deeper, they realized the pain wasn't acute enough. Most potential customers had cobbled together "good enough" solutions with spreadsheets and were reluctant to pay for something better. The Automation Reality Check