Strategy

Build vs Buy vs Invest: A Solo Founder's Guide to Getting Started

Why building your own SaaS might be the best path forward in 2024 - and when to consider alternatives like acquisition or investing

Harlaksh Singh•

It's 11 PM on a Tuesday. You're sprawled on your couch, mindlessly scrolling through Twitter (or X, or whatever we're calling it these days), when that all-too-familiar post pops up: "Just hit $10K MRR! 🚀 Bootstrapped, solo founder, started 6 months ago..." Your heart does that weird little dance it always does - part excitement, part envy, and a whole lot of "why am I not doing this yet?"

Trust me, I know exactly how you feel. I've spent countless nights staring at my ceiling, playing out different scenarios in my head. Should I pour my savings into buying someone else's business? Maybe I should just invest in a promising startup and call it a day? Or do I take the plunge and build something from nothing?

But what path should you take?

The Build Approach (My Favorite!)

Let's be real - there's nothing quite like building something from scratch. Here's why I love it:

  • Complete creative freedom to scratch your own itch
  • Start lean with just nights & weekends
  • Build in public and grow an audience
  • Learn invaluable technical and business skills
  • Bootstrap with minimal upfront costs
  • Potential for massive upside if it works

The Buy Strategy (For the Patient Ones)

Buying an existing business can work, but it's tricky:

  • Need significant capital upfront ($50k-$500k+) - though this has changed with micro acquisitions with the rise of marketplaces like Flippa & MicroAcquire
  • Hard to verify revenue/customer claims
  • Inheriting technical debt & design decisions
  • Risk of customer churn during transition
  • Complex due diligence process

The Investment Route (The "Safe" Option)

Investing might seem safer, but consider:

  • Missing out on hands-on learning
  • Limited control over outcomes
  • Need deep pockets to diversify properly
  • Hard to pick winners consistently
  • Lower ceiling on potential returns

Why I'm Betting on Building

Here's my take - if you're just starting out, building is the way to go because:

  1. You can start TODAY with just your laptop or even just your phone
  2. AI tools make it easier than ever - AI has 100x'd the speed of building
  3. The indie hacker/founder/entrepreneur community provides amazing support
  4. You'll learn skills that compound over time
  5. Success or failure, the experience is invaluable

Remember: The best businesses often start as tiny experiments. Start small, ship fast, and let your users guide the way!